Foto: iStock

Behavioral Economics and Business Ethics

Foto: iStock

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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Authors
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Dominik H. Enste

Prof. Dr. Dominik H. Enste

Head of the Research Unit Behavioral Economics and Business Ethics

Tel+49 221 4981-730

Mailenste@iwkoeln.de

@DominikEnste

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Theresa Eyerund

Theresa Eyerund

Economist in the Project Future of Work

Tel+49 221 4981-783

Maileyerund@iwkoeln.de

@TheresaEyerund

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Anna-Carina Kern

Anna-Carina Kern

Consultant at the IW Akademie

Tel+49 221 4981-689

Mailkern@iwkoeln.de

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Lena Suling

Lena Suling

Economic Research Consultant of the IW Akademie

Tel+49 221 4981-816

Mailsuling@iwkoeln.de

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Julia Wildner

Julia Wildner

Economic Research Consultant of the IW Akademie

Tel+49 221 4981-818

Mailwildner@iwkoeln.de

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