The organizations most likely to benefit from a competitor's scandal are ones that offer similar services, but are seen as having stricter ethical policies. Photo via Getty Images

When scandal tears through an institution, it can hurt innocents in the same field. But even the darkest scandal can sometimes benefit a similar organization ⁠— if, that is, the public sees it as far more ethical, says Rice Business professor Alessandro Piazza.

In a recent paper, Piazza collaborated with Julien Jourdan of the Université Paris-Dauphine, PSL Research University, to study the effects of the sex crimes scandal that embroiled Catholic priests and other clergy on membership in not just the Catholic Church itself, but also 16 other U.S. Christian denominations. The researchers analyzed the 16 denominations between 1971 and 2000 in an attempt to track any flight of Catholics to other churches. The findings offer insights for secular organizations in scandal-stricken fields.

To reach their conclusions, Piazza and Jourdan studied data sets from the Religious Congregations and Membership Study and the Churches and Church Membership Study, maintained by the Association of Religion Data Archives. The data included county-level statistics on congregations of 149 religious bodies.

Using this data, Piazza and his coauthor first tallied county by county church membership, coding for variables such as ethnicity and economic status. Next, they created a model to rate churches on issues such as strictness, mandatory commitment and evangelism. Finally, they compared the changes in membership figures for non-Catholic churches to explore whether former Catholics might have joined other churches as a result of the clergy scandal, and if so, which ones.

Scandal, broadly defined as publicized transgressions of established norms, can indelibly mark the collective imagination. Media amplify the effect with their investigations of the disgraced organizations, whether it be the Catholic Church, Enron, WorldCom or the British Parliament. Research shows that a scandal can tarnish individuals, organizations and, by indirect association, even entire industries.

At the same time, it's possible for members of a scandal-plagued group to prosper. When, for instance, Nike was accused of using slave labor in the developing world to make their products, rival companies that could showcase better labor practices benefited. Past studies, however, have not shown how these consequences occur, or how they affect people on the inside of the implicated organizations.

Piazza and Jourdan found that scandals can improve business for rival organizations under key conditions, the most important one being if they offer close alternatives to the services once supplied by the disgraced organizations. This kind of swap is most likely to happen when a service is still needed. After the Enron scandal, for instance, clients of its disgraced auditor, Arthur Andersen, still required auditing services, so took their business to rival auditing firms.

The researchers also analyzed the responses of people within an organization disrupted by scandal. Unlike investors, who may react to a scandal quickly and coldly, an organization's members are more likely to reflect on options before leaving.

In the case of the Catholic Church, disillusioned members gravitated to denominations that shared certain traits with Catholicism, but were perceived to enforce stricter norms. For these Catholics, religious participation and commitment to religious activity were the most compelling aspects when choosing a new church. Theology mattered less.

Most of the disillusioned Catholics, in fact, moved to Protestant denominations seen as strict and ethically austere, such as the Missouri Synod Lutheran and Southern Baptists. Far fewer turned to more liberal mainline churches such as the Presbyterian or Episcopalian churches, even though the latter is theologically close to Catholicism.

The stricter churches were more likely to draw ex-Catholics who were poorer and less educated, had contributed more money and attended more services, held stronger beliefs and belonged to more church-related groups.

Though the Catholic Church scandals unleashed enormous spiritual anguish, the practical effects also apply to secular organizations, Piazza and Jourdan write. Certain firms, like certain denominations, can gain tangibly from a rival's disgrace. The caveat: They must offer similar services, and appear to be more virtuous.

Surprising as it may sound, in other words, an industry-wide scandal can sometimes mean opportunity. When a large institution falls to rubble, its survivors resolve not to make the same mistake twice. Looking for similar services, they'll choose the most austere organizational culture they can find.

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This article originally ran on Rice Business Wisdom and is based on research from Alessandro Piazza, an assistant professor of strategic management at Jones Graduate School of Business at Rice University.

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Houston ranks among 15 U.S. hot spots for women in tech

Ranking It

Houston is soaring among the best places in the U.S. for women in tech, a new report says. Houston ranked No. 15 nationwide in SmartAsset's new report, "Best and Worst Cities for Women in Tech — 2026 Study," which compared the 50 biggest U.S. cities across four metrics:

  • Gender pay gap — women's median earnings as a percentage of men’s median earnings in tech
  • The share of all tech workers that are women
  • The overall concentration of employment for tech workers, defined as "tech workers as a share of the local workforce"
  • Women tech workers’ median earnings, adjusted for regional price parity
For the purpose of the study, tech workers are defined as "city residents employed in computer and mathematical occupations." The study's findings show that fewer than 9,500 tech workers in Houston are women, or 25.6 percent of the total tech workforce in the city. In total, tech workers in general make up less than 3 percent of the Houston workforce.Despite the high ranking, women tech workers in Houston have a sizeable gap to cross to receive equal pay compared to their male counterparts in the same industry. Women tech workers make just over $97,000 in median earnings after adjusting for regional price parity, which is only 93 percent of what male tech workers make, SmartAsset found.

