[HN Gopher] Seven signs of ethical collapse (2012)
       ___________________________________________________________________
        
       Seven signs of ethical collapse (2012)
        
       Author : tacon
       Score  : 252 points
       Date   : 2023-11-21 16:55 UTC (6 hours ago)
        
 (HTM) web link (www.scu.edu)
 (TXT) w3m dump (www.scu.edu)
        
       | cbsmith wrote:
       | Unsurprisingly, there's some gross oversimplification going on
       | here, but this is interesting stuff.
        
       | exac wrote:
       | Here they are:
       | 
       | 1. Pressure to maintain numbers
       | 
       | 2. Fear and silence
       | 
       | 3. Young 'uns and a bigger-than-life CEO
       | 
       | 4. Weak board of directors
       | 
       | 5. Conflicts of interest overlooked or unaddressed
       | 
       | 6. Innovation like no other company
       | 
       | 7. Goodness in some areas atones for evil in others
        
         | hackernewds wrote:
         | Great tldr of the article
        
         | stcredzero wrote:
         | It seems that many news media companies have these 4 in 2023!
         | - Pressure to maintain numbers         - Fear and silence
         | - Conflicts of interest overlooked or unaddressed         -
         | Goodness in some areas atones for evil in others
        
           | AnimalMuppet wrote:
           | Much more sobering, at least to me: I, personally, arguably
           | have five of them.
        
       | pstuart wrote:
       | Incentives are a hell of a drug.
       | 
       | My last job was at a company where the CEO had the vision and the
       | personality to lead the company through a necessary
       | transformation (it was in a long-tail business).
       | 
       | The individual contributors were smart, experienced, and good
       | people.
       | 
       | But between the top and the bottom there was a complete
       | disconnect, as people were driven by incentives that rewarded
       | individuals and teams for things that did not serve the company
       | as a whole.
       | 
       | Not an unusual scenario in any large organization, but it was
       | beyond frustrating.
        
         | indigochill wrote:
         | How do you get a CEO with vision to structure the incentives
         | towards achieving the vision (presumably starting with the
         | incentives for his direct reports and maybe coaching them to do
         | the same for their reports, and on down the chain)?
        
           | throwawaysleep wrote:
           | I am not sure you can without the CEO understanding all the
           | ways the incentive can be gamed or hacked. The CEO would need
           | to be as good as the workers at their particular job roles.
        
             | actionfromafar wrote:
             | If the workers are in already with the vision, the CEO
             | needs to understand the managers "only".
        
         | stcredzero wrote:
         | _Incentives are a hell of a drug._
         | 
         | This is the _Homo sapiens_ version of the Alignment Problem.
        
         | Terr_ wrote:
         | > Incentives are a hell of a drug.
         | 
         | A more-prosaic example: I worked at a company where their
         | internal enterprise software was sometimes the battleground
         | between different groups, in particular Operations kept trying
         | to put in guardrails to prevent commission-driven Sales from
         | closing unprofitable deals.
        
       | CrazyStat wrote:
       | (2012)
        
       | throwawaysleep wrote:
       | Fundamentally ethics are a luxury. I might have some if I ever
       | become rich and financially independent of the rest of society,
       | but until that point I will not have any.
       | 
       | And even then, it comes after other needs like comfort and
       | achieving my own goals. I won't sacrifice much of anything for
       | ethics.
        
         | jacquesm wrote:
         | Campguard an option for very good comp? Or would that be a
         | bridge too far?
        
         | amanaplanacanal wrote:
         | I suspect you might have a different definition of ethics. I
         | doubt many people would, for instance, murder for comfort or
         | achieving their goals.
        
           | throwawaysleep wrote:
           | Murder is illegal and has significant negative personal
           | consequences. But lots of things are not illegal and thus can
           | be done with non-social risk.
        
             | withinboredom wrote:
             | Most unethical behaviors (regardless of being illegal or
             | legal) have significant personal consequences. However,
             | most unethical things are actually also illegal, falling
             | under "fraud", "willful neglect", etc.
             | 
             | There's a gray area, usually referred to as "dark patterns"
             | that aren't yet proven to be illegal, but likely are, if
             | the regulators ever had the free time to care.
             | 
             | But yeah. Unethical people might find they have a hard time
             | actually getting past a certain point in relationships
             | (business or friendly), though sometimes it's good to have
             | a few shrewd people in your back pocket to call on.
        
