Videos on Columbia Business School

Professor Sudhakar Balachandran argues that by not choosing to forgo bonuses they were scheduled to receive, executives at AIG missed a chance to boost economic morale.

"Were missing a great opportunity here," Balachandran says. "This is the time for business to lead, not for business to sit there and say, 'We're contractually entitled, so this is what we do.' We have to restore people's confidence. The same thinking that got us into this mess isn't going to get us out."

Professor Balachandran is Faculty Director of Finance and Accounting for the Nonfinancial Executive at Columbia Business School Executive Education.