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Spread of Unethical Behavior in Organizations: A Dynamic Social Network Perspective

Franziska Zuber

Received: 19 June 2013 / Accepted: 20 June 2014 / Published online: 10 July 2014

� Springer Science+Business Media Dordrecht 2014

Abstract The spread of unethical behavior in organiza-

tions has mainly been studied in terms of processes

occurring in a general social context, rather than in terms of

actors’ reactions in the context of their specific social

relationships. This paper introduces a dynamic social net-

work analysis framework in which this spread is concep-

tualized as the result of the reactions of perpetrators,

victims, and observers to an initial act of unethical

behavior. This theoretical framework shows that the social

relationships of the actors involved in an initial act impact

in multiple ways the likelihood that unethical behavior

spreads. It reveals furthermore that social relationships may

change in the wake of unethical behavior, such that indirect

negative consequences can arise for organizations. The

proposed framework provides a basis for the development

of a formal stochastic actor-oriented model of network

dynamics which would enable simulations of the spread of

unethical behavior.

Keywords Unethical behavior � Misconduct � Contagion � Spread � Social network analysis

Introduction

The Occupy Wall Street movement has most vividly

expressed a loss of trust in the prevailing (Western) eco-

nomic and political systems in the aftermath of the global

financial crisis. A ‘‘pattern of dishonesty on the part of

financial institutions’’ (Stiglitz 2008, p. 30) that is consid-

ered to have contributed to the global financial crisis has

fueled this loss of trust not only within this movement, but

also with many citizens. This illustrates that the negative

consequences of widespread unethical behavior in organi-

zations can be significant, not only for the involved orga-

nizations, but also for society, because organizations are

the central agents in today’s economic and political sys-

tems. To be able to limit the spread of unethical behavior

and avoid negative consequences, those managing and

regulating organizations need an understanding of the

processes by which unethical behavior spreads in organi-

zations, and of the conditions under which unethical

behavior is particularly likely to spread.

This paper aims at identifying such processes and con-

ditions to further the understanding of the spread of

unethical behavior, which is defined as an increase over

time in the number of acts of unethical behavior, and in the

number of actors involved in these acts (see also Spread, n.

(Def. 4b). March 2013; Spread, v. (Def. 6, 12a). March

2013). In other words, the spread of unethical behavior

occurs when an initial act of unethical behavior is followed

by subsequent acts of unethical behavior (e.g., Ashforth

and Anand 2003; Palmer 2008) by actors actively or pas-

sively involved in the initial act. Unethical behavior is

behavior that is ‘‘either illegal or morally unacceptable to

the larger community’’ (Jones 1991, p. 367).

The spread of unethical behavior in organizations has

mainly been studied in terms of group-level processes

occurring in a general social context (e.g., den Nieu-

wenboer and Kaptein 2008; Pinto et al. 2008), prescinding

from specific relationships between actors involved in an

act, or has focused on collective acts (e.g., Ashforth and

Anand 2003; Brief et al. 2001). The role of social rela-

tionships in understanding the phenomenon of unethical

F. Zuber (&) Department of Business-Society Management, Rotterdam

School of Management, Erasmus University Rotterdam,

P.O. Box 1738, 3000 DR Rotterdam, The Netherlands

e-mail: FZuber@rsm.nl

123

J Bus Ethics (2015) 131:151–172

DOI 10.1007/s10551-014-2270-0

behavior in organizations has been emphasized by Brass

et al. (1998) who have applied a social network perspec-

tive. In their account for the spread of unethical behavior,

they have argued that relationships between perpetrators

and observers lead to similar attitudes toward unethical

behavior, which in turn can cause the spread of unethical

behavior from perpetrators to observers. Building on Brass

et al.’s (1998) work, this paper draws upon recent advances

in modeling the evolution of social networks and findings

in business ethics research to propose a dynamic actor-

oriented social network framework for examining the

spread of unethical behavior.

The dynamic social network perspective proposed here

extends current theoretical approaches to the spread of

unethical behavior in two important respects. First, a three-

fold role of social relationships in the process of spread is

proposed. In addition to considering social relationships as

channels for the transmission of social information about

unethical behavior as in extant research (e.g., ideologies

and practices in Ashforth and Anand 2003; attitudes in

Brass et al. 1998; norms in den Nieuwenboer and Kaptein

2008), the proposed perspective also considers how an

actor’s social relationships influence his cognitive appraisal

of, and ensuing behavioral reaction to an act of unethical

behavior. Furthermore, the proposed perspective examines

how social relationships can change as a result of unethical

behavior, rather than regarding them as antecedent factors

only, and how such changes can facilitate further unethical

behavior in later stages. Second, the role of perpetrators,

victims, and observers in spreading unethical behavior is

examined. While extant research on the spread of unethical

behavior mainly analyzes the role of perpetrators and

observers, considerable work on retaliation and revenge in

the workplace (e.g., Bies and Tripp 2004; Skarlicki and

Folger 2004) has shown how victims’ reactions can also

lead to the spread of unethical behavior.

The mutual dependencies between actors’ interpersonal

relationships and their involvement in acts of unethical

behavior are represented in a dynamic actor-oriented social

network framework that includes actors’ interpersonal

relationships as well as their relationships to acts of

unethical behavior as perpetrators, victims, or observers. In

this theoretical framework, the spread of unethical behavior

is conceptualized as arising from perpetrators’, victims’,

and observers’ reactions to initial unethical behavior in the

context of their specific social relationships. The actors’

reactions are explained by drawing on theories of social

cognition and findings from behavioral business ethics

research, and are represented in the framework as changes

in the actors’ relationships to acts of unethical behavior and

other actors.

This paper’s focus on the spread of unethical behavior

implies that possibilities to confine the spread of unethical

behavior are beyond its scope. Accordingly, I also focus on

subsequent unethical behavior as a reaction to an initial act

of unethical behavior, rather than on other reactions such as

confronting the perpetrators, reporting, whistleblowing, or

reconciliation (e.g., Gundlach et al. 2003; Kaptein 2011;

Palanski 2012). The micro-level perspective on individual

actors’ reactions in the context of their relationships

applied here implies that well-known macro-level charac-

teristics of networks such as structural holes, density, or

cliques are not discussed. Finally, I examine how unethical

behavior spreads once an initial act has been committed,

and do not examine the emergence of initial acts of

unethical behavior. In their pioneering article, Brass et al.

(1998) have studied the ‘‘question of under what social

network conditions are we likely to see unethical behavior’’

(Brass et al. 1998, p. 15).

The remainder of this paper is structured as follows.

First, the dynamic social network perspective on the spread

unethical behavior in organizations is described. Next, I to

propose when and why perpetrators, victims, and observers

are likely to react to an initial act of unethical behavior by

committing subsequent acts, and translate these reaction

tendencies into the social network framework. I conclude

by discussing the proposed framework, its implications and

limitations and provide guidance for future research.

Social Networks and the Spread of Unethical Behavior

The focus on social relationships between actors is at the

core of social network analysis (Brass et al. 1998). Brass

et al. (1998) have pioneered a social network perspective

on ethics and ethical behavior in organizations and have

inspired a variety of research analyzing social networks

and unethical behavior at different levels of analysis (e.g.,

Lyons and Scott 2012; Sullivan et al. 2007). A Special

Issue of the Journal of Business Ethics dedicated to net-

work ethics, which focused in particular on the impact

information and communication technologies (Vaccaro

et al. 2009), illustrates the broad range of possible appli-

cations of a social network perspective. While researchers

use concepts from social network analysis in their analysis

of unethical behavior (e.g., Moore 2009; O’Fallon and

Butterfield 2011; Shadnam and Lawrence 2011), research

using social network models still appears to be rather rare.

In their analysis of the spread of unethical behavior,

Brass et al. (1998) propose two mechanisms to explain why

observers of an initial act of unethical behavior commit

subsequent acts. The cohesion mechanism suggests that

when there is a positive relationship between two actors,

they interact and communicate more frequently, are

therefore likely to develop similar attitudes toward uneth-

ical behavior, and to imitate each other’s unethical

152 F. Zuber

123

behavior (Brass et al. 1998, p. 25). In the equivalence

mechanism, actors who are similarly positioned in the

network compare themselves with each other and are

indirectly aware of the other’s behavior. Therefore, they

tend to adopt the other’s attitudes toward unethical

behavior, and to imitate the other’s behavior (Brass et al.

1998, p. 25). These two mechanisms focus exclusively on

the role of social relationships between perpetrators and

observers as channels for the transmission of attitudes. By

contrast, the possibility that social relationships impact

reactions to unethical behavior, the role of the victim and

his relationships, as well as the impact of unethical

behavior on social relationships are not considered. By

including these elements in a social network framework for

the spread of unethical behavior, a more comprehensive

view on the processes which can cause the spread of

unethical behavior can be achieved.

Relevant Actors and Relationships

Research has investigated how different actors actively or

passively involved in acts of unethical behavior react to

this experience. One line of research has focused on how

perpetrators react to their own acts (e.g., Tenbrunsel and

Messick 2004; Zhong et al. 2009, 2010); a second line of

research has examined victims’ reactions (e.g., Aquino

et al. 2001, 2006; Bies et al. 1997; Kim et al. 2008;

Mitchell and Ambrose 2012; Tripp et al. 2007), and a third

line has studied observers’ reactions (e.g., Gino et al. 2009;

O’Fallon and Butterfield 2011, 2012; O’Reilly and Aquino

2011; Robinson and O’Leary-Kelly 1998; Rupp and Bell

2010; Umphress et al. 2013). This research indicates that

each of these actors can react to an act of unethical

behavior by committing subsequent acts, or, alternatively,

by engaging in other, pro-social behaviors, and underscores

the importance of considering reactions of all three actors

when investigating the spread of unethical behavior. The

reasons which motivate subsequent unethical behavior,

however, differ between perpetrator, victim, and observer,

and will be discussed later.

From a social network analysis perspective, perpetra-

tors, victims, and observers can be seen as having each a

specific type of relationship to an act of unethical behavior.

These specific relationships can be represented in two-

mode networks. Two-mode networks are used in social

network analysis to represent actors’ participation in

activities or membership in groups (Borgatti and Halgin

2011). For example, a perpetrator and an observer of a

given act of unethical behavior can be thought of as being

involved in the same act, where each has a distinct type of

relationship to the act.

With respect to interpersonal relationships, Brass et al.

(1998) have described how positive or neutral relationships

between observers and perpetrators can lead observers to

imitate the perpetrator’s unethical behavior. They have also

noted that negative relationships are expected to be posi-

tively related to unethical behavior due to the lack of

empathy and psychological proximity implied by such

relationships (Brass et al. 1998, p. 18). Negative relation-

ships ‘‘represent an enduring, recurring set of negative

judgments, feelings and behavioral intentions toward

another person’’ (Labianca and Brass 2006, p. 597). Even

though most relationships in organizations are positive or

at least neutral (Labianca and Brass 2006; Robins et al.

