Last week, I had the honor to record a podcast with Dr. Paul Zak researcher, author, entrepreneur, and Director of the Center for Neuroeconomics Studies at Claremont Graduate University.

We spent a wonderful hour going deep into the neurological mechanisms behind entrepreneurial behavior, particularly what makes people generous. And what I learned is that there are three primary hormones oxytocin, cortisol, and testosterone that hold they keys to generosity in our economic relationships. Here’s the discovery.

Twenty years ago, Paul and his team created an experiment to test their hypothesis that oxytocin is the molecule of morality. So they began by taking blood samples of their study participants. Then they shared an emotional video with them about a father and his dying son. Here’s how Paul describes it.

Following the story, the researchers again took blood samples from participants and compared them to the initial samples, measuring levels of serum cortisol and oxytocin.

The participants were then asked to play the Ultimatum Game, a psychological and economic experiment where one player proposes how to split a sum of money (in this case, $40) with a second, unknown player. If the second player accepts, both receive the proposed amounts. If rejected, neither gets anything. And once the participants were informed about the results of their game and the amount of money they would receive, each was offered a choice to either keep the money or donate it to a charity that supports children with cancer.

Interesting study, eh? But it gets even cooler.

What Zak and his team would discover was that most participants had higher levels of cortisol and oxytocin in their blood after watching the video about Ben and his dad. This illuminated how participants had a distress response that focused their attention on the heart-wrenching story (cortisol) as well as an empathic response which created an emotional connection with Ben and his father (oxytocin). What they came to understand was that powerful stories not only inspire us they also change our brain chemistry.

Zak and his team further observed that participants who produced more oxytocin tended to give more money away in the Ultimatum Game. The amount of oxytocin they released even predicted how much money they would share. On top of that, those with the highest oxytocin levels were more likely to donate their winnings to charity, highlighting the strong correlation between oxytocin and generosity.

With such exciting findings in hand, Zak and his team received funding from DARPA (the U.S. Defense Advanced Research Projects Agency) to re-run the experiment. But this time, they wanted to predict which participants would give money to charity before they watched the video.

In this new experiment, Zak not only measured participants’ serum cortisol and oxytocin but also monitored their heart rate, skin conductance, and respiration. Remarkably, the researchers were able to predict with 80% accuracy who would donate their money to charity based on these physiological markers.

Now, they were certain they were onto something. So they conducted the experiment a third time, but this time using brain scans (fMRI). In this experiment, they divided participants into two groups. One group watched the video of Ben and his father, while the other watched a control a video of Ben and his father at the zoo with no dramatic or emotional storyline.

The fMRI results showed that participants who watched the emotional video had heightened activity in brain regions associated with Theory of Mind (how we understand others’ thoughts and intentions) and in regions rich in oxytocin receptors (linked to empathy). This confirmed that the powerful emotional content of the story activated the neural pathways involved in empathy and social bonding.

At that point, Zak and his team had a pretty firm grasp on the relationship between emotional stories, generosity and oxytocin. But what about the participants who were less generous? Well, in the late 90s and early 2000s multiple researchers had shown a strong antagonistic relationship between testosterone and oxytocin in animal models. So naturally, Zak wondered if testosterone could be the reason for some of his participants’ less generous behaviors. Because while oxytocin fosters empathy, connection, and generosity, testosterone seems to push people (men and women) toward more self-interested behaviors.

Naturally, Zak and his team designed yet another experiment and the setup was similar to the previous ones. Participants were asked to engage in the Ultimatum Game once again, but this time, the researchers administered testosterone to some of the participants to observe its effects.

The results were striking. Participants with elevated testosterone levels were 27% less generous. And they were not only less inclined to share money fairly but also more likely to punish others who didn’t meet their expectations of generosity. It was as if the testosterone dampened their willingness to connect and collaborate, reinforcing more self-centered, competitive behavior.

Zak’s fascinating series of experiments paints a vivid picture of how biological forces guide our actions and emotions, shaping the way we interact with each other and navigate the complexities of human relationships. And for those of us who are in the business of building human relationships (i.e. almost everyone), there are many actionable lessons to be learned from Zak’s studies of oxytocin and generosity.

Let’s explore how Zak’s findings can be applied in practice by entrepreneurs and business leaders Here are 8 considerations for fostering generosity through neuroscience.

Pick the Right Partners

“The people you choose to work with can make or break your business.” - Bill Gates

While we might not literally be the average of the five people we spend the most time with, there’s no denying that our most important business relationships significantly influence our chances of success, as well as the satisfaction we derive from the journey. Research reveals that the most trusting, altruistic, and meaningful relationships are those characterized by higher oxytocin levels and lower testosterone (Schneiderman, Zagoory-Sharon, & Feldman, 2012). So, what does science suggest these relationships look like?

