The CSR Newsletters are a freely-available resource generated as a dynamic complement to the textbook, Strategic Corporate Social Responsibility: Sustainable Value Creation.

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Friday, September 23, 2011

Strategic CSR - Voluntary vs. Mandatory

The article in the url below focuses on the value of behavioral explanations of human behavior—i.e., explaining behavior in terms of empirical examination rather than theoretical assumptions. I thought it would be interesting for the Newsletter list because the arguments demonstrate how human action can be shaped dramatically by applying this knowledge to public policy (Chapter 8, Issues: Compliance, p310):

When you renew your driver’s license, you have a chance to enroll in an organ donation program. In countries like Germany and the U.S., you have to check a box if you want to opt in. Roughly 14 percent of people do. But behavioral scientists have discovered that how you set the defaults is really important. So in other countries, like Poland or France, you have to check a box if you want to opt out. In these countries, more than 90 percent of people participate.

Using this approach is often an effective way of achieving socially beneficial outcomes, while retaining the individual choice that is an essential component of an open society.