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Sometimes company leaders have severe problems with ethics. As mentioned in other comments, even YC has had companies that have bundled adware/malware with soft
by deftnerd 10y ago
Sometimes company leaders have severe problems with ethics. As mentioned in other comments, even YC has had companies that have bundled adware/malware with software, practiced dark patterns, hidden news of security breaches, etc.
I tend to see YC as being more "evolved" than other VC's, but I also think that these problems are more ingrained into the human condition.
YC could consider making funding contingent on all high level company officers attend or participate in some kind of ethics course. It could even be remote.
There could also be penalties built into VC agreements. If a company violates contracted ethical rules, then penalties could include replacement of staff, more shares being given to the VC, low share buyback prices for the VC, etc.
It could also be a two-way street. If YC violates some kind of ethical rule, then they could be punished by having to do something for the companies they represent.
Ethics are important but so far they have just been "best practices" in our industry and not something contracted and enforced.
- elmar 10y agoHacking sometimes puts you in a grey area :) Airbnb: The Growth Story You Didn't Know https://growthhackers.com/growth-studies/airbnb https://growthhackers.com/growth-studies/airbnb Airbnb Cofounder Was One Of The Worst Spammers In The World, Says His Freshman Roommate http://www.businessinsider.com/airbnb-co-founders-freshman-roommate-says-hes-a-spammy-scumbag-2011-10 http://www.businessinsider.com/airbnb-co-founders-freshman-r...
- untilHellbanned 10y agoWhat's interesting about the spammer link is that the YC narrative and everyone thinks about Obama O's and Brian Chesky's hustle making this business. Whereas its clear that mass emailing in the spirit of all publicity is good publicity is what created huge awareness amongst potential customers.
- 55555 10y agoYeah I don't really mind the spam so much, but I really hate when people pollute others' senses of reality with misinformation. If the AirBnB story is all about cereal and photographers walking around NYC, then you teach others to have a less accurate view of reality and you destroy their ability to make good decisions. They will start companies with an unearned sense of optimism, etc. Go ahead and spam if you're a spammer, but be honest about it.
- Bakary 10y agoI wonder if I am too cynical, but at the root of it the main purpose of building a company is to make money. You might genuinely want to change the world but that is emotionally secondary to gaining wealth. To be a successful entrepreneur, it helps to be ambitious and generally this is a trait that is unlikely (though not unheard of) to be paired with a significant degree of concern for others. Most companies, and many large tech companies have shady practices, usually in the form of misleading advertising.
- jcadam 10y agoIn large defense contracting firms it works like this: A high-level executive gets caught bribing government officials (cash, jobs for relatives, etc.) in exchange for favorable treatment/contracts. Company gets sanctioned, and ALL employees get to have regular ethics and conflict-of-interest training. Because obviously the rank-and-file employees are part of the problem. And I wouldn't be surprised if the executives don't actually receive/attend the training.
- pavel_lishin 10y ago> Sometimes company leaders have severe problems with ethics. > YC could consider making funding contingent on all high level company officers attend or participate in some kind of ethics course. Do you think those company leaders simply didn't know that what they were doing was unethical? I doubt it was a case of "whoops, who knew!"