Enforcements, Inducements, Expected Utility and Employee Misconduct

Both agency theory and organization theory have considered the problem of employee misconduct -employee decisions to pursue selfinterest at the expense of their principal or employer Integrating these two theoretical perspectives, this article describes the empirical results of a study that examines the effects of inducements and enforcements on individuals' estimates that employee misconduct would occur The effects of these factors were considered within a context where the expected value of engaging in misconduct was positive. Although inducements and enforcements were both significantly related to estimates of misconduct, the rationales providedfor instances of employee misconduct suggest that otherfactors, such as ethical, cost, or risk considerations, may also affect estimates that employees will engage in misconduct.