Field evidence on charitable giving, tax evasion, the abuse of the welfare state, criminal
behavior, corruption, and corporate culture, suggests that people’s own behavior in these
domains depends strongly on their beliefs about how others will behave.1
Leaders –
politicians, government officials, and managers – may serve as role models for what is
considered appropriate and may thus shape their followers’ beliefs about the behavior of
others. For instance, leaders who behave too selfishly, evade taxes, consume unwarranted
privileges, accept bribes, etc. may induce people to do the same (as suggested by our opening
quotes) and may nurture people’s beliefs that other people will do the same. This may
exacerbate the problem to the extent that people’s behavior is not only shaped by the leader’s
example but also by their beliefs about other people’s actions. Of course, if the leader behaves
as a positive role model, the opposite conclusions may hold