Not required, but I'd really like you to take a look at this too - http://www.nytimes.com/2012/03/14/opinion/why-i-am-leaving-goldman-sachs.html?_r=2&pagewanted=all (If you do then you should see this funny parody - http://www.thedailymash.co.uk/news/society/why-i-am-leaving-the-empire-by-darth-vader-201203145007)
Lots of extra reading if you want http://www.scientificamerican.com/article.cfm?id=how-wealth-reduces-compassion ; http://www.guardian.co.uk/commentisfree/2012/jun/30/fintan-otoole-banking-decency-corrupt-system ; plus an extra from Plato himself http://classics.mit.edu/Plato/republic.3.ii.html
Why the Rich Are Less Ethical: They See Greed as Good
While stereotypes suggest that poor people are more likely to lie and steal, new research finds that it’s actually the wealthy who tend to behave unethically. In a series of experiments — involving everything from dangerous driving to lying in job negotiations and cheating to get a prize — researchers found that, across the board, richer people behaved worse. But, rather than class itself, the authors suggest that it’s views about greed that may largely explain the difference.
In the first two experiments, University of California, Berkeley, psychologists positioned observers at San Francisco intersections to watch for drivers who didn’t wait their turn at lights or yield for pedestrians. The researchers noted the make, age and appearance of cars — a marker for the drivers’ socioeconomic status — as well as the drivers’ gender and approximate age.
If you ever thought that the guy driving a late-model Mercedes is more of a jerk than the one behind the wheel of a battered Honda, you’d be right. Even after controlling for factors like traffic density and the driver’s gender and perceived age (younger men tend to drive faster and often rudely), drivers of the newest, most high-status cars were much more likely to cut other drivers off.
“The drivers of the most expensive vehicles were four times more likely to cut off drivers of lower status vehicles,” says Paul Piff, a doctoral student at Berkeley and lead author of the study published in the Proceedings of the National Academy of Sciences.
Drivers in fancy cars were also three times more likely than those in beaters to threaten pedestrians by failing to yield when the walkers had the right of way at a crosswalk. So much for the theory that owners of expensive cars try to protect their vehicles from being sullied by common blood!
In five further experiments, researchers looked at moral behavior in more controlled lab settings. The experiments were designed to determine what made people lapse into bad behavior, and how difficult it would be to change it. The results offer some hope in an otherwise bleak picture.
In one study, participants reported their own socioeconomic status and then read descriptions of people stealing or benefiting from things to which they were not entitled. When asked how likely they would be to engage in similar behavior, the richest of 105 undergraduates were more likely admit that they would do so, compared with those from middle-class or lower-class backgrounds. Of course, this finding could simply reflect the fact that the rich are more likely to get away with such things — and therefore may feel more comfortable admitting it — so the researchers also studied actual behavior.
In the next experiment, researchers asked 129 students to compare themselves with those who were either far richer or far poorer than they were. Previous studies have found that this manipulation influences people’s perceptions of class and their own behavior, with those primed to feel wealthy behaving less generously and becoming less sensitive to the emotions of others, regardless of their actual socioeconomic class.
The participants were then offered candy from a jar that they were told would otherwise be given to children in another lab. Those primed to feel rich took more candy than those who were made to feel disadvantaged. Fortunately, there were no children actually waiting for the sweets.
But why would people who feel socially elevated behave less ethically? The next set of experiments sought to examine this question, finding a connection between wealth and positive perceptions of greed. Among adults who were recruited online for one such experiment, those who were wealthier were more likely to lie in a simulated job interview scenario. The participants — acting as managers — were told that their hypothetical applicants would be willing to take a lower salary in exchange for job security. The applicants wanted a two-year contract position, but the managers knew that the available job would last only six months before being eliminated — and that they could get a bonus for negotiating a lower salary. People of high social class were more likely to lie to the job seekers, researchers found.
