We need to separate intergroup competition from within-group competition. As we have seen, intergroup competition favours beliefs, practices, customs, motivations, and policies that promote the success of groups in competition with other groups. Thus, intergroup competition often promotes trust, cooperation, and efficient allocation of paid to employees. Of course, elevated levels of intergroup competition are also will drive firms to exploit workers in foreign lands and trash the environment. By contrast, within-group competition is the competition among individuals, or small coalitions, that occurs within firms, organisations, or other groups. This form of competition favours the spread of behaviours, believes, motivations, practises, etc., that promote the success of individuals within a firm relative to others at the same firm. These are practices that benefit some employees at the expense of the firm. When CEOs conspire to get higher salaries for themselves and other executives while playing golf with members of the board of directors, that is within-group competition, and it usually hurts the firm. But within-group competition is also not entirely unproductive. At moderate levels, it can inspire diligence and productivity.
Henrich (2020), p. 345.
