“I took it for granted that we were trying to make the world a better place. But I think in retrospect that was naïve. What kind of change? For whom? We kind of forgot to specify what the purpose of all this disruption was.” — Eric Ries

In 2011, Eric Ries published The Lean Startup, a book that reflected the optimistic zeitgeist about disruptive Silicon Valley companies. Fifteen years later, in Incorruptible: Why Good Companies Go Bad and How Great Companies Stay Great, Ries reflects today’s totally different zeitgeist about the value of companies inside and outside Silicon Valley.

Back in 2011, everybody loved tech. Ries, creator of the Lean Startup method and founder of the Long-Term Stock Exchange, admits he was naïve in his positive view of disruptive corporations. In Incorruptible, Ries argues that corporate corruption is structural, rather than a problem of bad actors. As organisations grow (ie: become more disruptive), the systems that govern them — ownership, incentives, charters, accountability — quietly reshape behaviour. Success itself becomes a form of financial gravity, diverting companies away from their original purpose.

Ries proposes that we design organisations to be incorruptible from the beginning. It’s the Patagonia model. When the outdoor clothing company almost went bankrupt in the 1990s, their bank agreed to restructure their loans if they would suspend their charitable donations for a couple of years. No deal, the CEO said. The bank blinked and Patagonia remained Patagonia. Now, Ries argues, every corporation should try to emulate Patagonia and become the incorruptible corporation. We must all join Eric Ries in getting beyond the lean startup.

Five Takeaways

• Corporate Corruption Is Structural, Not Ethical: For decades, we’ve explained corporate failures as problems of bad actors, moral weakness, or isolated scandals. Ries’ argument: that story doesn’t match reality. Again and again, companies founded with strong ideals drift toward short-term thinking, extractive behaviour, and mission abandonment — often despite the best intentions of people inside them. The failure is structural. As organisations grow, the systems that govern them — ownership structures, incentives, charters — quietly reshape behaviour. Success becomes financial gravity, bending companies away from their purpose.

• The Patagonia Model: Organisational Strength, Not Moral Righteousness: When Patagonia nearly went bankrupt in the 1990s due to outsourcing to poor-quality foreign factories, their lead lender agreed to restructure the loans on one condition: suspend charitable donations during the restructuring. Reasonable request — any other company would have said yes. Patagonia said no. The bank blinked. Ries’ reading: this is not moral righteousness. It is organisational strength. The ability to resist external pressure and stay true to a core principle. That is what makes a company not just good but great. Also: Black Wednesday, the day of their layoffs, is still referred to by name inside the company.

• The Wrong Distinction: For-Profit vs Non-Profit: Ries argues that the distinction between for-profit and non-profit is fundamentally a tax code distinction that has come to define how we think about organisations in ways that are misleading and harmful. He proposes a reframe: if profit means the maximisation of human flourishing, then the Smithsonian is very for-profit and Philip Morris is very non-profit. This reframe changes what we should demand of governance, of accountability, of what organisations are for. It is simultaneously an economic and a political argument.

• Civic Infrastructure: The Political Dimension: Ries’ book ends with a chapter on what he calls civic infrastructure — the kinds of organisations that set the rules of the road for others. He argues that the principles of incorruptible design apply not just to companies but to the institutions of governance. The darkness of the current political moment is, for him, partly a failure of organisational design. When this darkness passes, he argues, the generation that follows will have to rebuild civic infrastructure in the way the generation that survived the Depression built the institutions that governed the second half of the twentieth century.

• The Anakin/Padamé Problem: Ries’ Mea Culpa: Ries opens with a reference to the famous internet meme — Anakin says he’s going to change the world, and Padamé asks: for the better? He grins mischievously. Ries used to find it funny. Then it stopped being funny. When he wrote The Lean Startup, he assumed the purpose of disruption was to make the world a better place. He took it for granted. He now thinks that was naïve. The lesson: you have to specify the purpose. What kind of change? For whom? That is the question that Incorruptible is trying to answer.

About the Guest

Eric Ries is the creator of the Lean Startup method and the author of the New York Times bestseller The Lean Startup, The Leader’s Guide, and The Startup Way. As a founder, he has put his ideas into practice with the Long-Term Stock Exchange (LTSE), Answer.AI, Virgil, and IMVU. He is the author of Incorruptible: Why Good Companies Go Bad and How Great Companies Stay Great (Authors Equity/Simon & Schuster, May 26, 2026). He lives in the San Francisco Bay Area.

References:

• Incorruptible: Why Good Companies Go Bad and How Great Companies Stay Great by Eric Ries (Authors Equity, May 26, 2026).

• The Lean Startup by Eric Ries (Crown Business, 2011).

• The Startup Way by Eric Ries (Currency, 2017).

• More information and bonus materials at incorruptible.co.

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