The document discusses the slippery slope effect, where accepting increasingly unethical behavior over time can erode ethical standards. An experiment is described where auditors noticed worse infractions each year in a company, until by the fourth year the same clear transgressions from the first year and illegal behavior occurred. The document recommends that managers remain vigilant against even minor ethical issues, take immediate action to address them, investigate patterns of changing behavior over time, and involve others for fresh perspective on ethical analyses.

1. THE SLIPPERY SLOPE
• The slippery slope leads individuals to accept increasingly unethical
behavior if each violation is slightly more severe than the previous
one.
• This gradual acceptance can result in the erosion of ethical standards
over time.

2. AUDITORS AND ESTIMATORS-THE EXPERIMENT
• The company commits some
clear transgressions
• Even breaks some laws
• At first some minor infractions
can be seen.
• The next year the auditors find
worse infractions than before.
• By the 4th year the company
commits the same clear
transgressions as in the 1st
scenario and breaking the law.
1st SCENARIO 2nd SCENARIO
In which scenario do you think auditors may raise
concerns?

3. WHAT CAN WE DO AS MANAGERS ?
Managers should remain
vigilant and attentive to
even minor ethical
infractions.
Immediate action should be
taken to address these
infractions and prevent
further escalation.
Managers should investigate
whether there has been a
pattern of changing
behavior over time.
Involving a colleague or an
independent party can
provide a fresh perspective
and facilitate a clearer
analysis of the ethical
issues.