Ask Ariely: On whistleblowing, Zipcars, and the rosy effect of the unexplored
Here’s my Q&A column from the WSJ this week — and if you have any questions for me, just email them to AskAriely@wsj.com.
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Dear Dan,
I was the whistleblower for a very large corporate disaster. Since the whistleblowing, I have been shocked at the vitriol and social exclusion I have suffered as a result of speaking the truth. What is it about whistleblowers that makes society want to exclude them? Any insights and guidance would be most welcome.
—Wendy
From what I understand, the backlash you are experiencing is very common among whistleblowers.
In thinking about your issue, I reflected on why I want my kids (ages 10 and 6) to solve their problems themselves, without involving higher authorities (their parents). Tattling is considered very negative behavior. Of course, sometimes my kids have legitimate claims that require an intervention from the “authorities,” but my negative reaction to tattling suggests that I’m willing to accept some violations of justice in order to have the problems solved internally.
Perhaps the friends of whistleblowers see them as not truly part of the social circle, since they’ve shown willingness to seek external authorities when conflicts emerge. Maybe your social exclusion is due to a belief that when problems emerge in the future, you will again look for an external authority? If you were Tom Sawyer, you could cut your hand and mix your blood with that of your friends to symbolize your connection, but given that this might not work for your age group, perhaps you need to find a related ritual that will show your commitment to the social group.
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Dear Dan,
I live in a quasi-urban area near Washington, D.C., don’t own a car and take the metro to work. Near my home is a fleet of Zipcars (a car-sharing system starting at $8 an hour, including gas, insurance and up to 180 miles of driving in a day). If I bought a car, the monthly costs alone (insurance, parking) would amount to about $200; then there’s the purchase of the car, gas and tolls. For that money I could regularly rent Zipcars.
So why don’t I? I could go to different restaurants and entertainment. But each time I think of doing this, I ask myself whether I want to spend the extra money to rent the car and usually decide against it.
This issue comes up the most with groceries. There’s a fantastic supermarket a quick drive away that sells much better and cheaper produce than my local store. In the end, I feel like I’m choosing between (1) overpaying at my local store and feeling cheated and (2) going to the better store but also feeling cheated because I spent $30 on a Zipcar to save that same amount on groceries. What do you suggest?
—Michal
What you’re experiencing is a conflict between your enjoyment of a better supermarket and your cost-benefit analysis. What’s interesting is that if you bought a car, you’d spend much more money overall, but on any given week you wouldn’t feel the pain of paying to get to the supermarket. Because a car can be used for so many different purposes, no single one will feel like the reason for the car, and you’d only focus on the marginal cost of driving a few extra miles, despite the car’s overall expense and inefficiency.
Instead, you could try calling Zipcar and offering to pay them in advance for three hours of car use four times a month for a year. This way you wouldn’t undergo a cost-benefit calculus for every visit to the supermarket.
And if you can’t convince Zipcar to do this, how about putting the money you’re saving by not having a car into a “Zipcar” bank account, and linking the Zipcar use to the money you’re saving? And to make sure you use this money for the Zipcar, commit to giving whatever’s left in that account at the end of the year to a charity you hate.
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Dear Dan,
A few weeks ago you told us that in romantic encounters, the heart grows fonder when we know less about a potential mate. Does it also work for job applicants? Do we like people more when they’re hired from the outside rather than from within?
—John
Plenty of lessons from romantic love apply to the rest of our lives, and you’re correct that this is one of them. There’s some evidence showing that CEOs hired from the outside get paid more than those from the inside and that they don’t do as well. I suspect that the reason for this is the same heightened expectations that come with lack of knowledge. The question, of course, is how to combat our natural tendency to be overly optimistic about people we don’t know very well—both romantically and professionally.
See the original article in the Wall Street Journal here.

The Honest Truth About Dishonesty: How We Lie to Everyone - Especially Ourselves

The backlash against the whistleblower, I think, is even more fundamental. Consider the volume of people who cheat just a little bit in order to still feel good about themselves. These people also prefer to hide this cheating for the most part. Now you introduce a person who has proven they will shine a light on cheaters. I believe people will exclude a person like that in order to avoid the circumstance in which their “cheating just a little bit” could be brought to light.
