This chapter by David De Cremer (Erasmus University) argues for a behavioral ethics approach to understanding and managing ethical failures in organizations. It contrasts prescriptive (philosophical) approaches with descriptive/psychological methods, reviews experiments showing strong negative reciprocity and the limited power of positive reciprocity, and discusses prevention (sanctions, promises) and repair (financial compensation, apologies) of trust violations, stressing situational contingencies.

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David De Cremer

Erasmus University

Ultimatum game and dictator game

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