When bankers feel guilty–Employees’ vicarious guilt and the support of moral business practices

Media regularly report on misconduct and ethical transgression in a variety of professions, including banking. This research investigates the conditions under which individual employees experience guilt for wrongdoings on behalf of their profession. In a sample of 295 bankers, I find an inverted u-shaped relationship between professional identification and collective guilt. Furthermore, the data indicates a positive relationship between levels of experienced guilt and degree of moral intentions, such as supporting stricter regulations that aim to prevent future professional malpractice. The study's results present guilt as a central factor related to professional identification and intentions towards improving ethical business practices.