Bank like there’s no one watching

Martha Gill's Irrational Animals Column.

As Barclays prepares for an inquiry into its practices, 15 banks lined up behind it, Bob Diamond must be haunted by what he said at last year’s BBC Today business lecture: “Culture is difficult to define, I think it’s even more difficult to mandate – but for me the evidence of culture is how people behave when no one is watching.”

Well, we’re all watching now. Most of us are viewing with cynicism - with thoughts that sharp practice is fairly inevitable and that we’ll probably find more as the investigation unfolds. But perhaps we should all be more shocked. After all, we naturally treat others surprisingly fairly, even when given the power not to. What went so wrong here?
Here's a classic experiment that might help - it's known as the ultimatum game. In this game, you are given some money and one condition: you must share the money with another. If the other turns the money down, though, both of you lose it.
Now, the logical response to the condition is to offer your partner the smallest amount possible. They might be slightly annoyed, but at least they got something out of it. To the surprise of the economists who thought up the test, though, this is not what happened. Instead, subjects gave out far more money than they needed to.
What made them so generous? The researchers speculated that it was fear of rejection: they didn't want to make the other person angry enough to walk away from the deal. 
But what happens when the respondent’s power of rejection is taken away? A slight change to the ultimatum game turns it into the dictator game. In this version partner can simply dictate how much the other receives. No fear of rejection here - the second partner must just take what they are offered. But here again, the experimenters were surprised - dictators turned out to be unnecessarily generous. 
What's going on? It can't just be the fear of being turned down. One explanation that fits is that people have a sense of fairness. We simply don't want to act too selfishly. 

See no evil


But there was a way to change players’ commitment to fairness: isolation. When put in a separate room from their partners, with no access to their reaction, the dictators started handing out tiny amounts – the smallest they could get away with. The lethal combination of power and isolation seemed finally to put paid to their empathetic instincts. When no one was watching, they just didn’t care. 

Back to the bankers, then: we can’t expect people to act fairly or even legally if they are given a large amount of power in isolation from those affected by their decisions. We like to seem fair, but this only works with an audience. A culture where no one is watching is a culture doomed to corruption.
Shadowy figures. Photograph: Getty Images

Martha Gill writes the weekly Irrational Animals column. You can follow her on Twitter here: @Martha_Gill.

This article first appeared in the 09 July 2012 issue of the New Statesman, Honey, I shrunk the Tories

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Why have men become so lonely – and how does it affect their health?

New findings show the consequences of having a lonely heart.

Go out and get some friends. No, seriously. Hop on the Tube and act faux-interested in the crap-looking book your fellow commuter is reading, even if it's on their Kindle. Chances are it's better than the one in your bag, and they're probably a decent human being and just as lonely, like you and me.

A new slate of facts and figures are showing just how widespread loneliness, is while simultaneously being amazingly terrible for your health.

Research led by Steven Cole from the medicine department at University of California, Los Angeles is showing the cellular mechanisms behind the long known pitfalls of loneliness. Perceived social isolation (PSI) – the scientific term for loneliness –increases the exposure to chronic diseases and even mortality for individuals across the world.

The authors examined the effects of loneliness on leukocytes, also known as white blood cells, which are produced from stem cells in the bone marrow and are critical to the immune system and defending the body against bacteria and viruses. The results showed loneliness increases signalling in the sympathetic nervous system, which is responsible for controlling our fight-or-flight responses, and also affects the production of white blood cells.

Recently, the Movember Foundation, which focuses on men's health and wellbeing, carried out a survey with the help of YouGov investigating friendship and loneliness amongst men. The results are alarming, with only 11 per cent of single men across the spectrum in their early 20s to late-middle age saying they had a friend to turn to in a time of crisis, the number rising to 15 per cent for married men.

Friendship has shown not only to be important to a person's overall wellbeing, but can even add to a person's earnings. A previous study involving 10,000 US citizens over 35 years showed people earned 2 per cent more for each friend they had.

The Movember Foundation survey comes soon after the Office for National Statistics (ONS) showed that men in Britain make up 58 per cent of the 2.47m people living alone between the ages of 45 and 64. The reasons behind this figure include marrying later in life and failed marriages, which usually result in children living with the mother. Women still make up the majority of the 7.7m single-occupant households across all ages in the country, at approximately 54 per cent.

Chronic loneliness seems to have slowly become a persistent problem for the country despite our hyper-connected world. It's an issue that has made even Jeremy Hunt say sensible things, such as "the busy, atomised lives we increasingly lead mean that too often we have become so distant from blood relatives" about this hidden crisis. He's previously called for British families to adopt the approach of many Asian families of having grandparents live under the same roof as children and grandchildren, and view care homes as a last, not first, option.

The number of single-person households has continued to increase over the years. While studies such as this add to the list of reasons why being alone is terrible for you, researchers are stumped as to how we can tackle this major social issue. Here's my suggestion: turn off whatever screen you're reading this from and strike up a conversation with someone who looks approachable. They could end up becoming your new best friend.