Added: Lisa Guida - Date: 01.11.2021 12:09 - Views: 17348 - Clicks: 6139
Despite deceit, greed, and incompetence on a ly unimaginable scale, people are still trusting too much.
Will we ever learn? Which raises the question: Do we trust too much?
In this article, Stanford professor and social psychologist Kramer explores the reasons we trust so easily—and, often, so unwisely. That said, our willingness to trust makes us vulnerable. Our sense of trust kicks in on remarkably simple cues, such as when people look like us or are part of our social group. We also rely on third parties to verify the character of others, sometimes to our detriment as the victims of Bernard Madoff learned.
We need to develop tempered trust. For those who trust too much, that means reading cues better; for the distrustful, it means developing more receptive behaviors. Everyone should start with small acts of trust that encourage reciprocity and build up.
Having a hedge against potential abuses also helps. Hollywood scriptwriters, for instance, register their treatments with the Writers Guild of America to prevent their ideas from being stolen by the executives they pitch. To attract the right relationships, people must strongly al their own honesty, proactively allay concerns, and, if their trust is abused, retaliate. To trust wisely, we need to readjust our mind-set and behaviorial habits, following seven basic rules. For the past two decades, trust has been touted as the all-powerful lubricant that keeps the economic wheels turning and greases the right connections—all to our collective benefit.
Popular business books proclaim the power and virtue of trust. Academics have enthusiastically piled up study after study showing the varied benefits of trust, especially when it is based on a clear track record, credible expertise, and prominence in the right networks. How do i trust people along came Bernie. But the fact that so many people, including some sophisticated financial experts and business leaders, were lulled into a false sense of security when dealing with Madoff should give us pause.
Why are we so prone to trusting? Madoff is hardly the first to pull the wool over so many eyes. What about Enron, WorldCom, Tyco, and all the other corporate scandals of the past decade? Is there perhaps a problem with how we trust? Government agencies, consumer groups, and businesses themselves have helped build confidence over time by acting as watchdogs and establishing safeguards. Still, the recent round of abuses reminds us that the system is far from fail-proof and raises the question: Are we trusting business too much?
A scheme to corner the market in the stock of United Copper causes the collapse of Knickerbocker Trust and a financial panic. At one point J. Morgan locks leading bankers in a How do i trust people until they agree to bail out weaker institutions.
The growth of credit-ratings agencies fosters trust by helping investors assess the riskiness of various How do i trust people. After the U. Attorney takes Coca-Cola to court for false advertising, the ad industry falls into public disfavor. A group of U. Its subsidiaries, which resolve cases at the local level, become the Better Business Bureaus. The U. Congress founds the Federal Reserve Systemas the fallout from the Panic of finally breaks the political resistance to creating a strong central bank to avert monetary shortages.
As confidence in How do i trust people prospects of big industrial companies rises, ordinary investors start purchasing stocks, not just bonds. In Octoberit crashes to earth. During the Great Depression, the Pecora Commission investigates the causes of the crash, uncovering a wide range of misdeeds in banking. Harry Truman forms a special Senate committee to investigate.
Mutual funds, developed in the s, take off as investors cautiously begin to give money to large intermediaries in order to distribute and manage their risks. Congress passes a flurry of consumer safety and environmental protection laws. Securitization of loans begins, allowing home buyers to borrow from far-off lenders.
Drexel Burnham Lambert uses risk-analysis tools to build a market for junk bonds that finance entrepreneurial companies and corporate takeovers. Bythe use of junk bonds will become pervasive in corporate finance. Western governments start a far-reaching program of deregulation under Ronald Reagan and other leaders as people start trusting business more than government.
The open-book management movement is born when Jack Stack, the new CEO of Springfield Remanufacturing Corporation, begins sharing financial information with all employees and teaching them how to interpret it.
A Union Carbide chemical gas spill in Bhopal, India, the worst industrial disaster in history, le to greater skepticism about multinationals in developing countries. Executive pay soars as How do i trust people. The cult of the CEO grows, and global companies increasingly imitate the American approach to business. The following year, its registered user base rises fromto 2. The internet bubble bursts. Enron collapses into bankruptcy, followed by WorldCom and other companies rife with fraud.
Excessive leveraging from securitization, combined with the bursting of the housing bubble, le to a severe credit crunch, where banks stop trusting companies with loans, and investors stop trusting banks. The world plunges into a severe recession.
I have been grappling with this question for most of my 30 years as a social psychologist, exploring both the strengths and the weaknesses of trust. That said, our willingness to trust often gets us into trouble. Moreover, we sometimes have difficulty distinguishing trustworthy people from untrustworthy ones.
At the individual level, though, it can be a real problem. It all starts with the brain.
Thanks to our large brains, humans are born physically premature and highly dependent on caretakers. The evidence is impressive: Within one hour of birth, a human infant will draw her head back to look into the eyes and face of the person gazing at her. That has been an advantage in our struggle for survival. Research has shown that the brain chemistry governing our emotions How do i trust people plays a role in trust. Even a squirt of oxytocin-laden nasal spray is enough to do it.
Other research has also shown how intimately oxytocin is connected with positive emotional states and the creation of social connections. Trust kicks in on remarkably simple cues. Perhaps the most compelling evidence of this comes from a study by researcher Lisa DeBruine. The greater the similarity, DeBruine found, the more the participant trusted the person in the image. This tendency to trust people who resemble us may be rooted in the possibility that such people might be related to us. Other studies have shown that we like and trust people who are members of our own social group more than we like outsiders or strangers.
This in-group effect is so powerful that even random asment into small groups is sufficient to create a sense of solidarity. As psychologist Dacher Keltner and others have shown, physical touch also has a strong connection to the experience of trust. In one experiment involving a game widely used to study decisions to trust, an experimenter made it a point, while describing the task, to ever so lightly touch the backs of individuals as they were about to play the game.
People who received a quick and unobtrusive touch were more likely to cooperate with, rather than compete against, their partner. So what does all this research add up to? In fact, in many ways, trust is our default position; we trust routinely, reflexively, and somewhat mindlessly across a broad range of social situations. We are no more likely to ask ourselves how trusting we are at any How do i trust people moment than to inquire if gravity is still keeping the planets in orbit. Much of the time this predisposition serves us well. Indeed, a lot of research confirms it.
Our exquisitely adapted, cue-driven brains may help us forge trust connections in the first place, but they also make us vulnerable to exploitation. In particular, our tendency to judge trustworthiness on the basis of physical similarities and other surface cues can prove disastrous when combined with the way we process information. One tendency that skews our judgment is our proclivity to see what we want to see. Psychologists call this the confirmation bias. Because of it we pay more attention to, and overweight in importance, evidence supporting our hypotheses about the world, while downplaying or discounting discrepancies or evidence to How do i trust people contrary.
In one laboratory game I conducted, individuals who were primed to expect a possible abuse of trust looked more carefully for s of untrustworthy behavior from prospective partners. These stereotypes reflect often false beliefs that correlate observable cues facial characteristics, age, gender, race, and so on with underlying psychological traits honesty, reliability, likability, or trustworthiness. Most of the time our implicit personality theories are pretty harmless; they simply help us categorize people more quickly and render social judgments more swiftly.
To make matters worse, people tend to think their own judgment is better than average—including their judgment about whom to trust. This inflated sense of our own judgment makes us vulnerable to people who can fake outward s of trustworthiness. We often rely on trusted third parties to verify the character or reliability of other people.
In such situations, trust becomes, quite literally, transitive.How do i trust people
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3 Reasons You Find It Hard To Trust People