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Though I did get a pretty funny piece of pushback on one consulting company's podcast

… Though I did get a pretty funny piece of pushback on one consulting company's podcast. The person said, "But wait a second, I learned in business school that everything you're saying here is wrong. Are you asking me to rethink that?" Something like that. I said, "Well, are you interested in looking at the evidence that what I'm saying is the truth?" I think he was really genuinely struggling, because I don't think he was that interested. Many of us are not that interested in seeing the evidence that the things we believe or were taught are not quite true. Q2: shareholder primacy is a bad idea on its own terms, as I lay out in the book. It doesn't prevent people from adopting any of governance structures I recommend, it just makes it more difficult, by creating career incentives that add friction to doing the right thing. That's partly why it's so value-destroying. Q3: I don't understand this question, sorry. Maybe it's because I've spent many lonely years being berated for this subject matter and am only getting the sympathetic treatment lately...

Original discussionAMA: I'm Eric Ries (The Lean Startup) & Author of New Bestseller Incorruptible579 source comments · at import
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AR

My book arrived today. Q1: You have done a few friendly interviews on YouTube, but I haven't seen one that challenges you much. Do you know if there are upcoming interviews that you found pushed back? Q2: Is the idea of shareholder supremacy fundamentally at odds with your with your preferred alternative governance structures, or is it just a time preference and risk attitude issue? Q3: You will get sympathetic ears easily due to the subject matter. But the same book about non-profits would be a harder sell. Do you agree, and if true does that say something about the marketplace of ideas?

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AR

Q3: Direct question: Have journalists and their industries been similarly corrupted from their proclaimed mission to communicate the truth? Do the issues in other groups of people (charity, religion, sport league) share the same root causes, or is the source of corporate corruption unique or at a different scale?

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TH

The shareholders have little to do with this, ultimately. You see the same rot happen in private companies where the main investor really has full control. It doesn't take much time seeing companies grow to see the cultural differences take hold when a company goes wrong. You end up with execs and middle management that do not want to rock boats, and where any disagreement is clearly career suicide. At that point, people push for what is good for them and is not good for the company, and people realize that letting things decay is in their best interest. Once your org has enough levels of management, anyone that is part of the big decisions and isn't a team player has already been filtered out, so you see large meetings where hundreds of millions are supposedly distributed, yet not one person is ever going to complain about obvious grift, or decisions that will harm the company in the lo…

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