04_P & B - Chapter 05

This is in part because people consider the wellbeing of others in their decision making
–> People have social preferences (also called otherregarding preferences)

It is an important element of human behavior in society and economics

-> e.g. Volunteering, charities and donation behavior

Fairness is a fundamental cornerstone of political und moral attitudes and thinking styles

One important theory in moral and political psychology, which postulates six basic foundations:

• Care/Harm
• Fairness/Cheating
• Loyalty/Betrayal
• Liberty/Oppression
• Authority/Subversion
• Sanctity/Degradation

Understanding them helps in understanding political and moral discussions and arguments

Fairness plays an important role in the workplace; high fairness expectations
-> Lack of fairness leads to negative reactions from employees

Trust and reciprocity
are the basis of the contract between the employee and the organization;
In addition to the work contract there is a psychological contract that includes implicit expectations from both parties; the trust that both parties adhere to this implicit contract
is the basis of work contracts

Altruistic behavior has usually no immediate benefit but may bring a benefit long-term for the person that is bigger than the initial cost

Altruism from an economics viewpoint: A person may also derive utility from the wellbeing of others; fostering their wellbeing may thus also be rational (rational behavior / utility maximizing)

-> e.g. tax reduction

1. Moral/social norms:
   Based on the duties and expectations in a society
    
2. Rationality:
   Good for the common welfare; secures social peace; resources bring sometimes other people greater benefit than oneself
    
3. Self-actualization:
   Frequent motivation for voluntary work and donations
    
4. Sympathy/Affection:
   Altruism with reference to certain purposes / groups of people, i.e. philanthropy

Reason for altruistic behavior is not always clear-cut, i.e. it can be a mix of different reasons