On Being Human
On Being Human
What the Numbers Say
79%
The proportion of the population living in cities of the developed world in 2020. In the Less Developed Countries, the people living in urban areas are in the minority (34.6%).
2.5 billion
Increase in the world population over the last 30 years, growing mostly in developing economies in Asia and Oceania. It is expected to grow another 1.9% in the next 30 years.
Big Questions
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“Can money buy our way to reach sustainability?”
There is a growing need to encourage a shift in sustainable behaviour because the rate of consumption continues to exceed the speed of regeneration. One way to achieve this is through the use of monetary rewards.
Financial motivations for sustainable actions seem like a win for both consumers and businesses but there may be situations in which monetary rewards can backfire. Instead of recycling because of the intrinsic belief that we are saving the planet, people might wonder if it is worth their time and effort when rebates are involved. It results in a mindset that is more self-serving and less charitable. It may only provide a short-term incentive to change behaviour but once the rewards are no longer available, people will simply revert to old habits.
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“What motivates companies to pursue a corporate social responsibility strategy?”
Corporate Social Responsibility (CSR) is the idea that a company should play a positive role in the community and consider the environmental and social impact of business decisions. What could be the motivations to do so?
Research show that key motivators for CSR strategies are: 1) To manage power relations and political pressure, such as avoiding fines or reducing activist pressure (political), 2) To reward the organisation, including through lower capital costs and boost employee morale (economics - instrumental) and 3) To fulfil their wish to benefit society and the planet (values-based - ethical).
Quotable
"Consumers crave authenticity and want to buy products from companies whose hearts are in the right place.”
"Consumers crave authenticity and want to buy products from companies whose hearts are in the right place.”
Alwyn Lim
Associate Professor of Sociology
“Individuals with working financial knowledge and sufficient financial wellness and resilience can make more informed economic decisions and judgements.”
“Individuals with working financial knowledge and sufficient financial wellness and resilience can make more informed economic decisions and judgements.”
Aurobindo Ghosh
Assistant Professor of Finance (Education)
Tomorrow, Today
Over to You
Do your part for the collective good. Rewarding sustainable behaviour with money is a bad idea.
Bring back altruism
Providing monetary incentives can activate a processing mode that is transactional.
Prevent priming and bias
Talking about pricing and discounts can prime mental constructs incompatible with sustainable behaviours.
Focus on personal attitudes
Financial incentives can signal that money is the main reason that one is engaging in the target action.