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Virtue Deferred: Marcial Maciel, The Catholic Church, and How Institutions Learn to Look Away

August 13, 2025 By Nagesh Belludi Leave a Comment

Virtue Deferred: Marcial Maciel, The Catholic Church, and How Institutions Learn to Look Away Organizations often face a moral dilemma when confronting high-performing individuals—those rainmakers whose charisma and drive yield tangible results (Jack Welch’s ‘Four Types of Managers’ model.) They secure vital funding, lead winning campaigns, and appear central to the organization’s mission. Their value is clear. Their presence seems irreplaceable. Leadership, captivated by performance, may grow dependent on them.

Yet behind the brilliance, some of these figures violate core principles. They may cultivate toxic workplaces, breach ethical boundaries, or engage in outright abuse. This reveals a troubling paradox: the same individuals who fuel success may simultaneously erode the institution’s moral foundation. Fearing the loss of key assets, organizations may choose to look the other way—or worse, actively protect them.

Tolerance of this behavior extracts a steep cost. Morale withers. Trust deteriorates. Cultures of fear and duplicity take root. Behind a polished facade, core values decay. Integrity is sacrificed for short-term gain.

Few cases illustrate this more vividly than that of Marcial Maciel and the Catholic Church.

A Charismatic Predator Shielded by Power

In 2019, to mark the 80th anniversary of Pius XII’s elevation to Bishop of Rome, Pope Francis announced the opening of Vatican archives from his papacy. Scholars welcomed the decision, many of them drawn to longstanding controversies regarding Pius XII’s role during the Holocaust.

Included in this research were damning revelations about Marcial Maciel Degollado (1920–2008,) the Mexican priest who founded the Legion of Christ and the Regnum Christi religious order. Lauded as “the greatest fundraiser of the modern Roman Catholic Church,” Maciel transformed the Legion into a formidable spiritual, financial, and political force.

Beneath this polished image, however, lay systemic abuse.

Maciel was a chronic drug addict and serial predator who molested at least 60 boys and young men under his care. After his death, reports revealed that he had fathered multiple children—two of whom he allegedly abused—and maintained sexual relationships with several women, including one reportedly underage. His authorship of the book Integral Formation of Catholic Priests (1997) stands in grim contrast to the depraved reality of his life and actions, underscoring a profound institutional moral corruption.

The archives showed that senior Church officials, including Pope Pius XII, were aware of Maciel’s misconduct as early as the 1940s. Efforts to remove him began in 1956 but were halted following the pope’s death. Despite mounting evidence, Maciel remained in power for decades.

'Betrayal Crisis Catholic Church' by Boston Globe (ISBN 0316776750) Why was he protected? Because he was more than a priest—he was a rainmaker. His ability to attract wealth and influence made his misconduct inconvenient. The institution prioritized survival over accountability.

Even after repeated warnings and detailed accusations, the Church delayed meaningful action for over half a century. Only in 2006 did Pope Benedict XVI remove Maciel from public ministry, ordering him into a secluded life of prayer and penance. He died two years later. In 2010, the Vatican formally condemned his “reprehensible actions” and placed the Legion under direct papal oversight.

The Institutional Blind Spot: When Success Shields Abuse

Maciel’s story is not just a case of individual moral failure. It is a systemic cautionary tale. He turned the Legionaries of Christ into a financial and political juggernaut, directing millions toward Church coffers and gaining favor with powerful bishops and cardinals. In the institutional calculus of power, his sins were inconvenient, but his financial value was immense. He was shielded not despite his crimes, but because of them.

When institutions conflate prospering with virtue, they protect the golden goose—even when it lays rotten eggs. Often this happens not out of malice, but out of habit. In doing so, they risk betraying the very mission they claim to uphold.

