Passage: The "Self-Serving Bias" refers to the psychological tendency of individuals to attribute successes to internal, stable characteristics while attributing failures to external, situational factors. In organizational behavior, this bias frequently manifests during performance evaluations and corporate earnings reports. When a company achieves record profits, leadership is likely to credit their own strategic foresight and innovative culture. Conversely, when quarterly results fall short of expectations, these same leaders often point to unpredictable market fluctuations, regulatory hurdles, or global supply chain disruptions. This cognitive distortion serves to protect self-esteem and maintain perceived competence in the eyes of stakeholders. However, persistent reliance on self-serving attributions can lead to organizational blind spots. By externalizing failure, institutions miss critical opportunities to identify and rectify internal inefficiencies. Over time, this can foster a culture of unaccountability, where systemic flaws are ignored until they precipitate a significant crisis. Research suggests that organizations with high levels of psychological safety are better equipped to mitigate this bias, as employees and leaders feel more comfortable acknowledging internal errors without fear of disproportionate reprisal.