# kaal:claim:2922176-027

**Claim.** Centralized, hierarchical environments do not value honesty and reward good news only, so nobody wants to carry bad news upward, and problems are therefore detected late.

**Type.** failure  **Support.** argued

**Holds when.**

- heavily mediated and redacted corporate environments; illustrated by Nokia, Volkswagen and Samsung

**Source quote.**

> Honesty is often not valued in a centralized, hierarchical environment. In the heavily mediated and redacted corporate world, the focus is on "good news only." Nobody wants to be the messenger delivering bad news. This attitude often results in the late detection of issues and implications.

**From.** Mark Fenwick, Wulf A. Kaal, Erik P. M. Vermeulen, *The ‘Unmediated’ and ‘Tech-Driven’ Corporate Governance of Today's Winning Companies* (2017), V.1. Unmediated Corporate Communication, page 32

**Cite as.** Mark Fenwick, Wulf A. Kaal, Erik P. M. Vermeulen, The ‘Unmediated’ and ‘Tech-Driven’ Corporate Governance of Today's Winning Companies (2017). SSRN: https://ssrn.com/abstract=2922176

**Verify.** sha256 of source PDF `fa4e986917d437cb1504281e7b986be2698e9507d8feaf426c9d7d1754ca882c` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Fenwick%20et%20al.%20-%202017%20-%20The%20%E2%80%98Unmediated%E2%80%99%20and%20%E2%80%98Tech-Driven%E2%80%99%20Corporate%20Governance%20of%20Today%27s%20Winning%20Companies.pdf

**Failure mode.** good news only culture  (family: information-asymmetry)

**Topics.** institutional-design, disclosure

**Keywords.** corporate-culture, hierarchy, information-flow, bad-news, transparency

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.