When Company Values Falter

When we talk about cases of clear fraud or criminal misdoing, it seems so easy to say, “What was wrong with these evil people?” But when they’re in the moment, they’re saying to themselves, “I have to do things for these investors” or “I have to do things for my employees to keep things going.” It’s the concept of escalation of commitment; at first you had very small things that would get covered up and justified, but then the amount of deception gets bigger and bigger and bigger. Theranos might be a good example of this. The people who founded that company had good intentions, right? They wanted to develop medical testing and products that would benefit the world. They believed in it. And either for the mission, for the long-term viability of the company, or for the employees, you can see how they end up making mistakes and unethical actions even though they began with good intentions.

Ken Shotts quoted in Fast Company