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Management article
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Reference no. ROT229
Published by: Harvard Business Publishing
Originally published in: "Harvard Business Review", 2014
Length: 5 pages

Abstract

In recent years we have witnessed an endless stream of value-destroying behaviour by individuals and organizations in the financial world. The persistence of these scandals, say the authors, indicates that the prevailing paradigm of financial economics requires transformation. They argue that the core issue at hand is a lack of recognition that integrity is a factor of production that is as important to success in all aspects of life as knowledge, technology and human and physical capital. They define integrity for individuals, organizations and objects, and going forward, call for leaders to identify out-of-integrity behaviour as it happens.

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Abstract

In recent years we have witnessed an endless stream of value-destroying behaviour by individuals and organizations in the financial world. The persistence of these scandals, say the authors, indicates that the prevailing paradigm of financial economics requires transformation. They argue that the core issue at hand is a lack of recognition that integrity is a factor of production that is as important to success in all aspects of life as knowledge, technology and human and physical capital. They define integrity for individuals, organizations and objects, and going forward, call for leaders to identify out-of-integrity behaviour as it happens.

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