The Scandal Effect

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Global Mind Leaders
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When companies misbehave, executives pay a price on the job market – even if they had nothing to do with the trouble.

by Boris Groysberg, Eric Lin, George Serafeim, and Robin Abrahams ( Harvard Business Review ).

The Finding
Executives with scandal-tainted companies on their resumes pay a penalty on the job market-even if they had nothing to do with the misbehavior.

The Reason
The stigma that arises from scandal plays an outsize role in hiring decisions because judging other people accurately is di cult and because those making executive hires tend toward conservatism.

The Answer
If you have a scandal-tainted rm on your resume, you should address the matter forthrightly, establish relationships with people who can attest to your character, and consider taking a “rehab job.”

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