Harvard Business Review

DECEMBER 29, 2016

It’s hard for good, ethical people to imagine how these meltdowns could possibly happen. many of us face an endless stream of ethical dilemmas at work. We were surprised that 30 leaders in the study recalled a total of 87 “major” ethical dilemmas from their career histories. Wells Fargo. Volkswagen.

Ethics 10

Ethics Company Emotional Intelligence Short-term 10

Harvard Business Review

DECEMBER 16, 2016

Most companies have ethics and compliance policies that get reviewed and signed annually by all employees. “Employees are charged with conducting their business affairs in accordance with the highest ethical standards,” reads one such example. Creating an Ethical Workplace. You and Your Team Series.

Ethics 8

Ethics Compliance Policies Supply Chain 8

Coaching Tip

APRIL 1, 2013

Traditionally the thinking has been that employers should appeal to workers’ more obvious forms of self-interest: financial incentives, yes, but also work that is inherently interesting or offers the possibility for career advancement. Many of the examples — the selfless C.E.O.’s,

Social Capital 139

Social Capital Cialdini Mentor Incentives 139

Curious Cat

SEPTEMBER 22, 2015

Volkswagen AG lost almost a quarter of its market value after it admitted to cheating on U.S. Studies of medical studies are constantly finding misleading results being reported (this is even with many measures in place attempting to counter the dangerous of misleading results being reported by those with an incentive to do so).

Education 40

Education Incentives System Transportation 40

Deming Institute

APRIL 7, 2016

Watch this short video for a great story illustrating this problem in action: There may be cases in which incentives work only as intended, but I suspect they are relatively rare. Gipsie Ranney, The Trouble with Incentives: They Work. Improving the system is by far the most difficult.

Deming 28

Deming System Incentives Short-term 28

Harvard Business Review

NOVEMBER 16, 2018

Studies show that it’s also counterproductive resulting in lower profit margins, return on equity , and employee morale ; costly delays as players haggle over the size of the kickback; and poverty and poor governance in the markets where they’re paid. He provides an example: “What we normally run into is in customs.

Management 10

Management Ethics Cost Bureaucracy 10

Harvard Business Review

JULY 19, 2018

For example, many managers still believe that the errors they make in evaluating their employees can be corrected by training them to recognize the potential errors and suggesting ways to avoid them, while the actual evidence shows that such training can actually increase the number of errors they make. We advocate for three main changes.

Metrics 10

Metrics Ethics Incentives Policies 10

Harvard Business Review

DECEMBER 13, 2010

These events raise suspicion that many hedge fund traders may have succeeded at beating the market not through careful research and original analysis but by breaking the law. Signal 2: Other Traders Aren't Acting Ethically. The Science of Prosocial Behavior.

Hedge 14

Hedge Ethics Incentives Environment 14

Strategy Driven

APRIL 4, 2014

Retaining good employees, involving training, motivation and incentives, is yet another matter. According to research conducted by the Ethics Resource Center: Employees of organizations steal 10 times more than do shoplifters. In 2009, for example, more than 550,000 businesses were opened, and more than 660,000 closed.

Budgeting 83

Budgeting Succession Consultative Crisis 83

Harvard Business Review

MARCH 22, 2018

Over the last decade, industries, academics, and the public sector have turned their focus toward culture and ethics in response to the financial crisis as well as misconduct at a broad range of corporations. Market Failures and Misconduct Risk. naqiewei/Getty Images. Why do regulators and supervisors need to get involved?

Company 10

Company Banking Incentives Human Capital 10

Harvard Business Review

DECEMBER 1, 2016

Quarterly goal attainment is a visible measure of success, and often a determinant of incentive pay. In extreme cases, the sales culture can become toxic, as salespeople make minor ethical compromises to reach short-term goals, and those behaviors evolve and spread. For example: They structure the sales team around markets, not people.

Short-term 8

Short-term Succession Long-term Incentives 8

N2Growth Blog

AUGUST 5, 2010

I don’t know about you, but it’s almost as if we have raised a generation of leaders who feel they have a moral and ethical obligation to be politically correct – WRONG. We need to look to leadership examples of truly radical, innovative, in-your-face teams like that at Nucor Steel. How sad is this?

Politics 375

Politics Blog Leadership Diversity 375

Harvard Business Review

MAY 25, 2017

CEO incentives have traditionally been evaluated against objective data — also labelled “hard.” ” Take, as an example, the world’s largest mining company by market capitalization, BHP Billiton. Should soft measures be part of a CEO’s scorecard?

TSR 9

TSR Banking Committee Incentives 9

Harvard Business Review

OCTOBER 9, 2012

Let's implement a more aggressive incentive plan to motivate the sales force. Offer incentive compensation and recognition programs that encourage salespeople to work hard in pursuit of personal goals that align with company goals. Create and sustain a sales culture of accountability, achievement and ethics.

Kaizen 8

Kaizen Incentives Market Segmentation Efficiency 8

Harvard Business Review

AUGUST 30, 2013

But some businesses face strong incentives to post fake reviews, which compromises the trustworthiness of such review sites. I reached out to authors Michael Luca , Professor at Harvard Business School, and Georgios Zervas , Assistant Professor of Marketing at Boston University School of Management, to discuss their findings.

