scholarly journals Forgoing earned incentives to signal pure motives

2020 ◽  
Vol 117 (29) ◽  
pp. 16891-16897
Author(s):  
Erika L. Kirgios ◽  
Edward H. Chang ◽  
Emma E. Levine ◽  
Katherine L. Milkman ◽  
Judd B. Kessler

Policy makers, employers, and insurers often provide financial incentives to encourage citizens, employees, and customers to take actions that are good for them or for society (e.g., energy conservation, healthy living, safe driving). Although financial incentives are often effective at inducing good behavior, they’ve been shown to have self-image costs: Those who receive incentives view their actions less positively due to the perceived incompatibility between financial incentives and intrinsic motives. We test an intervention that allows organizations and individuals to resolve this tension: We use financial rewards to kick-start good behavior and then offer individuals the opportunity to give up some or all of their earned financial rewards in order to boost their self-image. Two preregistered studies—an incentivized online experiment (n= 763) on prosocial behavior and a large field experiment (n= 17,968) on exercise—provide evidence that emphasizing the intrinsic rewards of a past action leads individuals to forgo or donate earned financial rewards. Our intervention allows individuals to retroactively signal that they acted for the right reason, which we call “motivation laundering.” We discuss the implications of motivation laundering for the design of incentive systems and behavioral change.

2017 ◽  
Vol 36 (3) ◽  
pp. 1-14 ◽  
Author(s):  
Leslie Berger ◽  
Stephen Perreault ◽  
James Wainberg

SUMMARY Recently, policy makers have focused significant attention on the use of financial rewards as a means of encouraging whistleblower reporting, e.g., the Dodd-Frank Act (U.S. House of Representatives 2010). While such incentives are meant to increase the likelihood that fraud will be reported in a timely manner, the psychological theory of motivational crowding calls this proposition into question. Motivational crowding warns that the application of financial rewards (an extrinsic motivator) can unintentionally hijack a person's moral motivation to “do the right thing” (an intrinsic motivator). Applying this theory, we conducted an experiment and found that, in certain contexts, incentive programs can inhibit whistleblower reporting to a greater extent than had no incentives been offered at all. We discuss the implications of our results for auditors, audit committees, regulators, and others charged with corporate governance. Data Availability: Available from the authors upon request.


2010 ◽  
Vol 23 (2) ◽  
pp. 221-265 ◽  
Author(s):  
Philippe Fontaine

ArgumentFor more than thirty years after World War II, the unconventional economist Kenneth E. Boulding (1910–1993) was a fervent advocate of the integration of the social sciences. Building on common general principles from various fields, notably economics, political science, and sociology, Boulding claimed that an integrated social science in which mental images were recognized as the main determinant of human behavior would allow for a better understanding of society. Boulding's approach culminated in the social triangle, a view of society as comprised of three main social organizers – exchange, threat, and love – combined in varying proportions. According to this view, the problems of American society were caused by an unbalanced combination of these three organizers. The goal of integrated social scientific knowledge was therefore to help policy makers achieve the “right” proportions of exchange, threat, and love that would lead to social stabilization. Though he was hopeful that cross-disciplinary exchanges would overcome the shortcomings of too narrow specialization, Boulding found that rather than being the locus of a peaceful and mutually beneficial exchange, disciplinary boundaries were often the occasion of conflict and miscommunication.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Imranul Hoque

PurposeThis study aims to investigate how buyer-assisted lean intervention in garment supplier factories affects garment suppliers' productivity and production capability development.Design/methodology/approachEmploying a qualitative research approach and a lean intervention design, a multiple case study method was adopted for this study. Quantitative data on productivity performance and qualitative data on production capability development were collected from a Danish buyer and their four corresponding garment suppliers. Collected data were analysed using standard lean measurement tools and qualitative data analysis techniques.FindingsThis study demonstrates that buyer-assisted lean intervention is a useful strategy for garment suppliers to enhance their productivity and production capability. However, suppliers need to select the right lean tools, ensure seriousness and commitment to lean initiatives, substantial involvement of top management and workers, arrange formal and informal training, provide performance-based financial/non-financial incentives and nurture a learning culture to facilitate suppliers' production capability development.Research limitations/implicationsThis study implemented few lean tools in a single sewing line in four supplier factories for a short intervention duration. Thus, there is a scope for future studies to investigate the impact of the lean intervention on a large scale.Practical implicationsThe findings of this study might bring new insights to the management of buyer and supplier firms concerning how buyers could involve in suppliers' lean intervention initiatives and what suppliers need to ensure to develop production capability.Originality/valueFor the first time, this study engaged a buyer in suppliers' lean intervention initiatives to improve productivity and production capability in the garment industry of a developing country.


2016 ◽  
Vol 46 (3) ◽  
pp. 627-676 ◽  
Author(s):  
Bonnie-Jeanne MacDonald ◽  
Lars Osberg ◽  
Kevin D. Moore

AbstractWill 70% of a worker's final annual employment earnings sustain living standards after retirement? Despite increasing skepticism, the most dominant measure of retirement income adequacy by financial planners, pensions plan advisors, academics and public policy makers is the “final employment earnings replacement rate”, where 70% is considered the right target to ensure living standards remain at approximately the same level after retirement. Using Statistics Canada's LifePaths dynamic population micro-simulation model, this paper asks whether those individuals from the 1951–1958 Canadian birth cohort who attain roughly a 70% final employment earnings replacement rate (as conventionally measured) at retirement do, in fact, achieve approximate continuity in their living standards. We find that the conventional final earnings replacement rate measure has little predictive value for living standards continuity between working-life and retirement. The primary reason is that employment earnings in a single year is not a reliable representation of a worker's standard of living — it relies on an inadequate pre-retirement measurement period, does not incorporate important components of consumption sources (such as home equity), and ignores household size (particularly children). As a result, we find that the correlation between the conventional earnings replacement rate and actual living standards continuity is relatively low (0.11). The paper therefore suggests an alternative metric for assessing how well a worker's living standard is maintained after retirement — i.e., the Living Standards Replacement Rate, or the LSRR. The LSRR provides a more accurate, understandable and consistent measure of retirement income adequacy.


