The Dark Pattern

From the creators of the theory of ethical blindness, an investigation into how corporate scandals happen, revealing the common pattern behind them and how your organization can avoid them

Corporate scandals are narrated like Hollywood movies: the villains are the once-celebrated CEOs who are unmasked as sociopaths and ultimately convicted. What we fail to realize, however, is that most bad things are done by average people with honorable values and no bad intentions.

In?The Dark Pattern, two experts in business ethics and decision-making challenge the conventional view that corporate misconduct happens because of a handful of bad actors. Instead, the book shows how entire organizations can fall off the moral cliff because a few good people become ethically blind.

Drawing on the latest insights from behavioral science, the authors identify nine toxic elements that lead to corporate scandals and offer nine actionable lessons for building morally resilient organizations. The Dark?Pattern?will strengthen the awareness, defenses, and responses of tomorrow's leaders against the subtle dynamics of moral erosion.?

"The Dark Pattern is engaging and disturbing in equal measure. Packed with insight about human psychology and organizational dynamics--and the dangerous ways they interact--this important and timely book should be read by every leader and aspiring leader in every sector. The book's core argument--that people and context combine to create ethical blindness that allows corporate scandals to take hold--is compellingly explained and illustrated with some highly familiar stories, along with others that are less well known but equally gripping."

--Amy C. Edmondson, author of Right Kind of Wrong

"A most timely and thought-provoking book in a changing world led by destructive incentives and fear. It is a breathtaking challenge to break through the patterns of darkness! The game is on for strong leaders and fearless personalities to redefine success of leadership and to secure the future of economic growth and security of employees, citizens and nations. A must-read to reshape trust by holding leaders accountable. I recommend this book for every MBA student and business leader scaling long term success."

--Brigitte Mohn, Managing Director, Sunrise Capital Gmbh

"There are a lot of books about corporate scandals, and this book covers some of the biggest and most famous. What makes this book different, brilliant and original is how it reveals the hidden dynamics and patterns that cause unethical behavior to develop, as well as offering a constructive path to actually tackle corporate corruption, fraud and abuse. In a world where compliance functions are bigger and more expensive than ever, but ethics scandals keep happening, we desperately need new ideas and approaches. This book offers an understanding of how pathological contexts develop, and how to prevent them. Read it, and you will never think about business ethics the same way again."

--Alison Taylor, author of Higher Ground

"Volkswagen, Theranos, Uber--The Dark Pattern presents a mix of scandals, case reports, and psychological theory to explain why so many managers fall over the moral cliff and how few speak out against it, enabling white-collar criminals to maintain their positive self-image. A fascinating journey into the world of ethical blindness. Well written, enlightening, engaging--and dark as corporate hell."

--Gerd Gigerenzer, professor, Max Planck Institute for Human Development
"The Dark Pattern by Guido Palazzo and Ulrich Hoffrage teaches us about the power of context, which is stronger than reason, values, morals, and best intentions. It is an uncomfortable and painful lesson about the root causes of 'corporate infernos.' However, this lesson is never cynical or destructive but deeply human-centered. It concludes with powerful steps on how to avoid ethical blindness. I wish all leaders in organizations would read this book."--Klaus Moosmayer, Chief Ethics, Compliance and Risk officer, Novartis
"Finally, a book that brings corporate ethics to life! For executives who have endured mind-numbing compliance training, Guido Palazzo and Ulrich Hoffrage offer a refreshingly engaging approach. Through gripping narratives of real-world corporate failures--like the Boeing 737 MAX tragedy and Volkswagen's Dieselgate--combined with sharp academic insights, this book redefines ethical leadership. A must-read for anyone seeking to move beyond rules and regulations to foster a truly ethical corporate culture."
--Thomas J. Donaldson, Mark O. Winkelman Professor of Legal Studies & Business Ethics, The Wharton School, University of Pennsylvania

GUIDO PALAZZO is a professor of business ethics at the University of Lausanne and a business adviser in Switzerland. His work has been published in leading management journals such as the Academy of Management Review and the Academy of Management Journal.

ULRICH HOFFRAGE is a professor of decision theory at the University of Lausanne in Switzerland. He is a highly cited psychologist who builds and tests models of bounded rationality to better understand how people decide and navigate in a social world characterized by risk and uncertainty.

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