Unfortunately, some employees are rewarded for being unethical, while others are disciplined for being ethical. For example, some auto repair shops pay a commission for work done, so mechanics are paid more if they get customers to buy parts and services they don’t need. Mechanics who have a below-average number of repairs may be considered underachievers and may be pressured, through discipline, to perform unneeded repair work. Similarly, those in the medical field may push unnecessary tests or even treatments.

1. Have you ever been in or known of a situation in which people were rewarded for being unethical and disciplined for being ethical? If so, describe the situation.

2. Is it ethical and socially responsible for firms to establish controls that reward unethical behavior and discipline ethical behavior to make more money?