           | NotMichaelBay wrote:
           | Let's hope so, otherwise it looks like someone is...
           | _sunglasses_ Murder for FIRE
        
           | JumpCrisscross wrote:
           | > _doubt many people would, for instance, murder for comfort_
           | 
           | Individually, no. But we have a remarkable ability to adapt
           | group ethical systems when resource needs demand it. The
           | conflict arises when these adaptations occur in too-small a
           | group, _e.g._ at the company level within a country, or a
           | country level within an integrated continent.
        
         | n4r9 wrote:
         | Would you press a button that puts a million poor people each
         | in $10k debt and gives you $1m?
        
           | GrinningFool wrote:
           | Does the answer change if it's a million rich people?
        
             | MakeThemMoney wrote:
             | Mine does
        
             | theultdev wrote:
             | yes, it turns from a no to a hard no. that's destroying a
             | lot to gain a little.
             | 
             | many of those "rich" people could be supporting many other
             | "poor" people via jobs that you just wiped out for a small
             | personal gain.
        
           | yoyohello13 wrote:
           | There are whole industries built around pushing that button.
        
         | skygazer wrote:
         | Ironically, the poor are typically more ethical than the
         | wealthy in research. You may be among the ~.5% of humans
         | unconcerned with harming others, regardless of wealth level.
        
           | bumby wrote:
           | There seems to be quite a bit of evidence of the opposite, or
           | at least that "high-status" people are equally or more
           | ethical. Some of the misperception seems to be explained by
           | society holding high-status individuals to a higher ethical
           | standard and more attention when they deviate from the norm.
        
             | skygazer wrote:
             | That's interesting. Of course we can't 1:1 equate wealth
             | with high-status, but I guess there's often significant
             | overlap.
        
             | cycomanic wrote:
             | The poster wrote that research shows that poorer people are
             | typically (or in general) more ethical than richer and your
             | reply is that there is evidence to the contrary without any
             | evidence just a hand waving argument. That doesn't show
             | anything.
             | 
             | You can indeed question the research of less ethical
             | behaviour by richer people however you need to bring some
             | evidence. This [1] article for example talks about a study
             | which didn't replicate the behaviour. It's actually a well
             | balanced discussion of the overall evidence.
             | 
             | [1] https://greatergood.berkeley.edu/article/item/are_rich_
             | peopl...
        
               | bumby wrote:
               | What was the hand-waving? A better approach is just to be
               | intellectually curious and ask. Besides, snarkiness is
               | against the HN guidelines. This article [1] has a lot of
               | references that support that claim, and it's a higher
               | quality of rigor than a magazine article. FWIW, I'm not
               | saying the original claim was wrong, just that we should
               | be cautioned against strong claims when there is mixed
               | evidence at best. Likewise, I would caution against
               | extrapolating too much from studies that use cars as a
               | proxy for wealth. Car model != socio-economic status for
               | a variety of reasons. I'd argue that original (and
               | replicated) study from your link is pretty flawed to
               | begin with.
               | 
               | [1] https://www.nature.com/articles/s41598-023-42204-z
        
               | cycomanic wrote:
               | Sorry I didn't mean to come across as snarky.
               | 
               | By handwavy I meant that one can easily come up with
               | "logical" arguments around behaviour that dont reflect
               | reality, so it needs to be backed up by evidence.
               | 
               | Thanks for posting the article I was not aware of this
               | research (while I was aware of the research showing the
               | opposite).
               | 
               | 2 things to note: 1. How is it possible that the two
               | don't cite each other?! I have to call out the scientific
               | report paper in particular. Piff's work is more than 10
               | years old and well known. Instead the authors only cite
               | work that supports their premise. I would have thrown it
               | out as a reviewer just based on this. That said the
               | article I linked should have mentioned some of the work
               | cited in the scientific reports article as well.
               | 
               | 2. It seems studies are done quite differently, the
               | article you linked seems to largely rely on surveys
               | (sidenote I really dislike the use of mechanical turk for
               | these things, way too unreliable) of assessment others or
               | their own ethical behaviour. Piff's work was more
               | experimental (thus lower numbers and less reliable in
               | that sense)
        
