Applying Behavioural Insights in Public Policies Aimed at (Business) Organisations: Evidence and Policy Implications

Abstract

Behavioural insights have become increasingly entrenched in governments around the world, but there has been much less research done on their application to organisations, in particular business organisations. The main research question around which the article has been structured is: how far behavioural insights inform public policies aimed at firms - what evidence can be found in this respect and what policy implications can be derived from it? A systematic literature review has been conducted to identify and analyse the cases on the application of behavioural insights that either involve firms or can inform behavioural public interventions at an organisational level. It has been found out that behavioural insights are applied to business, mainly: (a) to encourage compliant behaviour, (b) improve interactions between public institutions and businesses, as well as, (c) make businesses more socially and environmentally responsible. Depending on the type of the organisational behaviour different behavioural insights were applied. They vary from ‘standard’, non-deliberative nudges that play upon human cognitive biases, through information nudges and remainders to corporate transparency. While some behavioural insights into individual behaviour are equally effective towards organisations when addressed to specific individuals within a firm, others need more institutional and cultural underpinning.