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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.

About the topic

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 manner (regulatory ethics), by companies assuming 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.

German Economic Institute (IW) German Economic Institute (IW)

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Green Nudging – a key against littering?
Jennifer Potthoff IW-Policy Paper No. 10 22. November 2023

Green Nudging – a key against littering?

The demand for cleanliness in cities is increasing: "Littering" - the illegal littering of public spaces - does not only cause costs for the environment and society, but also has significant financial consequences through increased cleaning costs.

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Nudging green behavior
Dominik Enste / Jennifer Potthoff IW-Report No. 26 1. May 2023

Behavioral Economics in Companies: Nudging green behavior

Climate change, the finite nature of natural resources, a growing world population and the quest for prosperity challenge society and policy to act responsibly and sustainably. The debate on climate change and the upcoming energy transition was recently ...

IW

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Behavioral economic measures for freedom-preserving energy conservation
Dominik Enste / Julia Hensen / Jennifer Potthoff IW-Policy Paper No. 2 20. February 2023

Does Nudging Help in the crisis?: Behavioral economic measures for freedom-preserving energy conservation

In view of the impending gas shortage, private households are called upon to reduce their gas and energy consumption. The moral appeals of those in power harbor the danger that people will react with reactance instead of the desired change in behavior.

IW

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The „Great Transformation”: New Rules of the Game?
Dominik Enste Event 4. May 2022

XI. Scientific Conference: The „Great Transformation”: New Rules of the Game?

Already before the Ukrainian War, Transformation seems to be everywhere. Almost 50 times it has been mentioned in the New „Ampel” Coalition Treaty of November 2021.

IW

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Knut Bergmann

Dr. Knut Bergmann

Head of Communication and the Branch Office in Berlin

Tel: +49 30 27877-110 Knut Bergmann @knut_bergmann
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Dominik H. Enste

Prof. Dr. Dominik H. Enste

Head of Behavioral Economics and Business Ethics Research Unit

Tel: +49 221 4981-730 Dominik H. Enste @DominikEnste
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Lena Suling

Economic Research Consultant of the IW Akademie

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Julia Wildner

Economic Research Consultant of the IW Akademie

Tel: +49 221 4981-818
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Read study
Green Nudging – a key against littering?
IW-Policy Paper No. 10 22. November 2023

Green Nudging – a key against littering?

Jennifer Potthoff

The demand for cleanliness in cities is increasing: "Littering" - the illegal littering of public spaces - does not only cause costs for the environment and society, but also has significant financial consequences through increased cleaning costs.

IW

Read study
Nudging green behavior
IW-Report No. 26 1. May 2023

Behavioral Economics in Companies: Nudging green behavior

Dominik Enste / Jennifer Potthoff

Climate change, the finite nature of natural resources, a growing world population and the quest for prosperity challenge society and policy to act responsibly and sustainably. The debate on climate change and the upcoming energy transition was recently intensified by the Ukrainian war.

IW

Read study
Behavioral economic measures for freedom-preserving energy conservation
IW-Policy Paper No. 2 20. February 2023

Does Nudging Help in the crisis?: Behavioral economic measures for freedom-preserving energy conservation

Dominik Enste / Julia Hensen / Jennifer Potthoff

In view of the impending gas shortage, private households are called upon to reduce their gas and energy consumption. The moral appeals of those in power harbor the danger that people will react with reactance instead of the desired change in behavior.

IW

View event
4. May 4. May
Dominik Enste Event 4. May 2022

XI. Scientific Conference: The „Great Transformation”: New Rules of the Game?

Already before the Ukrainian War, Transformation seems to be everywhere. Almost 50 times it has been mentioned in the New „Ampel” Coalition Treaty of November 2021.

IW

Read study
Better regulation and green nudges for more sustainability
IW-Analyse No. 146 30. December 2021

Behavioral Economics and Climate Protection: Better regulation and green nudges for more sustainability

Dominik H. Enste / Jennifer Potthoff

Protecting the climate is one of the greatest challenges our society is currently facing. In view of the heated political and social discussions surrounding this topic, the question naturally arises as to whether behavioral-economic insights can be used to sensitize German society to the dangers of climate change and to motivate it towards more sustainability.

IW

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