               | bumby wrote:
               | No apologies needed, but I appreciate the thoughtful
               | response.I agree that surveys are not the best tool.
               | Unfortunately, for a lot of work that covers social
               | components, they are a common method. While wealth is
               | easily quantifiable, people's feelings towards topics
               | like ethics are often best done by asking them.
               | 
               | I think the Piff study is just really flawed because they
               | were trying to use a quantifiable proxy.
               | 
               | "we used observers' codes of vehicle status (make, age,
               | and appearance) to index drivers' social class."
               | 
               | IMO they chose a really bad proxy, and they never
               | validated it. It's completely based on an assumption, and
               | one that we can all probably point to personal examples
               | that violate it. To me, that's "hand-wavy" science. To
               | your point, I could probably come up with a handful of
               | different explanations that correlate car make/model to
               | seemingly aggressive driving behavior. Some of them
               | probably correlate with wealth and others not so much.
               | 
               | I do think there's a danger of confirmation bias. Just
               | like the nature study demonstrates that there is a
               | normative belief that wealthy people act less ethically,
               | it's really easy for our status-obscessed ape minds to
               | latch onto studies that support it. Even when they aren't
               | the greatest.
        
             | atmavatar wrote:
             | I would argue that holding someone to a standard, ethical
             | or otherwise, requires some sort of accountability.
             | 
             | And yet, in the US, we have congressmen/women who regularly
             | engage in insider trading and accept bribes in the form of
             | lobbying and cushy jobs after they leave office, we have
             | multiple sitting Supreme Court justices accepting bribes,
             | and we have a former president who isn't even held to the
             | same standard we hold our children.
             | 
             | I'd be hard-pressed to come up with any examples of a high-
             | status individual being held to a higher standard than the
             | rest of us. Sure, there's a lot of belly-aching on social
             | media from time to time, but in most (all?) cases, it's for
             | falling short of a standard we're all expected to satisfy,
             | and there's almost never any _real_ consequences.
        
               | kortilla wrote:
               | > we have multiple sitting Supreme Court justices
               | accepting bribes
               | 
               | When you use the word "bribe" to describe something that
               | isn't, it dilutes your point significantly.
               | 
               | This is a thread about ethics, you can use precise words
               | and still talk about how they are unethical.
        
             | withinboredom wrote:
             | Links?
        
         | Kim_Bruning wrote:
         | Depends, ethics are part of having integrity. And people with
         | integrity can go a long way over time, since integrity is part
         | of being reliable, And reliable people keep getting invited
         | back.
         | 
         | It's the difference between a short term and a long term view.
        
         | bumby wrote:
         | Ethics is really just scaffolding to explain how people
         | interact. This reads as a rationalization for the ends justify
         | the means, which might be considered a branch of
         | consequentialist ethics.
        
           | 0xbadcafebee wrote:
           | It sounds to me like they were describing rational egoism /
           | objectivism. Rand described the ethics of objectivism as:
           | "Man -- every man -- is an end in himself, not the means to
           | the ends of others.         He must exist for his own sake,
           | neither sacrificing himself to others nor         sacrificing
           | others to himself. The pursuit of his own rational self-
           | interest and of his own happiness is the highest moral
           | purpose of his life."
        
         | AnimalMuppet wrote:
         | Ethics _is_ a luxury. The luxury of not having to hire armed
         | guards every time I go to the ATM. The luxury of not having to
         | test my groceries to make sure they aren 't going to poison me.
         | The luxury of being able to trust the financial statements of
         | my bank, or my broker.
         | 
         | It's a luxury to live in a society where most people have
         | ethics. I really enjoy having that luxury; I suspect you do,
         | too.
         | 
         | So if you want to _not_ have them yourself until you get ahead
         | of everyone else, that sounds kind of like a sociopath.
        
           | idlejitter wrote:
           | Ethics is what's popular according to influencers. Enjoy this
           | double entendre.
        
         | 0xbadcafebee wrote:
         | You just described your own system of ethics. I think you're
         | confusing the concept of ethics with a particular construction
         | of ethics
        
         | neilv wrote:
         | That's a very hostile mindset to have, but at least you
         | admitted it, which is a bit better than the people who think
         | the same way but pretend otherwise.
        
           | kgwxd wrote:
           | I don't know that it's a bit better. I'd much rather work
           | with someone I know will be unethical, given the chance they
           | won't get caught. They're easy enough to spot. I can
           | strategize around the getting caught part. Someone that wears
           | lack of ethics as a badge of honor, I'd rather just never
           | work with.
        
         | mcpackieh wrote:
         | Rich people have the resources to safety burn bridges, make
         | enemies and get themselves into trouble they can dig themselves
         | out of with lawyers, bribes, etc. If you're poor, then for your
         | own sake it is even more important to behave ethically, in a
         | way that makes other people inclined to like you.
        
         | akomtu wrote:
         | > independent of the rest of society
         | 
         | That's the seed of evil: the idea of isolated existence. The
         | strong just pull it out. The weak passively watch how it grows
         | and wait until it's rotten down in envy, experiencing all sorts
         | of sufferings on the way there.
        
