17/11/2022
We bet on the rational case for trust. Economists, ethicists, and business sages had persuaded us that honesty is the best policy, but their evidence seemed weak. Through extensive interviews, we hoped to find data that would support their theories and thus, perhaps, encourage higher standards of business behavior.
To our surprise, our pet theories failed to stand up. Treachery, we found, can pay. There is no compelling economic reason to tell the truth, or keep one’s word—punishment for the treacherous in the real world is neither swift nor sure.
Honesty is, in fact, primarily a moral choice. Businesspeople do tell themselves that, in the long run, they will do well by doing good. But there is a little factual or logical basis for this conviction. Without values, without a basic preference for right over wrong, trust based on such self-delusion would crumble in the face of temptation.
Most of us choose virtue because we want to believe in ourselves and have others respect and believe in us. When push comes to shove, hard-headed businessfolk usually ignore (or fudge) their dollars-and-cents calculations to keep their word.
And for this, we should be happy. We can be proud of a system where people are honest because they want to be, not because they have to be. Materially, too, trust based on morality provides great advantages. It allows us to join in great and exciting enterprises that we could never undertake if we relied on economic incentives alone.
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