The reason for this was not necessarily their class, but the fact they agreed with Wall Street‘s Gordon Gekko that greed is good. When the researchers examined the connection between beliefs about greed and unethical behavior, they found that class was no longer a significant variable. In other words, rich people tended to take advantage of others primarily because they saw selfish and greedy behavior as acceptable, not just because they had more money or higher social status.
To confirm this, another experiment examined whether a person’s attitudes about greed or his class status would predict cheating on a dice game. Researchers recruited 195 adults on Craigslist, queried them about their backgrounds and greedy attitudes, and then had them play a computerized dice game in which higher rolled scores meant a higher chance of winning $50. Unbeknownst to them, the computer always generated the same score: 12. People who believed greed was good were more likely to cheat and report inflated scores of 15 or higher.
Then, in a final study in which the researchers primed participants by having them talk about either the benefits of greed or something neutral (what they did that day), they found that poor participants were just as likely as rich ones — if they were primed to think greed was good — to support bribery or to cheat unsuspecting customers. In the neutral prime, rich participants were more likely to support unethical behavior.
Fortunately, people can also be easily primed to behave more generously. In an earlier study, Piff and his colleagues found that rich people were less likely to help a person who entered the lab in distress — except when they’d just watched a video about child poverty. “We’re not arguing that rich people are bad at all, but that psychological features of wealth have these natural effects,” says Piff. “There are simple things you can adjust, which suggest that rich people are fairly sensitive and just need little reminders.”
He notes that billionaire Warren Buffett made a similar point in a New York Times op-ed last year, calling for higher taxes on the wealthiest. “I know well many of the mega-rich and, by and large, they are very decent people,” Buffett wrote. “Most wouldn’t mind being told to pay more in taxes as well, particularly when so many of their fellow citizens are truly suffering.”
In a comment for WebMD, George Mason University professor of education Martin Ford praised Piff’s study. “It is particularly compelling when the same basic phenomenon is demonstrated using a wide variety of experimental methods,” he said.
The findings got me thinking that if we are concerned about negative media content harming the moral development of children, we might want to place positive depictions of greed near or even above sex and violence on the list of exposures that are unsuitable for youth.
Self-Interest Spurs Society’s ‘Elite’ to Lie, Cheat on Tasks, Study Finds
By Elizabeth Lopatto -
Feb 28, 2012 6:01 AM GMT+0100
The answer Piff found after conducting seven different experiments is: no. The pursuit of self-interest is a “fundamental motive among society’s elite, and the increased want associated with greater wealth and status can promote wrongdoing,” Piff and his colleagues wrote yesterday in the Proceedings of the National Academy of Sciences.
The “upper class,” as defined by the study, were more likely to break the law while driving, take candy from children, lie in negotiation, cheat to raise their odds of winning a prize and endorse unethical behavior at work, the research found. The solution, Piff said, is to find a way to increase empathy among wealthier people.
“It’s not that the rich are innately bad, but as you rise in the ranks -- whether as a person or a nonhuman primate -- you become more self-focused,” Piff said. “You can change that by reminding upper-class people of the needs of others. That may not be their default, but have them do it is sufficient to increase their patterns of altruistic behavior.”
That theory will be the basis of his next study. Piff is curious to know how to change patterns of greed and selfishness when they emerge.
Ethics Courses
Previous research has shown that students who take economics classes are more likely to describe greed as good. Pairing ethics courses with economics may be beneficial, Piff said.“It might be as simple as not only stressing individual performance, but the value of cooperation and improving the welfare of others,” he said. “That goes a long way.”
In the research reported yesterday, the experiments suggest at least some wealthier people “perceive greed as positive and beneficial,” probably as a result of education, personal independence and the resources they have to deal with potentially negative consequences, the authors wrote.
While the tests measured only “minor infractions,” that factor made the results “even more surprising,” Piff said.
