jonathan haidt

2016 End of Year Letter from Jonathan Haidt

Dear Friends:

2016 has been a year of extraordinary change. Many of these changes make our mission – to help companies strengthen their ethical cultures using behavioral science research – more vital than ever.

Consider just these three facts:

  1. Populist movements around the world are usually antagonistic towards large corporations, which they often perceive as engaging in predatory behavior
  2. The recent U.S. election likely means a new and lighter-touch approach to regulation and compliance, particularly in the financial services industry
  3. The Brexit vote means that Britain must quickly decide upon its own approach to regulation.

Putting these together: The world is hungry for new ideas on how to improve business ethics in ways that do not rely as heavily as before on detailed rules formulated by legislatures and regulators. There is a desperate need to help businesses become more self-regulating, in ways that will protect multiple stakeholders while increasing the dynamism and profitability of the business.

That is exactly what Ethical Systems is doing and we have made great progress towards our goals this year.

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2016 Collaborators in the News: A Year of Many Achievements

2016 was a year of many achievements for our growing collaborator network. We invite you to browse a highlight list of the research, articles, appearances and talks that helped advance our mission and promote a greater understanding of ethics, decision making, and ethical systems design.

Browse our collaborators and their highlights and achievements from this year >>

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Ethical Systems Design: Crosspost from AuditFutures

ethics-conf-p2Cross posted from the AuditFutures Blog. See original post here.

 

On 23rd November, we hosted a conference exploring the concept of organisational culture and what systemic approaches we can take to foster ethical culture within organisations, particularly professional service firms. This interdisciplinary conference engaged around 100 leading international academics, business leaders and accounting professionals in a holistic discussion on the significant role of culture in organisations.

The event built on our Future Firms project which explores in a systemic way the interdependencies of the different aspects of the firm: culture, governance, technology, services, structure, and people and what this means for the future of .

Our Ethics by Design Conference explored the key challenges and trends, faced through the interaction between the three levels of employees, the organisation and society. Participants explored the possible design ideas that can be implemented to work towards overcoming these challenges and forming a more ethical culture.

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Strategy and Business Interview: Jonathan Haidt

Jonathan Haidt, Thomas Cooley Professor of Ethical Leadership at New York University's Stern School of Business, was interviewed by strategy+business and shares his insight and expertise on ethical systems design and the various initiatives of our organization. 

What causes a company to undermine its own future through ethical missteps? What enables it to lie to regulators, conceal critical data, and take chances on fraudulent activity that might, sooner or later, come to light? Is it the rapacious nature of capitalism itself, as some believe? Is it the work of a few “bad apples,” unavoidable in a milieu of dynamic innovation? Or is it some innate aspect of human behavior, impossible to regulate completely, but possible to understand? This inquiry, framed by New York University professor Jonathan Haidt and a global network of colleagues, could help keep companies out of trouble in the future — or perhaps change our view of what trouble really means.

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Is Political Ideology a Compliance and Ethics Risk?

Cross posted with permission from ES Collaborator Jeffrey Kaplan's Conflict of Interest blog

In a post  last week on the Harvard Law School Forum on Corporate Governance and Financial Regulation, Danling Jiang, Associate Professor of Finance at Florida State University, summarizes a recent article she authored with Irena Hutton, Associate Professor of Finance at Florida State University; and Alok Kumar, Professor of Finance at the University of Miami: “Political Values, Culture, and Corporate Litigation,” which was published in the latest issue of Management Science and which “examine[s] whether the political culture of a firm defines its ethical and legal boundaries as observed by the propensity for corporate misconduct.”

In a post  last week on the Harvard Law School Forum on Corporate Governance and Financial Regulation, Danling Jiang, Associate Professor of Finance at Florida State University said of recent research, “Using one of the largest samples of litigation data to date, [they] show that firms with Republican culture are more likely to be the subject of civil rights, labor, and environmental litigation than Democratic firms, consistent with the Democratic ideology that emphasizes equal rights, labor rights, and environmental protection. However, firms with Democratic culture are more likely to be the subject of litigation related to securities fraud and intellectual property rights violations than Republican firms whose Party ideology stresses self-reliance, property rights, market discipline, and limited government regulation.”

This is interesting – if not necessarily surprising – stuff, and particularly so in an election year. But does it bear on the work of C&E professionals? And does it have anything to do with conflicts of interest?

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Ethical Systems Lands 8 of the Top 100 Most Influential in Business Ethics

Each year, Ethisphere recognizes 100 individuals that have made a material impact in the world of business ethics through their annual 100 Most Influential People in Business Ethics list.

Ethical Systems collaborators have long been featured on this prestigious list. This year, however, is the first we have had 8 of our distinguished leaders included at one time. 

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Ethical Systems Year End Letter from Jon Haidt

Dear Friends, 

Ethical Systems reflects on a year marked by tragedy and triumph, major ethics news and new research. We began 2015 by receiving IRS recognition of our organization as a 501c3 non-profit, and filing our first 990 report. Finally, we can begin raising money to fund our operations. What started as an informal collaborative network of researchers has blossomed into an official organization uniting researchers and business leaders who want to change the business world by “making ethics easy.”

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2015 Collaborators in the News: A Year of Many Achievements

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Ethical Systems Design is the Red Pill for Reducing Inequality

Part 2 of Jonathan Haidt's post on his recent talk at the Aspen Ideas Festival. Read Part 1 here.

A friend of Mark Twain once said, “Everybody talks about the weather, but nobody does anything about it.” Rising inequality is similar. Many on the left urge policies that would redistribute wealth more effectively, such as raising the top marginal tax rates. Some on the right have begun talking about inequality, and they propose policies that would encourage entrepreneurialism among the poor and working class, such as clearing away licensing restrictions on hairdressers and other small businesses.

Yet given the politically charged nature of this debate, neither side is going to get a chance to try its policies unless it gets control of the Oval Office and both houses of Congress.

Aren’t there any new ideas out there? Isn’t there anything that both sides might support? How about…better business ethics, achieved with little or no new regulation? How about Ethical Systems Design?

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Buddha Makes the Business Case for Business Ethics

Part 1 of 2 on my talk at the 2015 Aspen Ideas Festival.

In just the last few years, there has been a lot of new research showing when and why ethics pays. I recently pulled this evidence together for a talk I gave at the Aspen Ideas Festival. I set up the argument by quoting Buddha’s version of the business case:

Set your heart on doing good.
Do it over and over again, and you will be filled with joy.
A fool is happy until his mischief turns against him.
And a good man may suffer until his goodness flowers.

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