One “upvote” for Chuck.
Also, I find the proposed solution for ZipCar pains rather interesting– and I wonder why more services don’t consider designing their cost structures to reduce consumer pain an area of major concern.
One example of this is the difference between (say) Netflix and the Comcast On Demand. I happily pay netflix a fixed fee per month (which I then don’t use) rather than feel gouged every time I want to watch a movie on ‘On Demand’. In this case, the calculus is a little more complicated as I am already paying the cable company a lot of money to get cable TV.
Hello Dan,
I wanted to leave a comment for folks who experience “social isolation” among other negative treatment as a result of reporting unethical conduct as whistleblowers. This is common, however they have tools intended to stop and hold accountable those who choose to treat them poorly.
Best,
Rande
Equating whistleblowers and grade school tatters does not jibe. The latter seek justice only for themselves. Whistleblowers seek justice for many, sometimes knowingly putting themselves at risk .Expecting children to resolve their conflicts on their own may be reasonable, but going up against an Enron-type corporate structure is quite a different story. Just think how differently things might have turned out if there had been effective whistleblowers in the Real Estate/Wall Street fiasco. It seems likely that people who abuse whistleblowers are too familiar with their own sins, perhaps were even in some way complicit in the overall scam that was outed. Whistleblowers also remind others that it is possible to act on a higher moral plain than those folks had been heretofore.
Reblogged this on jennroig and commented:
I interviewed Dan Ariely a while ago, when I was working for AmericaEconomia. You can find the unedited English version of that interview here on this blog as well. Chech his thoughts on whistleblowing
Whistleblowers are or should be commended for their courage and willingness to step up to the plate and challenge the status quo.
Sadly, we find bad actors in all sectors. If unchallenged, these folks can seriously damage society and even kill folks as a result of their behavior.
We find many examples where whistleblowers have prevent serious outcomes by exposing the conduct…Kudos!
Best,
Rande Matteson, CFE, PhD
Nice article
very interesting blog, I will continue to pick
Re. whistleblowing – We’re all emotionally invested in the status quo, we’ve fitted it into our mental models and like to think it will continue, comfortable and familiar. When a whistleblower quite rightly disrupts things, no matter how much good they have actually done I think a lot of people will react emotionally to the disruption of the status quo, then rationalize why they are turning on the blameless whistleblower not the company who actually did wrong. Editing our comfortable, established and prejudiced mental model where the company is trustworthy and we have not been decieved by them is harder than turning on this one individual whistleblower we probably weren’t even aware of before and who therefore has no place in our mental model of the world. It’s less painful for us to turn on someone than adapt and retcon what we believed.
Also, how is “tattling” even a concept an adult would seriously entertain? It’s just a nasty invective thrown by children who’ve been caught doing something wrong (or sometimes slacker authority figures themselves). If you were blameless and well behaved you wouldn’t mind what authority figures were told about what you’d been doing. Don’t want people to find out about your misdeeds? Don’t do them. And when people find out, have the integrity to take the consequences with out lashing out at the person who drew attention to your behaviour.
Hi,
I know this seems like a rather large reply to Wendy’s blog in regards to whistle-blowing, but for my business ethics assignment we are required to reply to a blog, within a 1000 word limit.
I am unable to provide much information about the vitriol and social exclusions that you have experienced from speaking the truth, as I require more detail of the circumstances & reasons as to what you blew the whistle about & as to why you blew the whistle. However, I can answer your question about “what is it about whistle-blowers that makes society want to exclude them”.
What is it about whistle-blowers that makes society want to exclude them? Let’s think about the word whistle-blowers for a minute, What do you think of as soon as you hear the word whistle-blower? Personally before I researched further into it, I was much like society in general, several attributes of the word “whistle-blower” would come in to my mind; “tattling”, “nark”, “disloyal”, “unethical”, “bad person”, “immoral”. Now ask yourselves, does society want to include people with such attributes? The answer without any justification as to why would be “no”, however I don’t believe it is substantial enough for society to quickly make judgments, without having sound knowledge or being able to clarify their opinions without the actual facts of the case. So why does society jump straight to the conclusion of wanting to exclude whistle-blowers?
