Behavioral Economics and Business Ethics

Behavioral economics shows that people act more morally than the homo economicus model suggests. People are more trustworthy and behave more fairly than many people think. Nevertheless, morality regularly comes into conflict with economic interests, but these conflicts can often be resolved with the help of business ethics.

Entrepreneurial profit-seeking and the legitimate interests of society are not always in harmony. However, the conflicts can often be overcome in a constructive way, for example by the state intervening in a regulatory way (regulatory ethics), by companies taking responsibility (business ethics) and investing in trust. Or by individuals behaving more morally (individual morality). Typical topics of business ethics are: In the social market economy, the state sets the framework, e.g., for consumer protection, supply chains, and environmental protection; companies maintain their own compliance and corporate social responsibility departments. Individuals volunteer in a variety of ways in society - keyword civic engagement and strengthen social capital. Together, these ways ensure greater prosperity, growth and life satisfaction. Behavioral economics has shown in experiments, among other things, that immoral behavior such as corruption, moonlighting and white-collar crime is a form of corruption.

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Dominik Enste / Sarah-Nell Altenhöner ·
IW-Report Nr. 7 ·
8 March 2021

Behavioral Economics and Leadership: How to bridge the Gap between Intentions and Behavior

The difference between existing intentions and actual behavior occurs in various forms, such as procrastination or companies not being able to implement planned changes, which may lead to competitive disadvantages in ever dynamic business environments.

Dominik H. Enste / Johanna Kary ·
IW-Analyse Nr. 141 ·
21 January 2021

The Seven Deadly Sins: Interpretations and recommendations from behavioural economics

Envy, gluttony, greed, lust, pride, sloth and wrath – the so-called seven deadly sins are widely known and even more widely committed. The terms describe seven motives and behavioural patterns which, despite being branded as vices, actually steer many people’s conduct in their daily lives.

Dominik Enste / Julia Wildner / Lucia Nafziger ·
IW-Report Nr. 1 ·
1 January 2021

Going green with behavioural economics: How to combine business and ethics

This paper calls for an increased discourse between Fridays for Future and representatives of business. Fridays for Future play a key role in educating the public and raising awareness of scientific reports, such as the Intergovernmental Panel on Climate Change (IPCC) assessment, which demonstrate the urgency with which we must tackle climate change.

Dominik Enste / Jennifer Potthoff ·
IW-Report Nr. 55 ·
28 October 2020

The Business Ethics of the Corona Crisis

This research work is intended to analyze the economic consequences and ethical challenges that are caused by the coronavirus pandemic and to predict whether one can find a balance within the arising conflict of interest between economy, health and ethics. The solution strategies of Germany, Sweden and South Korea will be compared in order to evaluate different types of crisis management and to finally derive possible lessons from the crisis.

Dominik Enste / Lena Suling / Inga Schwarz ·
IW-Report Nr. 51 ·
16 October 2020

Causes and consequences of trust at the individual level

Generalized trust in other people is especially important in times of crisis. If there is a lack of trust, more control and sanctions are necessary, which result in transaction costs. In addition, all people suffer from control measures, even if only a few show wrongdoings.

Dominik H. Enste / Louisa Marie Kürten / Lena Suling / Anja Katrin Orth ·
IW-Analyse Nr. 135 ·
13 February 2020

The importance of locus of control for HR policy

Current developments at the workplace, such as digitalisation, the demograph- ic transition or the shift from a focus on shareholder value to a stakeholder approach, are bringing about rapid change.

17 January

Dominik Enste ·
Event ·
17 January 2019

The Exhausted Globalization: Dwindling Growth, Rising Tensions

Signs of crisis dominate current debates: Social cohesion is said to be dwindling, po-litical structures and multilateralism are eroding and the sustainability of economic conditions is questioned.

Dominik Enste / Mara Grunewald / Louisa Kürten ·
IW-Trends Nr. 2 ·
10 July 2018

A Culture of Trust as a Competitive Advantage in Digital Times

For companies, a lived culture of trust is an important competitive advantage. Particularly in an era of digitalization and increasing complexity, trust provides a sound basis for successful cooperation.

Barbara Engels ·
IW-Trends Nr. 2 ·
21 May 2018

The Privacy Preferences of Young People in Germany

Data are the key resource of the digital economy and thus highly coveted by a wide range of firms. ManyInternet users are willing to barter their personal information for the use of online services which are otherwise free of charge.

Andrea Hammermann / Oliver Stettes ·
Interactive Graphic ·
5 September 2017

Quality of Work: Job Satisfaction in Europe

The interactive graphic shows the share of participants of the survey who are satisfied with their work in percent and how it changes when the employees are dissatisfied with certain working conditions.