       | spa3thyb wrote:
       | (2012)
       | 
       | > "I hire them just like me: smart, poor, and want to be rich,"
       | she quoted former Tyco CEO Dennis Kozlowski as saying.
       | 
       | Some time later... "Ex-Tyco CEO Kozlowski says he stole out of
       | pure greed"
       | 
       | ( https://www.reuters.com/article/us-tyco-kozlowski-release-id...
       | )
        
         | Joker_vD wrote:
         | "...but my motives were pure!" -- "You stole it out of greed."
         | -- " _Pure_ greed! "
        
           | Terr_ wrote:
           | Somehow that makes me think of the memorable (and ambiguously
           | villainous) speech from The Network (1976) [0].
           | 
           | [0] https://www.youtube.com/watch?v=35DSdw7dHjs&t=1m11s
        
       | btilly wrote:
       | I immediately sanity checked this with three examples.
       | 
       | SBF fit amusingly well. His fraud had all of these, with
       | Effective Altruism providing an extreme example of how goodness
       | in some areas atones for evil in others.
       | 
       | Stanford's president Marc Tessier-Lavigne resigned after his
       | reputation was found to be based on fraudulent research.
       | Descriptions that I've read from those in his lab showed most of
       | these.
       | 
       | Enron is too canonical an example to ignore. Yes, it had all of
       | these.
        
         | lordnacho wrote:
         | SBF could not have been a generation older than his reports.
         | They'd be 10 years old.
        
           | not2b wrote:
           | So, 6 out of 7 then.
        
           | btilly wrote:
           | No, he was not a generation older. But he managed to still
           | create a persona that was bigger than life.
        
           | bumby wrote:
           | I think ' a generation older' is really just a proxy to
           | explain the social dynamic of "subordinates are unwilling to
           | question the authority of the CEO"
        
             | renegade-otter wrote:
             | Seniority can be only a part of it. A CEO who is extremely
             | wealthy and who is an actual celebrity does not like being
             | told "no" to. It only gets worse with time - as they begin
             | to think they are uniquely brilliant (and funny).
        
               | outworlder wrote:
               | There's a very, very prominent example of that today. Let
               | that sink in.
        
           | legitster wrote:
           | I think it's more that he staffed his entire company with
           | young, ambitious, and inexperienced people.
        
           | LegibleCrimson wrote:
           | That's the canonical example, but it's not about age in and
           | of itself, but the gap between the CEO that turns them from a
           | person into an idol. It's often an age gap (especially in the
           | past) due to the culturally-entrenched ideal of automatic
           | respect and deference to one's elders, but it can be any gap
           | that makes the direct reports feel like they are somehow
           | inherently beneath the CEO in ways other than corporate rank.
           | 
           | The point of that sign is that the CEO's direct underlings
           | can't even question the CEO's choices.
        
             | ryandrake wrote:
             | It's not just their direct reports or even their employees.
             | HN, Twitter, and Reddit are full of commenters simping and
             | white-knighting for CEOs they have no relation to, whenever
             | someone questions them. Corporate leaders have become this
             | weird "priesthood" complete with followers and apostles
             | praising them online.
        
         | hackernewds wrote:
         | Wells Fargo misses most. So does HSBC
        
           | btilly wrote:
           | I don't know enough about what happened inside of those to
           | evaluate.
        
           | HumblyTossed wrote:
           | They're banks, so the assumption is lack of ethics.
        
           | LegibleCrimson wrote:
           | They appear to from the outside. Most of the examples of
           | ethical collapse that I'm aware of weren't entirely clear
           | until after the organization collapsed and the dirty laundry
           | went public. A lot of these would either be actively
           | suppressed or they'd only be clear to people who are inside
           | the organization.
        
             | stvltvs wrote:
             | In other words, the list is usually only useful to
             | insiders.
        
           | lmm wrote:
           | HSBC did everything right and still gets crucified for it.
           | Whether your system can distinguish between Wells Fargo and
           | HSBC is actually a pretty good test case.
        
         | legitster wrote:
         | If you want an even better example look at Steve Jobs.
        
