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Wealth Really Does Go To Your Head

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"People who were made to think about luxury prior to a decision-making task have a higher tendency to endorse self-interested decisions that might potentially harm others," Chua and Zou wrote in their February 2010 paper, "The Devil Wears Prada? Effects of Exposure to Luxury Goods on Cognition and Decision Making."

The drive for luxury, Chua found, doesn't make people intentionally harm others; it makes them less concerned about others. Any harm caused is really just a side effect.

So how can we get rid of corporate greed?

"Perhaps besides limiting the size of bonuses, limiting corporate excesses and luxuries might be a step toward getting executives to behave more responsibly," Chua says.

Check out HBR's Q&A with Chua, here.
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The original version of the story appears here: http://www.businessinsider.com/wealth-really-does-go-to-your-head-2011-1


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About The Author

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David Taintor is a news editor at Talking Points Memo. Previously, he worked at NBC News and Adweek. He's a native of Minnesota. Reach him at taintor@talkingpointsmemo.com.