2009), negative relationships have a greater impact on task-

related and socioemotional outcomes compared to positive

or neutral relationships due to their higher salience (Labi-

anca and Brass 2006). As a result of this negative asym-

metry, negative relationships can be expected to have an

important impact on the spread of unethical behavior, and

should be considered in the social network perspective

along with positive relationships. The specific role of

negative relationships in the spread of unethical behavior

will be discussed later when describing the reactions of

perpetrators, victims, and observers.

Emergence of Reactions in Social Networks: Social

Cognition

To understand when actors are likely to commit subsequent

unethical behavior after their involvement in an initial act

we need to examine how their reactions emerge. The

reactions of perpetrators, victims, and observers to an act of

unethical behavior are based on their perception and

interpretation of this social event, rather than on its

objective characteristics (if such objective characteristics

exist at all) (Sonenshein 2007). Perpetrator, victim, and

observer each have a different perspective on the act, and

therefore react differently. These different reactions, how-

ever, can all be seen as the outcome of a process of social

cognition (e.g., Aquino et al. 2001; Gundlach et al. 2003;

O’Reilly and Aquino 2011) taking place in the context of

the actors’ social relationships. Affective events theory

(Weiss and Cropanzano 1996) describes this process of

social cognition as a three-stage appraisal process, in which

actors interpret the information conveyed by a social event,

and then react based their appraisal (Weiss and Cropanzano

1996). Each stage of this process is described below, and

will be examined from the specific perspectives of perpe-

trator, victim, and observer later in this paper.

Initial Affective Appraisal

The process ‘‘begins with an event which is initially

evaluated for relevance to well-being in simple positive or

negative terms’’ (Weiss and Cropanzano 1996, p. 31) by

Dynamic Social Network Perspective 153

123

the actor. A negative event is defined as ‘‘one that has the

potential or actual ability to create adverse outcomes for

the individual’’ (Taylor 1991, p. 67). Events which carry an

initial negative affective evaluation elicit higher physio-

logical and psychological arousal compared to positive

events, and lead to increased causal reasoning in the next

stage of the appraisal process (Bohner et al. 1988; Martinko

et al. 2002; Taylor 1991; Weiner 1985a).

From a perpetrator’s perspective, his act of unethical

behavior exposes him to the risk of social and self-sanc-

tions, and can therefore represent a negative event. For a

victim, the adverse outcome of the event is manifest in the

perceived harm caused to him by the act of unethical

behavior. For an observer, an act of unethical behavior can

be a negative event, because it can indicate that he might

become victim of such behavior in the future; because

sanctions directed against the perpetrator could also affect

him to the extent that he is socially related to the perpe-

trator; and/or because the moral norms of the community

are violated, thereby threatening the social order and the

welfare of the community as a whole (Haidt 2003). A

perpetrator’s, victim’s, or observer’s evaluation of an act of

unethical behavior as negative event triggers a process of

intensive causal reasoning and attributions in the secondary

cognitive appraisal stage.

Secondary Cognitive Appraisal

The search for a causal explanation represents a sense-

making process (Martinko et al. 2002, p. 41). Attribution

theory (Kelley 1973) describes how actors generate causal

explanations to make sense of their and other’s behavior.

Based on these causal explanations, actors form judgments

of responsibility for their own or others’ behavior (Weiner

1985b, 1995). Attribution theory has been fruitfully applied

to explain reactions to negative events in research on

counterproductive workplace behavior (Martinko et al.

2002), workplace aggression and revenge (Aquino et al.

2001, 2004; Martinko and Zellars 1998), abusive supervi-

sion (Bowling and Michel 2011; Shoss et al. 2013),

injustice and mistreatment in organizations (Mikula 2003;

O’Reilly and Aquino 2011), and whistle-blowing decisions

(Gundlach et al. 2003).

According to attribution theory, the causal analysis

leading to a judgment of responsibility involves the con-

sideration of three main elements (Weiner 1995): Whether

the actor or the situation is the main cause (personal vs.

situational causality); whether the actor can willfully con-

trol his behavior (controllability); and whether any miti-

gating circumstances are present which could explain the

actor’s behavior. If personal causality, controllability, and

the absence of mitigating circumstances are established, an

actor is assigned responsibility for his act of unethical

behavior. Finally, Weiner (1995) argues that the degree of

responsibility assigned to an actor depends on the assess-

ment of intention as opposed to negligence on the part of

the actor in committing the act. 1

The consideration of personal causality, controllability,

mitigating circumstances, and intention is subject to biases,

both when actors examine their own and when they

examine others’ behavior (Martinko et al. 2006). The bia-

ses depend on the actor’s position in relation to the act

under consideration, and will therefore be different for

perpetrator, victim, and observer of an act of unethical

behavior. I discuss those biases later when addressing the

specific reactions of perpetrator, victim, and observer. With

the assignment (or not) of responsibility for an act of

unethical behavior, the secondary cognitive appraisal of the

act is completed.

Tertiary Emotional Appraisal

The cognitive appraisal then gives rise to ‘‘discrete emo-

tions like anger, sadness and joy’’ (Weiss and Cropanzano

1996, p. 31) in the third stage of the process (Weiner

1985b, 1995). Emotions imply a certain state of action

readiness and create action tendencies to ‘‘establish[ing] or

modify[ing] the relationship between the subject and a

concern-relevant target’’ (Frijda and Parrot 2011, p. 407).

These action tendencies become manifest in the behavioral

reaction to the event (Weiner 1995). While behavioral

reactions to social events can be motivated by different

positive or negative emotions, two negatively valenced

moral emotions (Haidt 2003; Tangney et al. 2007) are

especially relevant for the emergence of reactions to

unethical behavior: Guilt and anger. Positively valenced

moral emotions (elevation, gratitude, and moral pride,

Tangney et al. 2007) are less relevant as I examine reac-

tions to unethical (rather than ethical) behavior. Guilt and

anger motivate reactions to moral transgressions (Haidt

2003; Tangney et al. 2007) and signal the need for cor-

rective reactions (Haidt 2003, p. 862) in the wake of

unethical behavior. In the absence of these emotions, no

motivation for corrective action is triggered, such that

reactions may reinforce rather than counteract the initial

act of unethical behavior.

Guilt arises when an actor judges himself to be

responsible for an act of unethical behavior (Weiner 1985b,

1995). Anger arises when an actor judges another actor to

be responsible for an act of unethical behavior (Gundlach

1 Margolis (2001) provides an insightful discussion on the relation-

ship between causal and moral responsibility involving both norma-

tive arguments on moral agency and descriptive arguments on

psychological and social forces in organizations. I do not repeat this

discussion here due to limitations of space, and instead refer the

reader to Margolis’ article.

154 F. Zuber

123

et al. 2003; Weiner 1995). Both anger and guilt have an

interpersonal dimension, which is particularly important

from a social network perspective: Anger is other-con-

demning (Haidt 2003), in that actors are angry at others

(Gibson and Callister 2010), and evokes behavioral ten-

dencies to attack or get back at the actor held responsible

for the reprehensible behavior (Folger and Skarlicki 2004;

Haidt 2003; Weiner 1995). Guilt in turn arises in particular

when harm is caused to a relationship partner (Baumeister

et al. 1994; Haidt 2003) and involves other-oriented con-

cerns (Tangney et al. 2007). Baumeister et al. (1994,

p. 246) posit that guilt ‘‘combines empathic distress with a

self-attribution of causal responsibility for the other’s suf-

fering’’. Guilt by consequence triggers the motivation to

make up for one’s behavior and the damage caused (Haidt

2003; Tangney et al. 2007), and can motivate compensa-

tory ethical actions as shown for example by Zhong and

Lilijenquist (2006) and Zhong et al. (2009, 2010).

To summarize, perpetrators’, victims’, and observers’

relationships to acts of unethical behavior, their positive

and negative interpersonal relationships, as well as their

reactions to the acts actors are the key elements of a social

network framework for the spread of unethical behavior in

organizations. The basis for such a framework is provided

by a type of dynamic social network models that allows for

these features: actor-oriented models for the evolution of

networks.

Integrating Relationships and Reactions: Actor-

Oriented Models for Network Dynamics

Researchers interested in how social relationships influence

behavior over time, and vice versa, have applied stochastic

actor-oriented models for network dynamics. For example,

they have studied the co-evolution of friendship networks

and delinquent behaviors among adolescents (Burk et al.

2007), or the selection and influence effects of aggression

in adolescent friendship networks (Dijkstra et al. 2011;

Sijtsema et al. 2010). In an organizational context, Schulte

et al. (2012) have studied the co-evolution of interpersonal

relationships and perceptions of team psychological safety

using this type of model.

In stochastic actor-oriented models of network dynam-

ics, a network of directed ties (i.e., a tie from actor i to

actor j is distinct from a tie from actor j to actor i) evolves

over time through the actions or decisions of the actors in

the network. Actors change their relationships such that

they ‘‘attain a rewarding configuration of the network’’

(Huisman and Snijders 2003, p. 257) as formally defined in

their objective function or evaluation function. This func-

tion probabilistically determines what change actors make

in their current outgoing ties when given the opportunity to

do so, and characterizes the ‘‘actor-driven micro-mecha-

nisms’’ of the network (Snijders et al. 2010, pp. 45–46).

Components of this objective function are the so-called

effects, which capture an actor’s tendency to create (or

terminate) relationships in response to specific constella-

tions in his relationships (Snijders et al. 2010). A simple

example for such an effect is the tendency to reciprocate

friendship, i.e., when an actor receives a friendship tie from

another actor he tends to also send a friendship tie to the

other actor. Such models also contain a component which

determines when and which actors have the opportunity to

make a change. These opportunities are assumed to arise

stochastically in continuous time, and are modeled in the

so-called rate function.

The core of actor-oriented models for network dynamics

are actors’ evaluation functions with respect to interper-

sonal relationships and activities. These functions reflect

how actors tend to behave in reaction to the current con-

stellation in their interpersonal relationships and activities,

and thus drive the evolution of the interpersonal relation-

ships and activities. When applying such models to a

particular domain, actors’ behavioral tendencies are iden-

tified on the grounds of relevant theories and previous

empirical findings in this domain, and are then formalized

as effects in the evaluation functions. In the context of the

current paper, effects are derived from the reaction ten-

dencies of perpetrators, victims, and observers following an

act of unethical behavior that emerge from the appraisal

process described in the previous section.

Recently, Snijders et al. (2013) have provided a speci-

fication of stochastic actor-oriented models that includes

both interpersonal and activity networks (one-mode and

two-mode networks), as well as different types of rela-

tionships between actors (multiplexity). The structure of

this model provides the basis for a framework in which the

spread of unethical behavior can be studied as a dynamic

process in social networks driven by individual actors.