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  5. Power Corrupts, and Power Attracts the Corruptible

Filed Under: Business Stories, Leadership, Sharpening Your Skills Tagged With: Attitudes, Biases, Conviction, Ethics, Getting Along, Integrity, Likeability, Motivation, Performance Management, Psychology

Lessons in Leadership and Decline: CEO Debra Crew and the Rot at Diageo

July 25, 2025 By Nagesh Belludi Leave a Comment

Lessons in Leadership and Decline: CEO Debra Crew and the Rot at Diageo Another heavyweight in consumer goods, Diageo, has entered a state of churn. CEO Debra Crew exited last week in a “mutual agreement”—a phrase that barely disguised the inevitability of her departure. It wasn’t a shock, but a slow unraveling: a tenure marked more by erosion than evolution.

Leadership is often a hostage of timing. Crew’s two-year stint was defined as much by strategic drift as by the lingering shadow of her predecessor’s legacy. She rose to the top in June 2023 following the sudden death of Sir Ivan Menezes—who had built Diageo’s fortunes on “premiumization,” a strategy that padded margins during the pandemic’s home-drinking boom. That success, however, ossified into institutional bloat.

Her term began with a bruising profit warning in November 2023. A nosedive in Latin America—blamed on distributor overstocking—exposed a startling disconnect from ground-level dynamics. Crew’s attempts to localize the crisis at a capital markets day rang hollow. The Times later described the company’s consumer blind spot as having “the whiff of incompetence.”

By early 2024, Diageo’s valuation had halved from its pandemic highs. CFO Lavanya Chandrashekar resigned in May. Months earlier, Crew had abandoned the company’s 5–7% medium-term growth target, citing tariff uncertainty and posting a 0.6% sales decline. Chair Javier Ferrán—long a patient steward—stepped down soon after. His departure, followed by the arrival of Sir John Manzoni, left Diageo’s leadership in flux just as the ship was listing and she had asked the board to quell speculation about her job.

Perhaps Crew was less a culprit than a proxy. Every leader is bound by the winds of their season. Spirits makers now face a hostile cocktail: Gen Z’s waning interest in alcohol, the rise of weight-loss drugs, and renewed risk of tariff whiplash. Pernod Ricard and Rémy Cointreau have suffered even steeper stock slides.

This episode offers another case study in how leadership narratives flatten complexity. Good times are hailed as proof of executive brilliance; bad times, as evidence of personal failure. The truth is messier: prosperity often arises from external tailwinds—technological shifts, market cycles, latent consumer trends—already in motion. Leaders rarely engineer them. They inherit them.

The trouble with leadership is that it is most praised—or punished—when least responsible. Strategic decisions marinate across fiscal years. Today’s success often echoes yesterday’s bets, while macroeconomic forces—unpredictable, impersonal, indifferent—reshape the field faster than any executive can pivot. Yet our mythology demands heroism. We cast leaders as masterminds of triumph or scapegoats for collapse, forgetting that most simply ride the wave.

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  3. Heartfelt Leadership at United Airlines and a Journey Through Adversity: Summary of Oscar Munoz’s Memoir, ‘Turnaround Time’
  4. Book Summary of Donald Keough’s ‘Ten Commandments for Business Failure’
  5. FedEx’s ZapMail: A Bold Bet on the Future That Changed Too Fast

Filed Under: Business Stories, Great Personalities, Leadership, Leadership Reading, MBA in a Nutshell Tagged With: Change Management, Icons, Integrity, Leadership, Leadership Lessons, Leadership Reading, Performance Management, Wisdom

Conscience is A Flawed Compass

July 21, 2025 By Nagesh Belludi Leave a Comment

A Reflection on Why Conscience is a Flawed Moral Compass: Example of Jefferson and Slavery Conscience isn’t as reliable a guide on moral questions as it’s often made out to be. Consider Thomas Jefferson’s advice to his impressionable 11-year-old daughter, Martha:

If ever you are about to say anything amiss or to do anything wrong, consider beforehand. You will feel something within you which will tell you it is wrong and ought not to be said or done: this is your conscience, and be sure to obey it. Our Maker has given us all this faithful internal monitor, and if you always obey it, you will always be prepared for the end of the world, or for a much more certain event, which is death.

