Corporate Jargon Impairs Decision-Making, Study Reveals
Corporate Jargon Harms Job Performance, Research Finds

Corporate Buzzwords Linked to Poorer Job Performance, Research Indicates

A recent study from Cornell University, published in the journal Personality and Individual Differences, has uncovered that workers who are enthusiastic about corporate jargon, often termed 'corporate bullshit,' may be less capable of making effective and practical business decisions. This phenomenon can lead to dysfunctional leadership within companies, as those swayed by empty phrases struggle with analytical thinking and fluid intelligence.

Defining 'Corporate Bullshit' in Academic Terms

Academically, 'bullshit' is broadly described as information that is misleadingly impressive or engaging but lacks semantic or logical substance. Specifically, 'corporate bullshit' involves the use of puzzling buzzwords and jargon that are semantically empty and frequently confusing. This type of language is often employed by management to persuade and impress, sometimes inflating perceptions of the company among workers and investors.

Shane Littrell, a postdoctoral researcher and cognitive psychologist at Cornell University who authored the study, explained, "There's a lot of useful things about the way people in a certain company speak to each other. But it becomes problematic when that turns into nonsense that's used for misleading purposes." He added, "It's the people that can't tell the difference that seem to have the most problems."

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Testing the Impact with a 'Corporate Bullshit Generator'

To assess the effects of corporate bullshit on employees, Littrell developed a 'corporate bullshit generator' that produced statements such as "we will actualize a renewed level of cradle-to-grave credentialing" and "creating a hyper-connected, frictionless, and impact-minded global enterprise." These generated quotes were mixed with real statements from Fortune 500 company leaders, and 1,000 office workers were asked to rate each for 'business savvy.'

In one part of the study, participants were presented with various workplace scenarios and asked to choose decisions. Those who fell for corporate bullshit displayed lower scores in analytical thinking, reflection, and fluid intelligence, indicating a direct impact on job performance.

Developing a Scale to Measure Receptivity

Based on results from four studies, Littrell constructed the 'Corporate Bullshit Receptivity Scale,' a tool designed for researchers and practitioners to examine the causes and consequences of bullshit receptivity in organizations. "The people that are the most susceptible to the corporate bullshit tended to choose the worst solutions to those problems on a consistent basis," Littrell noted.

He cited examples like Pepsi's 2009 rebrand attempt, which was ridiculed after a leaked document opened with "by investing in our history and brand ethos we can create a new trajectory forwards"—a $1.5 million effort to slightly modify the logo. Another case involved Elizabeth Holmes, who used corporate bullshit to woo and defraud investors.

Potential Benefits and Broader Implications

Interestingly, being impressed by bullshit isn't entirely negative. In another study, those susceptible to corporate jargon rated their supervisors as more charismatic and visionary, and were more likely to feel inspired by their company's mission statement and experience job satisfaction.

Littrell emphasized that the study participants came from highly educated backgrounds, including HR, accounting, marketing, and finance, with bachelor's degrees and even PhDs. This suggests the findings extend beyond simple intelligence assessments. "This isn't something that only affects people who are less intelligent," he concluded. "Anybody can fall for bullshit, and we all, depending on the situation, fall for bullshit when it is kind of packaged up to appeal to our biases."

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