This dissertation investigates how creativity can lead to highly ingenious but ethically questionable decisions. Ethical decision making, which is often influenced by intrinsic ethical values (Etzioni, 1988) and moral rules (Kant, 1785; Aquinas, 1947; Turiel, 1983), is consistent with conformity and convergent thinking. Creativity, however, is squarely rooted in cognitive variations (Simonton, 1999) and divergent thinking (Amabile, 1983; Runco, 2004). The potential tension between the two suggests that creativity can lead to a relaxation of ethical standards, especially when people can use loopholes to circumvent ethical rules and constraints. Study 1 demonstrates that people recognize that taking advantage of loopholes is creative but of questionable ethics, across a variety of situations. Studies 2 and 3 show that, after creativity priming, individuals creatively cheat by taking advantage of task-systemic loopholes. Study 4 suggests that divergent thinking, one of creativity's primary drivers, also increases the likelihood that people will use loopholes. Study 5 and Study 6 suggest when creativity is stimulated, people tend to evaluate creative, yet unethical decisions more positively. However, the effect of creativity on ethical justifications seems mixed. Study 7 suggests that surveillance may not reduce creative, unethical decisions because creativity-primed individuals ingeniously detected the loopholes and often justified their decisions creatively. Thus, punishment may not necessarily help reduce creative deception; instead, it may even marginally magnify creativity's negative effects. Upcoming field studies will investigate the tensions between creativity and ethical decisions in three different organizational settings: (1) how organizations channel or divert attention between ethical issues and innovation and creativity in their public communications; (2) how organizations might use creative interpretations to produce beneficial, but potentially detrimental outcomes; and (3) how creative professionals' daily exposure to creativity might affect their ethical judgments and decisions.