Freakonomics Radio 335. Does Doing Good Give You License to Be Bad?
May 17, 2018
The podcast explores the concept of corporate social responsibility and its effects on employee behavior, including how CSR can incentivize employees to work harder while also potentially serving as a moral license for unethical behavior. It discusses the impact of CSR messaging on worker behavior and delves into the phenomenon of moral licensing, where expressing support for socially responsible behavior can lead to unethical acts. Additionally, the podcast touches on the influence of Big Pharma on drug prices and Congress, highlighting frustration towards the greed of the industry.
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CSR Is Ubiquitous And Signaling
- Corporate social responsibility (CSR) is widespread: ~90% of Fortune Global 250 firms publish CSR reports.
- Firms present CSR as a way to signal values and possibly enhance their bottom line.
Researchers Built A Real Firm To Test CSR
- John List created a real LLC to run field experiments hiring workers for data tasks.
- He varied wages and CSR messaging to study how CSR affects applicant pools.
CSR Can Substitute For Higher Pay
- A CSR job ad attracted about 33% more applicants, roughly equal to raising pay from $11 to $15.
- CSR can substitute for significant wage increases in attracting applicants.