The dos and don’ts of encouraging moral behavior in the workplace

People are more likely to engage in moral behaviors at work when they are encouraged to do so. But should you actively incentivize them to behave in such a fashion?

It all starts with status

In general, higher status is assigned to individuals who are perceived as virtuous. In other words, status is socially given by others and allows an individual to be admired by their peers. In the workplace, status confers such benefits as the ability to influence others (which could help employees in terms of career advancement).

The problem with material incentives

Research by Feng Bai and others suggests that, while acting morally usually helps people increase their status, it doesn’t do so when that behavior is perceived as incentivized. This is because such behavior is perceived to be motivated more by expectation of reward and less by the authentic desire to be helpful or act selflessly. In other words, when generosity, benevolence, and helpfulness are perceived as the result of incentives, people are not given extra status for such behavior because they are perceived as being inauthentic.

What implications does this have for you as a leader?

First, you should engage in ‘authentic’ moral behaviors in the workplace, such as helping others and exhibiting generosity, because this will help to increase your status – but you should not do so when it might appear that your behavior is motivated by incentives.

What implication does it have for your organization?

The same goes for your team. While it is good to formally encourage others to engage in moral behaviors, it is better not to incentivize this through formal incentives. Instead, make sure to give ample recognition to those who behave ‘morally’ by publicly highlighting or verbally acknowledging it in performance reviews and through other means of encouragement that do not consist of tangible rewards.

Key learning

As a leader, foster a culture where behaving selflessly and helping others is the norm – but not through material incentives. And remember, in this context it’s all about being authentic – this is important for attaining status, both for you and the individuals you manage.

Jennifer Jordan

Professor of Leadership and Organizational Behavior

Jennifer Jordan is a social psychologist and Professor of Leadership and Organizational Behavior at IMD. Jennifer’s teaching, research, and consulting focus on the areas of digital leadership, ethics, influence, and power. She has received specialized training and certifications in lie and truthfulness detection, as well as in conflict resolution within organizations. She is Program Director of the Women on Boards and the Leadership Essentials program, and co-Director of the Leading Digital Execution program.