Decisions During A Financial Crisis - Deepstash

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You're Only As Good As Your Worst Day

Decisions During A Financial Crisis

  • Companies prove their real worth when they adapt themselves to changing market conditions during a financial crisis.
  • Companies which pivot themselves and take care of their employees, customers and stakeholders are the ones that thrive.
  • If they are raising CEO bonuses and firing their own employees when the chips are down, they are not to be trusted.

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According to the theory of the spiral of silence, our desire to fit in with others means we will speak up if we think our opinion will be popular, or avoid expressing an opinion if it is unpopular.

The feedback loop means each time someone voices a popular opinion, the positive feedback from the group reinforces the feeling that it is safe to do so. Conversely, receiving a negative response for a divergent opinion will strengthen the view that they should avoid expressing it.

The implications of the spiral of silence
  1. The result of the spiral of silence is that few will publicly voice a minority opinion and will instead will nurse it in private.
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  3. When we see a sudden change in mainstream opinions, it can be because of a shift in what is acceptable to express, not what people really think.
  4. Highly vocal people of a minority opinion can make their views seem far more prevalent and acceptable than they really are.
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