Right Attitudes

Ideas for Impact

Psychology

Why People under Pressure Choose Self-Interested Behaviors

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Why People under Pressure Choose Self-Interested Behaviors Pressure can put people in a state of threat. As I’ve examined previously here, here, and here, pressure can undermine people’s ability to make sound decisions.

Under pressure, people can abandon their inhibitions, cut corners, and loosen up their moral standards. In other words, they are more likely to engage in self-centered behaviors as opposed to pursuing the common good.

People adopt moral standards that dissuade them from unacceptable behaviors. Under normal circumstances, they think sensibly about the costs and benefits when making decisions. However, under pressure, people can be depleted of the cognitive resources they need to act ethically and resist temptations. See my article on the much-debated “muscle metaphor” of willpower.

When people are in that state of emotional and psychological anxiety, the brain goes into a defensive mode. With that, they are more likely to engage in self-interested behaviors that they would otherwise avoid, especially if the payoff for such behavior is high, and the odds of getting caught and punished are low.

Wondering what to read next?

  1. Moral Disengagement Leads People to Act Immorally and Justify Their Unprincipled Behavior
  2. Lessons from the Princeton Seminary Experiment: People in a Rush are Less Likely to Help Others (and Themselves)
  3. What Airline Disasters Teach About Cognitive Impairment and Decision-Making Under Stress
  4. How Stress Impairs Your Problem-Solving Capabilities: Case Study of TransAsia Flight 235
  5. Moral Self-Licensing: Do Good Deeds Make People Act Bad?

How to Make Others Feel They Owe You One: Reciprocity and Social Influence

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How to Make Others Feel They Owe You One: Reciprocity and Social Influence Reciprocity, as described below, is a manipulative technique. My aim for this article is twofold: firstly, it sensitizes you to one of the many things people can do to get you to do their bidding. Secondly, reciprocity is a handy technique for those circumstances where certain ends can justify certain means.

Reciprocity is treating other people as they treat you, or for the purpose of this article, as you wish to be treated—specifically with the expectation that they will reciprocate your favor in the future.

In other words, reciprocity is a sneaky trick that permits deliberate interpersonal influence. Do something for other people and they will be willing to do something for you, partly because they’ll be uncomfortable feeling indebted to you.

The concept of reciprocity is ingrained in human nature. As part of our upbringing, we are taught to give something back to people who give us something. Reciprocity and cooperation are the underpinnings of a civilized society—they allow us to help people who need it and to hope that they will help us when we need it. Research suggests that the desire to repay goodwill is hard-wired in the human brain.

Jack Schafer’s The Like Switch: An Ex-FBI Agent’s Guide to Influencing, Attracting, and Winning People Over (2015) offers a clever technique to put reciprocity into action:

The next time someone thanks you for something, don’t say, “You’re welcome.” Instead, say, “I know you’d do the same thing for me.” This response invokes reciprocity. The other person is now predisposed to help you when you ask them for a favor.

The effects of goodwill are short-lived. A long-forgotten reputation for helpfulness gets you nothing. You have to renew your reputation by helping others regularly.

To learn more about reciprocity, read social psychologist Robert Cialdini’s Influence: The Psychology of Persuasion (1984.) He identified reciprocity as one of six principles that can help get others’ compliance to your requests.

Wondering what to read next?

  1. Persuade Others to See Things Your Way: Use Aristotle’s Ethos, Logos, Pathos, and Timing
  2. Don’t Be Interesting—Be Interested!
  3. This Manager’s Change Initiatives Lacked Ethos, Pathos, Logos: Case Study on Aristotle’s Persuasion Framework
  4. Don’t Say “Yes” When You Really Want to Say “No”
  5. Our Vision of What Our Parents Achieved Influences Our Life Goals: The Psychic Contract

The Dramatic Fall of Theranos and Elizabeth Holmes: Summary of John Carreyrou’s “Bad Blood”

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The Fall of Theranos and Elizabeth Holmes

Bad Blood: Secrets and Lies in a Silicon Valley Startup (2018) is Wall Street Journal investigative reporter John Carreyrou’s remarkable exposé on Theranos, the former high-flying Silicon Valley tech startup founded by Elizabeth Holmes.

