Self‑Serving Bias Drives Corporate Risk

Corporate decisions that create systemic financial harm often reflect a predictable cognitive pattern: executives interpret information in ways that justify short‑term gains and downplay long‑term risks. Framing corporate scandals through self‑serving bias highlights both the psychological mechanism and why governance reforms must address incentives and collective perception, not only rules. — Identifying cognitive drivers of corporate misconduct reframes regulatory responses toward changing incentives and oversight structures, not just punishing outcomes.