The term 'race to the bottom' describes a scenario in which entities such as businesses, governments, or individuals engage in competitive practices that progressively degrade standards, ethics, or conditions, often leading to deleterious social, economic, or environmental outcomes. In their pursuit of short-term advantage or efficiency, participants may undermine regulatory frameworks, reduce wages, exploit resources, or sidestep ethical considerations, thus initiating a downward spiral that compels others to follow suit to remain competitive. This phenomenon results in a collective erosion of values and quality, creating systemic consequences that harm both the participants and broader society. Understanding and mitigating this dynamic is crucial to fostering sustainable and holistic progress.

See also: arms race, catastrophic risk, perverse incentive, supply chain