Theranos formally dissolved last week after a high-profile scandal revealed that the company not only deceived investors, but also risked the health of thousands of patients.

A Gripping Narrative, A Charismatic CEO, and A Big Fraud

In 2015, Theranos was one of Silicon Valley’s superstars. Valued at some $9 billion, Theranos claimed an out-and-out disruption of the $73-billion-a-year blood testing industry. Elizabeth Holmes pitched a revolutionary technology that could perform multiple tests on a few drops of capillary blood drawn by a minimally invasive finger prick, instead of the conventional—and much dreaded—venipuncture needle method.

The Story of Theranos and Elizabeth Holmes received much adulation by the media Theranos has its origins in 2004, when the brilliant Holmes, then a 19-year old Stanford sophomore, dropped out of college to start the company. Her missionary narrative swayed just about everyone to believe in the potential she touted.

Over the years, Theranos attracted a $1 billion investment, an illustrious board of directors, influential business partners (Walgreens, Safeway, Cleveland Clinic,) and significant amounts of adulation by the media—all of this lent credence to Holmes’s undertaking. She was celebrated as the youngest, self-made female billionaire in the world.

Nobody Asked the Hard Questions

Theranos’s castle in the air started to crumble in October 2015, when Carreyrou’s first Wall Street Journal article reported that the company was embellishing the potential of Theranos’s technology. Based on past employees’ disclosures, the article also cast serious doubts on the reliability of Theranos’s science. Behind the scenes, Theranos performed a majority of its blood tests with commercial analyzers purchased from other companies.

The persistent question in Carreyrou’s Bad Blood is how the many smart people who funded, endorsed, defended, and wrote about this company never set aside their confidence in Holmes’s persuasions and looked beyond her claim of “30 tests from one drop of blood.”

Without much independent due diligence, Theranos’s supporters possibly assumed that everyone else had checked out the company, its founders, and its science. Theranos got away with its actions for as long as it did because no one could conceive of the idea that the business would simply lie as much as it did.

The Story of Theranos and Elizabeth Holmes Appeared so Promising That Everybody Wanted it to Be True

Bad Blood also draws attention to Silicon Valley’s many failings, including the cult of the celebrity founder. Holmes’s smoke and mirrors was enabled by the notion of a “stealth mode” in which many Silicon Valley startups operate to protect their intellectual property. Theranos never proved that its testing technology really worked. It was performing tests on patients without having published peer-reviewed studies, getting FDA certification, or carrying out external evaluation by medical experts.

'Bad Blood' by John Carreyrou (ISBN 152473165X) Carreyrou acknowledges that Holmes’s initial intentions were honorable, even if naïve. What triggered Holmes’s downfall was the characteristic entrepreneurial “fake it till you make it” ethos—it inhibited her from conceding early on that her ambitions were simply not viable.

When things didn’t go as intended, Holmes exploited the power of storytelling to get everyone to buy into her tales. She continued to believe that the reality of the technology would catch up with her vision in the future. Trapped in a web of hyperbole and overpromises, Holmes and her associate (as well as then-lover) Sunny Balwani operated a culture of fear and intimidation at Theranos. They went as far as hiring superstar lawyers to threaten and silence employees and anyone else who dared to challenge the company or expose its deficiencies.

Book Recommendation: Bad Blood is a Must-Read

Every inventor, entrepreneur, investor, and businessperson should read Bad Blood. It’s a fascinating and meticulously researched report of personal and corporate ambition unraveled by dishonesty. This page-turner is a New York Times bestseller and is expected to be made into a movie.

Wondering what to read next?