There are only two U.S. cities where women in tech earn more than what their male counterparts: Miami and Memphis, Tennessee. Women tech workers in Miami make an adjusted $88,650 in median earnings, or 101.7 percent of what men in tech make. In Memphis, women make $84,718 in adjusted earnings, or 101.5 percent of what men in tech earn.

The findings also assert that women remain underrepresented in the nation's overall tech sector, despite making up nearly half of the total workforce. Only 22.6 percent of the country's tech labor force is made up of women, according to the Equal Employment Opportunity Commission."Opportunities for women in tech can vary considerably by location, and these differences shape access to jobs, career advancement and earning potential," the report's author wrote. "In some places, women account for a larger share of tech workers, face narrower pay gaps and enjoy a stronger local labor market. In others, they may encounter a more challenging career environmentThe six other Texas cities that earned spots in the report are Austin (No. 6), Fort Worth (No. 26), Dallas (No. 32), Arlington (No. 38), San Antonio (No. 42), and El Paso (No. 49).

The top 10 best U.S. cities for women in tech are:

  • No. 1 – San Jose, California
  • No. 2 – Seattle, Washington
  • No. 3 – San Francisco, California
  • No. 4 – Atlanta, Georgia
  • No. 5 – Baltimore, Maryland
  • No. 6 – Austin, Texas
  • No. 7 – Oakland, California
  • No. 8 – Portland, Oregon
  • No. 9 – Boston, Massachusetts
  • No. 10 – Minneapolis, Minnesota
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This article first appeared on CultureMap.com.

5 female-founded Houston startups shine as Innovation Awards finalists

meet the finalists

Houston is home to many standout female founders, making inroads and breakthroughs in every industry.

As part of the 2026 Houston Innovation Awards, our Female-founded Business category honors women-led startups that are shaping Houston innovation.

Five female-founded businesses have been named finalists for the 2026 award. This year's finalists, selected by our esteemed panel of judges, range from an AI startup for C-Suite execs to a company developing semi-autonomous crawler robots for corrosion detection.

Read more about these innovative startups and the visionary female founders behind them below. The 2026 winners will be announced on InnovationMap.com in mid-November.

Adair

Artificial intelligence startup Adair uses computational linguistics and behavioral economics to measure, model and quantify the impact of spoken and written language on firm valuation and stock prices. The company works with C-Suite executives of public companies on high-stakes communications before they go live.

The company was founded last year by CEO Kathleen Perley, CPO Alex Duong and CTO Anthony Grivet. It raised $5.6 million earlier this year, according to its application.

ARIX Technologies

Energytech startup ARIX Technologies has developed a semiautonomous VENUS crawler robot to detect corrosion under insulation before it becomes a failure. The robots climb insulated piping in refineries, chemical plants and energy facilities to capture inspection data without removing insulation or building scaffolding. ARIX's inspection portal then turns information from the inspection into data a company can act on.

ARIX was founded in 2017 by Dianna Liu, who serves as director, and Head of Product Petter Wehlin. Craig Malloy serves as CEO. The company has raised more than $22 million in seed funding and a Series A round, according to its application.

Bairitone Health

Healthtech startup Bairitone Health is bringing anatomy imaging for sleep apnea to the home environment. The company's platform maps users' anatomy during natural sleep using a facial patch to determine the root cause of airway obstruction. It then offers effective therapies for each patient.

The company was founded in 2022 in the Texas Medical Center's Biodesign program by CEO Meagan Pitcher, CTO Onur Kilic and chief medical officer Britt Cross. It was a member of Activate Houston's inaugural cohort and has participated in numerous accelerators and incubators. The company raised an oversubscribed seed round for $2.4 million earlier this year and received Breakthrough Device Designation from the Food and Drug Administration in April.

FlowCellutions

Energytech startup FlowCellutions is developing a chemistry-agnostic diagnostics platform for flow and metal-air batteries supporting data centers and critical infrastructure. The platform is designed to help reduce operating costs, prevent failures and costly downtime, and extend battery lifetime from approximately seven years to more than 30 years. It has deployed four paid pilots and plans to take insights from the programs to develop its next-gen sensor platform technology.

CEO Becca Segel founded the company in 2022. It is a member of Greentown Labs, and Segel was a 2025 Activate Fellow. The company has raised over $2 million in non-dilutive funding and received a $1.5 million NSF SBIR Fast-Track award earlier this year.

ParaDocs Health

Healthtech startup ParaDocs Health is developing a clinical intelligence platform that helps doctors and care teams streamline administrative tasks and make better use of patient records. Its technology organizes fragmented clinical data into actionable insights, helping care teams identify gaps in care, assess patient risks and simplify documentation and reimbursement.

ParaDocs was founded in 2022 by CEO Dr. Dhini Nasution and CTO Dr. Omar Mohtar. The company participated in the TMCi Biodesign Program and raised a preseed round last year, according to its application.