Review 8

Review Advertising Reputation Incentives 8

N2Growth Blog

NOVEMBER 23, 2010

In evaluating any relationship in the value chain I’m looking for value, talent, performance, leverage, efficiency, economy of scale, work ethic, integrity, character, discipline and many other traits irrespective of your skin color, age, etc. A sense of entitlement is not a substitute for work ethic and a desire to achieve.

Diversity 350

Diversity Blog Leadership Learning-by-Doing 350

Harvard Business Review

MAY 26, 2016

However, until recently there was little evidence on this question in the countries that dominate global markets in low-cost manufacturing. While the production system requires more worker skill and effort, employers have incentives to retain these valuable workers through improved working conditions. Insight Center.

Lean Manufacturing 9

Lean Manufacturing Supply Chain Apparel Compliance 9

Harvard Business Review

JUNE 13, 2012

As a recent example, a simple background check would have saved the Yahoo board the trouble of ousting Scott Thompson , the company's fourth CEO in five years, because he falsely claimed a computer science degree. Jeff Skilling, as a condition of his employment at Enron, insisted the company adopt mark-to-market accounting.

Management 13

Management Banking Committee Risk Management 13

Harvard Business Review

JANUARY 17, 2012

Such plans frequently include giving managers financial incentives to do what they should have done before — concentrating on the most promising lines, selling off dud businesses, and "leaning down" operations, often including headcount. The WSJ cites one such example: Wesley Jessen Vision-Care Inc., Is something fishy going on?

Due Diligence 12

Due Diligence Incentives Hedge Collins 12

Harvard Business Review

DECEMBER 8, 2010

Why, for example, can't we have continuously updated earnings releases — that let us see what companies are earning in real-time — for a continuously connected world? And the result of an undersupply of disclosure is toxic, perverse incentives. Result: boom, crash, rinse, repeat.

GDP 15

GDP Hypercompetition IPO Information 15

Harvard Business Review

NOVEMBER 21, 2016

Let’s consider this hypothetical example: Karen hates the fact that her boss, Tom, frequently says negative things about her colleagues to her. We stimulate a market for gossip because we prize four illusory benefits: Status. What should you do about a badmouthing boss? ” Intimacy. We want to believe it.

Performance Review 8

Performance Review Politics Follow-up Information 8

Harvard Business Review

JULY 17, 2017

To give one example of this, in 2016 18% of Harvard undergraduates and 28% of Harvard MBAs went directly into finance, while 29% of the undergraduates of Ohio State’s Fisher College of Business did. Finance teaches us that it is nearly impossible to isolate the effects of luck and skill in financial markets.

Finance 8

Finance Insurance Career Reputation 8

Harvard Business Review

OCTOBER 18, 2011

They go by names like corporate social responsibility, sustainability, shareholder advocacy, social assessment and auditing, consumer action, government regulation, leadership development, ethics, realignment of incentives , attracting long-term investors , creating shared value , and more. Here are a few suggestions: Lead by Example.

CEO 12

CEO Incubator Supply Chain Entrepreneur 12

Strategy Driven

MARCH 11, 2011

This client was a prime example of a leading CEO who served his community, profession and firm well. Enron did not demand enough accountability, fairness, ethics and operational autonomy from its outside auditor. In their marketing, accounting and auditing firms claim to be full-service business advisors, in order to get business.

Strategic Planning 57

Strategic Planning Committee Golden Handcuff Media 57

Harvard Business Review

SEPTEMBER 12, 2013

Since the cost of a bad hire is widely estimated to be at least one year’s pay, there are huge incentives for organizations to get hiring right. But there are both ethical and pragmatic benefits to sharing results, regardless of whether a candidate receives or accepts an offer of employment. Test the tests.

Pre-Employment Screening 8

Pre-Employment Screening Human Resources How To CFO 8

Harvard Business Review

SEPTEMBER 12, 2013

Since the cost of a bad hire is widely estimated to be at least one year''s pay, there are huge incentives for organizations to get hiring right. But there are both ethical and pragmatic benefits to sharing results, regardless of whether a candidate receives or accepts an offer of employment. Test the tests.

Pre-Employment Screening 8

Pre-Employment Screening Human Resources How To CFO 8

Harvard Business Review

OCTOBER 15, 2014

Cisco’s John Chambers is a good example. It may be our skill in managing new talent and market realities. Beware of purely ethical arguments around diversity and fairness. Many managers are bored or skeptical about gender initiatives, so leaders need to prove that they themselves are convinced. Sell this vision. Repeatedly.

Diversity 9

Diversity CEO Skills Training 9

Harvard Business Review

FEBRUARY 2, 2012

Sometimes these have been imposed by government — the Glass-Steagall division between commercial banks and investment banks, for example — but often they have arisen organically. But, to follow Swensen's reasoning, the incentives are all wrong. But in financial markets, it's problematic.

Finance 13

Finance Motivation White Paper Banking 13