         | notahacker wrote:
         | I think the sanity checking works better the other way round:
         | how much of this is just corporate norms that apply to most
         | companies above a certain size, including ones with no
         | particularly significant ethical challenges? One of the bullet
         | points starts off by pointing out that 47% of companies have
         | one type of conflict of interest!
         | 
         | CEO being higher profile and a generation older than [some of]
         | the people sounds like a pretty normal company tbh, and
         | probably only a major issue if the ethical issues are caused by
         | the CEO (it technically doesn't apply to SBF, although his
         | reports were even less experienced and in awe of him)
         | 
         | CSR and diversity initiatives and other corporate do-good
         | messaging? Most companies do that to some extent, and it's not
         | like the ones who don't even attempt to launder their
         | reputations tend to be squeaky clean rather than too cynical to
         | even try to look like they care.
         | 
         | And sure, KPIs and stretchy sales targets can definitely cause
         | bad behaviour and lying, but they're also extremely common, and
         | can be beneficial when companies actually get them right.
        
           | whatshisface wrote:
           | I am not sure if that is an objection because "50% of
           | companies are involved in one or more ethical violations,"
           | sounds plausible.
        
             | suoduandao3 wrote:
             | I don't think "Purchase or sell insider services"
             | necessarily means a conflict of interest, insiders could be
             | winning the bidding process honestly as well.
        
               | paulryanrogers wrote:
               | Insiders are usually disqualified from bidding because of
               | an inherent conflict of interest.
        
             | notahacker wrote:
             | It does render the notion of "ethical collapse" and
             | supposed comparisons to Enron a bit meaningless if we're
             | also counting the sorts of ethical violation most companies
             | are guilty of though. It's a bit like if a study of
             | "criminality" makes a point of honing in on everyone who's
             | broken a speed limit before...
        
           | akoboldfrying wrote:
           | Exactly. The usefulness of criteria for predicting _anything_
           | depends on _both_ false positive and false negative rates,
           | and this article doesn 't seem to care about false positives
           | (what fraction of companies do trendy, visible ESG stuff but
           | are also honest behind the scenes?) at all.
           | 
           | Might as well add an 8th point, "Companies that sell a good
           | or service", and really bring that false negative rate all
           | the way down to zero.
        
         | geepytee wrote:
         | To be fair, so many fast growing startups would tick multiple
         | of their 7 boxes. Have you sanity checked it the other way
         | (false positive)?
        
           | neltnerb wrote:
           | They don't define "ethical collapse" in terms of the company
           | failing to make money. I imagine a fast growing startup could
           | behave unethically without anyone really noticing (or at
           | least saying anything) for a while.
        
           | gen220 wrote:
           | Uber was on the cusp on a bunch of these (numbers pressure,
           | fear/silence, big CEO, innovation, goodness atoning for
           | evil). I think fear/silence tilting + strong governance
           | forced Kalanick out and saved the company.
           | 
           | WeWork had every single one of these, and governance
           | ultimately was too little too late to save the company.
           | 
           | AirBnb, Stripe had a few of these, but turned out OK.
           | 
           | It seems like the common variable that spares startups from
           | ethical collapse is good board governance and having a
           | reasonable / willing to evolve CEO.
           | 
           | FB is an interesting case, because they check most of these
           | boxes (maybe not fear/silence?), yet are fairly "successful".
           | Governance isn't the explanatory variable, since Zuck has 90%
           | of voting shares. The explanatory variable seems to be Zuck's
           | willingness to listen to and learn from a board and his
           | execs.
        
         | imhoguy wrote:
         | Has OpenAI just joined the club too? What is the score?
        
           | rossdavidh wrote:
           | 6/7, the board of directors was not "weak" (they fired the
           | CEO). Guess which one of the 7 Silicon Valley is now fiercely
           | complaining about...
        
             | svnt wrote:
             | Arguably they were weak, but not entrained enough to the
             | CEO to meet the criteria of this definition of weak.
        
       | thundergolfer wrote:
       | On the one hand, the article and the talk it is about stresses
       | the severity of the moral transgression: "moral meltdowns",
       | "really crossed very bright lines", "ethical collapse".
       | 
       | But on the other hand, the implications of the moral failure for
       | the moral status of the company and its employees is pushed far
       | away into the corner:
       | 
       | - "These are great companies, great organizations, good people"
       | 
       | - "misguided companies"
       | 
       | - "good people at great companies"
       | 
       | The list that follows is something you can retroactively apply to
       | numerous instances of corporate wrongdoing, but also provides an
       | enormous amount of false positives and a false negatives.
       | 
       | Thousands of businesses don't meet these criteria and yet are
       | morally compromised (e.g. Cargill). Thousands of businesses do
       | meet these criteria and yet aren't going to be called out as
       | "ethically collapsed" by the author _before_ they 've been outed
       | and widely accepted as failed.
        
