Corporate Quote by James Surowiecki
“But, if recent history has taught us anything, it’s that self-regulation doesn’t work in finance, and that worries about reputation are a weak deterrent to corporate malfeasance.”
About This Quote
Source Book: The Wisdom of Crowds, James Surowiecki, 2004
Argues that self‑control mechanisms fail in finance and reputation concerns rarely deter corporate wrongdoing.
In simple terms: Self‑regulation and reputation are weak in finance.
Key Takeaway
Strengthen external oversight.
Themes
finance
ethics
regulation
Mood
critical
analytical
Type
ethical
business
When to use this quote
- investment decisions
- policy making
- risk management
- compliance
Key Concepts
moral hazard
corporate governance
Questions to Reflect On
- What incentives truly prevent misconduct?
- How can reputation be made more consequential?
A Different Perspective
External checks may be costly.