Society’s judgment is largely influenced by publicity and word of mouth, the bulk of publicity where you see or hear about whistle-blowers is negative. Negative whistle blowing is where the whistle-blower has either been wrong, has not followed correct procedures or has done it for the wrong reasons, resulting in disrupting a workplace & causing serious harm towards the organization or individuals accused. If you were an individual or part of an organization falsely or wrongly accused how would you feel? Of course you would want the whole world to know as you wouldn’t want it to affect your reputation, or from an organizations point of view, you would not want to lose the source from where your income came from as it would affect your survival. From this point of view, it is clear to understand why society wants to exclude these people, so to me this gives insight to the question “what is it about whistle-blowers that makes society want to exclude them?”
For us to change society’s view on whistle-blowers we need to educate them about the good that can come from someone blowing the whistle, and how it can be seen as an ethical & moral action in today’s world.
Society needs to realize that; “society as a whole can gain more than lose by glorifying whistle-blowers, they prevent violations of laws, regulations, fraud, health & safety, laxity & corruption”.
http://www.koreatimes.co.kr/www/news/opinion/2011/09/202_95362.html
To support this quotation I will use an example where health & safety issues could have been prevented if someone had blown the whistle. Let’s think back to the tragedy that occurred in New Zealand in 2010, the Pike River Tragedy. The question is now being asked as to “why no-one connected to the Pike River blew the whistle on the poor safety standards at the mine where 29 people died in 2010?”
http://www.stuff.co.nz/the-press/news/7995362/Whistleblowers-need-protection
If someone had blown the whistle about the poor safety standards of the mine, would that individual have been excluded from society? Would the actions of that individual be seen as unethical or immoral? In order to answer these questions, I need to reflect on ethical theories.
From a Utilitarian point of view, to justify if this action would be ethical, the question needs to be asked “would this action maximize happiness, and minimize harm?” The answer is clear that it would have been ethical for someone to blow the whistle, as 29 lives could have been saved, and 29 families wouldn’t have been put through the heartache of losing a loved one, and the nation wouldn’t have been devastated by this tragedy.
A Kantian believes that the moral importance of ones actions is dependent on the principle behind ones action rather than the likely consequences of one’s action. The principle of one whistle-blowing on the Pike River safety standards, would have been of moral importance because the principle of someone blowing the whistle would have been to ensure that safety standards are improved, as everyone is entitled to work in a safe environment.
Virtue ethics holds that “an action is morally good if it is the actions that a person of ideally good character would do”. (Open Polytechnic text, 2009, m1, pg 36)
A person of good character holds virtues such as honesty, responsibility, & fairness, so virtue ethics would have no doubt about agreeing that it would have been a morally good action for someone to blow the whistle about the safety standards in the mine.
In conclusion, society needs to realize that the ones who frown upon whistle blowers are not likely to have the same ethical standards of a whistle blower, and that society could well be better off if we had more whistle-blowers, so let’s not exclude whistle-blowers from society!
People will always consider the impact that whistle blowing will have on their life before they blow the whistle on a company and a lot of people do receive some sort of backlash when they do blow the whistle on the company. Whistle blowing however, is a lot more than “tattling” on a company to the public, it’s about informing the public of a wrong doing by a company. The best way to look at whistle blowing is how to deal with the backlash and help others understand more about whistle blowing and helping them to understand it is a positive thing rather than a negative.
The definition of whistle blower on WordNet Search is “an informant who exposes wrongdoing within an organisation in the hope of stopping it”. Whistle blowing can be internal and external whistle blowers. Internal whistle blowers are people that report wrong doing allegations to someone higher within the same company as them where as external whistle blowers are ones that report to the media or external authorities. Whistle blowers are people that are trying to help the public by making them aware of an issue that could potentially affect them.
