Ethics Series Part 3: Leadership Trust, Pay and Pipeline

The study of ethics is the study of decisions between right and wrong, and, in business, ethics is about decisions between right and wrong in the face of financial incentives. Game theory states that individuals make decisions that maximize their own utility. In organizations this leads to conflict between principals and their agents. A company … Continue reading Ethics Series Part 3: Leadership Trust, Pay and Pipeline

Ethics Series Part 2: Incentives and Compensation

Last week we discussed the pickle or ethical dilemma of empire building. Sales managers, like our hypothetical friend Tom Hansen from Ethics Corp, are motivated through bonuses and advancement opportunities to expand their responsibility beyond its optimal size. Empire building is part of a deeper ethical problem for organizations called the agency problem. Fundamentally, individuals … Continue reading Ethics Series Part 2: Incentives and Compensation

Ethics Series Part 1: Empire Building

One of my favorite moments in sports is when a baseball runner gets caught in a pickle. Trapped between two bases with fielders chasing him down from both sides, the runner's athletic talents along with his decisiveness are put to the test. Sadly, it usually doesn't work out well for the runner. Over the next … Continue reading Ethics Series Part 1: Empire Building