About FORGOOD framework for ethical Behavioural Science in corporations
Written by Annabel Gillard, Bishin Ho & Maria Fronoschuk from Principia Advisory, Behavioural Science LSE & Cowry Consulting respectively.
The FORGOOD framework was originally developed by Lades and Delaney (2022) to provide a comprehensive structure to evaluate the ethical dimensions of behavioural interventions, primarily in the public sector. The mnemonic guides to consider Fairness, Openness, Respect, Goals, Opinions, Options and Delegated authority. Behavioural Science draws on a breadth and depth of academic history, but implementing targeted behaviour change was a new discipline that hitherto lacked a clear professional structure to provide ethical guidance. FORGOOD received a warm reception in addressing that gap and has been adopted by UNICEF and forms the basis of the OECD guidance.
Annabel and Bishin both have a corporate background and wanted to investigate whether the FORGOOD framework could be applied in a commercial setting and what adaptations would be required to reflect theories of the firm and the different ethical issues that arise. This is explored in the whitepaper.
Ethics as a guiding principle for long-term success and insurance for reputational risks
Lately, there's been a real buzz around corporate accountability coming from the public and investors alike. Companies are on the hook not just for their shareholders but for everyone in the mix – employees, consumers, and the big wide world, including the environment. You can see this shift playing out in how we're rethinking ethical and governance principles — in the rise of initiatives like the Global Reporting Initiative and the B-Corp movement. Companies are going for accreditation, and people are actively seeking out and supporting businesses with that B-Corp stamp. It's a clear sign of the growing demand for businesses to step up their ethics game.
In the short run, it might seem like there's a gap between what benefits the company commercially and what's good for, say, your wider stakeholders or customers. But our perspective is that taking a long-term view means these interests will align eventually. Companies and customers are looking for change, and while some might see ethics as a business cost, it's about making the case to the big players that being ethical is actually a smart move commercially. It's not just the right thing to do; it's a win-win-win.
By proactively addressing ethical issues upfront, companies can course-correct before it becomes a significant problem down the track. From this perspective, being ethical is not just a moral stance; it's also in your commercial interest. While there might be short-term costs, the long-term benefits are substantial. Think about companies like Wirecard or FTX – giants that no longer exist due to ethical failures. Consider it akin to having an insurance policy against scandals and an investment in safeguarding a company's reputation, the value of which is priceless.
Looking back at previous scandals, the business community recognises the imperative for stronger ethical standards. However, in the realm of using Behavioural Science in business—a relatively new frontier—there's a pressing need for discussions and thoughtful considerations. Businesses are increasingly leveraging Behavioural Science and nudging in their interventions, and adept practitioners are crucial here to guide them.
Another aspect that having a well-established ethical application of Behavioural Science—for example, a framework like FORGOOD—can offer is making your intervention more robust. Even if there may be a trade-off between the most ethical and the most commercially beneficial choice. Having a framework or a set of principles brings in perspectives you might not have considered, driving a higher-quality product offering, and also demonstrates that a duty of care has been exercised and helps explain decisions later if needed. Interestingly, some preliminary research indicates that the more people perceive an intervention to be ethical, the higher they rate its quality. There's a close correlation between perceptions of quality and ethics, which enhances overall credibility.
Changing behaviours ethically as a new norm for all organisations
The notion that business activities inherently influence behaviour is indisputable, regardless of whether companies consciously acknowledge it. There is no concept of impartial design, especially concerning how this design shapes people's behaviours.
Reflecting on the emergence of Behavioural Science as a standalone discipline around a decade or two ago, organisations were already consciously or unconsciously shaping human behaviour. Whether in customer interactions, B2B relationships, or government lobbying, the objective was always to influence behaviour. Businesses have been influencing behaviour throughout their existence, often without explicit acknowledgement. It's about making explicit what has been implicit for a long time.
The ethical dimension becomes prominent when there's an asymmetry of information and tools. If one party possesses a deep understanding of psychology and access to data or algorithms to influence behaviour, while the other—often customers—lacks this knowledge, concerns about fairness and ethics arise. The other big ethical question is about whose interests are being served — is it the customers, or is it the company at the expense of the customers? This is where professional standards for applied Behavioural Science become imperative, and prioritising collaboration with practitioners who take these issues seriously should be high on companies' agendas.
To borrow a quote from Spider-Man: with great power comes great responsibility. This principle remains true for any profession, especially when dealing with the significant influence wielded by Behavioural Science. Establishing ethical standards is a straightforward yet compelling measure to ensure the responsible use of this power. To bring principles for the ethical application of Behavioural Science to a broader level, a common framework—for example, FORGOOD Framework for Ethical Behavioural Science in Corporations, but not exclusively—is essential. It levels the playing field, ensures that businesses adhere to a set of ethical guidelines, and builds customer trust and intervention resilience.
Armed with the power to choose and growing awareness, customers and other companies can decide to work with and buy from businesses committed to ethical principles that are embedded into internal guidelines. Accreditation plays a vital role in this, similar to the financial sector, where firms must comply with standards such as FCA regulations. The aspiration is that ethical companies, through their practices and influence, encourage others to adopt similar ethical standards, creating a more level playing field for everyone involved.
To take this to the next level, consider viewing any framework for the ethical application of Behavioural Science as an evolution of all existing ethical frameworks employed by businesses and other organisations. This perspective becomes particularly pertinent in the current landscape, where companies wield advanced data insights and technology. It's a fundamental acknowledgement that, in the process of launching new products or executing marketing campaigns, organisations aren't merely offering something to customers – they are actively moulding human behaviours. This recognition underscores the importance of seamlessly integrating the principles of ethical psychology and Behavioural Science into every existing ethical and quality assurance framework a corporation has.
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