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Powerful People React More Unethically to Incentives

Harvard Business Review

New research , published in Basic and Applied Social Psychology, has uncovered an alarming wrinkle that complicates incentives even more: they may make powerful people less ethical. One way to counteract how incentives can corrupt may be to incentivize cooperative behaviors, such as employee satisfaction or retention.

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Research: Whistleblowers Are a Sign of Healthy Companies

Harvard Business Review

Some of the worst corporate disasters of the past two decades were heralded by whistleblowers: Sherron Watkins raised the red flag internally at Enron, Cynthia Cooper let management know of major accounting problems at WorldCom, and Matthew Lee brought problems to his management team at Lehman Brothers. Barbara Chase/Getty Images.

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Research: Firms Give More Stock Options When They’re Committing Fraud

Harvard Business Review

For example, look at Sherron Watkins, formerly of Enron, and Cynthia Cooper, formerly of WorldCom. Since this program was established, the Securities and Exchange Commission (SEC) has granted more than $111 million in awards to 34 whistleblowers, with the largest award of $30 million granted in September 2014.

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Building a Software Start-Up Inside GE

Harvard Business Review

” To hit the aggressive growth targets (750 by the end of 2013 and 1000 by November 2014) Waldo had to rewrite some GE rules. The Silicon Valley software ethic of running experiments to fail fast and learn has been a cultural challenge for GE, where failure has been frowned upon.

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Business Can Help End Child Labor

Harvard Business Review

This past winter, I had the distinct honor of meeting activist Kailash Satyarthi , the co-winner of the 2014 Nobel Peace Prize. The fact is, when governmental regulations don’t go far enough to keep kids safe, corporations and consumers can single-handedly or cooperatively refuse to do business with suppliers that employ children.