Understanding the Ethical Cost of Organizational Goal-Setting: A Review and Theory Development

Journal of Business Ethics · 2008 · Volume 81 · Issue 1

Abstract

Goal-setting has become a popular and effective motivational tool, utilized by practitioners and substantiated with decades of empirical research. However, the potential for goal-setting to enhance performance may come at the cost of ethical behavior. I propose a theoretical model linking attributes of goals and goal-setting practices to unethical behavior through two psychological mechanisms – ethical recognition and moral disengagement; and addressing the moderating role of individual differences (e.g., goal-commitment and conscientiousness), as well as the broader organizational ethical context.

Keywords

business ethics, corruption, goal-setting, motivation, self-regulation

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