26.01.2026Farewell Interview with Prof. Carmen Tanner

After more than two decades of research and teaching, Prof. Dr. Carmen Tanner is retiring from the University of Zurich. As one of Europe’s leading voices in behavioral ethics, she has helped shape the field at the intersection of psychology, finance, and ethics.

Her research on personal integrity, ethical decision-making, and responsibility in finance has not only advanced academic discourse but also inspired countless students and professionals to reflect on the role of values in their own decisions.

In our interview, Prof. Tanner looks back on her academic journey, reflects on her research on integrity, and her contributions to understanding ethical behavior in organizations.

Dear Prof. Tanner, thank you very much for taking the time to talk to us about your important and exciting field of research in this interview.

Your research area has shifted from sustainability to ethical behavior in finance and business. What were the key triggers in your career that led you to study behavioral ethics and integrity?

There were several formative moments. My interest in ethical decision-making and behavior was awakened around twenty-five years ago, when I worked for a few years at the Northwestern University in the United States (2000–2003). Until then, my research had focused primarily on sustainability, particularly environmental awareness and sustainable consumption.

In the U.S., I encountered researchers who were studying the psychological foundations of ethical decision-making. That sparked my curiosity, and I was fortunate to become part of an outstanding research team. That was my first deep engagement what was then still an emerging field: behavioral ethics.

I had the privilege of working with exceptional scholars such as Douglas Medin and Alice Eagly, and later also met Walter Mischel. These were not only brilliant researchers but also deeply wonderful humans. From them, I learned the importance of humility, genuine support, and respect for others – values that deeply shaped how I approached mentoring young academics. I hope I was able to pass them on.

After returning to Switzerland, I was appointed SNSF Professor at the University of Zurich (Department of Psychology). Following the financial crisis of 2008, universities increasingly faced public criticism for promoting unrealistic models and educating business leaders with insufficient sense of ethical awareness. In that context, the Department of Finance (then still the Institute for Banking and Finance) approached me with the idea of establishing the Center for Responsibility in Finance. I was very happy to take on that challenge. 

For me, it has always been clear that ethical behavior in the financial and business world is not just a matter of compliance with rules and regulations. It is also a matter of people who live values such as honesty, fairness, and respect and who carry these values into organizations.

Understanding integrity and misconduct: Despite tighter regulation and expanded compliance frameworks, organizational misconduct continues to surface. How do you interpret this persistent problem, and what is your key message regarding integrity, moral intelligence, and the prevention of unethical behavior? 

After every major corporate scandal, we observe the same pattern: stricter regulation, more compliance mechanisms, more controls. And yet, misconduct continues. Fraud, corruption, and deception still occur. This raises a fundamental question: why? The answer is clear to me. Rules alone are not enough.

Two aspects are particularly important. First, we need a deeper understanding of the psychological and structural dynamics that give rise to misconduct. Human nature, with all its vulnerabilities, plays a central role. Behavioral ethics helps us identify the cognitive, motivational and situational mechanisms that cause people to lose sight of ethical values, often without being aware of it.

Second, prevention must go beyond external control. We need to strengthen individual’s capacity for self-regulation. For years, we have emphasized “soft skills” such as emotional and social intelligence. Today, we must add moral intelligence: the psychological abilities required to put values into practice. These include recognizing ethical issues when they are at stake, developing a sense for right decisions, and having the courage to uphold values even in the face of opposition. Like any skill, moral intelligence must be practiced. It is the foundation of personal integrity.

From compliance to integrity-based leadership: How can companies sustainably establish ethical values and behavior? What do you recommend to organizations?

Compliance-focused approaches still dominate in many organizations. They rely on monitoring, control, and sanctions to prevent wrongdoing. However, while rules are indispensable, even the strictest compliance system cannot guarantee ethical behavior. Research also shows that excessive compliance can have unintended side effects: reduced job satisfaction, lower intrinsic motivation, and, most critically, an erosion of moral awareness. Employees stop thinking ethically for themselves. That is a serious risk.

I therefore advocate for integrity-based value management. Leadership plays a central role here. Ethical cultures emerge when leaders actively model ethical behavior, communicate openly about values, and consistently reinforce ethical standards through recognition and accountability. Crucially, an ethical culture must be genuinely desired and lived by the management.

What I often observe is that organizations have formal codes of ethics listing ethical values, but little clarity about what these values actually mean in everyday behavior. This reflection is crucial: It is not enough to define values; it is also important to clarify how they should be enacted in daily practice. My advice is to engage employees at all levels in ongoing dialogue about where and how values are lived in the organization.

Let’s take a look at the challenges and innovations in your field. Your research focuses on behavioral ethics, compliance and integrity management. Which aspects do you find particularly challenging, and what approaches are being explored to address them?

All of these topics are demanding, but personal integrity is particularly challenging because acting according to one’s values is never easy. Every day, people face temptations, distractions, and fears that can undermine their integrity.

Integrity encompasses perception, motivation, decision-making, and action, all of these capacities require continuous training. A recurring question for my team and me has been: how can these abilities be strengthened effectively?

We have tried to contribute in practical ways by developing digital learning tools for education and professional training. Some years ago, we developed and tested a serious moral game that helps players recognize rule and value violations in professional contexts. Its primary aim is to foster moral awareness.

Recently, we have developed an AI-based coach designed to support professionals when facing ethical decision conflicts. The goal is to strengthen individual decision-making competence. We currently test its effectiveness. As with any ability, personal integrity requires continuous practice. Whether these approaches will prove effective in the long run remains to be seen, but there is still much work to be done.

Looking back and ahead: Behavioral ethics has gained increasing recognition over the past two decades. What developments do you see, and what has been particularly rewarding for you personally?

Since the financial crisis of 2008, behavioral ethics has truly flourished. This interdisciplinary field brings together psychology, finance, economics, and ethics, seeking to understand how organizations and individuals can drift into questionable practices. One persistent myth is that misconduct stems only from “bad apples.” But this view is far too limited. Under certain conditions, almost anyone can find themselves crossing ethical lines without fully realizing it.

Behavioral ethics research has identified numerous psychological, social, and organizational factors that erode moral awareness. Even well-intentioned people can become blind to value violations. While behavioral ethics is well established in the U.S., relatively few researchers in Europe work at this intersection. I am proud to have been among them.

What has been especially rewarding for me over the years is the resonance my work has received at conferences, workshops, and in teaching. Positive feedback from practitioners and students alike has confirmed that these questions truly matter. Awareness of behavioral dynamics is also growing within the compliance community, often referred to as “behavioral compliance.”

Most touching, however, have been messages from former students, sometimes years after completing their studies, telling me how the classes inspired them to reflect on their own values. Ethical conduct concerns all of us, because human weaknesses affect all of us. To live one’s values in everyday actions is always a challenge. Knowing that my work helped not only to convey knowledge, but also to inspire self-reflection and personal growth, has been immensely rewarding.

The Department of Finance sincerely thanks Professor Carmen Tanner for her outstanding contributions to the University of Zurich and to the broader research community.

Her dedication to the study and practice of ethics in finance has shaped the department’s identity and inspired many to approach business and leadership with integrity, reflection, and courage.

As she enters retirement, her academic legacy, and her personal example will continue to guide our pursuit of responsible finance and ethical understanding.

Cornelia Kegele