Managing dishonesty

There always have been people who have lied and cheated.

We assume, perhaps unfairly, that politicians are more guilty than most.

It is surprising to learn that in the United States more than half of those in graduate schools of business admitted to having cheated in the previous year, but regular students were slightly less dishonest.

Recently, many instances of errant behavior have been reported. For instance, Enron executives were guilty of such serious misconduct that it helped to destroy that company.

Also, the head of an investment firm became involved in a pyramid scheme that fleeced investors out of millions of dollars. Executives, too, have overstated their qualifications, and had to forfeit their jobs.

There are so many instances of politicians capable of not telling the truth that we all can recall them. The alleged cover-up of the true costs of the F-35 fighter plane or the outrageous expense accounts of a cabinet minister serve as reminders.

In the United States, in an effort to diminish dishonesty, a law was passed that makes company chief executives liable for misstating financial results. In rising amounts shareholders are trying to hold companies responsible for bad or criminal behavior.

As a result of scandals and broken promises, increasing numbers have started to distrust all businesses. Also, nowadays the internet provides a permanent record of falsehoods.

In a book by Daniel Ariely, Truth about Dishonesty, the author, who teaches social psychology at Duke University, believes the vast majority of people probably do use some form of dishonesty. Their motives range from a form of self-aggrandizement or to providing the best credentials for getting an interview for a job.

Circumstances clearly affect lying. If it is assumed that others lie, that encourages more of the same. Travelers are prone to lie if they are in a foreign country, where few are around to dispute anything. Sales representatives are notorious for misrepresenting their products.

Certainly all too frequently people are not forthright about their personal conduct outside of marriage. Children who probably do not know any better may tell a fib to draw attention to themselves.

What can be done about liars and cheaters?

Harsh punishment often fails, as it may not catch the culprits. Signing a written declaration of honesty may help. Maybe more of that “old time religion” is needed.

 

Bruce Whitestone

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