Excuses Are Bad For Companies

Larry Summers on the problem with Fannie Mae and Freddie Mac:

What went wrong? The illusion that the companies were doing virtuous work made it impossible to build a political case for serious regulation. When there were social failures the companies always blamed their need to perform for the shareholders. When there were business failures it was always the result of their social obligations.

This is precisely the same type of danger that social entrepreneurs face.

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