Chapter 1: The Road to Compliance
* Summary: This chapter examines how individuals in organizations become compliant with unethical and even immoral behavior.
* Real Example: At Enron, employees initially questioned accounting practices but eventually succumbed to pressure from superiors and the desire for bonuses.
Chapter 2: Madhouses: The Impact of Injustice, Incompetence, and Insanity
* Summary: The chapter argues that "madhouses" are organizational environments characterized by rampant injustice, incompetence, and insanity.
* Real Example: Stanford Prison Experiment, where ordinary individuals assigned as "guards" quickly became abusive and sadistic.
Chapter 3: The Pygmalion Effect
* Summary: The author shows how positive or negative expectations can influence behaviors and outcomes.
* Real Example: In a study of teachers' expectations, students with high expectations from their teachers tended to perform better than those with low expectations.
Chapter 4: The Golem Effect
* Summary: This chapter explores how individuals and organizations can become dominated by the very tools and systems they create.
* Real Example: The Bhopal disaster, where a chemical plant leak killed thousands due to a faulty design and inadequate safety measures.
Chapter 5: The Paradox of Compliance
* Summary: The author argues that paradoxical messages and behaviors within organizations can undermine compliance.
* Real Example: A company that claims to value ethics while rewarding employees for unethical actions.
Chapter 6: The Rule of Law vs. the Law of the Jungle
* Summary: This chapter examines the tension between formal rules and informal norms in organizations.
* Real Example: In the garment industry, sweatshops flout labor laws while simultaneously exploiting vulnerable workers.
Chapter 7: The Tyranny of Metrics
* Summary: The chapter warns against overreliance on quantitative measures, which can incentivize unethical behaviors.
* Real Example: Bank managers pressured employees to open fraudulent accounts to meet sales quotas.
Chapter 8: The Power of Storytelling
* Summary: This chapter argues that storytelling can shape organizational culture and behavior.
* Real Example: The inspiring story of the "Miracle on the Hudson" flight, which promoted calm and cooperation in a crisis situation.
Chapter 9: The Antidote to Madness: A Call for Courage, Justice, and Integrity
* Summary: The chapter concludes with a call for individuals and organizations to resist the "madhouse effect" by upholding ethics.
* Real Example: The founder of Patagonia, who has made sustainability a core part of the company's business model.