Why They Do It
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From the financial fraudsters of Enron, to the embezzlers at Tyco,
to the insider traders at McKinsey, to the Ponzi schemer Bernie
Madoff, the failings of corporate titans are regular fixtures in
the news. In Why They Do It, Harvard Business School professor
Eugene Soltes draws from extensive personal interaction and
correspondence with nearly fifty former executives as well as the
latest research in psychology, criminology, and economics to
investigate how once-celebrated executives become white-collar
criminals. White-collar criminals are not merely driven by
excessive greed or hubris, nor do they usually carefully calculate
costs and benefits before breaking the law.Instead, Soltes shows
that most of the executives who committed crimes made decisions the
way we all do-on the basis of their intuitions and gut feelings.
The trouble is that these gut feelings are often poorly suited for
the modern business world where leaders are increasingly distanced
from the consequences of their decisions and the individuals they
impact. The extraordinary costs of corporate misconduct are clear
to its victims.Yet, never before have we been able to peer so
deeply into the minds of the many prominent perpetrators of
white-collar crime. With the increasing globalization of business
threatening us with even more devastating corporate misconduct, the
lessons Soltes draws in Why They Do It are needed more urgently
than ever.
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