According to this blog, whistle blowing is the same as tattling on a friend. Whistle blowing is much more than this if the proper channels are followed and there are a number of steps to be taken. Speaking to people higher in the company to resolve the wrongdoing is the first option however, if it is not resolved and this wrongdoing is affecting the public they have a right to know about it. One cannot say that whistle blowing is like “tattling” on a friend as whistle blowing is revealing something that is affecting a lot of people. Tattling is defined on WordNet search as 1. “Report another’s wrongdoing: “he never tattled or told tales”2. “Gossip idly”. When I think of “tattling” I think of someone that has done something wrong and someone else is telling someone with the intention that they will get into trouble. There is no affect on anyone but the person that was tattled on. Another blog about Whistle blowers and tattling has an interesting comment “Telling/reporting (mentioned earlier in the comment as whistle blowing) is important if someone is being hurt (physically, emotionally, or even financially). Tattling is when you’re telling on someone mostly just to get them in trouble and no one is getting hurt.” (http://community.babycenter.com/post/a20594525/whistleblowers_and_tattling)
If you are a whistle blower and you are finding that you are getting a lot of backlash from friends or the public there are good ways of dealing with this. Try and explain to these people why you did what you did. Explain that if you had not reported the information you passed on the affects of what the company were doing could have been larger. In the comments of the blog on babycenter.com one of them says if you don’t report something that you know is wrong then you are just as guilty as the people involved. Try explaining to your friends or people that question your actions that you could not sit by and watch the public be hurt by a company’s actions and you did not want to feel guilty for not reporting the wrong doing.
While I agree that at times there is a backlash towards the whistle blower I do not agree on the way that whistle blowing has been described. Whistle blowing is a lot more than tattling on a company. It is about helping the public and keeping them aware of a company’s action that could be seriously hurting them. Would they be happy to know that you knew that a company was stealing millions of dollars from the public and you did not report it to the authorities?
References:
http://community.babycenter.com/post/a20594525/whistleblowers_and_tattling
http://danariely.com/2012/12/10/ask-ariely-on-whistleblowing-zipcars-and-the-rosy-effect-of-the-unexplored/
http://wordnetweb.princeton.edu/perl/webwn
Hi all, I am also posting as part of my Ethics assignment, I hope some of what I have written is beneficial to the discussion.
The issue of whistle blowing has always been a highly debated issue in the arena of ethics. Foremost, what is whistleblowing, or how can we define it? The idea of whistle-blowing comes from the instance of a referee blowing a whistle in the presence of a foul’ (Duska, p145). It is defined as ‘the disclosure by a person, usually an employee in a government agency or private enterprise, to the public or to those in authority, of mismanagement, corruption, illegality, or some other wrongdoing’ (The Free Dictionary, 2012). If a person chooses not to blow the whistle and bring to light ‘a genuinely dangerous or illegal activity, it could possibly lead to damaging consequences for both the company and employees (Gridler,2012). So why is whistle-blowing perceived so negatively from at least a company or business perspective you ask? Well this is because from a business’ point of view, it is as if one is blowing the whistle on one’s own team, therefore violating team loyalty (Duska, p.145).
Duska goes on to further illustrate this view by using Norman Bowies claim. Norman Bowie believes that ‘whistleblowing violates prima facie, duty of loyalty to one’s employer’ (Duska, p.143). According to Bowie, there is a duty of loyalty which prohibits one from reporting his employer or company (Duska, p.143). Duska on the other hand does not entirely dismiss Bowie’s views, but disagrees with his claim because she ‘fails to see how one has an obligation of loyalty to one’s company’ (Duska, p.143). By this Duska means that an employee does not have an obligation of loyalty to the company, not even a prima facie one, because companies are not the kind of things which are proper objects of loyalty (Duska, p.143). What does Duska mean by ‘proper objects of loyalty’? What Duska means by this is that a company is not an entity that can reciprocate loyalty; therefore a person does not owe loyalty to a company (Open Polytechnic, p.14). This is because loyalty implies actions based on obligations stemming from an acknowledgment of the importance of an emotion (love or friendship) relationship; and this sort of relationship is only appropriate or healthy with an entity that can reciprocate an emotional relationship with a person (Open Polytechnic, p.14). In contrast, a person can expect loyalty from another person like a family member or friend with which that person has a personal relationship with, but not so from a company or business.
