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The Bottom Line

Why do companies do bad things?

The Bottom Line

BBC

Society & Culture, Personal Journals, Business

4.6606 Ratings

🗓️ 5 July 2018

⏱️ 28 minutes

🧾️ Download transcript

Summary

Social media giants mishandle data, banks mis-sell PPI insurance, engineers arrange for cars to cheat emissions tests. Why do companies sometimes do bad things? Evan Davis and guests discuss whether it's by accident or deliberate. Coverage of business wrongdoing often focuses on bad individuals but how far can a company's culture be blamed? Guests: Nick Leeson, the original 'rogue trader' Sara George, Partner, Stephenson Harwood Adrian Furnham, Professor of Psychology, Norwegian Business School.

Transcript

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0:00.0

This is the BBC.

0:03.0

In this edition of the bottom line, we're asking how do organisations find themselves doing bad things?

0:09.8

Hello and welcome to the programme.

0:12.1

Things go wrong in organisations all the time.

0:15.1

Too often, journalists hack phones, banks sell PPE insurance, engineers arranged for cars to cheat emissions tests,

0:22.4

social media giants mishandled data, companies pay bribes, traders falsify their LIBOR submissions,

0:29.3

banks go bust, broadcasters deceive, and so on. And on a different and more tragic scale,

0:35.6

as we know more recently, patients can be killed prematurely in hospital.

0:40.1

What we want to do today is think about such scandals, the wrongdoing itself, and the way organisations deal with them or fail to deal with them.

0:48.5

Now, we need to distinguish accidents and cock-ups from intentional behaviour and conspiracies.

0:53.8

That's an important distinction.

0:55.5

And we also need to think about the category that falls in between. The scandal was not meant to

1:00.7

happen, but somehow a system was designed that made it likely. You might put the financial crash into

1:06.3

that category. The banks didn't want it to happen, but many top bankers benefited from a system that turned out to be fragile.

1:14.2

Now, important in this discussion is the idea that bad behaviour can become normalised in an organisation and is then unlikely to be questioned.

1:23.1

Coverage of scandals often focuses on the bad individuals of whom, of course, there are some. But I am more

1:29.1

interested in how otherwise good people can end up doing bad things. Well, a lot to talk about.

1:35.6

And my guests represent three perspectives, law, psychology, and the individual wrongdoer,

1:42.7

and let's meet them. And first of all, from a studio in Galway, Nick Leeson.

1:47.5

Now, that'll be a familiar name to, I think anyone over 40,

1:50.8

the original rogue trader.

1:53.4

And Nick, you brought down Bearing's Bank in the 1990s with your trading losses.

...

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