First, they are more likely to involve women. Studies consistently show that women have nearly twice the baseline oxytocin levels as men. A study published in The Journal of Personality and Social Psychology found that women tend to exhibit higher levels of empathy and are more inclined toward altruistic behavior compared to men (Batson & Powell, 2003). This tendency is not only linked to oxytocin but also to social and evolutionary factors that predispose women to prioritize communal well-being and long-term relationships.

Second, consider partnering with older individuals. Research shows that testosterone levels decline with age in both men and women (Kaufman & Vermeulen, 2005). A study published in The Gerontologist in 2019 demonstrated that as people age, they become more generous, likely due to a combination of life experience and shifting priorities (Brown & Brown, 2019).

Third, the quality of one’s social relationships is a strong indicator of generous behavior. A study in Social Neuroscience found that individuals with greater social interaction and meaningful relationships are more likely to engage in behaviors that promote group cohesion and collective success (Rilling & Sanfey, 2018).

Finally, certain personality traits like patience and cooperation suggest a likelihood of more generous behavior while traits such as aggression, competitiveness, and impatience, while potentially advantageous in climbing the corporate ladder, tend to be more self-serving and less reciprocal. A study in Psychological Science highlighted that individuals who score lower on aggression and self-interest are more likely to engage in cooperative and altruistic behaviors (Koole & Kuhl, 2017).

Now this doesn’t mean we should only do business with older women who have lots of friends and exhibit high levels of cooperation and patience (though that might not be a bad idea!). Instead, we should use this information to identify potential red flags, helping us predict whether a business relationship has a higher likelihood of going off course.

Create Oxytocin-Boosting Environments

“People will forget what you said, people will forget what you did, but people will never forget how you made them feel.” - Maya Angelou

Generosity and collaboration in business can be nurtured in many ways, one of which is creating oxytocin-boosting environments. Research shows that specific environmental factors can promote feelings of trust, safety, and connection, all of which are crucial drivers of generosity.

The physical environment is central to influencing our neurochemical responses. Spaces designed for comfort, relaxation, and interaction can reduce cortisol levels and promote the release of oxytocin. A study published in PLOS ONE found that individuals in well-designed environments featuring natural light, plants, and comfortable seating exhibited higher oxytocin levels and reported feeling more relaxed and connected to others (Biederman & Vessel, 2006). For example, during our podcast recording, Paul Zak shared how Zappos (acquired by Amazon) designed its Las Vegas headquarters to boost oxytocin. The company incorporated natural materials, open spaces that encourage social interaction, and designated relaxation areas, resulting in an environment so positive that Zappos enjoyed industry-leading employee retention rates for years.

Color and lighting also play a crucial role in shaping mood and behavior. Soft, warm lighting and calming colors like blues and greens have been shown to reduce stress and enhance well-being. A study in the Journal of Environmental Psychology found that environments with softer lighting and calming color schemes lead to higher oxytocin levels and greater overall satisfaction (Kuller, Ballal, & Laike, 2006).

The acoustic environment including soundscapes and noise levels is another critical factor. Excessive noise can increase stress and hinder communication, while a well-managed acoustic environment promotes focus, relaxation, and better interpersonal interactions. A study in The Journal of the Acoustical Society of America revealed that sound environments featuring moderate ambient noise levels and natural sounds (e.g., water, birdsong) enhance cognitive performance and social interaction by reducing stress and improving mood (Kahn, Severson, & Ruckert, 2009). By minimizing disruptive noise and incorporating pleasant, natural sounds, businesses can foster a more collaborative, oxytocin-rich, and generous atmosphere.

While meaningful connections can be built in almost any environment, science suggests that you’ll have a higher probability of success where oxytocin levels naturally rise. So next time you have an important business meeting, think twice about the type of environment where it will take place.

Interact In-Person, When Possible

“The most important thing in communication is hearing what isn’t said.” - Peter Drucker

In an increasingly digital world, the value of in-person interaction can’t be overstated, especially when it comes to building trust and fostering generosity in business relationships. While virtual communication has its conveniences, research consistently shows that face-to-face interactions are far more effective in creating the emotional connections that drive collaboration and generosity.

One of the key reasons for this is the role of nonverbal cues. Facial expressions, eye contact, and body language convey a wealth of information that simply can’t be replicated through text or even video calls. A study published in Nature Communications found that these nonverbal cues significantly enhance the release of oxytocin during social interactions, leading to increased trust and cooperation (Schneiderman, Zagoory-Sharon, & Feldman, 2012). This suggests that the more we interact in person, the more we can leverage these subtle yet powerful signals to build stronger, more generous relationships.

