When Incentives Don't Line Up
Incentives are a great thing. Sometimes.
Incentives make us work harder in view of a certain goal, allow us to be capable of tolerating pain in view of future pleasures, and generally allow individuals to work in harmony together. For example, if my incentive to do something was based on how tasty the reward was, forking over a few dollars for a donut would be a good deal for me. Similarly, if the shop owner's incentive is to maximize the amount of money they have, giving away a donut for some money would generally be a good idea.
Problems arise, however, when incentives don't line up. This is usually especially true for big institutions -- the literal institutions that make society what it is (think companies, banks, etc.), as well as organizations that are pivotal to society (schools, government, banks (again), markets).
Take for example, companies. Specifically, ones that are traded on an open market. For the shareholders who have a stake in the company, they are incentivized to maximize the price of their share (barring if they have grudges with the company, don't care, etc). Since companies are basically at the mercy of shareholders (follow or perish), their goal is to please their shareholders, who really want money. Thus, companies in general are corporations that want money. Now let's consider a company from the perspective of the average person. From their perspective, companies are usually supposed to serve humans and (generally) attempt to better their lives. At least, that's what we all hope. Unfortunately, as mentioned above, a company has substantial incentive to maximize its profits (while also not destroying itself) regardless of what happens to the outside world.
This sole fact can (in my opinion) explain why companies today are seen as "evil" -- the public views these institutions as mechanisms towards change and a better future while the corporations themselves are focused on money and then on change and altruistic ideals.
Man I love when incentives are unaligned and people work towards different goals.