BB&T Colloquium Features Discussion on Psychology of Economics

Frank Auditorium was filled and attendees were on the edge of their seats on Sept. 30, 2014, at the BB&T Colloquium on Capitalism, Ethics and Leadership for a fascinating discussion about the moral psychology of economic life and strife. The event was sponsored by BB&T and hosted by the Center for Leadership, Innovation and Change (CLIC) at the University of Maryland’s Robert H. Smith School of Business.

“How did we get here? Why has capitalism been so morally controversial for the last quarter millennium?” asked featured speaker Jonathan Haidt, a social psychologist and the Thomas Cooley Professor of Ethical Leadership at the NYU-Stern School of Business.

Haidt is the author of more than 90 academic articles and two books: The Happiness Hypothesis: Finding Modern Truth in Ancient Wisdom, and the New York Times bestseller The Righteous Mind: Why Good People are Divided by Politics and Religion. He is in the process of writing his third book and his research examines the intuitive foundations of morality, and how morality varies across cultures of American liberals, conservatives and libertarians.

His presentation was a tale of two stories about capitalism, with a third story emerging. We cannot live without stories; big stories tell us what is real and significant, said Haidt. And he proved to be a masterful storyteller, which is not surprising given that his three TED talks have been viewed more than 3 million times.

Haidt’s first story described how capitalism is exploitation, business is bad, and the government is good. His second story described how capitalism is liberation, the government is bad, and business is good.

How do we individually select which story to believe? Should we believe either story? That’s where moral psychology comes into the picture. Haidt discussed six foundations of morality: care/harm, fairness/cheating, liberty/oppression, loyalty/betrayal, authority/subversion, and sanctity/degradation. (Want to know where you fall on the scale? Check out his website at YourMorals.org.)

Haidt illustrated how each moral could be seen as more “left” or “right.”  For example, regarding fairness and cheating, those on the left are more focused on equality. If they see extreme inequality, they see unfairness, said Haidt. Those on the right are more likely to consider proportionality – who is taking more than they are giving? For example, conservatives don’t want to reward failure, which is what they claim welfare promotes.

“Stories one and two both have undeniable truth,” said Haidt.  But a potential third story of “realistic liberation” could incorporate “psychological realism,” which recognizes human irrationality and exploitability, and “institutional realism,” which recognizes the need for government and limits of government.

During the Q&A session, Haidt addressed a variety questions ranging from shareholder values to “short-termism,” which he says is a huge problem. “It’s easier to be ethical if you have a long-term view,” he said.

Afterwards, attendees were able to continue the discussion at a dinner reception with Haidt, Smith School Dean Alex Triantis and Daniel Waetjen, group president at BB&T.

BB&T Partnership
In March 2010, the Robert H. Smith School of Business received $1.5 million from the BB&T Foundation to support its business ethics and leadership programs. Awarded over a 10-year period, the gift funds the BB&T Colloquium on Capitalism, Ethics and Leadership lecture series at the Center for Leadership, Innovation and Chance (CLIC). In addition to supporting the center’s mission to advance individual, team and organizational effectiveness, the BB&T gift helps create undergraduate, MBA and executive education curricula that focus on the logic and morality of capitalism. For nearly 15 years, BB&T has been a strong supporter of the Smith School, investing in student scholarships and entrepreneurial and academic program initiatives.

About the Center for Leadership, Innovation and Change (CLIC)
Launched in October 2010, the Center for Leadership, Innovation and Change (CLIC) produces vanguard research, programs and related activities to foster effective leadership that promotes innovation, change and social stewardship in organizations. The center translates scholarly research and practical expertise into leadership insights for business, government and nonprofit executives. CLIC leadership is comprised of co-directors Kathryn Bartol and Susan Taylor.

Check back soon for video highlights.

Alissa Arford, Office of Marketing Communications