A Dynamic Actor-Oriented Framework to Examine

the Spread of Unethical Behavior

Relationships

Positive (or neutral) and negative relationships between

actors are represented in interpersonal (one-mode) net-

works. The actors’ relationships to acts of unethical

behavior can be thought of as ties in two-mode networks

connecting actors to acts (activity networks). Three types

of relationships between actors and acts are distinguished:

perpetrator, victim, and observer relationships, referred to

as P-, V-, and O-relationships respectively for convenience.

The relationship between actors and acts is considered as

enduring (Snijders et al. 2013): While the actual physical

Dynamic Social Network Perspective 155

123

act of unethical behavior may be completed in a relatively

short time, an actor will remain associated with this act

through his cognitive representation of his relationship to

the act. It is this enduring cognitive representation of the

relationship on which the actor’s reaction depends, and

which therefore is relevant for the spread of unethical

behavior.

The ties to actors and to acts are directed, i.e., there is a

sender and a receiver. In activity networks, only actors can

send relationships to acts; acts of unethical behavior have

no agency (Snijders et al. 2013). For perpetrators, sending a

relationship to an act of unethical behavior represents

committing the act. The commission of an act by a per-

petrator does not imply that there necessarily will be other

actors who perceive themselves as victim or observer of

this act; however, a perpetrator needs to have committed an

act of unethical behavior in order for other actors to be able

to become victims or observers of an act. Other actors first

have to become aware of the perpetrator’s act to become

involved in the act as victim or observer. Whether an

individual actor should be considered as victim of an act of

unethical behavior depends on this individual’s perception

of having been exposed to harmful behavior (Aquino et al.

1999, p. 260). 2

Only actors who perceive themselves as

victims of an act will react to this act based on this per-

ception. Similarly, only actors who directly or indirectly

become aware of an act of unethical behavior will react as

observers. Therefore, victims and observers are considered

to be the originators of their relationships to acts of

unethical behavior in this framework.

Figure 1 illustrates the elements of the framework just

described for a situation where acts of unethical behavior

have been committed by perpetrators, where there are

victims and/or observers of the acts, and where positive and

negative relationships between actors exist.

Reactions

Actors react to the constellation of their current relation-

ships to actors and acts of unethical behavior, such that

relationships evolve through ‘‘processes where one tie is

formed as a reaction to the existence of other ties’’ (Snij-

ders et al. 2010, pp. 45–46). Reactions to acts of unethical

behavior are thus represented by changes actors make in

their relationships to acts or actors given their relationship

to an initial act. For example, when subsequent acts of

unethical behavior are committed in reaction to an initial

act, actors create new P-relationships to acts. Actors can

also change their interpersonal relationships in response to

their involvement in an act. A victim, for instance, can

create a negative relationship to a perpetrator.

Once a change in a relationship has been made by an

actor, the resulting new configuration of the relationships

constitutes the initial state for the next step, in which

changes to the relationships are made in response to that

(new) initial state, and so forth. In other words, an act of

unethical behavior triggers a reaction—represented by a

change of a relationship in this framework—, and this

reaction in turn triggers a next reaction, such that unethical

behavior can spread through a chain of reactions after an

initial act.

The Spread of Unethical Behavior Through

Perpetrators, Victims, and Observers in a Dynamic

Actor-Oriented Framework

Perpetrators, victims, and observers appraise an act of

unethical behavior from their specific perspectives and

react according to their appraisal. In this process, inter-

personal relationships can be conduits for information

about acts, can influence the actors’ reactions through their

impact on the appraisal, and can change as a result of

actors’ cognitive appraisal of an act of unethical behavior.

These three roles of interpersonal relationships are reflec-

ted in different effects in the dynamic actor-oriented

framework described in the following sections. Table 1

provides an overview of these effects, and includes an

illustration along with a formulation of the effects in more

technical terms proper to social network analysis. In what

follows, propositions summarize the circumstances under

which, and the types of reactions through which unethical

behavior is likely to spread.

Perpetrator’s Perspective and Reaction

Biased Attribution

Actors exhibit a self-serving bias in making attributions for

their outcomes and behaviors to maintain a positive self-

concept: negative events tend to be attributed to external,

unstable, and specific causes, while positive events tend to

be attributed to internal, stable, and global causes (Mart-

inko and Gardner 1987; Martinko et al. 2006; Mezulis et al.

2004). Biased causal reasoning also occurs in the domain

of (un)ethical behavior, where individuals are motivated to

avoid the conclusion that they are responsible for their

unethical behavior (Tenbrunsel and Messick 2004).

2 When referring to victims and victimization, it may be useful to

distinguish two dimensions. The first dimension refers to the

(objective) damage caused to a person by another person’s act

(‘‘damage caused’’), and the second dimension refers to the

(subjective) awareness and perception of this damage (‘‘victimization

perceived’’). From the perspective of reactions by victims, and the

potential spread of unethical behavior, the second dimension is most

relevant and therefore referred to in this paper.

156 F. Zuber

123

(a) One-mode network of positive interpersonal relationships

One-mode network of negative interpersonal relationships

Two-mode activity network of relationships from perpetrators to acts of unethical behavior (P-relationships)

Two-mode activity network of relationships from victims to acts of unethical behavior (V-relationships)

Two-mode activity network of relationships from observers to acts of unethical behavior (O-relationships)

Combined view of interpersonal and activity relationships

ji

k

l

m

ji

k

l

m

ji

k

l

A

B

C m

ji

k

l

A

B

C m

ji

k

l

A

B

C m

k

ji

m

l

A

B

C

Legend:

Negative relationship

Perpetration

Victimization

Observation

A Act of unethical behavior

Actori

Positive relationship

(b)

(c)

(d)

(e)

(f)

Fig. 1 Illustration of key elements of the dynamic actor-oriented social network framework. a One-mode network of positive interper- sonal relationships. b One-mode network of negative interpersonal relationships. c Two-mode activity network of relationships from perpetrators to acts of unethical behavior (P-relationships). d Two-

mode activity network of relationships from victims to acts of

unethical behavior (V-relationships). e Two-mode activity network of relationships from observers to acts of unethical behavior (O-

relationships). f Combined view of interpersonal and activity relationships

Dynamic Social Network Perspective 157

123

T a b le

1 S

u m

m a ry

o f

p ro

p o

se d

e ff

e c ts

in th

e d

y n

a m

ic a c to

r- o

ri e n

te d

fr a m

e w

o rk

E ff

e c t

n o

.

R e la

te d

a c to

r

D e sc

ri p

ti o

n o

f e ff

e c t

D e sc

ri p

ti o

n o

f e ff

e c t

in so

c ia

l n

e tw

o rk

a n

a ly

si s

te rm

in o

lo g

y G

ra p

h ic

a l

p re

se n

ta ti

o n

1 P

e rp

e tr

a to

r R e p e ti ti o n e ff e c t:

A P

-r e la

ti o

n sh

ip fr

o m

a c to

r i

to a c t A

le a d

s to

th e

c re

a ti

o n

o f

a P

-r e la

ti o

n sh

ip to

a c t B

b y

a c to

r i

A c to r- le v e l d e p e n d e n c y in

tw o

-m o d e n e tw o rk

: T

h e re

is a

p o

si ti

v e

o u

td e g

re e

a c ti

v it

y e ff

e c t

w it

h re

sp e c t

to P

-r e la

ti o

n sh

ip s.

i A B

2 P

e rp

e tr

a to

r R e tr o sp e c ti v e ra ti o n a li za ti o n e ff e c t:

A P

-r e la

ti o

n sh

ip fr

o m

a c to

r i

to a c t

A le

a d

s to

th e

c re

a ti

o n

o f

a n

e g

a ti

v e

re la

ti o

n sh

ip to

a c to

r j

b y

a c to

r i.

A c to r- le v e l d e p e n d e n c y b e tw e e n o n e - a n d tw o -m

o d e n e tw o rk s:

A c ti

v it

y

in th

e n

e tw

o rk

o f

P -r

e la

ti o

n sh

ip s

le a d

s to

a c ti

v it

y in

th e

n e tw

o rk

o f

n e g

a ti

v e

re la

ti o

n sh

ip s.

i j

A

3 P

e rp

e tr

a to

r P ro sp e c ti v e ra ti o n a li za ti o n e ff e c t:

A P

-r e la

ti o

n sh

ip fr

o m

a c to

r i

to a c t

A ,

a n

d a

n e g

a ti

v e

re la

ti o

n sh

ip fr

o m

a c to

r i

to a c to

r j

le a d

to th

e

c re

a ti

o n

o f

a P

-r e la

ti o

n sh

ip to

a c t B

b y

a c to

r i

A c to r- le v e l d e p e n d e n c y b e tw e e n o n e - a n d tw o -m

o d e n e tw o rk s:

A c ti

v it

y

in th

e n

e tw

o rk

o f

P -r

e la

ti o

n sh

ip s

a n

d in

th e

n e tw

o rk

o f

n e g

a ti

v e

re la

ti o

n sh

ip s

le a d

to fu

rt h

e r

a c ti

v it

y in

th e

n e tw

o rk

o f

P -r

e la

ti o

n sh

ip s

ji A B

4 V

ic ti

m S p e c ifi c re ta li a ti o n e ff e c t v ic ti m

: A

P -r

e la

ti o

n sh

ip fr

o m

a c to

r j

to a c t A

,

a V

-r e la

ti o

n sh

ip fr

o m

a c to

r i

to th

is a c t A

, a n

d a

P -r

e la

ti o

n sh

ip fr

o m

a c to

r i

to a c t B

le a d

s to

th e

c re

a ti

o n

o f

a V

-r e la

ti o

n sh

ip b

y a c to

r j

to

a c t B

D e p e n d e n c y b e tw e e n tw o -m

o d e n e tw o rk s:

T h

e re

is a

te n

d e n

c y

fo r

m u

lt ip

le x

fo u

r- c y

c le

s fo

rm e d

a c ro

ss V

- a n

d P

-r e la

ti o

n sh

ip s,

w h

e re

tw o

P -r

e la

ti o

n sh

ip s

a n

d o

n e

V -r

e la

ti o

n sh

ip le

a d

to a n

o th

e r

V -r

e la

ti o

n sh

ip (t

e n

d e n

c y

fo r

c lo

su re

)

i A B

j

5 V

ic ti

m G e n e ra l re ta li a ti o n e ff e c t v ic ti m

: A

V -r

e la

ti o

n sh

ip fr

o m

a c to

r i

to a c t

A le

a d

s to

th e

c re

a ti

o n

o f

a P

-r e la

ti o

n sh

ip b

y a c to

r i

to a c t B

A c to r- le v e l d e p e n d e n c y b e tw e e n tw o

-m o d e n e tw o rk s:

A c ti

v it

y in

th e

n e tw

o rk

o f

V -r

e la

ti o

n sh

ip s

le a d

s to

a c ti

v it

y in

th e

n e tw

o rk

o f

P -r

e la

ti o

n sh

ip s

i A B

6 V

ic ti

m G e n e ra l a tt ri b u ti o n e ff e c t v ic ti m

: A

V -r

e la

ti o

n sh

ip fr

o m

a n

a c to

r i

to a c t

A le

a d

s to

th e

c re

a ti

o n

o f

a n

e g

a ti

v e

re la

ti o

n sh

ip to

a c to

r j

b y

a c to

r i

A c to r- le v e l d e p e n d e n c y b e tw e e n o n e - a n d tw o -m

o d e n e tw o rk s:

A c ti

v it

y

in th

e n

e tw

o rk

o f

V -r

e la

ti o

n sh

ip s

le a d

s to

a c ti

v it

y in

th e

n e tw

o rk

o f

n e g

a ti

v e

re la

ti o

n sh

ip s

i j

A

7 V

ic ti

m S p e c ifi c a tt ri b u ti o n e ff e c t v ic ti m

: A

V -r

e la

ti o

n sh

ip fr

o m

a c to

r i

to a c t

A a n

d a

P -r

e la

ti o

n sh

ip fr

o m

a c to

r j

to th

e sa

m e

a c t A

le a d

to th

e

c re

a ti

o n

o f

a n

e g

a ti

v e

re la

ti o

n sh

ip to

a c to

r j

b y

a c to

r i

T ri a d ic

d e p e n d e n c y b e tw e e n o n e - a n d tw o -m

o d e n e tw o rk s:

T h

e re

is a

te n

d e n

c y

fo r

m ix

e d

tr ip

le ts

fo rm

e d

a c ro

ss V

-, P

-, a n

d n

e g

a ti

v e

re la

ti o

n sh

ip s,

w h

e re

a P

-r e la

ti o

n sh

ip a n

d a

V -r

e la

ti o

n sh

ip le

a d

to a

n e g

a ti

v e

re la

ti o

n sh

ip

i j

A

8 O

b se

rv e r

O b se rv a ti o n

-v ia

-p e rp e tr a to r e ff e c t:

A P

-r e la

ti o

n sh

ip fr

o m

a c to

r j

to a c t

A ,

a n

d a

p o

si ti

v e

re la

ti o

n sh

ip fr

o m

a c to

r i

to a c to

r j

le a d

to th

e

c re

a ti

o n

o f

a n

O -r

e la

ti o

n sh

ip b

y a c to

r i

to a c t A

T ri a d ic

d e p e n d e n c y b e tw e e n o n e - a n d tw o -m

o d e n e tw o rk s:

T h

e re

is a

te n

d e n

c y

fo r

m ix

e d

tr ip

le ts

fo rm

e d

a c ro

ss p

o si

ti v

e ,

P -

a n

d

O -r

e la

ti o

n sh

ip s,

w h

e re

a p

o si

ti v

e re

la ti

o n

sh ip

a n

d a

P -r

e la

ti o

n sh

ip

le a d

to a n

O -r

e la

ti o

n sh

ip

i j

A

9 O

b se

rv e r

O b se rv a ti o n

-v ia

-v ic ti m

e ff e c t:

A V

-r e la

ti o

n sh

ip fr

o m

a c to

r j

to a c t A

,

a n

d a

p o

si ti

v e

re la

ti o

n sh

ip fr

o m

a c to

r i

to a c to

r j

le a d

s to

th e

c re

a ti

o n

o f

a n

O -r

e la

ti o

n sh

ip b

y a c to

r i

to a c t A

T ri a d ic

d e p e n d e n c y b e tw e e n o n e - a n d tw o -m

o d e n e tw o rk s:

T h

e re

is a

te n

d e n

c y

fo r

m ix

e d

tr ip

le ts

fo rm

e d

a c ro

ss p

o si

ti v

e ,

V -

a n

d

O -r

e la

ti o

n sh

ip s,

w h

e re

a p

o si

ti v

e re

la ti

o n

sh ip

a n

d a

V -r

e la

ti o

n sh

ip

le a d

to a n

O -r

e la

ti o

n sh

ip

i j

A

158 F. Zuber

123

Research on rationalization (e.g., Ashforth and Anand

2003; Bandura et al. 1996; Bandura 1999; Sykes and Matza

1957) has identified various techniques that are used by

perpetrators to retrospectively defend, or prospectively

enable unethical behavior. Techniques such as denial of

injury and denial of victims, social weighting, appeal to

higher loyalties, and obedience to authorities (Ashforth and

Anand 2003; Moore 2008; Sykes and Matza 1957) allow

perpetrators to negate the harm caused by their behavior, to

deny personal causality and controllability, and to construct

mitigating circumstances such that judgments of responsi-

bility can be avoided (Weiner 1995).

Baumeister et al. (1994) view these strategies as means for

perpetrators to avoid feelings of guilt. Without perceived

personal responsibility for an act of unethical behavior, per-

petrators can ‘‘disengage from moral self-sanctions’’ (Pillutla

2011, p. 356) in the form of guilt, and can view themselves as

moral persons. Guilt serves an inhibitory function (Tangney

et al. 2007, p. 354) and motivates corrective or reparative

reactions (Haidt 2003; Tangney et al. 2007). Conversely, its

absence enables further unethical behavior by the perpetrator.

Further unethical behavior is also facilitated as retrospective

rationalizations of initial acts can serve as blueprint for pro-

spective rationalizations of subsequent acts of unethical

behavior. Perpetrators’ tendency to engage in subsequent

unethical behavior corresponds to the following effect in the

social network framework:

Effect 1 Repetition effect: A P-relationship from actor i

to act A leads to the creation of a P-relationship to act B

by actor i.

Impact of Perpetrator’s Social Relationships on His

Reactions

The perpetrator’s appraisal of his initial act of unethical

behavior and the ensuing reaction also depends on his direct

and indirect social relationships to the victim. Feelings of

guilt are particularly likely to arise as a result of behavior

which causes harm to others (Baumeister et al. 1994;

Tangney 1992), and when there is a communal (positive)

relationship between the perpetrator and the affected others

(Baumeister et al. 1994; Haidt 2003). A positive relationship

to the victim implies that the perpetrator is likely to have an

empathic concern for the victim’s suffering (Baumeister

et al. 1994), which fosters feelings of guilt. Therefore, a pre-

existing positive relationship from the perpetrator to the

victim increases the likelihood that the perpetrator’s

appraisal process results in feelings of guilt, which inhibit

subsequent acts of unethical behavior. Beyond a direct

relationship, indirect positive relationships between perpe-

trator and victim, where they are connected through their

relationships to an intermediary actor, also impact theT a b le

1 c o

n ti

n u

e d

E ff

e c t

n o

.

R e la

te d

a c to

r

D e sc

ri p

ti o

n o

f e ff

e c t

D e sc

ri p

ti o

n o

f e ff

e c t

in so

c ia

l n

e tw

o rk

a n

a ly

si s

te rm

in o

lo g

y G

ra p

h ic

a l

p re

se n

ta ti

o n

1 0

O b

se rv

e r

Im it a ti o n /r e ta li a ti o n e ff e c t o b se rv e r:

A n

O -r

e la

ti o

n sh

ip fr

o m

a c to

r i

to

a c t A

le a d

s to

th e

c re

a ti

o n

o f

a P

-r e la

ti o

n sh

ip to

a c t B

b y

a c to

r i

A c to r- le v e l d e p e n d e n c y b e tw e e n tw o

-m o d e n e tw o rk s:

A c ti

v it

y in

th e

n e tw

o rk

o f

O -r

e la

ti o

n sh

ip s

le a d

s to

a c ti

v it

y in

th e

n e tw

o rk

o f

P -r

e la

ti o

n sh

ip s

i A B

1 1

O b

se rv

e r

S p e c ifi c a tt ri b u ti o n e ff e c t o b se rv e r:

A n

O -r

e la

ti o

n sh

ip fr

o m

a c to

r i

to

a c t A

, a n

d a

P -r

e la

ti o

n sh

ip fr

o m

a c to

r j

to th

e sa

m e

a c t A

le a d

to th

e

c re

a ti

o n

o f

a n

e g

a ti

v e

re la

ti o

n sh

ip to

a c to

r j

b y

a c to

r i

T ri a d ic

d e p e n d e n c y b e tw e e n o n e - a n d tw o -m

o d e n e tw o rk s:

T h

e re

is a

te n

d e n

c y

fo r

m ix

e d

tr ip

le ts

fo rm

e d

a c ro

ss O

-, P

-, a n

d n

e g

a ti

v e

re la

ti o

n sh

ip s,

w h

e re

a P

-r e la

ti o

n sh

ip a n

d a n

O -r

e la

ti o

n sh

ip le

a d

to a

n e g

a ti

v e

re la

ti o

n sh

ip

i j

A

S q u a re s

re p

re se

n t

a c ts

, c ir c le s

re p

re se

n t

a c to

rs . S o li d li n e s

re p

re se

n t

p o

si ti

v e

re la

ti o

n sh

ip s,

so li d li n e s w it h a m in u s si g n

n e x

t to

th e m

n e g

a ti

v e

re la

ti o

n sh

ip s,

d a sh e d li n e s

re p

re se

n t

P -r

e la

ti o

n sh

ip s

(p e rp

e tr

a to

rs to

a c ts

), d a sh e d -d o tt e d li n e s

V -r

e la

ti o

n sh

ip s

(v ic

ti m

s to

a c ts

), a n

d d o tt e d li n e s

O -r

e la

ti o

n sh

ip s

(o b

se rv

e rs

to a c ts

). B la c k

b o

ld ti

e s

a re

th o

se w

h ic

h a re

a ss

u m

e d

to

e x

is t

fi rs

t in

a g

iv e n

e ff

e c t,

su c h

th a t

th in

g re y

ti e s

a re

fo rm

e d

in re

a c ti

o n

to th

e e x

is te

n c e

o f b la c k

b o

ld ti

e s

Dynamic Social Network Perspective 159

123

perpetrator’s reaction. They can create feelings of related-

ness and empathy, but to a lesser extent than direct rela-

tionships, and accordingly have a weaker impact on the

likelihood that feelings of guilt arise (Baumeister et al.

1994).

Conversely, the existence of a negative relationship or,

to a lesser degree, the absence of a positive relationship,

between the victim and the perpetrator reduces empathic

concern, facilitates rationalization by the perpetrator, and

lowers the likelihood that feelings of guilt arise. When the

perpetrator perceives the victim to have ‘‘little in common’’

with him, and not to be related to him (Baumeister et al.

1994, p. 259), it is easier for him to believe that the victim

deserved the harm (denial of victims, Ashforth and Anand

2003; Sykes and Matza 1957). The following proposition

summarizes under which circumstances unethical behavior

is likely to spread through the perpetrator of the initial act:

Proposition 1 Unethical behavior is more likely to spread

through the perpetrator’s reaction when the perpetrator has

no direct and indirect positive pre-existing relationships, or

has a pre-existing negative relationship, to the victim,

compared to when the perpetrator has pre-existing direct or

indirect positive relationships to the victim.