       | legitster wrote:
       | Part of the problem with this sort of analysis is that hindsight
       | is always 20/20.
       | 
       | You may think your company has is transparent and has a wonderful
       | process for handling conflicts of interest. Then only when things
       | collapse do people come out of the woodwork and start dishing
       | drama.
       | 
       | If they have a fear and suppression program that works, you would
       | never hear about it!
        
         | shimon wrote:
         | Yes, it's often hard to identify this as an outsider. But
         | people _inside_ the company know, and if you 've worked in
         | places that handle conflict in healthy ways and in some that
         | handle it not-so-well, you'll know quite clearly within a few
         | days where your workplace stands.
        
       | Traubenfuchs wrote:
       | Feels like half of this advice is directed at people that
       | wouldn't profit from it. The reason people higher up are/become
       | less ethical is because that usually is a quality needed to rise.
        
       | stillwithit wrote:
       | So economy in the aggregate is in the midst of ethical collapse?
       | 
       | You can find numerous examples across institutions and industry
       | that meet all these criteria.
       | 
       | 1. Pressure to maintain numbers... line must go up economy.
       | 
       | 2. Fear and silence... quiet quitting, workers keep going in
       | while expressing fear in private
       | 
       | 3. Young uns and bigger than life CEO... see tech, finance,
       | academia, politics exploitation of naive grads
       | 
       | 4. Weak board of directors... voters and workers are subservient
       | to 1%
       | 
       | 5. Conflicts of interest overlooked... why do so few have so much
       | reach into all our lives?
       | 
       | 6. Innovation like no other... US capitalism is unsurpassed!
       | World cannot do without it!! Resell yesterday with faster chips
       | and flatter design!! ... metrics hacks line up!!
       | 
       | 7. Goodness in some areas atones for evil in others... we are
       | burning up the planet for the next generation but how about that
       | iPhone 15, dick rockets into space, and those massive F350s!
        
         | segasaturn wrote:
         | Yes, my thoughts were that all of these symptoms have become
         | even more acute and obvious as time has gone on. This article
         | from 2012 was probably only useful for scholarly purposes and
         | high level debates between ethicists, but now even the
         | commoners can see all of these issues glaring so clear and
         | bright that this article is less useful and more the obvious
         | being stated about what is constantly happening around us.
        
         | kortilla wrote:
         | > 7. Goodness in some areas atones for evil in others... we are
         | burning up the planet for the next generation but how about
         | that iPhone 15, dick rockets into space, and those massive
         | F350s!
         | 
         | This is not what that point means. "Goodness" isn't referring
         | to cool shit. It's referring to doing good things.
         | 
         | Someone buys an F350 but then "offsets it" by donating money to
         | a climate activist charity.
        
       | dustingetz wrote:
       | The direction of progress is the direction of increasing
       | accountability
       | 
       | good book about that - https://www.amazon.com/Reckoning-
       | Financial-Accountability-Ri... tldr thesis is that the invention
       | of double entry bookkeeping is the thing that has caused modern
       | prosperity, not capitalism. we can only cooperate to the extent
       | that we can detect cheating. Consider a 1600s merchant - without
       | the ability to detect fraud, how can you give your goods to a
       | shipping company? Capitalism is only possible if you can count
       | your capital! a memorable example was a French king (Louis XV?)
       | who bankrupted the realm because he didn't know how much money he
       | had.
        
         | Terr_ wrote:
         | It makes for an kind of inherent contradiction--or at least
         | tension--inside certain types of _laissez faire_ capitalist
         | thought, between perfect-information versus the autonomy of
         | secrecy.
         | 
         | On Monday, capital-C-Capitalism is celebrated as being the most
         | efficient and economist-approved system (i.e. the bestest) when
         | --if--there is somehow perfect price/deal information available
         | to all actors.
         | 
         | On Tuesday, no- _True_ -Capitalism is lauded as _immune_ to
         | cartels and collusion, because any actor will quickly undercut
         | the others with _secret_ prices and deals and hidden identities
         | and wash-trading.
         | 
         | On Wednesday, Virtuous Capitalism needs no oversight because
         | nasty behavior will be seen and detected by consumers who will
         | vote with their wallets.
         | 
         | On Thursday, Property-Respecting Capitalism refuses to infringe
         | on the owners' essential freedom... to construct impenetrable
         | webs of shifting corporate ownership to obfuscate all
         | controlling relationships.
        
