Ms. Masha Blekher
Good Deeds, Risky Bids: Accessible Pro-Social Behavior Increases Monetary Risk Taking
Recently it looks like we are surrounded by pro social behavior; individuals and companies share their time and money to help others. According to The Federal Agency for Service and Volunteering, in 2011, the number of Americans volunteered in formal organizations reached its highest level in five years - 64.3 million people. At the same time, the number of companies across the globe that are committed to corporate social responsibility (CSR) practice is constantly growing (Rangan, Cahse & Karim, 2012). More than 3,500 companies are part of the Global Reporting Initiative (GRI) - a non-profit organization that works towards a sustainable global economy by providing sustainability reporting guidance.
Given that in real life decisions are often follow one another and the recent evidence that prior choice may influence subsequent preferences (Novemsky & Dhar 2005), this research examines whether accessible individual volunteering behavior or awareness of corporate pro social behavior systematically increase preference for monetary risk. For instance, imagine a person who is making a choice between two options, one of which is more risky than the other. Is this person more or less likely to choose the risky option if he or she were previously reminded of his/her past pro social behavior or his employer’s engagement in CSR?