Insights From the 'Cole' Face - Elevating Leadership Beyond the Boardroom
S3 - Episode 4 - Guido Palazzo: How Good People Become Part of Bad Systems
Why do good people do bad things at work? And how can an organisation slowly normalise behaviour that, from the outside, seems obviously wrong? Professor Guido Palazzo, Professor of Business Ethics at the University of Lausanne and co-author of The Dark Pattern: The Hidden Dynamics of Corporate Scandals , joins Sarah for a fascinating exploration of ethical blindness, corporate culture and the hidden forces that shape the decisions we make. Drawing on decades of research into business ethics, human rights, organised crime and corporate misconduct, Guido challenges the comforting assumption that major scandals are simply caused by a handful of bad people. More often, he argues, ordinary people find themselves operating inside systems where pressure, incentives, group behaviour and distorted language gradually change their perception of what is acceptable. Sarah and Guido explore some of the most striking corporate scandals of recent decades, including Wells Fargo, Enron, Uber and Theranos, alongside the doping culture surrounding professional cycling. Guido explains how toxic routines become normalised, why groups can develop a dangerous “us against them” mentality, and how people can become ethically blind while still believing they are acting in the interests of their organisation. They also examine the extraordinary power of language. From “creative accounting” and corporate euphemisms to the aggressive language of disruption, warfare and world-changing missions, Guido explains how the words leaders use can reshape reality, weaken ethical boundaries and make behaviour that once seemed unacceptable feel entirely justifiable. But this conversation is also about what leaders can do differently. Guido explores why speaking up requires far more than a whistleblowing hotline or a poster telling employees to use their voice. Sarah and Guido discuss psychological safety, retaliation, the importance of protecting and celebrating what Guido calls “moral rebels”, and why the stories circulating inside an organisation may reveal far more about its true culture than its published values ever will. They also discuss the importance of knowing your own ethical red lines, why having a “Plan B” can give leaders the freedom to resist pressure, and why even the most powerful executives need people around them who are willing to challenge them. Guido shares his own reflections on difficult decisions, the importance of listening as power increases, and why leaders should regularly ask themselves not simply what they can do, but what they are unwilling to compromise. Finally, Guido builds his three-item leadership survival toolkit through three books exploring the darker and brighter sides of human behaviour: Hannah Arendt’s Eichmann in Jerusalem , Philip Zimbardo’s The Lucifer Effect and Eyal Press’s Beautiful Souls . A compelling conversation about courage, conformity, corporate culture and the uncomfortable truth that the line between ethical and unethical behaviour may be far thinner than we like to believe. Find out more about Guido and The Dark Pattern : https://www.hachettebookgroup.com/titles/guido-palazzo-ph-d/the-dark-pattern/9781541705326/?lens=publicaffairs Guido's Book Suggestions: The Lucifer Effect - https://amzn.eu/d/0crgl0WW Beautiful Souls - https://amzn.eu/d/032lfgAv Eichmann in Jerusalem - https://amzn.eu/d/02nriiB2 Want to elevate your leadership beyond the boardroom? Join the conversation. Connect with me for coaching, peer support, or leadership insights that drive real impact. Let's talk: https://www.coleforums.com/ Follow me on LinkedIn: https://www.linkedin.com/in/sarah-cole4/ ☕ Buy me a coffee: buymeacoffee.com/sarah.cole
