A recent article in American Sociological Review looks at how some bankers and brokers were able to help lead the country toward recession:
Those bankers, stockbrokers, and mortgage lenders whose actions helped cause the recession were able to act as they did, seemingly without shame or guilt, perhaps because their moral identity standard was set at a low level, and the behavior that followed from their personal standard went unchallenged by their colleagues, said Jan E. Stets, a sociologist with the University of California in Riverside.“To the extent that others verify or confirm the meanings set by a person’s identity standard and expressed in a person’s behavior, the more the person will continue to engage in these behaviors,” said Stets, co-author of “A Theory of the Self for the Sociology of Morality” in the February issue of the American Sociological Review. “If others have a low moral identity and do not challenge the illicit behavior that follows from a person’s identity standard, then the person will continue to do what he or she is doing. This is how immoral practices can emerge.”Studying the moral self is opportune given the practices of bankers, stockbrokers, and mortgage lenders whose behavior, in some cases, helped facilitate the recent recession in the United States, said Stets and fellow researcher Michael J. Carter of California State University at Northridge.“The fact that a few greedy actors have the potential to damage the lives of many brings issues of right and wrong, good and bad, and just and unjust to public awareness,” they said. “To understand the illicit behavior of some, we need to study the moral dimension of the self and what makes some individuals more dishonest than others.”
This sounds like a good illustration of some basic sociological principles: personal aspects of the self can be heavily influenced by their context. Humans have agency but their options are constrained and influenced by the social environment in which they find themselves.
Here is what I wonder: can regulations alone successfully promote a higher personal identity standard?
Another question: are Americans angry/distraught/upset about moral lapses from individual actors within the financial industry or with the entire system? In other words, do Americans blame the context or the bad actors? In thinking about this, do most Americans even know who the main individuals involved in the economic recession are (beyond government officials)?