Global Equity Strategy, Abu Ghraib: Lessons from behavioural finance and for corporate governance

Bad apples or bad barrels? It is tempting to believe bad behaviour is the result of a few rotten individuals. However, the overwhelming psychological evidence suggests that if you put good people into bad situations they usually turn bad. Corporate malfeasance and the events in Iraqi prisons are examined and the lessons explored.

By Dr James Montier

Summary:

•Introduction

•Prisons and corporate malfeasance

•Zimbardo's prison experiment

•Milgram: The man that shocked the world

•The conditions that turn good people bad

•Conclusions