One experiment invited 195 adults recruited using Craigslist to play a game in which a computer “rolled dice” for a chance to win a $50 gift certificate. The numbers each participant rolled were the same; anyone self-reporting a total higher than 12 was lying about their score. Those in wealthier groups were found to be more likely to fib, Piff said.
Risks of Cheating
“A $50 prize is a measly sum to people who make $250,000 a year,” he said in a telephone interview. “So why are they more inclined to cheat? For a person with lower socioeconomic status, that $50 would get you more, and the risks are small.”Poorer participants may be less likely to cheat because they must rely more on their community to get by, and thus are more likely adhere to community standards, Piff said. By comparison, “upper-class individuals are more self-focused, they privilege themselves over others, and they engage in self- interested patterns of behavior,” he said.
In the traffic tests, about one-third of drivers in higher- status cars cut off other drivers at an intersection watched by the researchers, about double those in less costly cars. Additionally, almost half of the more expensive cars didn’t yield when a pedestrian entered the crosswalk while all of the lowest-status cars let the pedestrian cross. These experiments involved 426 vehicles.
Employment Test
Another test asked 108 adults found through Amazon.com Inc.’s (AMZN) work-recruiting website Mechanical Turk to assume the role of an employer negotiating a salary with someone seeking long-term employment. They were told several things about the job, including that it would soon be eliminated. Upper-class individuals were more likely not to mention to the job-seeker the temporary nature of the position, the research found.“Support for free-market capitalism will collapse if those who do well don’t do good,” said Arthur Caplan, director of the Center for Bioethics at the University of Pennsylvania. “Rapacious, intolerant, nonempathetic capitalism that says lie, cheat, steal, it’s only the bottom line that matters -- aside from being morally repugnant, it’s got a dim future.”
Study Design Criticized
Meredith McGinley, an assistant professor at Chatham University in Pittsburgh who wasn’t involved in the study, was critical of how some of the experiments were designed.The car test complicates the results because having a flashy car doesn’t necessarily mean the driver is wealthy, said McGinley, who studies positive social behavior. In the experiment involving candy, the participants were told they could have it even though children were waiting for it. They may have felt they were doing nothing wrong, she said.
In the candy test, 129 undergraduates were manipulated to view themselves as wealthy or poor. They were then presented with a jar of individually wrapped candy, which researchers said would go to children in a nearby lab, though the participants could take some if they wanted. The undergraduates believing themselves to be upper income took more than those believing themselves to be low income, the study found.
Erik Gordon, a business professor at the University of Michigan in Ann Arbor, wasn’t surprised by the results, he said.
Greed ‘on Upswing’
“Greed has been on the upswing for 20 years,” Gordon said in a telephone interview. “Wealth or power that comes with high socioeconomic status means you are indeed enabled to ignore other people and might think that rules that apply to other people don’t apply to you.”Gordon, though, thinks the research has its limits. It isn’t as much about wealth, he said, as it is about greed, a behavior that can be changed.
The very wealthy, who “tend to drive 8-year-old cars” and “don’t wear logos,” may offer a very different profile, he said, suggesting that the group targeted by Piff’s experiments with cars are more likely the “nouveau riche.”
To be sure, Piff and his colleagues said there are exceptions to the associations they found, pointing to Warren Buffett, chairman and chief executive officer of Berkshire Hathaway Inc., who has pledged the majority of his holdings to the Bill & Melinda Gates Foundation and other charities.
Less wealthy individuals also can behave badly, they wrote, noting the relationship between poverty and violent crime in previous research.
The study urged further research to determine the “boundaries” of bad behavior spurred by greed. Adam Smith, the 18th century author of “The Wealth of Nations,” may provide an example, as his first book, “The Theory of Moral Sentiments,” was about ethics.
“A long time ago, you couldn’t leave the university without having a course in ethics,” Caplan said. “One of the things college should do is provide you with the moral framework to operate in a capitalist society. When people ask about the value of philosophy, I point them there.”
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