In this article, the authors argue that there is a positive relationship between productivity and morality in public-sector organizations. If there are ethical problems such as corruption in such organizations, the administrative answer typically is added rules, more complex procedures, and greater sanctions. In other words, we increase organizational red tape to confront our ethical problems rather than address the real problem directly. Using a systems modeling approach informed by Kohlberg’s moral development theory and Friedrich’s view of “inner controls,” we suggest (a) a more direct method to assess the level of ethical development in organizations and (b) a technique by which to improve public-sector organization productivity that places greater emphasis on individual morality rather than on more administrative controls.
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