Topic 4 Examples of successful Nudges and CSR
COMPANY
The airline Virgina Atlantic aimed to reduce its fuel’s consumption. Pilots were provided reports on their flight consumption and they were divided in three groups:
The first group will not receive any notification, the second group will receive reports, information and objectives of fuel reduction and the three group, apart from the reports, were told that, if they reach the goal, the company will donate it to a charity.
Results showed that second group achieved the goals successfully and the third group felt highly motivated and fulfilled.
COMPANY
Google realized that male employees tend to ask for a promotion more frequently than women. In order to change this, managers contacted by email all employees as a reminder that they could ask for a promotion or salary increment in the annual meeting. remembering that, the annual meeting is the moment to ask for promotions.
The result was that the number of women hat applied for a promotion increased substantially, hence, this nudge was very effective and cost-free.
INITIATIVE
Save More Tomorrow programme:
Employees tended to try to save for their pensions, however, they normally forget or struggled to do it. To fight against these biases, Thaler and Bernatzi organized a meeting between a financial consultant and 286 employees from 3 different companies.
They were offered the Save More Tomorrow plan, which would rise their savings rate by 3 percentage points every pay raise.
In the left it could be seen how, indeed, the third group saved even a 15% more than the employees who declined the consultation.