This proposition can be linked to arguments of cohesion

in relation to actors’ direct relationships (Bond and Harri-

gan 2011, p. 203; Brass et al. 1998, p. 25). It suggests that

unethical behavior toward actors outside the organization,

such as suppliers or competitors, is more likely to lead to

subsequent unethical behavior by the perpetrator, com-

pared to unethical behavior toward actors inside the orga-

nization, because the perpetrator is more likely to have

positive direct relationships to other actors inside the

organization (higher cohesion) than to actors outside the

organization (lower cohesion).

Impact on Perpetrator’s Social Relationships

Negative relationships cannot only facilitate rationaliza-

tions, but can instead be created as a result of rationaliza-

tions. Rationalizations which denigrate the victim imply a

negative attitude toward the victim. Negative attitudes in

turn characterize negative relationships (Labianca and Brass

2006). Hence, the perpetrator is likely to create a negative

relationship to the victim of the initial act of unethical

behavior because of the use of such rationalizations. This

argument is reflected in the following social network effect:

Effect 2 Retrospective rationalization effect: A P-rela-

tionship from actor i to act A leads to the creation of a

negative relationship to actor j by actor i.

When the rationalization employed involves the per-

ception that ‘‘the victim is an interchangeable member of a

social category’’ (Ashforth et al. 2008, p. 20) whose

members deserve the harm, negative relationships can also

be created from the perpetrator to actors perceived as

similar to the victim. Brass et al. (1998) have argued that

negative relationships are positively related to unethical

behavior, because negative relationships ‘‘do not include

the constraining effect of empathy’’ (p. 18). Accordingly, a

negative relationship created in the aftermath of an act of

unethical behavior can enable the prospective rationaliza-

tion and commission of a subsequent act. This results in an

indirect pathway for the spread of unethical behavior

through the perpetrator, in which an initial act of unethical

behavior leads to the creation of negative relationships

which in turn lead to subsequent unethical behavior. In the

social network framework, this pathway is captured by the

following effect:

Effect 3 Prospective rationalization effect: A P-rela-

tionship from actor i to act A, and a negative relationship

from actor i to actor j lead to the creation of a P-rela-

tionship to act B by actor i.

To sum up, unethical behavior can spread through per-

petrators because they use rationalizations to avoid feelings

of guilt, which enables further unethical behavior and may

lead to negative relationships.

Victim’s Perspective and Reactions

Perception of Being a Victim

Unethical behavior can only spread through the reaction of

victims if there are actors who perceive themselves to be

victims. Some forms of unethical behavior cause obvious

harm to an actor, such as verbal or physical mistreatment of

others. The literature on workplace aggression, workplace

revenge, and retaliatory behavior (e.g., Aquino et al. 2001,

2006; Bies and Tripp 2004; Skarlicki and Folger 1997,

2004; Tripp et al. 2007) extensively investigates victims’

reactions to interpersonal forms of unethical behavior.

With this type of behavior, the targeted actor is most likely

to be aware of the unethical behavior and to perceive

himself as victim. With other forms of unethical behavior,

by contrast, it is less clear whether harm is caused to an

individual actor who could perceive himself as victim. For

example, an employee who submits claims for his private

expenses or misreports the hours worked causes damage to

the organization. It is difficult, however, to ascertain,

which, if any, representative of the organization might

perceive himself as victim of this behavior. Acts which do

not cause detectable and direct harm to specific individual

actors have thus a lower potential for spread t

hrough reactions of victims as set out in the following

proposition:

160 F. Zuber

123

Proposition 2 Unethical behavior is more likely to

spread through reactions of a victim when there is direct

and detectable damage caused to a specific individual

victim, compared to situations where the negative conse-

quences of the act are less visible and/or do not affect a

specific individual.

Individual actors can also perceive themselves as vic-

tims when no harm has directly been inflicted upon them.

For example, consider customers who fraudulently return

purchased products. The employee handling the product

return may feel personally affected by such unethical

behavior, even though the damage is the organization’s

rather than his. Social identity theory (Tajfel and Turner

1979) holds that an individual personally experiences

successes and failures of the social aggregate with which

he identifies (Ashforth and Mael 1989). By this argument,

individuals are likely to perceive harm caused to their

organization as if they were personally affected and see

themselves as victims if they identify with the organiza-

tion. To the extent that organization members perceive

themselves as victims, they will react accordingly, and

unethical behavior can spread through their reactions, as

summarized in the following proposition:

Proposition 3 Social identification with a group can lead

individual actors to perceive themselves as victims of an

act of unethical behavior even when this act does not

directly harm them, and this perception in turn can lead to

the spread of unethical behavior through reactions of the

victims.

Attributions and Retaliation

While actors tend to bias their causal attributions for their

own actions toward situational and non-controllable factors

to avoid responsibility (Martinko et al. 2006, p. 138), they

tend to ‘‘minimize the causal effect of the situation and

overestimate the causal contribution of the individual’’

(Weiner 1995, p. 253) when assessing others’ behavior,

and are therefore more likely to hold another actor per-

sonally responsible. This fundamental attribution error or

actor-observer bias has been confirmed in numerous

empirical studies (Martinko et al. 2006; Weiner 1995). Due

to this bias, victims are likely to attribute personal

responsibility to the perpetrator of unethical behavior.

Attribution of responsibility in turn results in anger toward

the perpetrator (Weiner 1995), and motivates retaliatory

actions against the perpetrator (Haidt 2003; Weiner 1995).

Research on workplace revenge (e.g., Aquino et al.

2001, 2006; Bies and Tripp 2004; Kim et al. 2008; Tripp

et al. 2007) and retaliatory behavior (e.g., Skarlicki and

Folger 1997; Skarlicki et al. 1999, 2004) has demonstrated

how victims react ‘‘to some perceived harm or wrongdoing

by another party’’ by actions ‘‘which [are] intended to

inflict damage, injury, discomfort, or punishment on the

party judged responsible’’ (Aquino et al. 2001, p. 53).

According to this perspective, victims may retaliate for an

act unethical behavior by a subsequent act of unethical

behavior against the (original) perpetrator, as indicted by

the following effect:

Effect 4 Specific retaliation effect victim: A P-relation-

ship from actor j to act A, a V-relationship from actor i to

this act A, and a P-relationship from actor i to act B leads

to the creation of a V-relationship by actor j to act B.

Whether direct retaliation by the victim against the

perpetrator is possible depends on the relative social

position of these two actors. If the victim is less powerful

than the perpetrator, the victim may direct his retaliatory

action against another target with the intention to harm the

perpetrator (Skarlicki and Folger 2004). For example, if an

employee sees himself as the victim of sexual harassment

by his manager, he may react instead by stealing supplies,

knowing that his manager will be held responsible for any

missing supplies. When the victim cannot even indirectly

harm the perpetrator, the retaliatory act may also be carried

out against any other innocent, but accessible actor,

including actors outside the organization (see Hoobler and

Brass 2006). In the workplace aggression literature, this

phenomenon is described as displaced aggression. In the

social network framework, this translates into the following

effect:

Effect 5 General retaliation effect victim: A V-relation-

ship from actor i to act A leads to the creation of a

P-relationship by actor i to act B.

This effect can be considered a generalization of the

specific retaliation effect described above, because it does

not specify which actor is likely to be the victim of the

subsequent act in contrast to the specific effect.

It is also possible that the victim holds an actor other

than the perpetrator (co-)responsible for the unethical

behavior, and retaliates against this other actor. Research

on abusive supervision suggests that victims at least partly

hold the organization responsible for the perpetrator’s

behavior and retaliate by engaging in unethical behavior

which causes harm to the organization (Bowling and

Michel 2011; Shoss et al. 2013; Tepper et al. 2008). Sup-

porting this argument, meta-analytic research has identified

positive correlations between workplace harassment expe-

rienced by victims and their counterproductive workplace

behavior (Bowling and Beehr 2006), and between aggres-

sion by outsiders and employees’ organizational deviance

(Hershcovis and Barling 2010).

Dynamic Social Network Perspective 161

123

Impact on Victim’s Social Relationships

The involvement in unethical behavior as a victim can also

affect the victim’s interpersonal relationships. The attribution of

responsibility for an act of unethical behavior to another actor

leads to the emotion of anger. ‘‘Negative emotions such as

anger are likely to manifest in negative attitudes’’ (Douglas

et al. 2008, p. 430), and negative attitudes in turn characterize

negative relationships (Labianca and Brass 2006). Therefore,

the victim’s attribution of responsibility for an act of unethical

behavior to the perpetrator (or to another actor) can lead to a

negative relationship from the victim to the perpetrator (or other

actor held responsible for the act). The creation of a negative

relationship due to attributions of responsibility is reflected in

the following effect in the social network framework:

Effect 6 General attribution effect victim: A V-relation-

ship from an actor i to act A leads to the creation of a

negative relationship to actor j by actor i.

While the victim can attribute the act of unethical

behavior to any other actor, it is most likely that it is

attributed to the perpetrator, and therefore, that a negative

relationship to the perpetrator arises, as represented in the

following effect:

Effect 7 Specific attribution effect victim: A V-relation-

ship from actor i to act A and a P-relationship from actor j

to the same act A lead to the creation of a negative rela-

tionship to actor j by actor i.

In sum, unethical behavior can spread through victims’

reactions to unethical behavior because of direct, indirect,

or displaced retaliatory acts. Actors not only may perceive

themselves as victims when harm is caused directly to

them, but also when they identify with the collective to

which the harm is caused.

Observer’s Perspective and Reactions

Observers’ Social Relationships as Conduits

In order for actors to become observers of, and react to an

act of unethical behavior, their ‘‘awareness must be high

enough to instigate a cognitive appraisal’’, even though

they may not ‘‘necessarily directly observe the […] behavior’’ (Treviño 1992, p. 650). Some forms of unethical

behavior in organizations are rather covert and difficult to

observe for others, such as abusing confidential informa-

tion or insider trading, and therefore are less likely to be

noticed by actors other than the perpetrator himself. The

possibility to observe another actor’s behavior depends not

only on the characteristics of the act itself, but also on the

interaction between the perpetrator and other actors.

Interactions provide the opportunity to observe or learn

about others’ behavior, and are likely to take place when

there is a positive interpersonal relationship. The more

positive relationships a perpetrator has to other actors, the

higher therefore the likelihood that other actors observe the

perpetrator’s behavior (Venkataramani and Dalal 2007)

and may subsequently also commit acts of unethical

behavior. This leads to the following proposition:

Proposition 4 The higher the number of positive rela-

tionships of the perpetrator, expressed as degree centrality,

the higher the likelihood that his act of unethical behavior

is observed, and that, by consequence, unethical behavior

spreads through observers’ reactions.

