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The Timid Corporation

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The Timid Corporation

Why Business Is Terrified of Taking Risk

Wiley,

15 min read
10 take-aways
Text available

What's inside?

Get brave! Take chances. Brand management, risk aversion and ethics are just cowardly ways to dodge innovation.

Editorial Rating

7

Qualities

  • Controversial
  • Innovative

Recommendation

This book offers a passionate and stupendously irreverent slap in the face to virtually every management orthodoxy and business shibboleth. Nothing escapes the scathing criticism of this corporate Jeremiad. Managing for shareholder value? Woe to you, sinner! Think the brand is important? Out with you, infidel! There’s plenty to find fault with in author Benjamin Hurt’s presentation of his case. He’s vengefully biased, and never lets a silly fixation like "balance" get in the way of a good zinger. He’s set himself to dig holes in the dikes that hold the wild waters of skepticism at bay. This book will make you mad, make you protest, may even make you throw it against the wall in disgust. But any book that makes you react that way has something going for it. At least, it’s a bracingly different perspective from anything else you’ll read about management, marketing or finance. With that caveat about balance firmly in mind, getAbstract.com suggests reading this decidedly eccentric, provocative original, if you dare to take the risk.

Summary

Being Safe Means Doing Nothing

Anglo-Saxon capitalism was built by pioneering risk-takers who saw profit as their just reward. But it has been inherited by timorous functionaries who multiply controls, rules and regulations. Companies try to "listen to society" but hear only the nightmares of irrational scare-mongers. Governments impose all sorts of new regulations on business, but businesses also censor and hobble themselves with various forms of "self regulation." They strive to be ethical, but they try too hard. Their bureaucracies of ethicists paralyze decision makers. And the ethicists don’t just concern themselves with right or wrong - they worry about the very appearance of impropriety. When anything one does can be misinterpreted, the only safe course is to do nothing. So worrying how you look to others can be bad for business. Yet consultants and managers tout ethical commitments as "opportunities."

Risk management is booming, but that means that management is too defensive, too risk-averse. Boards of directors and institutional money managers demand more accountability, which leads to more rules and regulations, and to a culture of "management correctness...

About the Author

Benjamin Hunt is an independent researcher and journalist who has written for The Wall Street Journal, The Guardian and other publications. He contributed to the Financial Times Managing Risk and the Financial Times Mastering Management series.


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