Rewards and Punishments

Reading about Wells Fargo/Enron and their questionable practices. It seems like the capitalist system has devolved into a system of rewards, punishment, and deterrent (in the wrong direction). The people at the top have a strong incentives for profits with very little punishment against breaking the law (the only punishment is when they refuse to pursue profitable actions/policies that are too damaging). The people at the bottom has both carrots and sticks working for them/against them but it has now devolved into a new incentive, a system driven by fear against failure, failure to meet sales or failure to make enough money to eat is pushing people into questionable activity that is ignore by management who are driven by the same fear against making enough profit for the company. It seems the system is not just driven by profit making, but also an abhorrent fear against personal failure that could be translated into economic failure. Can a Coop/WSDE avoid the pitfalls of reward/punishment/fear that could create dangerous/unstable incentives?

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  • Malcolm Utopis
    published this page in Ask Prof. Wolff 2016-09-20 02:37:20 -0400