Small nudges can create ethical behavior | Sreedhari Desai, UNC at Chapel Hill

Summary

In this talk, Sreechari Desai discusses how to encourage ethical behavior in organizations using three key nudges. First, infuse accountability by asking for itemized bills, which reduces overcharging. Second, display moral symbols, such as inspirational quotes or religious icons, which discourage unethical requests from supervisors. Third, recreate childhood memories, like drawing or playing with toys, to enhance moral behavior and reduce anxiety. These practical interventions, supported by research, provide innovative ways to promote ethical actions in professional settings.

Takeaways

• 😀 Employees and managers often behave unethically due to self-interest, leading to issues like overbilling and surcharging.
• 📊 Traditional economics suggests monitoring and incentivizing employees, but this is challenging, especially in knowledge-based sectors.
• 📝 Codes of ethics have mixed efficacy, as seen in cases like Enron, where a lengthy code failed to prevent unethical behavior.
• 💡 Nudge 1: Infuse accountability by asking for itemized bills. This strategy was effective in both lab settings and real-world scenarios, reducing overbilling in industries like auto repair.
• 🛠️ Field experiments in the auto repair industry showed that itemized bills led to lower estimates, saving customers money and reducing unethical practices.
• 👀 Nudge 2: Display moral symbols like quotes from moral leaders. This reduced unethical requests from superiors and increased ethical behavior in workplaces.
• 🙏 Moral symbols in personal spaces (e.g., religious icons or moral quotes) led to employees being less likely to face unethical requests from their bosses.
• 🎨 Nudge 3: Recreate childhood in the workplace. Engaging in activities like free drawing or listening to nursery rhymes increased ethical behavior and reduced anxiety.
• 👶 Reminders of childhood and innocence promote moral purity and can improve behavior in organizational settings.
• 👍 Implementing these three nudges (accountability, moral symbols, and childhood recreation) can create a more ethical and productive work environment.

Q & A

What is the main challenge the speaker addresses in the presentation?

The speaker addresses the challenge of how to get contractors, managers, and employees to behave ethically and avoid unethical behaviors like overbilling or surcharging customers.

What does the term 'boundedly ethical' mean as mentioned in the transcript?

'Boundedly ethical' refers to the idea that people's ethical behavior is constrained by self-interest, meaning they may act ethically to a certain extent but are limited by their own personal gains and motivations.

What is the first nudge introduced by the speaker to promote ethical behavior?

The first nudge is to infuse accountability by asking for itemized bills rather than bulk bills, which helps to reduce overbilling.

How did the speaker come up with the idea of using itemized billing as a nudge for accountability?

The idea came from the speaker's personal experience shopping for saris in India. By asking for itemized bills for different parts of the sari, she was able to save money and avoid overcharging.

What real-world test did the speaker use to validate the first nudge of itemized billing?

The speaker tested the itemized billing nudge in the auto repair sector by having a research assistant call garages and ask for itemized or bulk estimates for brake pad replacements. The results showed that itemized estimates led to less overbilling.

What is the second nudge discussed in the presentation?

The second nudge is to display moral symbols, such as pictures of moral leaders or religious icons, which can remind individuals of their ethical responsibilities and reduce unethical requests from supervisors.

How did the speaker and her team test the effect of moral symbols in the workplace?

They tested the effect by using avatars in a virtual game, where some avatars displayed moral symbols like 'yourmorals.org' or moral quotes. These symbols led to a decrease in unethical requests from supervisors.

What real-world example did the speaker use to demonstrate the effectiveness of moral symbols?

The speaker referred to a study in India where subordinates who displayed religious icons in their cubicles were significantly less likely to be asked to do something unethical by their supervisors.

What is the third nudge introduced by the speaker, and how does it affect behavior?

The third nudge is recreating childhood at work, which involves using reminders of childhood, like drawing or playing with teddy bears. This helps individuals behave more ethically and reduces their anxiety.

What specific examples did the speaker give to illustrate how recreating childhood can promote ethical behavior?

The speaker mentioned activities like free drawing, listening to nursery rhymes, and playing with teddy bears, all of which helped individuals behave more ethically in experiments.