Eye contact is particularly impactful in fostering trust and connection. Maintaining eye contact during in-person interactions not only signals attention and sincerity but also stimulates the release of oxytocin, further enhancing feelings of trust. A study in The Proceedings of the Royal Society B demonstrated that mutual gaze significantly increased oxytocin levels, particularly in contexts involving trust and cooperation (Kou, Konvalinka, & Roepstorff, 2018). By making consistent eye contact, individuals can strengthen the emotional bonds that are essential for a generous and collaborative business relationship.

Physical touch is another powerful component of in-person interactions that boosts oxytocin levels. Even simple gestures like a handshake or a pat on the back can significantly increase feelings of trust and connection. Research published in Psychosomatic Medicine demonstrated that physical touch between individuals not only elevates oxytocin but also lowers cortisol levels, reducing stress and enhancing overall well-being (Light, Grewen, & Amico, 2005). This explains why in-person meetings often feel more productive and satisfying than their virtual counterparts - our bodies and brains are wired to connect through touch.

Moreover, in-person interactions often involve shared experiences that are difficult to replicate in a virtual environment. Whether it’s sharing a meal, attending a conference, or even just spending time in the same physical space, these experiences contribute to a sense of camaraderie and mutual understanding. A study in The Journal of Social and Personal Relationships found that shared activities significantly enhance feelings of closeness and social bonding, primarily through increased oxytocin release (Gonzaga, Turner, & Keltner, 2006). These shared experiences can be the foundation of a strong, collaborative relationship where generosity naturally flourishes.

In-person interactions also allow for spontaneous and immediate communication, which can deepen trust and foster a sense of authenticity. The ability to respond in real-time, read subtle emotional cues, and engage in unscripted dialogue can significantly enhance the quality of communication and the strength of the relationship. According to a study in The Journal of Experimental Social Psychology, face-to-face interactions lead to greater understanding and empathy between individuals, making it easier to resolve conflicts and build cooperative partnerships (Van Swol, Braun, & Kolb, 2012).

While digital tools have their place in today’s business world, the science is pretty clear: in-person interactions are more likely to foster real human connections where trust is built, generosity is fostered, and meaningful business relationships are forged.

Get Your Timing Right

“Timing is everything.” - John Sculley

In business, as in life, timing can be the difference between success and failure. When it comes to fostering generosity and building trust, the timing of your interactions plays a crucial role. Research indicates that oxytocin levels fluctuate throughout the day, and aligning your interactions with these natural rhythms can enhance the effectiveness of your communication.

Oxytocin levels are naturally higher at certain times of the day, suggesting that late morning interactions tend to be the most productive and mutually-beneficial. A study published in The Journal of Neuroscience found that oxytocin levels peak during the late morning, making individuals more receptive to trust-based interactions and cooperative behaviors during these hours (Amico, Seif, & Robinson, 1989). This suggests that scheduling important meetings, negotiations, or relationship-building activities during these peak oxytocin times could increase the likelihood of successful outcomes.

Moreover, the body’s circadian rhythms, which govern our sleep-wake cycles, also influence decision-making and social interactions. A study in Psychological Science found that people are generally more optimistic and open to new ideas in the morning, as their cognitive resources are fully replenished after a night’s sleep (Yoon, May, & Hasher, 2000).

Furthermore, it is beneficial to align interactions with the natural energy levels of the people you’re engaging, with most individuals experiencing a dip in energy and alertness in the late afternoon, often referred to as the “afternoon slump.” A study in Chronobiology International found that cognitive performance and mood tend to decline in the afternoon, which can make individuals less receptive to complex discussions or decision-making (Monk, Buysse, & Rose, 1997). To maximize the effectiveness of your interactions, it’s advisable to avoid scheduling critical conversations during these low-energy periods and instead opt for times when individuals are likely to be more alert and engaged.

Finally, it is important to remember that timing can also have cultural implications. In some cultures, the timing of business interactions is carefully considered, with certain times of day being seen as more appropriate or auspicious for important discussions. Being mindful of these cultural nuances can further enhance the success of your interactions and foster a deeper sense of trust and respect.

By getting your timing right, you can align your business interactions with natural physiological and psychological rhythms, increasing the likelihood of trust, generosity, and successful outcomes. Whether you’re negotiating a deal, building a partnership, or leading a team, being strategic about when you engage can make all the difference.

