By Nadia Volpe
How Good Companies Go Bad And What We Can Do About It
Kicking off Swiss Testing Day with a bold keynote, Guido Palazzo ripped the veil off corporate culture, ethics, and the moral dilemmas we all face. His message? Even the most well-meaning, good people can, and often do, end up in ethically murky waters, sometimes without even realising how they got there. And software is often right at the center of it all.
So, What Are the Warning Signs?
He broke down several toxic elements that often lurk under the surface of companies and lead to moral collapse. And no, it’s not just the “bad apple” theory that gets trotted out in most scandals. These sorts of things are the subtle, insidious patterns that almost everyone overlooks.
Bad Bosses and a Culture of Fear
You’ve heard it a thousand times: leadership sets the tone. Now let’s be real… when the boss is a terror, when fear drives decision-making, you’re on a fast track to chaos. Employees can’t raise concerns, they can’t question decisions, and they certainly can’t innovate. Why? Because they’re too busy fearing for their jobs. To be blunt, toxic leadership is where it all starts and know that when it spreads, it spreads fast.Destructive Incentives
“Hit the target, no matter the cost.” We’ve all heard it, and it’s the perfect breeding ground for disaster. When the rewards are based purely on numbers, without any regard for how those numbers are achieved, you’re setting the stage for serious ethical breaches. Palazzo showed us how distorted incentives encourage people to make shortcuts. In the rush to hit quotas, ethics go out the window. And that’s where things get dodgy.Slippery Slopes
Ever heard the phrase “it’s just one small compromise”? Well, one small compromise leads to another, and before you know it, you’re hurtling down the slope to a full-scale disaster. The problem is that these “small decisions” often seem insignificant at the time. But Palazzo warns us: it’s the little things that add up, and before long, you’re so far down the rabbit hole that turning back isn’t an option.Manipulative Language
Language that sugarcoats uncomfortable truths. Think: euphemisms, vague corporate speak, and meaningless buzzwords. “Efficiency” instead of “cutting corners,” “innovative” instead of “risky.” Palazzo argues that it’s not just about being clear with your team but about creating a culture where the truth isn’t hidden behind a fog of jargon. A company that uses manipulative language is one that’s preparing for a fall. Because no one’s brave enough to call out what’s really going on.
Scandals at Boeing, Volkswagen, Theranos, Uber, FTX… and even the UK Post Office. In every case, software played a major role, either as the tool used, the product delivered, or the system that enabled the cover-up.
So, What Can We Learn From This? How Can We Avoid the Same Misfortune?
The key takeaway is simple: corporate scandals don’t happen overnight. They’re the product of a series of small, seemingly insignificant decisions that snowball into a mess. But it’s not just about avoiding the bad. It’s about proactively creating a culture where ethical decisions are the default, not the exception. Testing, in this context, isn’t just about making sure the software works—it’s about making sure the company’s moral compass stays on track, even when no one’s looking.
As testers, we’re in a unique position to influence this. We’re not just testing code; we’re testing the culture of our organizations. We need to ask the tough questions. Are our incentives pushing the wrong behaviors? Are we allowing small compromises to creep in? Are we using the right language? If we don’t ask these questions, who will?
Testing is more than finding bugs. It’s about finding the cracks in the foundation before they break the whole building down. So, as we look at the landscape of corporate culture, let’s make sure we’re the ones shining a light on those dark corners.