So when is it right for a person to whistle-blow? According to Duska ‘Whistleblowing is not only permissible but expected when a company is harming society. If whistleblowing can prevent harm then it is required under certain conditions’ (Duska, p.146). For a person to think that they owe their company loyalty (maybe due to years of service for example), requires the person to think of that company as a person or as a group. However, a company is not a person. A company is an instrument, and an instrument with a specific purpose, the making of profit (Duska, p.145), so it does not need to expect a human loyalty.
Another reason why whistle-blowing is viewed negatively by society is because ‘whistleblowing always involves revealing information that would not ordinarily be revealed’ (Davis, p. 4). Michael Davis (1996) further states that not any individual can blow the whistle ‘only a member of an organisation, whether a current or former member, can do so’ (Davis, p. 4). To be a whistle-blower, a person is revealing information with which they have been entrusted (Davis, p.5). This means that the whistle-blower is revealing information which derives from their own work for the organisation (Davis, p.11).
There are some negative consequences that whistle-blowers can face, which you may have already experienced. For example, the risk of destroying their entire livelihoods, losing their job, damaging their reputation (seen by other staff as a snitch), loss of respect from their community, just to name a few. These negative consequences can be a devastating loss to the whistle-blower, especially when their entire career hangs in the balance.
To help a whistle-blower decide whether or not to blow the whistle, they could look at applying the utilitarian ethical theory to weigh the pros and cons of their actions. The utilitarian theory asks the principle ethical question, “which option for action will help produce the greatest amount of happiness and the least harm?”. Firstly, the whistle-blower must identify the possible options for action. Say for example, if nothing is done and the fraudulent activities continue, and could continue to the point where more people are likely to be harmed if the nothing is done. Then the agent needs to identify the possible good or bad consequences for the parties that may be affected. After considering all this, the agent must ‘choose the action that seems the most likely to maximise happiness and minimise suffering, at the same time considering equally the interests of all that may be affected (Open Polytechnic, p.18). To decide on a final action, ‘the utilitarian would ask which outcome is most likely and how bad the potential bad consequences are (Open Polytechnic, p.18). If a good outcome is more likely over a bad outcome by a particular action then ‘any potential bad consequences can be mitigated in some way’ (Open Polytechnic, p.18).
In summary, whistle-blowers are best to familiarise themselves with their companies policy on whistleblowing before talking to the appropriate people (Girdler, 2012) and taking the most reasonable course of action.
Adding in my references
References
Davis, M. (1996). Some paradoxes of whistleblowing. Business and Professional Ethics Journal, 15 (i), 3-19).
Duska, R. F. (1990). Whistleblowing and employee loyalty. In J.R. Desjardins & J.J. McCall (Eds.), Contemporary issues in business ethics (2nd ed., pp. 142-147). Belmont CA: Wadsworth
Open Polytechnic. (2009). 71203 Business Ethics. Lower Hutt, New Zealand
Girdler, S. (2012). How do I “blow the whistle “on bad practices? Retrieved February 2, 2012 , from http://www.callcentrehelper.com/how-do-i-blow-the-whistle-on-bad-practices-166.htm
“Whistle-Blowing”, (2012). Retrieved February 2, 2012, from
http://legal-dictionary.thefreedictionary.com/Whistleblowing
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I’ve lived in the DC-area for 15 years, with and without a car. The trick for me is to bundle the supermarket trips with other trips – multiple markets or trips out of the normal scheme of things. Also, it’s often cheaper to find a supermarket on the metro line even if it’s further away than the best one. I still have my folding supermarket cart if he needs one! I could usually get by with one metro-worthy haul every 2 weeks if I filled the cart. Also reminds me of living in Boston and shopping at Haymarket for 9 people’s produce with one of those hiking backpacks, taking the T home.