In this episode, I'm joined by Guido Palazzo, co-author of The Dark Pattern, to explore how corporate scandals emerge, not from isolated "bad apples" but from deeper system design flaws.  

Guido's research unpacks the repeatable patterns that underlie cases like Volkswagen's emissions scandal or Wells Fargo's sales fraud, showing how culture and incentives interact in ways leaders often fail to see until it's too late. 

We begin with the anatomy of a Dark Pattern. Guido highlights three foundational building blocks: rigid ideology, which narrows the range of acceptable thinking; perceived unfairness, which fuels resentment and rationalization; and the slippery slope, where small compromises accumulate until misconduct becomes normalized. These aren't abstract theories; they are recurring structures that shape decision-making inside organizations across industries and geographies. 

From there, we move to prevention. Guido contrasts dark patterns with what he calls the "bright pattern" - - structures that reinforce transparency, fairness, and accountability.  

He shares three non-negotiables leaders should embed in their management systems to keep organizations aligned: create a speak up culture, be open to having moral conversations (no, they are not a sign of weakness), and create integrity goals.  

We then look at governance across regions. Guido draws lessons from Europe, North America, and Asia, identifying practices that boards would do well to adopt.  He emphasizes that while cultural contexts differ, boards need to be prepared to ask more and better questions.  Even a brief language audit can help a leadership team spot red flags before they escalate into scandal. 

Finally, Guido leaves listeners with practical takeaways.  You're invited to take three to five quick tests in the coming week to identify whether your own systems are drifting toward a dark pattern.  

His advice is clear:  Leaders don't need more rules; they need sharper habits of noticing and interrupting the signals already in front of them.

https://guidopalazzo.com/  

If you've wondered how you can identify some of the patterns operating in your business, take this quick diagnostic and get a directional sense of where you're at. 

https://bit.ly/5mindiagnostic