Ask for Small Favors

“He that has once done you a kindness will be more ready to do you another.” - Benjamin Franklin

The Ben Franklin Effect is a psychological phenomenon that can be a powerful tool in building trust and fostering generosity in business relationships. The idea is simple: when someone does you a favor, they are likely to develop a more favorable attitude toward you, justifying their actions by convincing themselves that they like you. This effect can lead to increased trust, cooperation, and the likelihood of future collaboration.

Research supports the effectiveness of asking for small favors in enhancing relationships. A study published in The Journal of Applied Social Psychology found that individuals who were asked to perform a small favor for someone else tended to view that person more positively afterward. This positive shift in attitude was driven by the need to align their actions (helping) with their beliefs (liking the person they helped), thereby strengthening the relationship (Jecker & Landy, 1969). By asking for small favors, you can subtly encourage others to develop a more positive view of you, laying the groundwork for stronger, more generous business connections.

Small favors can also create a sense of investment. When someone invests their time or effort in helping you, they become more invested in the relationship overall. This investment increases the likelihood that they will continue to support you in the future. A study in The Journal of Experimental Social Psychology found that people who performed small, non-intrusive favors were more likely to feel connected and committed to the person they helped, further enhancing the potential for future cooperation and generosity (Flynn, 2003).

Moreover, the reciprocity principle plays a significant role in how small favors can foster generosity. The act of helping someone, even in a small way, triggers the human tendency to reciprocate. This creates a cycle of giving and receiving that can strengthen relationships over time. Research in Social Influence demonstrated that people are more likely to return a favor, and even go beyond what was initially requested, when they feel appreciated and valued by the person they helped (Burger, 1999).

By strategically asking for small favors, you take a page from Ben Franklin’s playbook to build trust, enhance relationships, and create a foundation for ongoing cooperation and generosity in your business interactions.

Communicate with Empathy

“Empathy is the greatest creator of energy. It’s about being concerned about the well-being of others, not just yourself.” - Sheryl Sandberg

Empathy is a cornerstone of effective communication and plays a crucial role in fostering generosity and trust within business relationships. When we communicate with empathy, we not only acknowledge the emotions and perspectives of others but also create a deeper connection that encourages collaboration and mutual support.

Empathy enhances trust and cooperation. A study published in The Journal of Business and Psychology found that leaders who communicated with empathy were more successful in building trust within their teams. The study revealed that employees who felt understood and valued by empathetic leaders were more likely to demonstrate loyalty, cooperation, and a willingness to go the extra mile (Kellett, Humphrey, & Sleeth, 2006). This underscores the importance of empathy not just as a personal virtue, but as a strategic tool in creating a collaborative and generous work environment.

Active listening is a key component of empathetic communication. It involves fully focusing on, understanding, and responding to the other person, which can significantly strengthen the relationship. Research in The Journal of Applied Psychology showed that individuals who felt they were genuinely listened to were more likely to perceive the listener as empathetic and trustworthy, thereby enhancing the overall quality of the interaction (Weger, Castle, & Emmett, 2010). By practicing active listening, you can create an environment where others feel heard and respected, fostering a sense of mutual understanding and generosity.

Empathy also helps in conflict resolution by allowing individuals to see the situation from the other person’s perspective. This shift in viewpoint can de-escalate tensions and lead to more constructive solutions. A study in Negotiation and Conflict Management Research found that empathetic communication was particularly effective in resolving conflicts, as it helped participants understand each other’s underlying concerns and work toward mutually beneficial outcomes (Galinsky, Maddux, & Ku, 2006). By approaching disagreements with empathy, you can transform potential conflicts into opportunities for collaboration and strengthened relationships.

Moreover, empathetic communication reduces misunderstandings. When people feel that their emotions and perspectives are acknowledged, they are more likely to clarify their own thoughts and feelings, leading to clearer and more effective communication. A study in The Journal of Personality and Social Psychology found that empathy not only improved understanding between individuals but also reduced the likelihood of miscommunication, fostering a more cooperative and trusting environment (Davis, Conklin, Smith, & Luce, 1996).

By communicating with empathy, you build a foundation of trust, understanding, and cooperation that enhances the potential for generosity in all your business interactions. Empathy isn’t just about being kind - it’s about creating the conditions for more meaningful and successful relationships.

Tell Emotional Stories

“The best way of communicating is through stories. It’s the best way of connecting with people.” - Richard Branson

In business, facts and figures are important, but it’s the emotional connection that truly resonates with people. Telling emotional stories is a powerful way to foster generosity, build trust, and strengthen relationships. When you share a story that evokes emotion, you engage your audience on a deeper level, making your message more memorable and impactful.

