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Michael Cogliantry/Getty ImagesResidents of Gulfport, Mississippi, will never forget August 29, 2005. Hurricane Katrina battered their city with 16 hours of winds and ocean surges that exceeded 28 feet.After the storm calmed, residents set their sights on rebuilding. But with electricity unlikely to be restored soon, access to money was frozen. Whether you had $100 or $100,000 in the bank didnāt matter; you couldnāt get to it.
The CEOs of Hancock Bank, a local financial institution, made a surprising decision. They would jump-start commerce using a basic strategy: trust. Hancockās leaders decided to trust that people whom they allowed to withdraw money would pay it back. Bank employees set up folding tables around the community and gave up to $200 to anyone who wrote his or her name, address, and Social Security number on a scrap of paper. Hancock released more than $40 million, and all but $200,000āabout one half of 1 percent of the amount distributedāwas returned. Hancock gained thousands of customers and increased its assets by more than 20 percent.
From contracts with banks and marital vows to daily interactions with our family, friends, and colleagues, trust pervades almost every aspect of our lives. We think we know what trust means (keeping your word) and looks like (beware shifty eyes), but after conducting and reading hundreds of studies, Iāve observed that itās much more nuanced than you think, and many of our longtime assumptions can be way off. Consider these principles to avoid being vulnerable and make smarter decisions.
1. Watch Out for Power Plays
We like to think we can predict trustworthiness on the basis of reputation, but decades of research show itās not the case. People are shocked by this. Theyāll note that their uncle Ben has always been honest or, on the other hand, is someone you wouldnāt trust with your money. If this is true, itās because our lives usually donāt change much from day to day. But if monetary rewards are tempting enough or if a change in status makes you more powerful, your trustworthiness is susceptibleāno matter who you are.
Dana Carney of the Haas School of Business in Berkeley, California, has demonstrated that increases in power make people better liars. Participants played roles in a fake business. āBossesā had bigger offices than āworkers,ā got to assign workers salaries, and so forth. Half of participants (both ābossesā and āworkersā) were instructed to sā ƩƔl a $100 bill. Those told to sā ƩƔl could keep the money if they could convince the experiment runner that they didnāt take it. (That person didnāt know who was assigned to sā ƩƔl and who wasnāt.)
Thieves with little powerāthe āworkersāāwere more often pegged as deceitful than the high-powered ābossā thieves. A slight change in status empowered the ābossesā to be self-serving liars.
Consider the impact of larger, longer-lasting changes in money or power. If your spouse lands a big client or a childhood pal comes into family money, it could affect how each person treats you. With increasing money and power comes the belief that you donāt depend as much on others; as a result, it becomes easier to treat people unfairly.
But before you judge the rich too quickly, realize that you donāt have to land a big raise to be corrupted a little. Simply being in close proximity to moneyāsay, at a ******ācan increase dishonesty, research shows. Being physically close to cash makes you feel as if you have plenty of resources, which can make you favor short-term, self-centered behaviors (making big bets at the craps table) while ignoring repercussions (risking savings for your kitchen renovation).
To demonstrate this, Harvard economist Francesca Gino had study participants self-grade a work sheet, then take earnings from a pile of cash on a nearby table. (They were told to take $3 for each correct answerāthe study ran on the honor system.) For one group, a few hundred dollars sat on the table; for the other, more than $7,000. Guess who cheated more. As Gino predicted, the presence of the extra cash increased cheating in the latter group.
2. Listen to Your Intuition
Thereās a long history in psychology of believing that specific EĆĻréŔŔions or gestures provide unambiguous cues about a personās motivations or feelings. A smile means someone likes you. A furrowed brow means a person is angry. But we now know that isolated gestures and EĆĻréŔŔions arenāt reliable indicators. Whatās more, overanalyzing such nonverbal behavior can get in the way of our innate trust detectors.
With a team of scientists from Cornell and MIT, I videotaped pairs of people playing a ******** game to study all the possible combinations of behaviors that might influence decisions to trust or not trust. Over several months, a small army of trained coders translated participantsā actions into entries in a database.
After much investigation, we identified a set of four individual cues thatāwhen taken togetherāstrongly predicted how trustworthy a person would be: crossing arms, leaning away, face touching, and hand touching. The more frequently anyone engaged in all these behaviors, the less trustworthy he or she was in the ******** game.
Hereās where intuition comes in: The more often partners showed these cues, the less trust others placed in them. Even more interesting: No one could pinpoint which specific behaviors a partner exhibited that led him or her to guess the partner would be untrustworthyāparticipants just āsensedā it. In other words, weāre born with an instinct to subconsciously assess these traits and determine whom to trust.
The takeaway? If we listen to our gut, we can adjust on the basis of other information if needed (e.g., a change in someoneās power status).
