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Contests and unethical behavior in organizations: a review and synthesis of the empirical literature

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  • Simon Piest

    (Martin-Luther-University Halle-Wittenberg)

  • Philipp Schreck

    (Martin-Luther-University Halle-Wittenberg)

Abstract

Contests are widely used in business contexts because they are believed to increase the effort and performance levels of employees. One negative aspect of contests is that they may provide incentives for unethical behavior aimed at improving one’s own position relative to that of competitors. It is therefore important to understand how companies should design contests so as to reduce unethical behavior without reducing the positive effects of contests on employee effort. Research from the social and behavioral sciences can offer relevant insights on this question, as in those fields competition is a subject of sustained academic interest. The aim of this review is to offer a systematic account of the growing literature on contests and unethical behavior and shed light on why and when contests among employees may lead to unethical behavior. To this aim, we also develop a framework for organizing the vast, multi-disciplinary literature in a structured and integrative manner. Through this endeavor, our review identifies several directions for future research.

Suggested Citation

  • Simon Piest & Philipp Schreck, 2021. "Contests and unethical behavior in organizations: a review and synthesis of the empirical literature," Management Review Quarterly, Springer, vol. 71(4), pages 679-721, October.
    • Handle: RePEc:spr:manrev:v:71:y:2021:i:4:d:10.1007_s11301-020-00197-3
    DOI: 10.1007/s11301-020-00197-3
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    2. Subhasish M. Chowdhury & Anastasia Danilov & Martin G. Kocher, 2023. "The Lifecycle of Affirmative Action Policies and Its Effect on Effort and Sabotage Behavior," Rationality and Competition Discussion Paper Series 401, CRC TRR 190 Rationality and Competition.
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    More about this item

    Keywords

    Behavioral business ethics; Cheating; Competition; Competitiveness; Sabotage; Tournament;
    All these keywords.

    JEL classification:

    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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