Author(s):  
Julie Snorek

AbstractSustaining the water-energy-food nexus for the future requires new governance approaches and joint management across sectors. The challenges to the implementation of the nexus are many, but not insurmountable. These include trade-offs between sectors, difficulties of communication across the science-policy interface, the emergence of new vulnerabilities resulting from implementation of policies, and the perception of high social and economic costs. In the context of the Sustainability in the W-E-F Nexus conference May 19-20, 2014, the session on ‘Governance and Management of the Nexus: Structures and Institutional Capacities’ discussed these problems as well as tools and solutions to nexus management. The session demonstrated three key findings: 1. Trade-offs in the Water-Energy-Food Nexus should be expanded to include the varied and shifting social and power relations; 2. Sharing knowledge between users and policy makers promotes collective learning and science-policy-stakeholder communication; and 3. Removing subsidies or seeking the ‘right price’ for domestic resources vis à vis international markets is not always useful; rather the first imperative is to gauge current and future costs at the national scale.


2017 ◽  
Vol 6 (3) ◽  
pp. 86-100 ◽  
Author(s):  
Sana Azeem ◽  
Malik Asghar Naeem ◽  
Abdul Waheed ◽  
Muhammad Jamaluddin Thaheem

Purpose The purpose of this paper is to investigate the barriers inhibiting the adoption of green building and measures to promote this approach in Pakistan. Design/methodology/approach Barriers and measures were identified and examined by using a combination of research methods, including literature review, questionnaire survey, and in-depth interviews with the construction industry-related practitioners working in Pakistan. Ranking technique and factor analysis were used to identify the significant issues associated with the adoption of green building practices. Findings As per the survey results, the most critical barrier is “lack of awareness among people about the importance and advantages of adopting green building practices,” followed by “lack of incentives from government” and “lack of green building codes and regulations,” respectively. The results also indicate that most important measure to promote the adoption of green buildings is “creation of public awareness toward green initiatives through seminars, workshops, and discussions,” followed by “availability of green building codes and regulations (mandatory to apply)” and “financial incentives and penalties by the government (e.g. soft loan, tax) for promoting green building practices,” respectively. Research limitations/implications Research limitation is that its findings, other than Pakistan, cannot be generalized to other developing countries. Practical implications Findings of the research will be helpful in sensitizing the regulatory agencies, the policy makers, and the building construction practitioners about the barriers to adoption of green building practices. The suggested measures will help in devising policies and economic measures to promote the construction of green and environment-friendly buildings. Social implications This research will help the common people to know about the importance of green buildings that may lead to a deviation from the practice of traditional buildings to a widespread trend of building green buildings. This will lead to drastic reduction in demand for energy and considerable monetary savings for the common people. Originality/value The findings of this study are expected to contribute valuable information to decision makers for the better understanding of key issues that call for more attention in the promotion of efforts of green building practices in Pakistan. The results are based on the perception of local stakeholders, but might also be helpful for policy makers in other countries.


2015 ◽  
Vol 28 (1) ◽  
pp. 43-56 ◽  
Author(s):  
Noor Hazilah Abd Manaf ◽  
Husnayati Hussin ◽  
Puteri Nemie Jahn Kassim ◽  
Rokiah Alavi ◽  
Zainurin Dahari

Purpose – The study seeks to explore the perception of international patients on Malaysia as a medical tourism destination country, as well as overall patient satisfaction, perceived value and future intention for repeat treatment and services. Design/methodology/approach – Self-administered questionnaire was the main method of data collection. The survey covered major private hospitals in medical tourists’ states in the country, namely, Penang, Melaka, Selangor and Kuala Lumpur. Convenience sampling was used due to the condition of patients as respondents. Findings – Indonesian patients formed the largest majority of international patients in the country. Five dimensions of medical tourism in Malaysia was identified, namely, hospital and staff, country factor, combining tourism and health services, cost saving and insurance and unavailability of treatment. Of these, hospital and staff was found to be the most important factor for the patients. Perception of value, overall satisfaction and intention for future treatment was also found to be high. This indicates that Malaysia is on the right footing in this burgeoning industry. Practical implications – Findings from the study will enable policy-makers to better position Malaysia as a medical tourist destination country. Originality/value – Medical tourism is a recent phenomenon and very little empirical research has been carried out at the patient level. This study is one of the first few studies which seek to explore medical tourism from the perspective of the patients themselves.


Author(s):  
DR. A.R. AMINULLAHI

The success of an educational system shows the quality of the teachers employed. The teacher is undoubtedly one of the main challenges facing Arabic education. The assessment process of the teachers’ quality would help those concerned identify the weakness before preventive and remedial actions being taken. This paper attempts to examine the qualities and responsibilities of Arabic teachers to encourage the learning of the subjects in Nigeria and offers suggestions on how to encourage teachers of the language to perform their role effectively. It intends to call the attention of policy makers to identify some militating against the effective teaching of Arabic at all levels of learning with a view to providing lasting solutions to them. In the study, conclusions and appropriate recommendations were made.


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