Framing and Situational Ethics

Prospect theory (Kahneman and Tversky, 1979) suggests a number of subjective biases to which human judgment is prone (such as the framing effect). Economic consequences of such biases have received ample attention; however, potentially important ethical implications have been neglected. We conducted an experiment in which 81 M.B.A. students were asked to choose between two courses of action, one less ethical than the alternative. Printed scenarios varied the framing of the choice problems. Findings suggest that the propensity to choose a less ethical course of action over a more ethical alternative can be influenced by how a decision problem is described or framed.