Does Competition Destroy Ethical Behavior? By ANDREI SHLEIFER* This paper shows that conduct described as unethical and blamed on “greed” is sometimes a consequence of market competition. I illustrate this observation using examples of five cen- sured activities: employment of children, cor- ruption, excessive executive pay, corporate earnings manipulation, and involvement of uni- versities in commercial activities. In all these examples, I show how competitive pressures lead to the spread of the censured behavior.
- ecutive pay
- source of competitive pressure
- ethical behavior
- earnings
- stock
- executive
- real world
- corruption
- competition
- market