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Friday, March 2, 2012

Are rich people less ethical than poor people?

Rich people get a bad rap in pop culture. Think about movies like Wall Street (or the absolutely awful Wall Street 2), which paints financiers in a less than stellar light, or even The Devil Wears Prada, where the main character manipulates everyone around her in order to stay on top. These are only two examples of popular images depicting shady, unethical businesspeople. Is there any truth to the idea that rich folks are less principled? According to a new study, the classification is accurate.

Researchers at the University of California and the University of Toronto published results on Monday that showed rich people as more likely to engage in unethical behaviours like cutting off motorists, lying in negotiations, and cheating to win a prize. The study is based on a number of tests conducting on undergraduate students and adults. The findings were also consistent across all ages, genders, ethnicities, religions, and political associations.

In the first two tests, researchers looked at driving habits. They found that upper-class drivers were more likely to cut off other cars and pedestrians waiting at crosswalks. A person’s social class was determined here by their age, vehicle make, and appearance. Considering the number of people I know who live well beyond their means – and drive vehicles reflecting that - this seems like a subpar means of classifying people. In any case, those deemed poorer were more courteous on the road.

In another series of tests, researchers found that people who considered themselves “upper class” were more likely to take valued items from others. This included candy, even when they were told that the leftovers would be going to children. Is it possible rich people are really concerned about childhood obesity, and that’s why they don’t want to give candy to children? I mean, Michelle Obama is really into it – and she’s rich. Okay, probably not.

Unsurprisingly, affluent people were also deemed to be more unethical in their business dealings. Richer people were found to be more likely to lie during negotiations, and to cheat in order to win a prize. Researchers relate these behaviours back to the upper class participants’ more favourable attitudes toward greed.

"We found a trend that upper-class individuals -- people that have the most money, the most income, the best education and the most prestigious job -- have a tendency to engage in less ethical behaviour," said Stephane Cote, associate professor of organisational behaviour and psychology at the University of Toronto's Rotman School of Management. "This doesn't mean that every rich person will behave less ethically than any less-rich person... But we found a tendency. So if you look across people in a variety of settings, the higher-class people tend to engage in more unethical behaviour."

I wonder if people act more dishonorable because of their surroundings. When you throw a nice kid in with all of the mean kids, they sometimes come out being the cruelest one. I learned that from Mean Girls. In all seriousness, though, if everyone around you is unethical, perhaps you need to be a bit devious to get ahead. I’m not condoning these actions, but simply trying to wrap my mind around them. I would still give MY candy to kids.

The researchers were clear to point out that there are many examples of ethical rich people, such as Bill Gates and George Soros. In addition to philanthropy, they mention corporate whistle-blowing as an example of ethical behaviour. And they also note that lower-class people are often unethical, too. That makes sense, given the relationship between poverty and violent crime. 
What do you think about this study? Are rich people more unethical, or are poorer people less honorable? Which group would you rather do business with?

Brandon Miller   Mar 2, 2012

posted: 3:57 PM in Current Affairs, Personal Finance

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