If the perpetrator is located in a cohesive part of the

network of positive relationships, characterized by high

density of (direct) relationships between actors inside and

typically fewer ties with actors outside this part of the

network (Borgatti and Halgin 2011, p. 427), his unethical

behavior is thus more likely to be observed. In the social

network framework, actors’ tendency to observe the

unethical behavior of other actors to whom they have a

positive relationship translates into the following effect:

Effect 8 Observation-via-perpetrator effect: A P-rela-

tionship from actor j to act A, and a positive relationship

from actor i to actor j lead to the creation of an O-rela-

tionship by actor i to act A.

Actors can also become aware of the act of unethical

behavior by observing the harm caused to the victim when

they have a (positive) relationship to the victim, and

interact with the victim. Furthermore, victims may also

engage in explicit social rumination where they ‘‘and

observers try to make sense of an event by discussing it’’

(Pinto et al. 2008, p. 693). The more positive relationships

a victim has, the higher the likelihood that he engages in

social rumination with other actors, who thus become

observers of the act of unethical behavior. Proposition 5

follows from these arguments:

Proposition 5 The higher the number of positive rela-

tionships of the victim, expressed as degree centrality, the

higher the likelihood that the act of unethical behavior is

observed directly or indirectly, through social rumination,

by additional actors, and that, by consequence, unethical

behavior spreads through observers’ reactions.

Similar to proposition 4 above, if the victim is located in

a cohesive subgroup in the network of positive relation-

ships, the likelihood that other actors become aware of the

unethical behavior due to their relationship with the victim

is higher. The tendency for actors to become observers of

an act of unethical behavior when they have a positive

relationship to the victim is reflected by the following

effect:

162 F. Zuber

123

Effect 9 Observation-via-victim effect: A V-relationship

from actor j to act A, and a positive relationship from actor

i to actor j leads to the creation of an O-relationship by

actor i to act A.

Impact of Observer’s Social Relationships on His

Reactions

While the perpetrator’s and the victim’s perspectives are

defined by their commission of, and suffering from the act

respectively, observers are less immediately affected by the

act, such that their perspective can either be more alike to

the victim’s, or to the perpetrator’s. Both possibilities have

been explored in the literature. On the one hand, work on

deonance theory (e.g., Folger 2012; O’Reilly and Aquino

2011; Skarlicki and Folger 2004; Skarlicki and Kulik 2004;

Umphress et al. 2013) has shown that third parties react

with outrage or moral anger to unjust treatment suffered by

others. Empathy enables the observer to take the victim’s

perspective and share the victim’s emotions (Tangney et al.

2007, p. 362), such that his reaction is likely to be similar

to the victim’s and can include retaliatory actions against

the perpetrator. Empathy in turn is fostered by a positive

relationship between the observer and the victim (Brass

et al. 1998).

On the other hand, research has revealed that observers

of an act of unethical behavior can experience guilt for a

perpetrator’s act (Fortune and Newby-Clark 2008; Gino

et al. 2009; Tangney et al. 2007). In particular, observers

can experience vicarious guilt when they have a personal

relationship to the perpetrator (Lickel et al. 2005; Tangney

et al. 2007). This finding suggests that an observer’s

appraisal of the act is similar to the perpetrator’s when

there is a (positive) relationship between the observer and

the perpetrator.

Indirect relationships between the observer and the

perpetrator or the victim may also have an impact on the

observer’s reaction, albeit less so than direct relationships.

Indirect relationships between two actors can indicate that

they belong to the same social group, since groups are

characterized by mutual connectedness and high density

(Scott 2000). A shared social identity with the perpetrator

based on group membership has been shown to elicit

feelings of guilt in the observer (Tangney et al. 2007).

Similarly, indirect relationships to the victim can lead to

increased empathy of the observer, and reactions alike to

the victim’s. These arguments lead to the following

proposition:

Proposition 6 The higher (lower) the number of direct

and indirect positive relationships between the observer of

an act of unethical behavior and the perpetrator relative to

the number of direct and indirect positive relationships

between the observer and the victim, the higher (lower) the

likelihood that the observer’s reactions are similar to the

perpetrator’s reactions, and the lower (higher) the likeli-

hood they are similar to the victim’s.

Reactions Similar to the Perpetrator’s

When the observer’s perspective is similar to the perpe-

trator’s, there are also similar biases and underlying

motivations involved in the appraisal of the act of unethical

behavior. First, the observer is motivated to avoid feelings

of guilt over the act. Just as a perpetrator’s feelings of guilt

arise once he has assigned responsibility for the act to

himself, Lickel et al. (2005, p. 153) argue that vicarious

guilt is experienced by the observer if he has previously

assigned responsibility for the act to the perpetrator. To

avoid feelings of guilt, the observer will employ the same

rationalization techniques as the perpetrator to avoid the

conclusion that the perpetrator is responsible for the act of

unethical behavior. Consistent with this idea, Gino and

Galinsky (2012) have found that observers who felt con-

nected to a perpetrator engaged in ‘‘vicarious justification’’

of the perpetrator’s act, which in turn led them to engage in

subsequent unethical behavior themselves.

In the absence of vicarious guilt, processes of social

learning (Bandura 1973) can instead shape the observer’s

subsequent behavior (e.g., O’Leary-Kelly et al. 1996; Rob-

inson and O’Leary-Kelly 1998). Social learning theory

emphasizes the importance of models from which certain

behaviors can be learnt. While leaders are particularly

attractive as ethical role models due to their social status and

power (Brown and Treviño 2006, p. 597), employees over-

whelmingly identified colleagues with whom they interacted

personally and frequently as ethical role models in an inter-

view study by Weaver et al. (2005). This finding underscores

the importance of the personal relationship and interaction

between a perpetrator and an observer in influencing the

observer’s behavior. The following effect reflects observers’

tendency to engage in unethical behavior:

Effect 10 Imitation effect: An O-relationship from actor i

to act A leads to the creation of a P-relationship to act B

by actor i.

This effect, together with the observation-via-perpe-

trator effect reflects that an actor who has a positive rela-

tionship to the perpetrator is likely to observe the unethical

behavior, and to emulate it. Investigations of observers’

behavior in relation to their peers’ behavior often focus on

the same or very similar kinds of unethical behavior (e.g.,

academic dishonesty in McCabe et al. 2006; O’Fallon and

Butterfield 2012; or antisocial behavior in Robinson and

O’Leary-Kelly 1998). However, Keizer et al. (2008) have

demonstrated in their field experiments on cross-norm

Dynamic Social Network Perspective 163

123

inhibition that observing the violation of one norm (e.g.,

anti-graffiti norm; prohibition of locking bicycles to a

fence) can lead to violation of another norm (e.g., anti-

littering norm; prohibition to use an entrance). This sug-

gests that one type of unethical behavior can also encroach

to other types of unethical behavior.

To the extent that an observer shares the same role as the

perpetrator and faces similar situations, he is more likely to

have the opportunity to engage in the same kind of

unethical behavior as the perpetrator. From a social net-

work perspective, an actor’s role, or position in a social

system, is characterized by the pattern of his social rela-

tionships (Scott 2000). When two actors share the same

role in the social system, they are considered regularly

equivalent (Scott 2000). Regular equivalence refers to the

idea that ‘‘units are equivalent if they link in equivalent

ways to other units that are also equivalent’’ (Doreian et al.

2005, p. 80). This argument leads to the following

proposition:

Proposition 7 When an observer is regularly equivalent

to the perpetrator in the network of positive relationships,

the observer is more likely to subsequently engage in the

same type of unethical behavior as the perpetrator, com-

pared to an observer who is not regularly equivalent to the

perpetrator.

Reactions Similar to the Victim’s

The literature on third party’s reactions to injustice and

mistreatment (e.g., Folger and Skarlicki 2004; O’Reilly and

Aquino 2011; Skarlicki and Folger 2004; Umphress et al.

2013) shows that actors can be motivated to react with

retaliatory behavior against the perpetrator, or compensa-

tory behavior toward the victim upon witnessing unethical

behavior. While other reactions such as whistle-blowing

(Gundlach et al. 2003) or helping the victim (O’Reilly and

Aquino 2011) are possible, some research indicates that

observers are more likely to punish the perpetrator than to

help the victim (Skarlicki and Kulik 2004, p. 206). Reac-

tions against the perpetrator can be motivated by ‘‘deontic

anger’’ (Folger and Skarlicki 2004) which is triggered

when the observer attributes responsibility for violating

moral norms to the perpetrator. Following the arguments

presented in relation to the victim’s reaction, the attribution

of responsibility can lead to a negative relationship

between the observer and the perpetrator, as reflected in the

following effect:

Effect 11 Specific attribution effect observer: An

O-relationship from actor i to act A, and a P-relationship

from actor j to the same act A lead to the creation of a

negative relationship to actor j by actor i.

Deontic retaliatory reactions of the observer can also be

represented by effect 10 described earlier, which holds that

an O-relationship from an actor to an initial act leads to the

creation of a P-relationship by this actor to a subsequent

act. Thus, effect 10 can be re-labeled as imitation/retalia-

tion effect observer. Cases where the observer engages in

retaliatory unethical behavior because of his positive

relationship with the victim are reflected in the social

network framework by a combination of the observation-

via-victim effect and this imitation/retaliation effect.

To recapitulate, unethical behavior can spread through

observers when they react by retaliating like victims, or

when they imitate the perpetrator’s behavior in function of

their relationships to victim and perpetrator. The observer’s

perspective completes the discussion of reaction tendencies

after an initial act of unethical behavior which can lead to

subsequent acts of unethical behavior. I have shown how

reaction tendencies of perpetrators, victims, and observers

can be translated into effects in the dynamic actor-oriented

framework. These effects define which changes actors are

likely to make in their relationships to acts and actors in

reaction to their existing relationships to acts of unethical

behavior and to actors. The spread of unethical behavior,

then, corresponds to an increase in the number of rela-

tionships between acts and actors: More actors commit acts

of unethical behavior (P-relationships), which in turn can

lead to ties from victims and observers to committed acts

(V- and O-relationships), such that the number of actors

having relationships to acts of unethical behavior increases

over time. Each actor who has at least one relationship to

an act of unethical behavior is a potential propagator of

unethical behavior through his reaction to this experience.

Discussion

This paper has argued that unethical behavior spreads when

the perpetrator, victim, and/or observer commit subsequent

acts of unethical behavior in reaction to their involvement

in an initial act. Focusing on individual, but socially con-

nected actors, processes of social cognition, affective

reactions, and ensuing behavioral reactions, a dynamic

actor-oriented social network framework has been devel-

oped to examine the spread of unethical behavior. In this

theoretical framework, the social relationships of actors

influence their awareness of acts of unethical behavior,

impact their appraisal of and behavioral reaction to acts,

and can be affected by unethical behavior. While this

framework’s focus on the spread of unethical behavior may

appear to suggest that initial acts of unethical behavior

almost inevitably lead to subsequent acts, the framework

‘‘is meant to be probabilistic, suggesting [reaction]

164 F. Zuber

123

tendencies, not deterministic’’ (Ashforth and Anand 2003,

p. 41). This point is also reflected in the stochastic nature of

the dynamic social network models which serve as basis

for the proposed framework.

