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8 Calif. L. Rev. Online 1 (2017)

handle is hein.journals/callro8 and id is 1 raw text is: California Law Review Online VOL. 8 APRIL 2017 Copyright © 2017 by California Law Review, Inc. The Ethics of Intracorporate Behavioral Ethics Todd Haugh* INTRODUCTION Behavioral ethics, the study of how and why people make ethical and unethical decisions, has come into its own. Following a meteoric rise over the last decade, the discipline has grown to occupy a distinct space within business ethics. What sets it apart is a focus not on the normative question of how individuals should act when facing ethical business quandaries-the province of moral philosophers and traditional business ethicists-but on the empirical question of how individuals actually do act in moral contexts and why that is. Researchers have found that a host of situational and social factors influence ethical decision-making; most of us are ethical, but only boundedly so. That insight, and the follow-on practical implications for corporate compliance, offers companies new and more effective approaches to lessen legal and ethical breaches by their employees. Corporate leaders are beginning to see behavioral ethics as the way to achieve more effective compliance at less cost. Amid the promise of using behavioral ethics strategies to lessen corporate wrongdoing, however, lies a nagging unease. If ethical decision-making can be influenced by situational factors, then altering the conditions under which individuals make those decisions can change their behavior. And because much DOI: https://dx.doi.org/10.15779/Z38TD9N731 Copyright © 2017 California Law Review, Inc. California Law Review, Inc. (CLR) is a California nonprofit corporation. CLR and the authors are solely responsible for the content of their publications. * Assistant Professor of Business Law and Ethics, Indiana University, Kelley School of Business; Jesse Fine Fellow, The Poynter Center for the Study of Ethics and American Institutions; 2011-12 Supreme Court Fellow, Supreme Court of the United States. 1

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