Yet despite publicly opposing slavery, Jefferson conveniently owned enslaved people to support his lavish lifestyle and even fathered children with an enslaved woman.

This stark contradiction highlights a critical truth: even a informed and discerning conscience does not guarantee consistently virtuous action, particularly when self-interest is at stake.

And that’s the great paradox of conscience—the inherent tension between the powerful, felt imperative to obey one’s inner moral sense and its demonstrated fallibility and subjectivity and inconsistency.

Moral consistency is a myth.

Wondering what to read next?

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  3. Of Course Mask Mandates Didn’t ‘Work’—At Least Not for Definitive Proof
  4. Virtue Deferred: Marcial Maciel, The Catholic Church, and How Institutions Learn to Look Away
  5. Why Incentives Backfire and How to Make Them Work: Summary of Uri Gneezy’s Mixed Signals

Filed Under: Mental Models, Sharpening Your Skills Tagged With: Biases, Conflict, Conviction, Critical Thinking, Ethics, Integrity, Philosophy, Psychology, Virtues

Lessons from Tito’s Leadership of Yugoslavia

November 18, 2024 By Nagesh Belludi Leave a Comment

Lessons from Tito's Leadership of Yugoslavia This year, I took two long trips across the Balkans, focusing on the region’s turbulent 20th-century history.

Understanding the role of Yugoslav revolutionary leader Josip Broz Tito has been instrumental in grasping the complex ethnic relations, historical grievances, and aspirations that continue to shape the region’s identity and politics.

Tito’s regime demonstrates how a coercive leader can unite a fragmented people through sheer willpower. However, it also highlights how the absence of sustainable systems and institutions can lead to collapse once that leader is gone, as evidenced by the violent conflicts of the 1990s. Encyclopædia Britannica encapsulates on Tito’s legacy thus:

The irony of Tito’s remarkable life is that he created the conditions for the eventual destruction of his lifelong effort. Instead of allowing the process of democratization to establish its own limits, he constantly upset the work of reformers while failing to satisfy their adversaries. He created a federal state, yet he constantly fretted over the pitfalls of decentralization. He knew that the Serbs, Croats, Slovenes, and others could not be integrated within some new supranation, nor would they willingly accept the hegemony of any of their number; yet his supranational Yugoslavism frequently smacked of unitarism. He promoted self-management but never gave up on the party’s monopoly of power. He permitted broad freedoms in science, art, and culture that were unheard of in the Soviet bloc, but he kept excoriating the West. He preached peaceful coexistence but built an army that, in 1991, delivered the coup de grâce to the dying Yugoslav state. At his death, the state treasury was empty and political opportunists unchecked. He died too late for constructive change, too early to prevent chaos.

Tito was a charismatic and strong leader whose personal authority and presence were key to maintaining national cohesion. His doctrine of “Brotherhood and Unity” aimed to bridge Yugoslavia’s deep ethnic and national divides. However, the political institutions he left behind were weak and overly reliant on his personal authority, creating a power vacuum that no one could fill after his death in 1980.

The poem “Comrade Tito, from your path we will not stray!” written at the time of his death, was soon forgotten. It instead underscored the instability of the region’s political landscape and the futility of suppressing deep-seated ethnic and nationalist divisions through authoritarian rule. The federal structure Tito had established began to unravel, leading to violent conflicts.

Idea for Impact: Many leaders are skilled at rallying people around a common vision, instilling purpose and urgency. However, this often creates a dependency on the leader’s presence, making the system vulnerable to collapse once they are gone.

