The chapter discussed how Arthur Andersen’s organizational culture had become so strong that some of its partners and their subordinates began to act unethically and pursue their own short-run interests at the expense of other stakeholders. Many employees knew they were doing wrong but were afraid to refuse to follow orders. At Beech-Nut, the company’s ethical values completely broke down: Managers joked about harming stakeholders.
Why is it that an organization’s values and norms can become too strong and lead to unethical behavior?