Unethical Decision Making and Sleep Restriction: Experimental Evidence

Abstract:  Insufficient sleep results in large economic costs for organizations (e.g., direct health costs, lower labour productivity, increased cognitive errors and accident risk). In this current study, we examine another more hidden cost for organizations associated with insufficient sleep—an increase in unethical behaviors. Using a hybrid field/lab experimental approach, we randomly assigned participants to a full week of sleep-restriction or well-rested sleep levels in their at-home (naturalistic) environment prior to decision making.  Participants were then administered two laboratory tasks with temptation for dishonesty and another task that examined antisocial choice.  We found that sleep restricted participants cheated significantly more in two honesty tasks.  Anti-social choices, however, did not differ by sleep treatment assignment.  Because sleep restriction promotes less deliberative decision making, these results contribute to our understanding of the cognitive underpinnings of decision making as well to our understanding of how commonly-experienced sleep levels affect ethical conduct. Importantly, these findings have practical relevant implications to managers who want to reduce dishonesty in the workplace. For example, our results suggest that workplace health promotion programs focused on good sleep hygiene would additionally benefit the company in terms of indirectly promoting ethical conduct in the workplace.