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  4. The Cost of Leadership Incivility
  5. Power Corrupts, and Power Attracts the Corruptible

Filed Under: Great Personalities, Leadership, Leadership Reading Tagged With: Attitudes, Books, Icons, Integrity, Leadership, Leadership Lessons, Parables, Role Models, Wisdom

Lee Kuan Yew on the Traits of Good Political Leaders

November 14, 2024 By Nagesh Belludi Leave a Comment

'The Wit and Wisdom of Lee Kuan Yew' by Lee Kuan Yew (ISBN 9789814385282) Leaders are assessed through a nuanced blend of factors, primarily focusing on the long-term effects of their decisions. Their effectiveness is judged by the quality of their policy outcomes, the individuals they’ve mentored, and the culture they’ve cultivated. Naturally, these evaluations are subjective and can vary depending on personal perspectives, values, and historical contexts.

When Lee Kuan Yew began his eighth and final term as Singapore’s Prime Minister in 1988, he announced it would be his last, outlining his plans for the next two years before passing leadership to Goh Chok Tong. Lee also highlighted the significance of exit strategies and smooth transitions in evaluating political leaders. Watch a segment from his speech delivered on September 13, 1988.

Political leaders are judged first by how effectively they have exercised their authority in the interests of their people. Second, by the way in which they have provided for continuity so that a successor government will continue to protect and advance the interests of their people. Third, by the grace with which they leave office and hand over to their successors.

Lee Kuan Yew was a remarkable leader who, through visionary governance, turned Singapore from a struggling backwater into one of the world’s most affluent nations. Though he faced criticism for his strong-handed approach, his leadership will continue to be acclaimed for its vision, pragmatism, and enduring impact.

Wondering what to read next?

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  3. Lessons in Leadership and Decline: CEO Debra Crew and the Rot at Diageo
  4. Expanding the Narrative: Servant Leadership beyond Christianity
  5. Power Corrupts, and Power Attracts the Corruptible

Filed Under: Great Personalities, Leadership, Leadership Reading, The Great Innovators Tagged With: Humility, Integrity, Leadership, Leadership Lessons, Role Models, Wisdom

Is Ethics Just About Getting Caught?

September 24, 2024 By Nagesh Belludi Leave a Comment

Is Ethics Just About Getting Caught? A surgeon friend of mine often quips, “If you think you can ‘get away’ with something, you probably shouldn’t be considering it in the first place.”

A reliable rule, no doubt! But rightness or wrongness isn’t as clearcut.

In philosophy, there’s a school of thought called virtue ethics. It suggests that moral behavior comes from cultivating a virtuous character and living in alignment with virtues like honesty, compassion, and courage. If you’re even thinking about deceitful behavior, it’s a sign that your character might need a bit of a tune-up.

On the flip side, while deliberate wrongdoing should never be condoned, sometimes ethics shifts to focus on practical utility. Utilitarianism, another philosophical approach, judges the rightness or wrongness of an action based on its consequences. From this viewpoint, wrongdoing might be seen as justifiable if it leads to a greater good, with the consequent focus on artfully dodging repercussions.

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  4. The Truth Can Be Bitterer than a Sweet Illusion
  5. Power Corrupts, and Power Attracts the Corruptible

Filed Under: Mental Models, Sharpening Your Skills Tagged With: Attitudes, Decision-Making, Discipline, Ethics, Integrity, Philosophy

Why New Managers Fail to Stop Unethical Behavior Among Subordinates

June 17, 2024 By Nagesh Belludi Leave a Comment

Unveiling the Causes Behind Managerial Failure in Ethical Oversight Embarking on a new role presents a host of challenges, and discovering unethical or potentially illegal practices within the organization can be a pivotal moment. The real question that emerges is whether you will be the catalyst for change in the face of such issues.

Imagine stepping into the shoes of a new retail banking sales manager at Wells Fargo, where fraudulent accounts were the means to achieving targets. Picture yourself becoming a manager at Volkswagen, only to uncover the manipulation of emissions tests by engineers using software. In both scenarios, middle management failed to intervene as these unethical practices took root.

As individuals rise to positions of authority, they wield the power to address unethical practices, yet sometimes, they don’t. Personal character flaws such as greed, sexism, or an unwavering pursuit of self-interest can drive this inaction, fostering complacency. Preserving the status quo and maintaining their position may become a higher priority than confronting misconduct.

