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Episode 1063

Why Good Companies Go Bad: Eric Ries on Corporate Corruption

March 16, 2026
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About the Guest

Why Good Companies Go Bad: Eric Ries on Corporate Corruption

Founder, Long-Term Stock Exchange | Author, The Lean Startup, Incorruptible
Eric Ries is an entrepreneur, author, and thought leader on innovation and organizational design. He is the author of the bestselling book The Lean Startup, which has become a foundational framework for startups and large enterprises seeking to build products through rapid experimentation and validated learning. Ries is also the founder of the Long-Term Stock Exchange (LTSE), a national securities exchange designed to align public companies and investors around long-term value creation rather than short-term performance pressures. In his latest book, Incorruptible: Why Good Companies Go Bad and How Great Companies Stay Great, Ries examines how governance structures, incentives, and organizational design influence corporate behavior over time. His work focuses on helping leaders build enduring organizations that maintain trust, mission, and long-term impact. Through his writing, advising, and ventures, Ries has worked with startups, global enterprises, and policymakers to rethink how organizations innovate, grow, and sustain value.

Episode Overview

Why do so many successful companies eventually lose their way?

In this episode of Technovation, Peter High speaks with Eric Ries, entrepreneur, founder of the Long-Term Stock Exchange, and author of The Lean Startup and his new book Incorruptible: Why Good Companies Go Bad and How Great Companies Stay Great.

Eric argues that corporate corruption rarely begins with bad actors. Instead, it emerges from organizational design—governance structures, incentives, and metrics that gradually push companies away from their original mission.

Key highlights from the episode:

  • Corporate corruption is often a design problem, not a character problem

  • Short-term pressure often acts as an “invisible force” inside organizations

  • Organizations behave like “superorganisms,” developing their own intelligence and moral character

  • Metrics can distort behavior when companies mistake the measurement for the goal

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