  1. Books I Read in 2018 & Recommend
  2. Silicon Valley’s Founding Fathers / Book Summary of David Packard’s “HP Way”
  3. Lessons from the Biography of Tesla’s Elon Musk
  4. Beware of Key-Person Dependency Risk
  5. Coca-Cola Executive Donald Keough’s “Ten Commandments for Business Failure” [Book Summary]

Power Corrupts, and Power Attracts the Corruptible

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Picture of Statue of Demon Mahishasura atop Chamundi Hills in Mysore, India The recent sexual misconduct allegations of influential men abusing their towering positions for contemptuous behaviors provide yet another reminder that power corrupts. As the British politician and historian Lord John Dalberg-Acton famously wrote in an 1887 letter to the Anglican Bishop Mandell Creighton,

Power tends to corrupt and absolute power corrupts absolutely. Great men are almost always bad men, even when they exercise influence and not authority: still more when you superadd the tendency or the certainty of corruption by authority. There is no worse heresy than that the office sanctifies the holder of it. That is the point at which … the end learns to justify the means.

The recent scandals lay bare the three distinctive characteristics of the intoxication of power: the inflation of the self, the devaluation of the helpless, and a dreadful shortfall in self-awareness of actions and consequences.

In the case of studio executive Harvey Weinstein, the worse outrage is that, many prominent people, despite their awareness of Weinstein’s uninhibited abuse, stayed silent—and possibly benefited. Some Hollywood celebrities are said to have overlooked his transgressions. Meryl Streep, one of Hollywood’s most successful actors, who once referred to Weinstein as ‘God,’ had to contend the blame that everyone in Hollywood knew of Weinstein’s conduct. His staff sheltered him or paid off victims, many of whom chose to remain silent for fear of derailing their budding careers. Going public would have hurt them more than it would have damaged Weinstein, until those accusations reach a critical mass and suddenly everyone flipped against him.

The Intoxication of Power

The British philosopher Bertrand Russell first wrote about the “intoxication of power” in A History of Western Philosophy (1945,) and best described what develops in the minds of many people who, in all walks of life, exercise a measure of power and dominance.

The Greeks, with their dread of hubris and their belief in a Necessity or Fate superior even to Zeus, carefully avoided what would have seemed to them insolence towards the universe. The Middle Ages carried submission much further: humility towards God was a Christian’s first duty. Initiative was cramped by this attitude, and great originality was scarcely possible. The Renaissance restored human pride, but carried it to the point where it led to anarchy and disaster. … Man, formerly too humble, begins to think of himself as almost a God.

…

In all of this I feel a great danger, the danger of what might be called cosmic impiety. The concept of ‘truth’ as something dependent upon facts largely outside human control has been one of the ways in which philosophy hitherto has inculcated the necessary element of humility. When this check upon pride is removed, a further step is taken on the road towards a certain kind of madness—the intoxication of power which invaded philosophy with Fichte. I am persuaded that this intoxication is the greatest danger of our time, and that any philosophy which, however unintentionally, contributes to it is increasing the danger of vast social disaster.

Idea for Impact: People with even the smallest amount of authority can and will find ways to abuse it

People can become corrupt with power, fame, wealth, and influence, and, as I’ve written previously, they regularly get away with it. The solution, I believe, is to subject our elites (and the sycophantic supporters who are disposed to collude in self-interest) to as many restrictions, supervisions, and checks and balances as possible, and scrutinize them closely so as to spot hubristic traits and symptoms of the abuse of power.

Wondering what to read next?

  1. Shrewd Leaders Sometimes Take Liberties with the Truth to Reach Righteous Goals
  2. The Cost of Leadership Incivility
  3. 51 Practical Lessons for a Lifetime
  4. Success Conceals Wickedness
  5. Bertrand Russell’s Ten Commandments of Honest Thought and Discourse

Moral Self-Licensing: Do Good Deeds Make People Act Bad?