       | supriyo-biswas wrote:
       | This article, and especially point 2 (Fear and silence) is a
       | great rebuttal against the flaw of the Radical
       | Candor/Manipulative Insincerity framework; which considers apathy
       | towards issues in the workplace as tantamount to being
       | manipulative without considering why people resort to this
       | behavior in the first place.
       | 
       | It is not easy for an single employee to change deeply embedded
       | negative organizational behaviors, and therefore it is better for
       | the employee to work with the goal of reward maximization
       | (through a focus on total compensation and hitting numbers) and
       | feigning ignorance or not bothering to report issues that cross
       | ethical lines, which may backfire and cause trouble for the
       | employee (constructive dismissal, smear campaigns, lawsuits etc.)
        
       | overvale wrote:
       | > To front-line employees, the line between right and wrong is
       | very bright. Something happens to people as they climb up through
       | management, she said. The bright line seems to fade.
       | 
       | This doesn't seem like a mystery to me. In my experience the more
       | you climb up through management the more you leave the realm of
       | clear-cut choices and enter a world of nasty trade-offs. Do that
       | enough times, and get your head spun around enough by trade-offs
       | you don't know how to navigate but have to deal with immediately,
       | and you'll get a kind of "trade off numbness".
        
         | naasking wrote:
         | > and get your head spun around enough by trade-offs you don't
         | know how to navigate but have to deal with immediately, and
         | you'll get a kind of "trade off numbness"
         | 
         | I wonder if this could explain why corporations grow into slow
         | behemoths, as a kind of subconscious moral cover. Most people
         | think the causal arrow happens one way, ie. corporations grow
         | due to efficiencies or other factors and moral rot is a side-
         | effect, but maybe it's actually the other way around in some
         | cases. Since everyone tries to see themselves as basically
         | good, but they still want to make money and be profitable, they
         | migrate towards structures with extra layers that provide extra
         | plausible deniability and obfuscation of questionable moral
         | decisions.
        
           | bumby wrote:
           | A Freakonomics episode claims that corporations "grow into
           | slow behemoths" because, by the nature of being successful,
           | you tend to have more programs to maintain. So you spend more
           | time in maintenance mode and outsource your innovation by
           | acquiring scrappy start-ups. It's a risk/reward tradeoff of
           | its own.
        
             | overvale wrote:
             | This matches my experience. Complexity is a real problem.
             | I've found this video does a good job outlining how this
             | happens: https://www.youtube.com/watch?v=Rp4RCIfX66I
        
               | torvald wrote:
               | > https://www.youtube.com/watch?v=Rp4RCIfX66I
               | 
               | Good watch, thanks!
        
           | dinvlad wrote:
           | I think the opposite applies too - "move fast and break
           | things" is a helluva excuse for doing extremely shady things
           | and not worry about the consequences.
           | 
           | Culture and incentives are just extremely hard to get right
           | and align with the morals, and it's a continuous struggle for
           | any business. And this applies even to solo companies.
        
             | avs733 wrote:
             | a mentor once referred to it as 'ship fast and shout down
             | externalities' which always stuck with me
             | 
             | That all being said I think for many people the ability to
             | have a bright line is because the abstractions involved in
             | deeply understanding these types of trade offs are not a
             | common part of life. We are (nearly) universally worse at
             | the types of reasoning (especially reasoning with
             | abstractions) that we don't do frequently.
        
           | overvale wrote:
           | Haha. Yes. Basic risk aversion.
        
         | prox wrote:
         | Do you have an example of nasty trade offs? I am not familiar
         | with managing so I am interested what those could be. I assume
         | taking care of the worker vs taking care for the company
         | (growth) is one of them, but again not sure.
        
           | badpun wrote:
           | There's plenty of situations where you can do things right,
           | but it will be expensive, slow or otherwise inconvenient, or
           | you can screw someone over (that someone may be the
           | taxpayers, or local community whose environment you pollute),
           | and make the problem go away.
        
           | suoduandao3 wrote:
           | Two direct reports aren't getting along. Their work styles
           | are both valuable but clash with each other. You need to ask
           | one of them to adjust to the other's expectations.
        
           | overvale wrote:
           | Is it better to lay off 10 more people and save the money or
           | is it better to keep more people around to deal with the
           | uncertainty of the next 6 months? How do you want to protect
           | the team? With extra people or with extra money?
        