Another significant factor at play is group identification. This involves adopting the group’s values, beliefs, and behaviors, becoming intertwined with one’s self-concept. Higher-ranking individuals often intensify this identification, feeling a stronger bond with their group or organization. Their membership becomes a point of pride, and they are more motivated to contribute to the group’s objectives than their lower-ranking counterparts.

However, this deep identification with the group comes with an ethical downside. It can obscure a manager’s ability to recognize ethical issues within the group. In simpler terms, those in higher-ranking positions may fail to perceive unethical actions because their strong identification blinds them to ethical violations. Consequently, they may hesitate to take action or intervene due to a lack of awareness.

Idea for Impact: Companies need to explore strategies that instill a strong moral compass in future business leaders. These leaders must maintain their ethical integrity as they climb the corporate ladder. Creating a safe environment for whistleblowing is crucial, empowering individuals to report dishonesty without fear of retaliation. It’s time to foster ethical leadership and ensure that the ascent up the corporate hierarchy aligns with an unwavering commitment to integrity.

Wondering what to read next?

  1. Why Groups Cheat: Complicity and Collusion
  2. The Enron Scandal: A Lesson on Motivated Blindness
  3. Power Inspires Hypocrisy
  4. Expanding the Narrative: Servant Leadership beyond Christianity
  5. Power Corrupts, and Power Attracts the Corruptible

Filed Under: Business Stories, Leadership, Mental Models Tagged With: Ethics, Getting Along, Integrity, Leadership, Persuasion, Psychology, Role Models

The Deceptive Power of False Authority: A Case Study of Linus Pauling’s Vitamin C Promotion

May 2, 2024 By Nagesh Belludi Leave a Comment


The Allure of the Famous Word

The Deceptive Power of False Authority: A Case Study of Linus Pauling's Vitamin C Promotion In the 1970s and 1980s, Linus Pauling, the American chemist with not one but two Nobel Prizes to his name, started championing the extraordinary potential of mega-doses of Vitamin C (ascorbic acid) as a wide-ranging panacea—a solution to a myriad of ailments, in fact—from the common cold to cancer and even heart disease.

The world of medicine and science didn’t greet Pauling’s bold claims with open arms. Skepticism abounded, and rightly so. The reason? A scarcity of compelling scientific evidence to bolster his audacious assertions. Leading medical institutions turned a critical eye toward his ideas, raising ethical red flags. They feared that people might be swayed to forgo established medical treatments based solely on the strength of a seemingly authoritative endorsement of Pauling.

This controversy is a classic case in point of a brilliant person daring to traverse the boundaries of his expertise, venturing into unqualified territories. While a handful of studies explored the potential benefits, a universally accepted scientific consensus on the effectiveness of high-dose Vitamin C for these purposes remained frustratingly elusive. And even today, Pauling’s views on Vitamin C’s health benefits continue to spark fierce debates.

Truth Demands a Deeper Call

Make no mistake; Linus Pauling was a luminary in the realm of chemistry, but his credentials didn’t extend to the domain of medicine. This tale serves as a reminder that intelligence and judgment are not always cut from the same cloth. While Pauling’s claims may hold water in the world of chemistry, blindly accepting his assertions on Vitamin C would lead us down a path of fallacy – the “false appeal to authority,” or “Argument from Authority,” also known as “Argumentum ad Verecundiam.”

Celebrity endorsements, expert testimonies, and references to popular figures in non-expert fields can be a deceptive trap for those who unquestionably trust the statements of authorities. The assumption that truth is inherent in the words of a prominent figure, regardless of solid evidence or sound reasoning, undermines critical evaluation and neglects the necessity for substantial support.

Idea for Impact: Brilliance in one arena doesn’t guarantee infallibility across the board. Approach “expert” opinions with a critical eye, assessing them within the context of the evidence and rationale that underpin the argument. In the quest for understanding, always judge each assertion on its own merits. Context matters.

