Aside from the issues relating to expertise, there is the issue of character which applies to both Theranos executives and their investors.
Ever since the initial reports about Theranos’ massive fraud and duplicitous behavior in concealing the effectiveness of its blood testing system, Edison, went mainstream in October 2015, the case has become a cautionary tale about accountability in business.
We have to ask ourselves:
“If billionaires and powerful government figures can make such huge lapses in judgment when it comes to investing millions of dollars into someone’s idea, then what does it say about everyone else?”
These are people that are running gargantuan organizations operating on an inconceivable scale. Leaders who are responsible for the lives of thousands if not millions of others collectively.
If they don’t care enough to do the due diligence themselves on such a large investment, then what does that say about the rest of their ventures with regards to oversight and involvement?
Is such negligence at the top of the economic ladder an ethical concern?
As far as I can tell, other than the desire of these individuals to optimize their economic situation and investments — along with a few personal tastes that vary based on the individual — I don’t think there is any other compelling force preventing wealthy investors from making mistakes.
In other words, it seems that we’re generally relying on an entrepreneur’s desire to make money to regulate how they choose to invest in products and services that will eventually become available to our society.