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Javier E

Volkswagen, Johnson & Johnson, and Corporate Responsibility - The Atlantic - 0 views

  • The sociologist Diane Vaughan coined the phrase the normalization of deviance to describe a cultural drift in which circumstances classified as “not okay” are slowly reclassified as “okay.”
  • In the case of the Challenger space-shuttle disaster—the subject of a landmark study by Vaughan—damage to the crucial O‑rings had been observed after previous shuttle launches. Each observed instance of damage, she found, was followed by a sequence “in which the technical deviation of the [O‑rings] from performance predictions was redefined as an acceptable risk.”
  • Repeated over time, this behavior became routinized into what organizational psychologists call a “script.” Engineers and managers “developed a definition of the situation that allowed them to carry on as if nothing was wrong.” To clarify: They were not merely acting as if nothing was wrong. They believed it, bringing to mind Orwell’s concept of doublethink, the method by which a bureaucracy conceals evil not only from the public but from itself.
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  • If that comparison sounds overwrought, consider the words of Denny Gioia, a management professor at Penn State who, in the early 1970s, was the coordinator of product recalls at Ford. At the time, the Ford Pinto was showing a tendency to explode when hit from behind, incinerating passengers. Twice, Gioia and his team elected not to recall the car—a fact that, when revealed to his M.B.A. students, goes off like a bomb. “Before I went to Ford I would have argued strongly that Ford had an ethical obligation to recall,” he wrote in the Journal of Business Ethics some 17 years after he’d left the company. “I now argue and teach that Ford had an ethical obligation to recall. But, while I was there, I perceived no strong obligation to recall and I remember no strong ethical overtones to the case whatsoever.”
  • Executives are bombarded with information. To ease the cognitive load, they rely on a set of unwritten scripts imported from the organization around them. You could even define corporate culture as a collection of scripts.
  • back to Volkswagen. You cannot unconsciously install a “defeat device” into hundreds of thousands of cars. You need to be sneaky, and thus deliberate.
  • The most troubling thing, says Vaughan, is the way scripts “expand like an elastic waistband” to accommodate more and more divergence.
  • Embarrassed and unable to overturn the script they themselves had built in the preceding years, Morton-Thiokol’s brass buckled. The “no launch” recommendation was reversed to “launch.”
  • “It’s like losing your virginity,” a NASA teleconference participant later told Vaughan. “Once you’ve done it, you can’t go back.” If you try, you face a credibility spiral: Were you lying then or are you lying now?
  • Scripts are undoubtedly efficient. Managers don’t have to muddle through each new problem afresh, Gioia wrote, because “the mode of handling such problems has already been worked out in advance.” But therein lies the danger. Scripts can be flawed, and grow more so over time, yet they discourage active analysis
  • the final decision to deceive was, on an individual level, rational—the logical end to a long sequence.
  • This sequence of events fits a pattern that appears and reappears in corporate-misconduct cases, beginning with the fantastic commitments made from on high.
  • All of which placed personnel in a position of extreme strain.
  • We know what strain does to people. Even without it, they tend to underestimate the probability of future bad events. Put them under emotional stress, some research suggests, and this tendency gets amplified. People will favor decisions that preempt short-term social discomfort even at the cost of heightened long-term risk. Faced with the immediate certainty of a boss’s wrath or the distant possibility of blowback from a faceless agency, many will focus mostly on the former.
  • What James Burke, Johnson & Johnson’s CEO, did was anticipate the possible results of these pressures, well before they built up. He shared Henry James’s “imagination of disaster.” And it’s why he introduced, if you will, a set of counterscripts. It was a conscious effort to tinker with the unconscious criteria by which decisions at his company were made. The result was an incremental descent into integrity, a slide toward soundness, and the normalization of referencing “Our Credo” in situations that might otherwise have seemed devoid of ethical content.
  • This reaction isn’t excusable. But it is predictable.
  • What we know of Ferdinand Piëch, Volkswagen’s chairman before the scandal, is that he was no James Burke. At a 2008 corruption trial that sent one VW executive to jail, Piëch referred to alleged widespread use of VW funds on prostitutes as mere “irregularities,” and chided a lawyer for mispronouncing Lamborghini. (“Those who can’t afford one should say it properly” were his precise words.) This was around the time the emissions cheating began.
  • “Culture starts at the top,” a businessman recently said in an interview with the Association of Certified Fraud Examiners. “But it doesn’t start at the top with pretty statements. Employees will see through empty rhetoric and will emulate the nature of top-management decision making … A robust ‘code of conduct’ can be emasculated by one action of the CEO or CFO.”
Javier E

Opinion | Will We Shrug Off Coronavirus Deaths as We Do Gun Violence? - The New York Times - 0 views

  • I first saw it on Twitter. “Someone poke holes in this scenario,” a tweet from Eric Nelson, the editorial director of Broadside Books, read. “We keep losing 1,000 to 2,000 a day to coronavirus. People get used to it. We get less vigilant as it very slowly spreads. By December we’re close to normal, but still losing 1,500 a day, and as we tick past 300,000 dead, most people aren’t concerned.”
  • This hit me like a ton of bricks because of just how plausible it seemed. The day I read Mr. Nelson’s tweet, 1,723 Americans were reported to have died from the virus. And yet their collective passing was hardly mourned. After all, how to distinguish those souls from the 2,097 who perished the day before or the 1,558 who died the day after?
  • Such loss of life is hard to comprehend when it’s not happening in front of your own two eyes. Add to it that humans are adaptable creatures, no matter how nightmarish the scenario, and it seems understandable that our outrage would dull over time.
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  • There’s also a national precedent for Mr. Nelson’s hypothetical: America’s response to gun violence and school shootings.
  • As a country, we seem resigned to preventable firearm deaths. Each year, 36,000 Americans are killed by guns — roughly 100 per day, most from suicide
  • In every case, the death tolls climb but we fail to act. There are occasional marches and protests but mostly we continue on with our lives.
  • As with gun violence, the data medical professionals and governments are relying on during the pandemic is piecemeal. And, as with gun violence, we throw up our hands and deem it intractable.
  • The federal government could have moved swiftly like some in Europe to “freeze” the economy and commit to paying at least part of workers’ salaries if their companies don’t lay them off. Instead, our economic stimulus has been scattershot and underwhelming.
  • the administration seems to be cheering on the reopening while internally preparing for a substantial increase of loss of lives. An internal document based on modeling by the Federal Emergency Management Agency obtained by The Times projects that the daily death toll will reach about 3,000 on June 1, a 70 percent increase from the May 1 number of about 1,750.
  • For Dr. Megan Ranney, an emergency physician and Brown University professor who works on gun violence prevention, the dynamics of the lockdown protesters are familiar.
  • “This group has moved the reopening debate from a conversation about health and science to a conversation about liberty,” Dr. Ranney told me. “They’ve redefined the debate so it’s no longer about weighing risks and benefits and instead it’s this politicized narrative. It’s like taking a nuanced conversation about gun injury and turning it into an argument about gun rights. It shuts the conversation down.”
  • As in the gun control debate, public opinion, public health and the public good seem poised to lose out to a select set of personal freedoms.
  • But it’s a child’s two-dimensional view of freedom — one where any suggestion of collective duty and responsibility for others become the chains of tyranny.
  • This idea of freedom is also an excuse to serve one’s self before others and a shield to hide from responsibility.
  • In this narrow worldview, freedom has a price, in the form of an “acceptable” number of human lives lost. It’s a price that will be calculated and then set by a select few. The rest of us merely pay it.
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