When I ask students graduating from Harvard Business School what they’re doing next, I often get some version of “I’m going into finance but…” Then they quickly explain that finance is just a way station on the route to nobler goals. I seldom, if ever, hear that apologetic tone from students choosing technology companies or consulting. Recently, I asked a few students how people react to their choice to go into finance, and I was greeted with nervous laughter. When pressed, they explained that most people conclude that someone choosing finance cares only about money — and cares little for others or for society.
Finance Can Be a Noble Profession (Yes, Really)
Despite the industry’s bad behavior, finance will always be central to our lives.
July 17, 2017
Summary.
As a profession, finance does not have a good reputation. In part that’s deserved. Bad behavior in finance results, in part, from the unique way in which participants, particularly investors, understand their own performance. Finance creates attribution errors — attributing positive outcomes to one’s self and bad outcomes to situational factors — on a more massive scale and at a higher frequency than any other field. This cognitive bias leads to an inflated sense of self-importance and invulnerability. But the ideas behind finance are fascinating and central to our lives. They even be noble. The practices and aspirations of finance professionals should reflect that.
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New!
HBR Learning
Ethics at Work Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Ethics at Work. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Avoid integrity traps in the workplace.