The Great Ethics Divide: Is Gen Z Really More Willing to Break the Rules?

Meet John. He's a bright-eyed Gen Z software developer working in a bustling open office.

The developer is a microcosm of the modern workplace, filled with the hum of collaborative energy and the glow of countless screens. One such screen belongs to John, where his fingers dance across the keyboard with a speed that belies his relaxed posture.

Like all developers will attest to, John works toward deadlines. One such deadline posed a problem, and the solution seemed out of reach.

With a shrug and a fleeting thought of "rules are made to be broken," John took a shortcut. A quick copy-paste from a competitor's open-source code, a few tweaks to make it his own, and voila! The problem was solved.

John’s actions were not unique. LRN’s latest Benchmark of Ethical Culture Report revealed a startling trend: Gen Z employees were twice as likely to bend the rules or engage in workplace misconduct compared to their Boomer counterparts.

This raised eyebrows and sparked debates about the shifting landscape of workplace ethics in the digital age. But is it just an outlier or an unfair characterization of a generation baptized with fire from economic downturns, COVID-19 loneliness and global layoffs?

Risky business: the Gen Z version

According to the LRN Report, which surveyed 8,500 full-time employees across 13 industries and 15 countries, including Singapore, no one factor is driving this behavior. In fact, it showed a complex interplay of factors contributing to this phenomenon.

The report found that a quarter (23%) of employees worldwide agreed that "it is OK to break the rules if needed to get the job done." 14% said they had actually themselves "engaged in behavior that violated their company's Code of Conduct or standards" in the past year.

Here’s where the generational divide comes into play. 22% of Gen Z respondents said they engaged in unethical conduct in the past year in the workplace, compared with just 9% of Boomers. The results suggest an inverse trend between this mindset and age, with Gen Z 2.5x more likely to agree with breaking the rules than Boomers.

“Although this result is positive, it’s also clear that there are several realities organizations need to address, from an evident lack of trust in the system of procedural justice and a worrying proportion of individuals—particularly among Gen Z—not adverse to rule-breaking,” said Ty Francis, MBE, chief advisory officer at LRN.

What is not helping is that fewer people seem to be owning up to or pointing to problems. Rates of misconduct in APAC went down (from 41% to 38%), but so did reported misconduct rates (87% to 83%).

When asked why they didn't report their concern, 42% of APAC respondents said they didn't think their company would handle it effectively—up from just 14% in 2021.

McKinsey thinks another issue is that Gen Z may be too trusting, making them victims of misinformation and disinformation and leading to misconduct.

When John was asked about it, he thought that how you are brought up and navigate the IT landscape is part of the issue. 40% of the GenZ agreed with him. They were okay with trading their personal info for discount codes or free use of a service. They were also comfortable sharing the information to continue buying or gaming, with only 1% actually understanding what they were signing themselves into.

Attitudes have shifted, but training hasn’t

This behavior, shaped by a fast-paced, results-oriented culture that often prioritizes efficiency over adherence to traditional norms, extends to the workplace. Gen Zs are open to rule-breaking if they feel the end justifies the mean.

The LRN Report noted that companies cannot assume the same training and approach will work across generations. It's also clear that Gen Z needs more attention to ethics and best practices.

This becomes doubly important as companies introduce generative AI and other intelligent tools that allow employees to access insights and data.

Equally important is getting Gen Z to trust that their companies will address rule-breaking or bending and not just focus on the end results.

The lack of trust also has far-reaching consequences. The report notes that companies with weak ethical cultures experienced higher rates of observed misconduct, which went unreported due to fear and skepticism. This created a vicious cycle in which unethical behavior thrived in an environment of silence and inaction.

“The report findings provide clear evidence of just how true that really is, with the data showing that ethical cultures perform better than those without,” said Kevin Michielsen, chief executive officer of LRN. “Strong ethical cultures also have a big impact on adaptability, a key quality for organizations in a highly complex and increasingly turbulent business environment.”

Stop blaming one generation

For John, open dialogue and promoting ethical decision-making at all levels are important. He wants a workplace where innovation and integrity go hand in hand and needs everyone, not just his generation, to join the bandwagon.

“The generational divide in attitudes towards unethical conduct also needs consideration and attention, with emphasis on the importance of ethical conduct at all levels of an organization, from CEO to trainee,” said Francis.

A company's ability to embrace technological advancements and uphold ethical principles depends on its ability to build a culture of trust and address the root causes. In turn, it can determine how well it fares in a competitive and AI-driven landscape where data trust and ethics reign supreme. 

Image credit and not a photo of John: iStockphoto/Anton Vierietin