We are delighted to welcome Roberto Weber as UBS Foundation Professor for the Economics of Corporate Culture, Business Ethics, and Social Responsibility at the University of Zurich. He also serves as the Director of the Zurich Graduate School of Economics. Prof. Weber’s research explores pressing societal and economic issues, with a focus on decision-making, social responsibility, and trust. His work provides valuable insights into how social norms and institutional frameworks influence ethical behavior, both in organizations and markets.

In his two latest studies, Prof. Weber examines how public discourse can encourage socially responsible behavior in markets and how individuals navigate privacy decisions in the digital age. These studies highlight the power of communication in promoting ethical consumption and reveal the challenges people face in valuing their personal data.

Public discourse drives social responsibility

A study co-authored by Weber and Björn Bartling reveals that public discourse can significantly increase socially responsible behavior in markets. The research examined how engaging in discussions before purchasing decisions influences consumer and seller behavior in artificial laboratory markets. Across three experiments involving nearly 2,500 participants, buyers and sellers who engaged in discourse were more likely to choose products with higher social responsibility, even at a personal cost.

Interestingly, these results were consistent across Switzerland and China, highlighting the universal impact of discourse on behavior. However, the study also showed that when participants were allowed to avoid discussions, the market share of socially responsible products declined. The findings illustrate how important active participation in public discourse can be in bringing about meaningful changes in market behavior.

This research underscores the power of communication in driving collective action, whether through movements like Fridays for Future or global forums like the World Economic Forum.

Rationality in privacy choices

Weber’s second study, co-authored with Yi-Shan Lee from the Chinese University of Hong Kong, investigates how people make decisions about sharing their personal information. Using an economic framework, the study found that while most individuals handle privacy-related tradeoffs consistently, some make significant errors in valuing their data.

Key findings highlight three privacy concerns:

1. Is managing personal information harder than other decision-making areas?
2. Can monetary valuation effectively protect privacy?
3. How do differing privacy attitudes shape decision-making in everyday contexts?

The study reveals that many people struggle to assign appropriate monetary value to their personal data, leading to poor decision-making. These insights are crucial for policymakers aiming to balance the benefits of data sharing with the risks of misuse, offering guidance on fostering better privacy practices in an increasingly digital world.

A broader perspective

Together, these studies showcase the intersection of social responsibility and privacy in modern markets. They emphasize the importance of fostering dialogue and understanding how individuals make decisions, offering a roadmap for creating policies that promote ethical behavior and protect personal data.

As these findings show, whether addressing climate change through responsible consumption or safeguarding privacy in the digital age, informed and rational decision-making remains key to building a more equitable and sustainable future.