Abstract: Bounded ethicality refers to a kind of inherent limitation when individuals make ethical decision. It manifests the departure between the external behavior and internal moral value, and leads to unconscious moral bias. Combined with rational ethicality model, bounded ethicality is an alternative explanation of unethical behavior. From the perspective of bounded ethicality, unethical behavior includes implicit bias, in-group favoritism, over-claiming credit, conflicts of interest and discounting the future. And the theoretical explanation arises from self-service motive, two-selves, ethical fading and frame effect. Studies about ethical decision making and unethical behavior in the future need to be extended to bounded rationality.

Key words: unethical behavior, rational ethicality model, bounded ethicality, in-group favoritism, two-selves