This paper contributes to the literature by offering a

theoretical framework in which insights from recent

behavioral business ethics research and the social network

perspective introduced by Brass et al. (1998) can be

combined to identify mechanisms of the spread of unethi-

cal behavior. By applying the social network perspective,

individual reactions studied in behavioral business ethics

research can be examined in the context of social rela-

tionships; using insights from behavioral business ethics

research, a detailed account of the ‘‘generative principles’’

(Snijders et al. 2013, p. 266) in social networks can be

provided. This approach follows the idea of Brass et al.

(1998, p. 27) who saw the social network perspective on

unethical behavior ‘‘as a perspective to be combined with

previous research.’’

The social network perspective proposed in this paper

differs from prominent accounts for the spread or contagion

of unethical behavior (e.g., Ashforth and Anand 2003; Brief

et al. 2001; Palmer 2008) because the focus is not on col-

lective acts and processes at the group level, but rather on

individual acts, and processes at the individual level in the

context of individuals’ social relationships. As a result, this

perspective uncovers some previously underexplored

aspects of the spread of unethical behavior. For example, it

highlights how unethical behavior can engender indirect

negative consequences for the organization due to the neg-

ative relationships arising as a result of perpetrators’, vic-

tims’ or observers’ appraisals of unethical behavior. The

quality of the interpersonal relationships within the organi-

zation impacts the degree to which members are affectively

committed to their organization, such that negative rela-

tionships decrease the organizational commitment (Labianca

and Brass 2006). When the number of negative relationships

increases subsequent to acts of unethical behavior, actors’

affective commitment is therefore likely to decrease.

Affective commitment—‘‘the emotional attachment to,

identification with the organization, and involvement in the

organization’’ (Meyer et al. 2002, p. 21)—has been found to

positively correlate with attendance, performance, and

organizational citizenship behavior (Meyer et al. 2002), and

negatively with organizational deviance (Liao et al. 2004;

Tepper et al. 2008). Negative relationships arising in the

wake of unethical behavior can thus lead to various negative

outcomes, including increased deviance and further unethi-

cal behavior.

The emergence of negative relationships in the wake of

unethical behavior also connects research on the spread of

unethical behavior to literature which examines how rela-

tionships and trust damaged by negative events such as

unethical behavior can be repaired (e.g., Dirks et al. 2009;

Ferrin et al. 2007; Gillespie and Dietz 2009; Ren and Gray

2009; Tomlinson and Mayer 2009). This research provides

a host of insights into how the indirect negative impact of

unethical behavior due to negative relationships may be

reduced through the use of social accounts and rituals, or

substantive actions such as restitution to the victim (Dirks

et al. 2009).

The perspective proposed here also calls attention to

how unethical behavior can spread inside an organization

when members react as victims or observers of unethical

behavior committed by external actors. As as members

have relationships both inside and outside the organization,

‘‘the consideration of relationships [is] not limited to the

boundaries of an organization’’ (Brass et al. 1998, p. 28). In

particular, boundary-spanning members have relationships

to representatives of different stakeholders of the organi-

zation, such as clients, suppliers, or regulatory authorities.

Barling et al. (2009, p. 684) for example report that a

substantial share of the aggression suffered by employees

in the workplace is committed by outsiders of the organi-

zation such as customers.

Stopping the Spread of Unethical Behavior

The analysis of the spread of unethical behavior—almost

necessarily—entails the important question of how the

spread of unethical behavior in organizations may be hal-

ted. Along the lines of Palmer’s (2012) distinction between

measures for curbing wrongdoing by others, and curbing

one’s own wrongdoing, the framework proposed here

points to two possible areas for intervention. First, those

responsible for leading and managing organizations can

create an environment in which, for the members of the

organization, engaging in further unethical behavior

becomes a less likely reaction to an initial act of unethical

behavior compared to other reactions. Second, the role of

social cognitive processes in determining an individual’s

reaction to unethical behavior suggests that each individ-

ual’s awareness of these processes and inherent biases—

including those arising from their relationships to others

involved in an act of unethical behavior—could enable

them to more consciously control their reactions, and steer

away from further unethical behavior.

Regarding the first area, certain (perceived) character-

istics of organizational environments that are intimately

linked to justice concepts have been highlighted in prior

research as important factors in shaping reactions to

unethical behavior. On the one hand, the role of procedural

justice climate (Aquino et al. 2006), of beliefs in the

organizational justice system (O’Reilly and Aquino 2011),

and of retributive justice and punishments (Treviño 1992)

has been examined. This research suggests that credible

Dynamic Social Network Perspective 165

123

formal mechanisms for enforcing justice and punishing the

perpetrator can serve as an outlet for victim’s and obser-

ver’s anger against a perpetrator, and prevent unethical

behavior arising from retaliatory motivations (Tripp et al.

2007). Thus, a credible disciplinary system in organiza-

tions may counteract retaliatory effects identified in this

paper (see effects 4, 5, and 10). Furthermore, deterrence

theory posits that sanctioning a perpetrator for unethical

behavior deters the punished behavior both in the perpe-

trator as well as in observers, especially if the punished

perpetrator is perceived to be similar by the observer

(Treviño 1992). Therefore, formal punishment could pre-

vent the repetition effect for perpetrators (effect 1) and the

imitation effect for observers (effect 10).

Victims and observers, however, can only be expected

to rely on the organizational justice system to take care of

the act of unethical behavior if the act of unethical behavior

is known to a representative of the organization who has

the authority to start disciplinary proceedings. Therefore, it

is also important for halting the spread of unethical

behavior that organizations establish channels through

which unethical behavior can be reported to competent

persons within the organization who can take the necessary

actions as suggested by literature on whistle-blowing (e.g.,

Mesmer-Magnus and Viswesvaran 2005; Miceli et al.

2009).

On the other hand, the restorative justice perspective

highlights another set of organizational characteristics than

can help to prevent the spread of unethical behavior.

Recognizing ‘‘how unethical behavior can undermine

important moral dimensions of relationships in organiza-

tions’’ (Goodstein and Butterfield 2010, p. 453), this per-

spective suggests creating ‘‘a workplace context supporting

the restoration of relationships for the offender, the victim,

and others in the organization’’ (Goodstein and Butterfield

2010, p. 462). Similar to research forgiveness in organi-

zations (e.g., Fehr and Gelfand 2012; Palanski 2012), the

importance of ‘‘values such as compassion, collective

mercy, and hope’’ (Goodstein and Butterfield 2010, p. 462)

is emphasized.

The restorative perspective proposes that perpetrators,

motivated by feelings of guilt, can acknowledge their

wrongdoing, accept responsibility, and make amends. Such

a reaction by the perpetrator can be expected to preempt

retaliatory reactions by the victim and/or observers (see

effects 4, 5, and 10). Making amends also is likely to

prevent the perpetrator from engaging in further unethical

behavior, because it represents at the same time ‘‘a process

of self-forgiveness and reconciliation that can help

offenders rebuild their personal integrity’’ (Goodstein and

Butterfield 2010, p. 465). The notion of self-forgiveness

and reconciliation with others has also been linked to

spiritual rituals of confession (Murray-Swank et al. 2007),

and experimental evidence shows that confession after

committing unethical behavior reduced subsequent uneth-

ical behavior (Ayal and Gino 2012). 3

Self-forgiveness and

reconciliation by the perpetrator could therefore prevent

repetition and rationalization effects (see effects 1–3).

The victim, in turn, can extend forgiveness to, and/or

reconcile with the perpetrator, instead of retaliating against

the perpetrator. Forgiveness and reconciliation can ‘‘free

the future from the impact of past wrongs’’ (Goodstein and

Butterfield 2010, p. 460) and may prevent the creation of

negative relationships due to attributions of responsibility

by victims (see effects 6 and 7). Observers of unethical

behavior can provide the perpetrator the opportunity to be

re-integrated into the community (Goodstein and Butter-

field 2010). Reintegration may be an alternative reaction to

creating negative relationships, such that attribution effect

for observers (see effect 11) can be avoided

In the proposed social network framework, forgiveness

can not only be interpreted with respect to interpersonal

relationships, but could also be conceptualized as the

deletion of the relationship from the victim, observer, or

perpetrator (self-forgiveness) to the act of unethical

behavior. Forgiveness would then amount to relinquishing

the cognitive connection to the act of unethical behavior,

such that this act no longer impacts the actor’s behavior in

the future. Reconciliation and re-integration into the com-

munity in turn can be represented in this framework as

either deleting negative interpersonal relationships created

in the aftermath of unethical behavior, or as preventing the

their creation in the first place.

Regarding the second area of intervention related to pro-

cesses of social cognition, behavioral business ethics

researchers have made a range of recommendations for

improving individuals’ ethical behavior. These recommenda-

tions generally aim at making individuals aware of the psy-

chological and cognitive processes, their undesired side-

effects, and (unconscious) biases affecting (un)ethical behav-

ior, and at devising strategies to limit the impact of such side-

effects and biases (e.g., Banaji et al. 2003; Bazerman and

Tenbrunsel 2011; Tenbrunsel et al. 2010). Such recommen-

dations, however, may be limited in their practicability: Being

aware of the psychological and cognitive processes that are

ongoing in one’s mind and the application of bias-limiting

strategies appears to require individuals to be in a ‘‘hyper-

rational state’’ (Palmer 2012, p. 278), in which they are con-

tinually and consciously monitoring their thoughts and emo-

tions. In addition, Palmer (2012, p. 278) argues that strategies

proposed to address cognitive limitations and biases

3 They also note, however, that confession can increase rather than

reduce unethical behavior in the longer run because perpetrators know

that they will be able to restore their moral self-concept after

unethical behavior (Ayal and Gino 2012, pp. 156–157).

166 F. Zuber

123

essentially ask individuals to overcome tendencies that are

deeply engrained into the functioning of the human mind.

Thus, stopping the spread of unethical behavior by intervening

at the level of actors’ social cognitive processes may still be a

rather challenging endeavor in the current state of knowledge.

Limitations and Future Research

I have proposed a theoretical framework for examining the

spread of unethical behavior using a dynamic actor-oriented

social network perspective, rather than a fully specified formal

social network model. A major area for future research is thus

the development of a fully specified formal model. Several

requirements implied by the framework proposed here need

careful consideration in the formal specification of a sto-

chastic actor-oriented model for the multiplex dynamics two-

mode and one-mode networks. 4

Most importantly, an obser-

ver’s and a victim’s relationship to an act of unethical

behavior can only be created once the perpetrator has created a

relationship to this act, i.e., has committed it. This logical

sequence implies that a formal model has to incorporate

restrictions on the possible sequence of the creation of certain

relationships. This feature cannot yet be represented in the

specification of stochastic actor-oriented models for the

multiplex dynamics two-mode and one-mode networks cur-

rently proposed by Snijders et al. (2013).

