Monday, June 30, 2008
The Economics of Nice
It's often said that companies today “do well by doing good” And now there's scientific proof that it does indeed pay to be nice – for businesses and individuals alike. In light of the tough economic times anticipated ahead, this is comforting news: by investing goodwill (not dollars) and fostering a NICE environment, we can significantly increase the ROI of almost any initiative. A new scientific study clearly articulates how –– and why –– NICE behavior can pay!
Featured in a recent issue of Science Daily, the study challenges one of the basic tenets of economics that people naturally behave selfishly, concerned only for themselves and nothing else. In fact, this study revealed that people do often act against their own personal self-interest when their behavior benefits the greater good, be it humanity, a company, or community.
An example from the study, conducted by the Sante Fe Institute, showed that women donated blood less frequently when they were paid for it than when it was an act of charity. Being paid for their donation took away from the good feeling they got by doing something nice for someone else, which is clearly the more valuable pay off. People tend to associate charitable contributions with doing what is moral and good, so it’s no surprise that it is a much more effective way for an organization to get what it needs or wants without having to pay a dime. The donors pay with their kindness and are rewarded right back with it by the feeling their own good deed gives them.
When it comes to economics, the standard theory is that incentives that appeal to self-interest won’t affect any natural altruism that may exist. Clearly, this study challenges that notion.
As the world becomes more interconnected and the resulting challenges to humanity increase, learning to harness altruistic impulses becomes even more important in life and in business!
To view the full article, just click on the link below:
http://www.sciencedaily.com/releases/2008/06/080619142115.htm
Be the first to comment
