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Global Mind Leaders - "The Scandal Effect"
Article

Title
" The Scandal Effect "
Description
When companies misbehave, executives pay a price on the job market - even if they had nothing to do with the trouble.
by Boris Groysberg, Eric Lin, George Serafeim, and Robin Abrahams ( Harvard Business Review ).
Idea In Brief
The Finding
Executives with scandal-tainted companies on their resumes pay a penalty on the job market-even if they had nothing to do with the misbehavior.
Executives with scandal-tainted companies on their resumes pay a penalty on the job market-even if they had nothing to do with the misbehavior.
The Reason
The stigma that arises from scandal plays an outsize role in hiring decisions because judging other people accurately is di cult and because those making executive hires tend toward conservatism.
The stigma that arises from scandal plays an outsize role in hiring decisions because judging other people accurately is di cult and because those making executive hires tend toward conservatism.