Further, a formal specification has to include a basic

tendency to create relationships to initial acts of unethical

behavior, i.e., relationships in the two-mode network that

are the starting point for the creation subsequent relation-

ships to further acts of unethical behavior and are not

themselves based on previous relationships to acts. For-

mally, this can be achieved by including an outdegree

effect that ‘‘represents the basic tendency to have ties at

all’’ (Snijders et al. 2010, p. 47). In addition to the ten-

dencies to create relationships, the formal specification also

has to account for tendencies to delete ties in order not to

represent ever-growing networks. In stochastic actor-ori-

ented models for dynamics of one-mode and two-mode

both creation and termination of relationships is possible

(Snijders et al. 2013, p. 266), and can be formally repre-

sented by effects with a negative sign where a relationship

is terminated (or not formed) in response to a specific

constellation in the network. 5

In the context of this paper,

for example, termination of relationships to acts of uneth-

ical behavior could represent forgiveness as outlined in the

discussion of stopping the spread of unethical behavior. As

further examples, the termination of positive interpersonal

relationships could be introduced as a consequence to

involvement in acts of unethical behavior, and the termi-

nation of negative interpersonal relationships as a result of

reconciliation.

The theoretical framework proposed in this paper can

serve as a stepping stone toward simulation approaches for

modeling the dynamics of unethical behavior, as proposed

by Moore (2009, p. 61). Once the model is formally

specified as outlined above, computer simulations of the

spread of unethical behavior in social networks could be

carried out using the RSiena package (Ripley et al. 2013) in

the statistical system R (R Development Core Team 2012).

Simulation appears particularly appealing option for future

research as the challenges in collecting empirical data that

would allow to empirically test a fully specified model

based on the framework proposed in this paper appear quite

demanding: Testing would require longitudinal data about

experiences as perpetrators, victims, and observers of

unethical behavior for a group of individuals, as well as

data about their interpersonal relationships. The well-

known difficulties of collecting data about unethical

behavior (see e.g., Treviño and Weaver 2003, Chap. 11) are

compounded by the requirement to collect such data in

non-anonymous form for a group of persons and for mul-

tiple points in time (e.g., Moore 2009). In addition, the

collection of longitudinal data about interpersonal rela-

tionships in itself can already be challenging (Ahuja et al.

2012; Marsden 2011).

The framework proposed in this paper has several lim-

itations, which imply, at the same time, opportunities for

future research. I have focused on acts of unethical

behavior committed by individual actors. Future research

may extend the proposed framework by considering how

several perpetrators jointly engage in an act of unethical

behavior, and the conditions under which they are likely to

do so (e.g., positive mutual relationships and individual

involvement previous acts of unethical behavior). In formal

stochastic actor-oriented models, simultaneous coordinated

actions by individual actors can currently not be repre-

sented (Snijders et al. 2010). Also, the proposed actor-

oriented perspective views individuals as actors, and does

not consider organizations themselves as actors. This view

is based on the idea that ‘‘firm behavior is necessarily

underpinned by the actions of individuals’’ (Moore 2009,

p. 37), as ‘‘individuals [are] acting as agents on behalf of

their organization’’ (Ashforth et al. 2008, p. 673).

The analysis proposed in this paper further focuses on

the individuals, their relationships, and their reactions, but

does not address dynamics at the group or organizational

4 I thank an anonymous reviewer for highlighting these requirements

for the specification of a formal model. 5

For example, Snijders et al. (2013, p. 272) report a negative

outdegree popularity effect in friendship and advice networks,

meaning that an actor’s current number of outgoing relationships in

these networks negatively impacts the probability that this actor

retains existing or receives new incoming relationships, and thus

conversely increases the probability that existing incoming relation-

ships are terminated (see also Snijders et al. 2013, p. 271).

Dynamic Social Network Perspective 167

123

level. At the organizational or macro-level, future research

could also examine network characteristics, such as net-

work density, centralization, structural holes, and clusters,

and cliques of the interpersonal networks and their impact

on the spread of unethical behavior. As such macro-level

network characteristics emerge as a result of the process

taking place at the micro level in the actor-oriented per-

spective on network dynamics applied in this paper, the

impact of unethical behavior on the macro-level charac-

teristics could also be explored (see Snijders and Steglich

2013, for a detailed discussion).

While I have examined how social relationships of the

actors involved in the initial act impact the likelihood that

subsequent unethical behavior is committed, individual-

level factors have been shown to influence actors’ reactions

to unethical behavior as well. O’Reilly and Aquino (2011)

suggest that moral identity and beliefs in the organizational

justice system impact observers’ reactions to unethical

behavior, and Aquino et al. (2006) found that victims’

perceptions of the procedural justice climate in an orga-

nization moderate the impact of other variables on the

likelihood of revenge, retaliation, and reconciliation in

reaction to workplace offenses. These findings suggest that

it may be worthwhile to investigate how individual-level

characteristics impact, on the one hand, the reaction pro-

pensities of an actor when being perpetrator, observer, and

victim, and, on the other hand, the likelihood to become

perpetrator, victim or observer, of an act of unethical

behavior in the first place. 6

In stochastic actor-oriented

models, the impact of such individual-level factors, or actor

attributes, can be modeled by including them as covariates

and allowing for interaction effects in the model, such that

the strength of an effect depends on an actor attribute

(Snijders et al. 2010). For example, an actor’s hostile

attribution style (Aquino et al. 2004) could increase the

probability that an actor perceives himself as victim, and

could also interact positively with the retaliation effect

proposed in the current framework.

Practical Implications

The analysis in this paper implies that organizations should

consider the likelihood that particular types of unethical

behavior spread once an initial act has occurred when

assessing the risks related to unethical behavior. Such risk

assessments are recommended in the United States Sen-

tencing Commission’s Guidelines Manual for Sentencing

Organizations as part of an effective compliance and ethics

program. However, the criteria usually recommended for,

and used in such risk assessments include only impact or

severity, and the likelihood of occurrence of an initial act

(e.g., The Institute of Internal Auditors et al. 2008; United

States Sentencing Commission 2012). These risk assess-

ments serve organizations as basis for prioritizing and

developing measures to prevent and detect unethical

behavior. Disregarding the potential for spread in this

assessment may, for example, lead to insufficient attention

to types of unethical behavior which are assessed as having

a low impact, but which may easily spread and have a

detrimental impact when occurring repeatedly.

This paper reveals some criteria for identifying types of

unethical behavior that have a high potential for spread.

For example, acts which can easily be observed by actors

socially close to the perpetrator, and which cause rather

diffuse harm to socially distant, not personally identifiable

actors are particularly likely to spread: First, there is likely

to be a high number of observers who could imitate this

behavior. Second, the social relationship between the per-

petrator and the observer increases the likelihood for a

biased cognitive appraisal by observers. And third, social

distance to non-identified victims and diffuse harm facili-

tate the rationalization of the unethical behavior, enabling

subsequent unethical behavior by the perpetrator and

observers. Some forms of unethical behavior against

external stakeholders may typically fit such a description,

and—in the short run—may even benefit the organization,

which provides a further rationalization (see also Umphress

et al. 2010; Umphress and Bingham 2011). Such behaviors

may thus have a high potential for spreading within the

organization.

Managers have to carefully consider whether they are not

tacitly condoning unethical behavior to the benefit of the

organization against external stakeholders, while expecting

the organization members to adhere to rules for their behavior

toward the organization. Cialdini et al. (2004) cite the

example of a consultant who was incited by her manager to

withhold information from a client, and later ‘‘found herself

regularly cheating on her travel expenses’’ (p. 70). The ana-

lysis provided here suggests that one form of unethical

behavior may lead to subsequent unethical behavior of a

different form for several reasons. First, cross-norm inhibition

effects can lead observers and perpetrators to subsequently

engage in different forms of unethical behavior. Second, as set

out in proposition 7, observers may also engage in different

forms of unethical behavior if their role in the organization

differs from the perpetrator’s, and offers different opportu-

nities for unethical behavior. Third, direct retaliation and

especially indirect or displaced retaliation by victims can take

a different form than the initial act. Therefore, leaders of

organizations should not assume that they can successfully

curtail one form of unethical behavior while conniving in

other forms. A consistent and well-coordinated approach

targeting all types of unethical behavior relevant for the

6 I thank an anonymous reviewer for highlighting the possibility of

such role-dependencies based on actors’ individual attributes.

168 F. Zuber

123

organization is likely to lead to better results than a com-

partmentalized, eclectic approach targeting single types of

unethical behavior. It also seems advisable to foster coordi-

nation among the different functional areas that traditionally

look after specific types of unethical behavior (e.g., Human

Resources, Compliance, Legal, Security, Internal Audit, and

Risk Management) to develop a joint and consistent approach

addressing all relevant types of unethical behavior.

Finally, earlier in the discussion, I have highlighted

some areas where those responsible for managing organi-

zations could take action to reduce the likelihood that

unethical behavior spreads. I hope that the dynamic social

network perspective proposed in this paper not only con-

tributes to a better understanding of how unethical behavior

can spread, but also provides some new ideas to those who

are trying to reduce unethical behavior in organizations.

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Franziska Zuber is a PhD student at the Department of Business- Society Management at Rotterdam School of Management, Erasmus

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172 F. Zuber

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  • c.10551_2014_Article_2270.pdf
    • Spread of Unethical Behavior in Organizations: A Dynamic Social Network Perspective
      • Abstract
      • Introduction
      • Social Networks and the Spread of Unethical Behavior
        • Relevant Actors and Relationships
        • Emergence of Reactions in Social Networks: Social Cognition
          • Initial Affective Appraisal
          • Secondary Cognitive Appraisal
          • Tertiary Emotional Appraisal
      • Integrating Relationships and Reactions: Actor-Oriented Models for Network Dynamics
        • A Dynamic Actor-Oriented Framework to Examine the Spread of Unethical Behavior
          • Relationships
          • Reactions
      • The Spread of Unethical Behavior Through Perpetrators, Victims, and Observers in a Dynamic Actor-Oriented Framework
        • Perpetrator’s Perspective and Reaction
          • Biased Attribution
          • Impact of Perpetrator’s Social Relationships on His Reactions
          • Impact on Perpetrator’s Social Relationships
        • Victim’s Perspective and Reactions
          • Perception of Being a Victim
          • Attributions and Retaliation
          • Impact on Victim’s Social Relationships
        • Observer’s Perspective and Reactions
          • Observers’ Social Relationships as Conduits
          • Impact of Observer’s Social Relationships on His Reactions
          • Reactions Similar to the Perpetrator’s
          • Reactions Similar to the Victim’s
      • Discussion
        • Stopping the Spread of Unethical Behavior
        • Limitations and Future Research
        • Practical Implications
      • References