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124 Chapter 7: Fairness and Ethics in Decision Making

decisiveness that System 1 thinking (discussed in Chapter 1) provides. System 1 thinking

allows the biases created by bounded ethicality to develop, which in turn leads to

decisions that deviate from one’s personal standards.

Like the other biases reviewed in this book, the biases emanating from bounded

ethicality apply to all of us, even the best and the brightest. In March 2004, for example,

Justice Antonin Scalia denied a motion from the Sierra Club to recuse himself from an

upcoming Supreme Court case, Cheney v. U.S. District Court for D.C. Scalia had

hunted ducks in Louisiana with Vice President Dick Cheney in January 2004, just three

weeks after the Supreme Court had agreed to consider whether Cheney should be

forced to provide information about the energy task force he had led as the Bush administration

formulated its environmental policy. The Sierra Club argued that Scalia and

Cheney’s friendship compromised Scalia’s objectivity. ‘‘If it is reasonable to think that a

Supreme Court justice can be bought so cheap, the nation is in deeper trouble than I

had imagined,’’ Scalia wrote in defense of his decision (Janofsky, 2004). His friendship

with the vice president would not intentionally distort his judgment, Scalia argued, and

did not violate the Supreme Court’s rules on conflicts of interest.

But the rules governing the Supreme Court, like most guidelines, rules, and laws

that protect against conflict of interest, were generated to guard only against intentional

corruption (Banaji, 2004). Scalia’s comments indicate that he either chose to ignore or

was unaware of the strong evidence of the psychological aspects of conflict of interest.

In this section, we will provide evidence that many of the strictest of conflict-of-interest

guidelines are not sufficient to address those conflicts of interest that escape the awareness

of the professional being affected. For instance, psychologists have shown that a

friendship between two people makes it impossible for one friend to objectively assess

issues involving the other.

This chapter looks at seven examples of bounded ethicality: overclaiming credit

without realizing that you are doing so, in-group favoritism, discounting the future, implicit

attitudes, the psychology of conflicts of interest, indirectly unethical behavior, and

pseudo-sacred values. In each case, we present research showing that such behaviors

occur beyond an actor’s conscious awareness.

Overclaiming Credit

Ross and Sicoly (1979) asked married couples to estimate the percentage of household

chores, such as washing the dishes or taking out the trash, they each personally performed.

When the percentages offered by husbands and wives were added, the percouple

average was close to 140 percent. Since this original demonstration by Ross and

Sicoly, overclaiming of credit for work performed has been demonstrated in academia

(Caruso, Epley, & Bazerman, 2006), athletics (Brawley, 1984; Forsyth & Schlenker,

1977), and fundraising (Zander, 1971), just to name a few fields (see Caruso, Epley, &

Bazerman, 2005 for a review). The roots of overclaiming are the self-serving biases reviewed

in detail in Chapter 5. Even honest people believe they contribute more to an

enterprise than they actually do.

Overclaiming can also be a factor at the organizational level. Researchers have

puzzled over the question of why joint ventures so often result in disappointment

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