           | avs733 wrote:
           | not business but I'll give one from my own work in academia.
           | 
           | Do you change a requirement for a BS degree to only require 6
           | instead of 9 credits of research?
           | 
           | Upside - students might graduate faster (this is one of many
           | constraints on graduation) which saves them money and time.
           | 
           | downsides - faculty may have less students to help with
           | research (which helps faculty succeed via research
           | productivity)
           | 
           | complicating - students might do the research anyways, they
           | can still get credit it just doesn't officially count for
           | anything.
           | 
           | context: the department is responsible to both...the actual
           | impact of both the upside and downside are functionally
           | impossible to predict because they are part of a broader
           | complex partially social system that will anneal itself in
           | ways you don't expect, metrics of success for students and
           | faculty are important to everyone, albeit through different
           | arms of an org chart which results in them each advocating
           | for their metric at the expense of all others, because their
           | success is partially evaluated on that metric.
           | 
           | solution (this is sarcasm): remove a math course as
           | 'required' that most students get transfer credit for and
           | have to have as a pre-requisite for other classes. Only
           | effect is on the 2% of students who actually have to take the
           | course.
           | 
           | result: everyone sees change, which they want, without
           | perceiving a risk of harmful side effects, and with no actual
           | change to the status quo.
        
           | dasil003 wrote:
           | Tradeoffs become multi-arm as you go up the chain. For
           | instance, complying with the letter of the law at great
           | engineering, operational and product UX expense, vs cutting
           | corners to maintain a smooth UX, low operational overhead,
           | and straightforward maintainable systems. In todays world no
           | one is able to be experts in all those considerations.
           | Leadership must make apples-to-oranges tradeoffs all day
           | long, and they must rely on communication and maturity to
           | navigate the cascading inputs of these choices. What is
           | possible to execute on cross-functionally, in what timeline,
           | and what are the externalities of different tradeoffs? These
           | are fiendishly difficult to navigate, so generally financial
           | metrics will serve as the tiebreaker, and even then it's
           | based on a lot of guesswork and proposals made up by self-
           | interested internal parties over-representing an uncertain
           | outcome. It's no surprise that the really big ethical
           | concerns get lost in the shuffle--there's simply no system of
           | checks and balances on ethics with anywhere near the
           | effectiveness of that imparted by the incentives corporate
           | capitalism bolstered by individual self-interest (note I
           | avoid the word greed here since the incentives aare chained
           | all the way down to individuals which no one would consider
           | well-off enough to be labeled "greedy").
        
       | csours wrote:
       | "Our competitor is getting away with it"
        
       | jahewson wrote:
       | > 4. A Weak Board of Directors
       | 
       | > Weak boards tend to have inexperienced members, often ones who
       | are too young to have experienced a complete business cycle,
       | which was often the case with companies in the dot-com boom.
       | 
       | > Often they have ethical conflicts of interest as well, in terms
       | of consulting arrangements, related party transactions, ...
       | 
       | Sound familiar?
        
         | Vegenoid wrote:
         | If we're going to list the signs that could apply to OpenAI,
         | let's list them all:
         | 
         | 3. Young 'uns and a bigger-than-life CEO
         | 
         | 6. Innovation like no other company
         | 
         | 7. Goodness in some areas atones for evil in others
        
       | neon_me wrote:
       | Show me one company not checking at least one of the boxes...
        
       | adverbly wrote:
       | Not exactly clear-cut to identify... 7 different subjective
       | signals?
       | 
       | Sounds too much like astrology where 10/12 different horoscopes
       | would apply to most people anyways.
       | 
       | Before subscribing to something like this, I'd want to see hard
       | data around how common each of these signals is in a random
       | sample of companies(possibly even with a breakdown by industry)
        
       | RadixDLT wrote:
       | sounds like google
        
       | myth_drannon wrote:
       | That's 2012. Now we have a TikTok generation. After seeing
       | interviews with Free Palestine protesters and general TikTok
       | crowd, I fear US has no future and it will be an easy pick for
       | China. These people are from prestigious universities but they
       | are so dumb. Very, very dumb. In 20 years they will be working
       | for US government ( because Yale, Harvard). TikTok is a weapon of
       | mass destruction.
        
       | Thoreandan wrote:
       | The WayBack Machine's 2018 snapshot
       | <https://web.archive.org/web/20181008124103/https://www.scu.e...>
       | dates this article to (2007)
        
       | mannanj wrote:
       | Pressure to maintain numbers Fear and silence Young 'uns and a
       | bigger-than-life CEO Weak board of directors Conflicts of
       | interest overlooked or unaddressed Innovation like no other
       | company Goodness in some areas atones for evil in others
       | 
       | I was hoping for something, but sadly feel these all apply to our
       | majority government in many world countries today, don't they?
        
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