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When People Do Something ‘Good’ They Feel Licensed to Do Something ‘Bad’ Later

Ethical moral self-licensing » When People Do Something 'Good' They Feel Licensed to Do Something 'Bad' Later Being—and being seen—as moral, ethical, and principled is an important part of people’s self-concept.

Social psychologists have studied the tendency of people using their prior moral actions to license future morally questionable actions. According to these studies, prior to making morally important decisions, people may survey their previous moral actions. If they recollect engaging in virtuous moral behavior in the past, they may subsequently become less bothered about engaging in morally questionable behavior.

Prior Actions Can Affect Individuals’ Future Behavior

Past good deeds can license people to engage in behaviors that are immoral, unethical, if not problematic—behaviors that they would otherwise avoid for fear of feeling or appearing immoral. The deep-seated human tendency that makes people feel entitled to do something less moral because they’ve done something moral previously is called “moral self-licensing.”

Psychologists reason that people’s previous actions may cause them to feel more self-possessed in their own moral self-worth. As a result, this claim licenses their choice of a more self-indulgent moral choice.

Conversely, when people appear immoral or devious to others, they subsequently take up positive actions to restore their moral image. Psychologists identify this as “compensation or cleansing.”

When ‘Good’ Behavior Supposedly Counteracts Doing Something ‘Bad’

Moral self-licensing has been demonstrated in several realms of human judgment. However, in my opinion, much of the cause-and-effect narratives seem ambiguous. For instance,

  • In a set of pioneering studies, participants who established their racial non-prejudiced attitudes by endorsing President Obama or through selecting a black person for a consulting firm job were subsequently more likely to make pro-white decisions.
  • In one test, after subjects were given a chance to condemn sexist statements, they were found to be subsequently more likely to support hiring a man in a male-dominated profession.
  • One study on consumer behavior suggested that shoppers who brought their own bags felt licensed to buy more junk food.

Contribution Ethic and “Prospective Moral Licensing”

A phenomenon related to moral self-licensing is “contribution ethic” or the “moral credential effect.” When people feel they’ve done their fair share for some noble cause, they decide they need do no more. In one study, after people participated in a pro-social deeds (e.g., doing something good for the cause of the environment,) they felt licensed to behave more selfishly later (e.g., donating less to an environmental program). Another study showed that people who drive hybrid cars tend to get more tickets and cause more accidents than do drivers of conventional cars.

Some studies have suggested that just thinking about past moral behavior or writing about oneself as a moral person can decrease the likelihood of subsequently performing altruistic acts—such as decreasing contributions to charitable causes or being less engaging in cooperative behavior towards friends and colleagues.

Finally, simply planning to do good later can allow people to be bad now. Some studies suggest that when people merely plan to engage in a moral behavior in the future, they feel licensed to respond in a morally questionable way in the present. Psychologists identify this as “prospective moral licensing.”

Idea for Impact: Past Moral Deeds Could Make People Do Morally Wrong Things

Part of becoming wise to the ways of the world and getting along with people is understanding the many peculiarities of human behavior. Learning why people feel licensed to engage in potentially immoral behavior given their demonstrated moral behavior allows for a better understanding of the world in which we live.

Wondering what to read next?

  1. When Should a Leader Pass Blame?
  2. The Cost of Leadership Incivility
  3. Moral Disengagement Leads People to Act Immorally and Justify Their Unprincipled Behavior
  4. Warren Buffett’s Rule of Thumb on Personal Integrity
  5. Shrewd Leaders Sometimes Take Liberties with the Truth to Reach Righteous Goals

Success Conceals Wickedness

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Biographies of Steve Jobs (by Walter Isaacson,) Jeff Bezos (by Brad Stone,) and Elon Musk (by Ashlee Vance)

Two common themes in the biographies of Steve Jobs (by Walter Isaacson,) Jeff Bezos (by Brad Stone,) and Elon Musk (by Ashley Vance) are these entrepreneurs’ extreme personalities and the costs of their extraordinary successes.

