Date Added: Jan 2010
In the corporate world, executives must exercise self-restraint to remain focused on long-term goals. Personal temptation, coupled with social pressure to grow the balance sheet, make it all too easy to become seduced by the thrill of immediate rewards. For example, bankers who refrained from making risky loans often had to justify their actions to demanding directors (and other interested onlookers) who watched as their banks seemingly squandered opportunities that other banks were enjoying. They had to stick to their principles while watching their less risk-averse counterparts earn huge bonuses. Herds can be very persuasive when they are headed straight for you.