Society Needs Trust

Source: Farnam Street, Jan 2017

… security technologist Bruce Schneier in his book Liars and Outliers: Enabling the Trust That Society Needs to Thrive By. The book outlines how society establishes and maintains trust and tackles some core concepts related to trust from the past, present, and future.

History shows us that those who defy the group norm can even become the catalysts for dramatic, and much needed, social change.

Schneier argues it’s the scope of the defection that we should be worried about.

What we’re concerned with is the overall scope of defection. I mean this term to be general, comprising the number of defectors, the rate of their defection, the frequency of their defection, and the intensity (the amount of damage) of their defection.

The scope of defection is important because the level of cooperation/trust in a society is often indicative of health. Sociologist Barbara Misztal identified three critical functions performed by trust:

1. It makes social life more predictable,
2. It creates a sense of community, and
3. It makes it easier for people to work together.

If the rate of defection is too high than these critical functions are not being met. (As Charlie Munger likes to say, the highest form a civilization can reach is a seamless web of deserving trust.)

Schneier outlines four basic categories of societal pressure:

Moral pressure — A lot of societal pressure comes from inside our own heads. Most of us don’t steal, and it’s not because there are armed guards and alarms protecting piles of stuff. We won’t steal because we believe it’s wrong, or we’ll feel guilty if we do, or we want to follow the rules.

Reputation pressure — A wholly different, and much stronger, type of pressure comes from how others respond to our actions. Reputational pressure can be very powerful; both individuals and organizations feel a lot of pressure to follow the group norms because they don’t want a bad reputation.

Institutional pressure — Institutions have rules and laws. These are norms that are codified, and whose enactment and enforcement is generally delegated. Institutional pressure induces people to behave according to the group norm by imposing sanctions on those who don’t, and occasionally by rewarding those who do.

Security systems — Security systems are another form of societal pressure. This includes any security mechanism designed to induce cooperation, prevent defection, induce trust, and compel compliance. It includes things that work to prevent defectors, like door locks and tall fences; things that interdict defectors, like alarm systems and guards; things that only work after the fact, like forensic and audit systems; and mitigation systems that help the victim recover faster and care less that the defection occurred.

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