The world mostly regards Musk, Jobs, and Bezos as passionate, inspiring, visionary, and charismatic leaders who’ve transformed their industries. Yet their biographies paint a vivid picture of how ill-mannered these innovators are (or were, in the case of Jobs). They exercise ruthless control over every aspect of their companies’ products but have little tolerance for underperformers. They are extremely demanding of employees and unnecessarily demeaning to people who help them succeed.

  • Steve Jobs was renowned for his cranky, rude, spiteful, and controlling outlook. Biographer Isaacson recalls, “Nasty was not necessary. It hindered him more than it helped him.” Jobs famously drove his Mercedes around without a license and frequently parked in handicapped spots. For years, he denied paternity of his first daughter Lisa and forced her and her mother to live on welfare. He often threw tantrums when he didn’t get his way and publicly humiliated employees.
  • In a 2010 commencement address at Princeton, Jeff Bezos recalled his grandfather counseling, “Jeff, one day you’ll understand that it’s harder to be kind than clever.” Still, according to Brad Stone’s biography, Bezos often imparts insulting rebukes and criticisms to employees: “I’m sorry, did I take my stupid pills today?” “Are you lazy or just incompetent?” “Why are you wasting my life?” and “Do I need to go down and get the certificate that says I’m CEO of the company to get you to stop challenging me on this?”
  • According to Ashlee Vance’s biography, when an executive assistant asked for a raise, Elon Musk asked her to take a two-week vacation while he contemplated her request. When the assistant returned from vacation, Musk fired her.

“Success covers a multitude of blunders”

The great Irish playwright Oscar Wilde once remarked, “No object is so beautiful that, under certain conditions, it will not look ugly.”

The other great Irish playwright George Bernard Shaw wrote, “Success covers a multitude of blunders.”

British politician and historian Lord John Dalberg-Acton famously said, “Power tends to corrupt and absolute power corrupts absolutely. Great men are almost always bad men, even when they exercise influence and not authority: still more when you superadd the tendency or the certainty of corruption by authority. There is no worse heresy than that the office sanctifies the holder of it. That is the point at which … the end learns to justify the means.”

Ethics Violations by NBC News Anchor Brian Williams

Ethics Violations by NBC News Anchor Brian Williams In 2015, NBC suspended prominent news anchor Brian Williams after internal investigations revealed no less than 11 instances where he either embellished facts or bent the truth. Members of his team and NBC staffers who knew about these ethics violations chose to overlook because he was powerful. According to The New York Times,

Mr. Williams has been drawing 9.3 million viewers a night, and his position seemed unassailable. Even as the stature of the nightly newscast faded in the face of real-time digital news, Mr. Williams was one of the most trusted names in America … He was powerful. Williams had the ear of NBC boss Steve Burke. He was a ratings powerhouse. And he spent years overseeing TV’s most watched newscast. He was a winner, for himself, those around him and those above him—until it became clear the man who is supposed be among the most trusted in America had issues with telling the truth.

Power Corrupts the Mind

Brilliant men and women engage in morally wrong conduct simply because they can. They can get away with extreme pride, temper, abuse, and other disruptive behaviors because their spectacular success can and does cover many of their sins, even in the eyes of those at the receiving end of their crudeness.

Our high-achieving culture adores the successful, the powerful, and the rich. And part of this adoration is the exemption we grant these celebrities from the ordinary rules of professional civility.

Idea for Impact: The more people possess power and the more successful they get, the more they focus on their own egocentric perspectives and ignore others’ interests.

Wondering what to read next?

  1. Beware of Key-Person Dependency Risk
  2. The Cost of Leadership Incivility
  3. How to Handle Conflict: Disagree and Commit [Lessons from Amazon & ‘The Bezos Way’]
  4. Power Corrupts, and Power Attracts the Corruptible
  5. Lessons from the Biography of Tesla’s Elon Musk
Here’s a prayer to help you deal with annoying people. Learn from the Stoics!