# kaal:claim:1998455-030

**Claim.** Under strong institutional and cultural forces, decision makers in financial institutions tend to compartmentalize their lives and disconnect their moral reasoning from their conduct in the workplace, so that even a leader with strong personal values can engage in questionable conduct.

**Type.** mechanism  **Support.** argued

**Holds when.**

- where industry, institutional and peer pressure shape decision making

**Source quote.**

> Influenced by strong institutional and cultural forces, deci- sion makers may have a tendency to compartmentalize their lives and disconnect their moral reasoning from their actions in the workplace.

**From.** Wulf A. Kaal, *Initial Reflections on the Possible Application of Contingent Capital in Corporate Governance* (2012), VII.B. Reform from Within, page 43

**Cite as.** Wulf A. Kaal, Initial Reflections on the Possible Application of Contingent Capital in Corporate Governance (2012). SSRN: https://ssrn.com/abstract=1998455

**Verify.** sha256 of source PDF `1c16ff10a284469ba15fb7ba5523449b917388ee692d9b394f9e8c094544e32c` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202012%20-%20Initial%20Reflections%20on%20the%20Possible%20Application%20of%20Contingent%20Capital%20in%20Corporate%20Governance.pdf

**Failure mode.** moral-compartmentalization  (family: fraud-and-misconduct)

**Topics.** systemic-risk

**Keywords.** business-ethics, compartmentalization, sifi-leadership, moral-reasoning, corporate-culture

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.