Skip to content

Compliance Building

Doug Cornelius on compliance for private equity real estate

Menu
  • Home
  • About
    • About
    • About Doug
    • About This Website
    • Why I Blog
    • Speaking Engagements
    • Contact
    • Publications
  • Archives
    • Topic Archive
    • Book Reviews
    • Most Popular
  • Subscribe
  • Disclaimers
    • Disclaimers
    • Policies and Procedures
    • Use of Site Content
    • Comments
    • FTC Disclosure
Menu

Why We Think it’s Okay to Cheat and Steal (Sometimes)

Posted on May 26, 2009May 22, 2009 by Doug Cornelius
Print Friendly, PDF & Email

predictably-irrational-by-dan-ariely

Behavioral economist Dan Ariely studies the bugs in our moral code: the hidden reasons we think it’s OK to cheat or steal (sometimes). In this presentation at the February 2009 TED Talks he summarizes some of his studies on cheating. It sounds like he has conducted some fascinating research on cheating. I think it provides some very useful insight for compliance officers. It may help you think about what factors exist in your workplace that may encourage bad behavior or may discourage bad behavior.

In the first four minutes Ariely discusses some of his research on pain. But then he moves into his studies on cheating. This video is worth watching.

Ariely concluded was that people have a “personal fudge factor” that allows them to gain the benefits of low-level cheating without damaging the view of themselves.

Ariely also found that paying people in tokens that they could exchange for cash doubled the amount of cheating compared to paying people directly in cash. The example for your office is that people are much more likely to take home a pack of pens than a dollar bill sitting on the shelf in the supply closet.

Ariely also found that when people saw an outsider cheating, cheating among the group went down, but when a colleague cheated, cheating among the group went up. In one experiment, he planted an actor as cheater wearing a college sweatshirt. The actor/cheater stood up only a few minutes after the test started, said he was done, collected the cash and left. There was much less cheating when the actor/cheater wore a sweatshirt from another school. Cheating increased when the actor/cheater wore a sweatshirt from the same school as the the rest of those participating in the experiment. This seems to show that there is big influence by peers on cheating behavior.

References:

  • Dan Ariely: Why we think it’s OK to cheat and steal (sometimes) – TED Talks
  • Why people think it’s OK to cheat a little bit by Mark Frauenfelder on Boing Boing
  • Standard Economics vs. Behavioral Economics by Mark Frauenfelder on Credit Bloggers
  • Predictably Irrational: The Hidden Forces That Shape Our Decisions by Dan Ariely

Share this:

  • Print (Opens in new window) Print
  • Share on Facebook (Opens in new window) Facebook
  • Share on LinkedIn (Opens in new window) LinkedIn
  • Share on X (Opens in new window) X
  • Email a link to a friend (Opens in new window) Email

1 thought on “Why We Think it’s Okay to Cheat and Steal (Sometimes)”

  1. Pingback: Posts about Boing Boing as of May 26, 2009 » The Daily Parr

Leave a ReplyCancel reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Search for Stuff

Recent Stories

  • California’s Fair Investment Practices by Venture Capital Companies
  • Compliance Bricks and Mortar for January 30
  • Interpreter Insider Trading
  • Things not to put in Advisory Contracts – Hedges
  • Weekend Reading: Bad Company
  • Things to Not Put in an Advisory Agreement – Assignment Rights
  • Congressional Stock Trading and Private Insider Trading
  • Model Fees Versus Actual Fees in Marketing
  • Compliance Bricks and Mortar for January 16
  • Staff Report on Capital-Raising Dynamics

Fight Cancer

Please support my Pan-Mass Challenge
Make a donation to fight cancer. donate.pmc.org/DC0176
pan-mass challenge badge

I am a lawyer, but I am not your lawyer. Since I’m a lawyer, this website may be considered attorney advertising under the ethical rules of certain jurisdictions. Please read my disclaimers page before taking any action. And then, don't take any action based on what I wrote.

Creative Commons logo with the text 'Some Rights Reserved' and three symbols representing attribution, non-commercial use, and share alike.

Compliance Building - by Doug Cornelius is licensed under a Creative Commons Attribution-Noncommercial 3.0 United States License.