Wednesday, September 21, 2016

SMORC model - Why people cheat?

In his book "The Honest Truth about Dishonesty", author Dan Ariely writes about the Psychology of Dishonesty. Why are people dishonest? Why do people cheat? Is it for reward?

He feels that most of us are inherently dishonest at some level and more than reward we weigh the pros and cons of getting caught.

Weighing the cost benefit analysis is more important than the consideration of right or wrong.

One simple example is about Parking in a no Parking zone. How often have all of us done this? If we have to rush for a meeting, we weigh the costs of getting a parking ticket versus costs of going late for a meeting. It's not about right or wrong.

He created this model called SMORC - Simple model of Rational Crime.

In some of the experiments that Dan conducted, he found that incentive for crime was not a motivation. However the risk of not getting caught was the real driver in such cases.


In this video below, Dan speaks about his SMORC model and some case studies.




This article from Inc.com dwells into the puzzling case of the Wells Fargo scandal where 5,300 employees were sacked for committing fraud.

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