- 05 jul
CEOs are well intentioned lying primates
Cees Kools researched the real causes of the financial crisis. Prior to his appointment as professor to the Tilburg University, he researched sixteen American banks; eight of those collapsed during the crisis and eight banks did not. His research shows that there is a correlation between good governance and personal background. Kools found out that good governance (at the bank) was mirrored by good governance at home. In other words: a CEO that showed a track record of instability at home, for example by a divorce, was one:one mirrored by the collapse of the bank.
Cools conclusion is fascinating but does not surprise me at all. What surprises me is the question: why did Kools decide to research this specific question? Or did he hit on this question during a drinking brawl with a number of friends and subsequently decided to spent some time on checking, testing and confirming his assumption? I will probably never find out.
His research nevertheless shows that good governance doesn’t start nor stop at your own front door. It is an illustration of an intrinsic, well-balanced sense of morality about what good business is all about. Something that is obviously and predominantly missing in the financial sector.
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