Why you’re more likely to trust a financial adviser who acts like your doctor

 

Variations of the old chestnut – trust takes years to build but can be destroyed in seconds – have been around for decades. So it might come as a surprise to learn that there is no scientific evidence to support it. Indeed, science has revealed that trust is not something to be built and destroyed at all — trust is two things to be built and destroyed. Continue reading

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Going Up? Governance in Crony Companies

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One much-discussed indication of a firm’s good governance is hiring and promotions free of nepotism[i], cronyism or any other form of favouritism. Yet, despite the growing importance stakeholders attach to the ‘G’ in ‘ESG’, many organisations, both public and private, struggle to change their ways. Evidence remains of advancement based on family, nationality, language, politics, religion, alma mater and, of course, gender and ethnicity.

The consequences of unfair patronage for the subsequent performance of the patron and their protégés are varied, and (annoyingly) not always negative. However, the impact on everyone else in the organisation, is unambiguously bad.

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