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Filed Under: Great Personalities, Mental Models, Sharpening Your Skills Tagged With: Biases, Critical Thinking, Humility, Integrity, Mindfulness, Parables, Persuasion, Role Models

Cultural Differences and Detecting Deception

October 25, 2023 By Nagesh Belludi Leave a Comment

Cultural Differences and Detecting Deception Spotting a liar isn’t an exact science; factors like eye contact, direct versus indirect communication, and many of the frequently highlighted “sure signs” of a liar may not always hold up across different cultures.

If you’re seeking more reliable indicators to help you discern truth from fiction, here they are:

  • Inconsistent Stories: Liars often weave a web of contradictions, changing their narrative as they go. When the story keeps evolving, it’s a red flag.
  • Lack of Detail: Liars tend to avoid specifics, offering vague responses that leave you with more questions than answers.
  • Defensiveness: While a poker face can hide the truth, excessive defensiveness can signal deception. When confronted, liars may become overly protective of their secrets.

Idea for Impact: Cultural sensitivity is essential when navigating the complex realm of truth and deception.

Wondering what to read next?

  1. Ethics Lessons From Akira Kurosawa’s ‘High and Low’
  2. Conscience is A Flawed Compass
  3. The Sensitivity of Politics in Today’s Contentious Climate
  4. How Understanding Your Own Fears Makes You More Attuned to Those of Others
  5. How to Speak Up in Meetings and Disagree Tactfully

Filed Under: Effective Communication, Managing People Tagged With: Biases, Conflict, Conversations, Ethics, Integrity, Manipulation, Questioning, Relationships

Ethics Lessons From Akira Kurosawa’s ‘High and Low’

October 5, 2023 By Nagesh Belludi Leave a Comment

The celebrated Japanese filmmaker Akira Kurosawa is known for crafting movies that grapple with moral dilemmas. In his highly regarded work, High and Low (1962,) a successful self-made millionaire faces a wrenching ethical conundrum: his son has been abducted, and he must give up everything he has worked hard for to secure the ransom. However, he soon discovers that the kidnapper mistakenly took his chauffeur’s son instead. The question now becomes: is the life of the worker’s child worth the same sacrifice as his own? In a powerful scene, the millionaire and the chauffeur lock eyes, and the viewers are left to ponder if all lives are equally valuable.

What makes this movie a standout is its portrayal of the intricacies involved in making difficult moral choices. Our conscience cannot always provide us with the necessary guidance to navigate the complex ethical issues we face in modern society, particularly when competing values and interests are at play. Ethical decisions are about more than just meeting a specific standard, as many dilemmas are so multifaceted that it’s difficult to distinguish good from evil or determine which choice is most worthy of preference.

The key takeaway is that tackling complicated moral problems requires continuous effort and investment in researching and contemplating the proper response. Seeking input from trusted colleagues who can provide a secure space to explore the nuances and implications of difficult decisions, particularly those you might not feel comfortable discussing openly due to societal pressures, is critical.

Wondering what to read next?

  1. Conscience is A Flawed Compass
  2. Of Course Mask Mandates Didn’t ‘Work’—At Least Not for Definitive Proof
  3. Virtue Deferred: Marcial Maciel, The Catholic Church, and How Institutions Learn to Look Away
  4. Making Exceptions “Just Once” is a Slippery Slope
  5. Is Ethics Just About Getting Caught?

Filed Under: Mental Models, Sharpening Your Skills, The Great Innovators Tagged With: Attitudes, Biases, Conflict, Conviction, Critical Thinking, Decision-Making, Ethics, Integrity, Philosophy, Psychology

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About: Nagesh Belludi [hire] is a St. Petersburg, Florida-based freethinker, investor, and leadership coach. He specializes in helping executives and companies ensure that the overall quality of their decision-making benefits isn’t compromised by a lack of a big-picture understanding.

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