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

Show Hide image

“A cursed project”: a short history of the Facebook “like” button

Mark Zuckerberg didn't like it, it used to be called the “awesome button”, and FriendFeed got there first. 

The "like" button is perhaps the simplest of the website's features, but it's also come to define it. Companies vie for your thumbs up. Articles online contain little blue portals which send your likes back to Facebook. The action of "liking" something is seen to have such power that in 2010, a class action lawsuit was filed against Facebook claiming teenagers should not be able to "like" ads without parental consent. 

And today, Facebook begins trials of six new emoji reaction buttons which join the like button at the bottom of posts, multiplying its potential meanings by seven: 

All this makes it a little surprising that Facebook CEO Mark Zuckerberg spent a good portion of the noughties giving the like button a thumbs down. According to Andrew Bosworth, Vice President of Advertising and Pages at Facebook (and known simply as "Boz") it took nearly two years to get the concept of an approval button for posts off the ground.

In a fascinating Quora thread, Boz explains that the idea of a star, plus sign or thumbs up for posts first came up in July 2007, three years after "TheFacebook" launched in 2004. Throughout these initial discussions, the proposed bursts of positivity was referred to as an "awesome button". A few months later someone floated the word "like" as a replacement, but, according to Boz, it received a "lukewarm" reception. 

The team who ran the site's News Feed feature were keen, as it would help rank posts based on popularity. The ad team, meanwhile, thought "likes" could improve clickthrough rates on advertisements. But in November 2007, the engineering team presented the new feature to Mark Zuckerberg, and, according to Boz, the final review "[didn't] go well". The CEO was concerned about overshadowing the Facebook "share" and comment features - perhaps people would just "awesome" something, rather than re-posting the content or writing a message. He also wanted more clarification on whether others would see your feedback or not. After this meeting, Boz writes, "Feature development as originally envisioned basically stops". 

The teams who wanted the button forged ahead with slightly different features. If you were an early user, you might remember that News Feed items and ads collected positive or negative feedback from you, but this wasn't then displayed to other users. This feature was "ineffective", Boz writes, and was eventually shut down. 

So when Jonathan Piles, Jaren Morgenstern and designer Soleio took on the like button again in December 2008, many were skeptical: this was a "cursed project", and would never make it past a sceptical Zuckerberg. Their secret weapon, however was data scientist Itamar Rosenn, who provided data to show that a like button wouldn't reduce the number of comments on a post. - that, in fact, it increased the number of comments, as likes would boost a popular post up through the News Feed. Zuckerberg's fears that a lower-impact feedback style would discourage higher value interactions like reposting or commenting were shown to be unfounded. 

A bigger problem was that FriendFeed, a social aggregator site which shut down in April 2015, launched a "like" feature in October 2007, a fact which yielded some uncomfortable media coverage when Facebook's "like" finally launched. Yet Boz claims that no one at Facebook clocked onto FriendFeed's new feature: "As far as I can tell from my email archives, nobody at FB noticed. =/". 

Finally, on 9 February 2009, "like" launched with a blogpost, "I like this", from project manager Leah Pearlman who was there for the first "awesome button" discussions back in 2007. Her description of the button's purpose is a little curious, because it frames the feature as a kind of review: 

This is similar to how you might rate a restaurant on a reviews site. If you go to the restaurant and have a great time, you may want to rate it 5 stars. But if you had a particularly delicious dish there and want to rave about it, you can write a review detailing what you liked about the restaurant. We think of the new "Like" feature to be the stars, and the comments to be the review.

Yet as we all know, there's no room for negative reviews on Facebook - there is no dislike button, and there likely never will be. Even in the preliminary announcements about the new emoji reactions feature, Zuckerberg has repeatedly made clear that "dislike" is not a Facebook-worthy emotion: "We didn’t want to just build a Dislike button because we don’t want to turn Facebook into a forum where people are voting up or down on people’s posts. That doesn’t seem like the kind of community we want to create."

Thanks to the new buttons, you can be angry, excited, or in love with other people's content, but the one thing you can't do is disapprove of its existence. Championing positivity is all well and good, but Zuckerberg's love of the "like" has more to do with his users' psychology than it does a desire to make the world a happier place. Negative feedback drives users away, and thumbs-down discourages posting. A "dislike" button could slow the never-ending stream of News Feed content down to a trickle - and that, after all, is Facebook's worst nightmare. 

Barbara Speed is a technology and digital culture writer at the New Statesman and a staff writer at CityMetric.