The Neurophysiology of Corporate Apologies: Why Do People Believe Insincere Apologies?

CEOs typically offer apologies after transgressions are discovered whether mistakes were corrected or not. Seemingly insincere apologies, however, may damage the company by impugning its reputation. This study uses neurophysiologic data to identify why people believe apologies and identify when resolutions have occurred. Participants watched videos of corporate apologies and earned $3 for each video they watched. They could wager any of their...