Volume 29, Issue 1/4, 2010
A. N. M. Waheeduzzaman, Elwin Myers
Influence of Economic Reward and Punishment on Unethical Behavior
An Empirical Study
The study seeks to determine the influence of economic reward on unethical behavior with the help of a Reward Punishment Model. The model postulates that ethical or unethical behavior depends on the relationship among three factors: economic reward or benefit that a businessperson receives from the unethical practice, the severity of punishment the society imposes for such wrong-doing, and the probability of receiving the punishment. A short survey, which contained a hypothetical ethical situation, was administered to 251 respondents. The findings indicate that the probability of risk-taking decreases as the level of punishment
and the chance of being caught increases.