Introduction
Human behaviour is complicated and some might say irrational. There are various personality traits and genetic differences that impact one\’s temperament, their reaction to upbringing, and external or internal social environment which ultimately affect one\’s psyche. This very brief synopsis is linked to one of our main focus area which relates to motivation, and specifically incentivization . We learned through various research and articles in the past 2 years that it can be challenging to motivate people to simply get out of the house in 2023 ever since the global pandemic. If something as mundane as getting out and facing other fellow humans is difficult, where does this put trying to motivate a person to act in ways that are responsible and sustainable? Incentives are a powerful tool that can be used to encourage responsible behaviour, and in this essay we will explore three potential solutions provided by current researched work.
The Problem
Many of us and the organizations we work at look for ways to act responsibly and sustainably (because that is the theme of the day and let’s face it, as long as it’s properly researched with LONG TERM positive impact, it can be great for the planet). Despite the growing awareness of the environmental and social impact of human actions, people often prioritize short-term gains over long-term benefits. For example, individuals may choose to drive alone to work instead of using public transportation or carpooling because it is more convenient, quicker, and most cases cheaper. Plus, many of us enjoy the freedom that comes with controlling our environment. Similarly, companies may prioritize profits over sustainability, leading to practices that harm the environment or exploit workers by focusing on and controlling their own corporate individuality.
The Challenge
The challenge is to find ways to incentivize responsible behaviour that are effective, scalable, and sustainable. Incentives must be designed to appeal to the values and motivations of individuals and organizations, and they must provide tangible benefits that outweigh the costs of changing behaviour. At ÄRC, we will also add financial benefits to the solution(s). Scouring through various articles and sources during this study, we narrowed down the results to 3 potential solutions that are currently widely advertised. These will not ultimately be our own guidance since we have not yet fully researched and proposed other solutions; these are merely what is currently out there.
Solution 1: Gamification
Gamification is the use of game design elements in non-game contexts to engage and motivate people to achieve goals. Gamification can be used to incentivize responsible behaviour by turning sustainable or healthy actions into a game. For example, individuals could earn points or rewards for taking actions like using public transportation, cycling to commute, or recycling. These points could be redeemed for tangible benefits like discounts on products or services, or they could be used to compete with other players for high scores.
Gamification can be effective because it appeals to human nature\’s desire for competition, achievement, and recognition. It also provides immediate feedback and reinforces desirable behaviours, making it more likely that individuals will continue to act sustainably over time. The best part is it can be scaled and customized to fit different contexts, making it a versatile solution for to incentivizing responsible actions.
Solution 2: Social Norms
Social norms are unwritten rules that govern behaviour in a particular group or society. This solution can cause controversy since it can be alarmist or manipulated and politicized easily. Using social norms as a means to incentivize any behaviour tends to highlight what some groups might use as a negative form of prejudice, or ‘othering’. The practice would be to incentivize responsible behaviour by highlighting those behaviours that are expected and valued in a particular context. For example, an organization could use social norms to encourage employees to carpool or use public transportation by highlighting the number of colleagues who are already doing so. But if a whole community or state, or council decides how one should start behaving, and potentially ostracize those who might otherwise not be able to meet those high standards we would have a different problem on hand (we have many examples in recent years highlighted by ‘cancel culture’). We don’t think this is a viable option as it would cancel out other CSR values.
In addition to the above, social norms can be effective both in positive and negative ways because they appeal to individuals\’ desire to fit in and belong to a group that may appear altruistic, or share similar values. When people believe that their behaviour is consistent with the norms of a particular group, they are more likely to continue to act in ways that align with those norms. An example would be Religious beliefs as part of social norms; nothing wrong with them but not if used as a means to incentivise, or in some cases \’guilt\’ someone into behaving a certain way. Social norms are relatively low financial cost and can be used in a variety of contexts, making them a scalable solution for incentivizing responsible behaviour. Even if it\’s cost effective financially, it would be cost ineffective culturally and socially.
Solution 3: Financial Incentives
Financial incentives are rewards that are given to individuals or organizations for engaging in desired behaviour. Financial incentives can be used to incentivize responsible behaviour by providing monetary benefits for actions that align with sustainability goals. For example, individuals could receive a tax credit for purchasing an electric vehicle, or companies could receive a financial reward for reducing their carbon emissions. It can also be linked to gamification by giving discounts to individuals for their responsible and healthy actions.
Financial incentives can be effective because they provide tangible benefits that could be directly linked to sustainable behaviour. They can also be used to offset the costs of changing behaviour, making it more likely that individuals and organizations will take action. Financial incentives can be expensive to implement, but we can always find a way to make it cheaper over time.
Conclusion
Incentivizing responsible behaviour, like the human psyche, is complicated, but it is essential for achieving sustainable development. Gamification, social norms, and financial incentives are three potential solutions that can be used to incentivize responsible behaviour effectively. Each solution has its own strengths and weaknesses, and the most effective approach will depend on the specific context and the motivations of the individuals or organizations involved.