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Deterring Unethical Behavior in Online Labor Markets

Author

Listed:
  • William D. Brink

    (Miami University)

  • Tim V. Eaton

    (Miami University)

  • Jonathan H. Grenier

    (Miami University)

  • Andrew Reffett

    (Miami University)

Abstract

This study examines how codes of conduct, monitoring, and penalties for dishonest reporting affect reporting honesty in an online labor market setting. Prior research supports the efficacy of codes of conduct in promoting ethical behavior in a variety of contexts. However, the effects of such codes and other methods have not been examined in online labor markets, an increasingly utilized resource that differs from previously examined settings in several key regards (e.g., transient workforce, lack of an established culture). Leveraging social norm activation theory, we predict and find experimental evidence that while codes of conduct and monitoring without economic penalties are ineffective in online settings, monitoring with economic penalties activates social norms for honesty and promotes honest reporting in an online setting. Further, we find that imposing penalties most effectively promotes honest reporting in workers who rate high in Machiavellianism, a trait that is highly correlated with dishonest reporting. In fact, while in the absence of penalties we observe significantly more dishonest reporting from workers who rate high versus low in Machiavellianism, this difference is eliminated in the presence of penalties. Implications of these findings for companies, researchers, online labor market administrators, and educators are discussed.

Suggested Citation

  • William D. Brink & Tim V. Eaton & Jonathan H. Grenier & Andrew Reffett, 2019. "Deterring Unethical Behavior in Online Labor Markets," Journal of Business Ethics, Springer, vol. 156(1), pages 71-88, April.
    • Handle: RePEc:kap:jbuset:v:156:y:2019:i:1:d:10.1007_s10551-017-3570-y
    DOI: 10.1007/s10551-017-3570-y
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    References listed on IDEAS

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    Cited by:

    1. Simon Dato & Petra Nieken, 2020. "Gender differences in sabotage: the role of uncertainty and beliefs," Experimental Economics, Springer;Economic Science Association, vol. 23(2), pages 353-391, June.
    2. J. Jobu Babin & Haritima S. Chauhan, 2023. "Show no quarter: combating plausible lies with ex-ante honesty oaths," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 9(1), pages 66-76, June.
    3. Alain Cohn & Jan Stoop & Hatim A. Rahman, 2022. "Disinformation for Hire: Examining the Production of False COVID-19 Information," Tinbergen Institute Discussion Papers 22-086/II, Tinbergen Institute.
    4. Zhijuan Hong & Ruhai Wu & Yan Sun & Kunxiang Dong, 2020. "Buyer preferences for auction pricing rules in online outsourcing markets: fixed price vs. open price," Electronic Markets, Springer;IIM University of St. Gallen, vol. 30(1), pages 163-179, March.
    5. Mourelatos, Evangelos, 2021. "Personality and Ethics on Online Labor Markets: How mood influences ethical perceptions," EconStor Preprints 244735, ZBW - Leibniz Information Centre for Economics.

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