Emotional stories activate the brain in unique ways. Paul Zak’s research has shown that when people hear an emotionally charged story, their brains release oxytocin, fostering empathy, trust, and bonding. Zak’s study published in PNAS found that narratives with strong emotional content significantly increased oxytocin levels, which, in turn, made listeners more likely to trust and cooperate with the storyteller (Zak, Stanton, & Ahmadi, 2007). By telling stories that evoke emotions, you can create a sense of connection that transcends mere information exchange, fostering a more generous and cooperative business environment.

Stories are more memorable than facts alone. Cognitive science research has consistently demonstrated that people are more likely to remember information when it is presented in the form of a story rather than as a list of facts. A study in The Journal of Applied Cognitive Psychology showed that storytelling significantly improved recall and understanding of complex concepts, as stories provide context and meaning that make information easier to retain (Adaval & Wyer, 1998). This means that when you weave important business messages into a compelling narrative, your audience is more likely to remember and act on them, thereby strengthening your influence and the relationships you build.

Emotional stories can inspire action. Stories that tap into universal emotions - such as hope, fear, love, or perseverance - can motivate people to take action, whether it’s supporting a cause, investing in a project, or simply working together more effectively. A study in The Journal of Business Research found that emotionally charged stories were more effective at persuading audiences to engage with a brand or cause, as they elicited a stronger emotional response and a greater sense of personal relevance (Escalas, 2004). By using storytelling to convey your vision, values, and goals, you can inspire others to join you on your journey, fostering a spirit of generosity and collaboration.

Stories create a shared experience that can bridge gaps and bring people together. When you share a story, you invite your audience to see the world through your eyes, creating a shared understanding that can dissolve barriers and build trust. A study in The Journal of Personality and Social Psychology found that shared narratives significantly increased feelings of group cohesion and cooperation, as they helped individuals align their perspectives and goals (Bartel & Garud, 2009).

Incorporating emotional storytelling into your business communication not only makes your messages more compelling but also fosters the trust, empathy, and connection, uniting your team, partners, and customers around a common purpose, and leading to stronger, more generous relationships.

Always Follow-Up

“The fortune is in the follow-up.” - Jim Rohn

In the fast-paced world of business, it’s easy to move on to the next task once a meeting or interaction is over. However, the importance of following up can’t be overstated. Consistent follow-up isn’t just about good manners or maintaining momentum. It’s a strategic way to keep trust high and encourage continued generosity in your business relationships.

Follow-up also signals reliability and commitment. When you take the time to reach out after a meeting or conversation, you show the other person that you value the relationship and are committed to nurturing it. A study in The Journal of Business Research found that businesses that consistently followed up with clients and partners were more likely to build long-term, trust-based relationships (Doney & Cannon, 1997). This reliability fosters an environment where generosity and cooperation can flourish, as both parties feel secure in the relationship.

Moreover, timely follow-up allows you to address any unresolved issues or clarify misunderstandings, ensuring that both parties remain aligned and focused on mutual goals. A study in The Journal of Marketing highlighted that prompt follow-up communications were essential in managing client expectations and maintaining trust, particularly in complex or ongoing business dealings (Morgan & Hunt, 1994). By addressing concerns quickly and effectively, you prevent small issues from escalating, thereby preserving the trust and goodwill that are essential for a generous and productive partnership.

Following up also provides an opportunity to express gratitude and reinforce positive outcomes from the interaction. Expressing thanks or acknowledging the contributions of others can further elevate oxytocin levels, reinforcing the emotional connection and encouraging future generosity. A study in The Journal of Personality and Social Psychology found that expressing gratitude in follow-up communications significantly increased the likelihood of continued cooperation and support from the other party (Emmons & McCullough, 2003).

Incorporating follow-up into your routine is more than just good business practice - it’s a powerful way to maintain and strengthen the emotional connections that foster trust, generosity, and long-term success in your business relationships.

TL;DR

So there you have it, 8 ways to create oxytocin-boosting conditions that foster generosity. For those of you that don’t have the time or inclination to read about the science, here are the key takeaways that will give you the most important tools to get started:

• Oxytocin is key to generosity. Higher levels of oxytocin are strongly linked to increased trust, empathy, and generosity in business relationships, making it a crucial hormone to understand and leverage.
• Personality matters. Choosing the right partners - those who naturally foster trust and collaboration - can significantly influence the success and generosity within your business interactions.
• Environment shapes behavior. Creating physical and social environments that naturally elevate oxytocin levels can enhance collaboration, reduce stress, and foster a culture of generosity.
• Timing and follow-up are crucial. Align your interactions with natural oxytocin peaks during the day and always follow up to maintain emotional connections and trust.
• Storytelling connects and inspires. Using emotional storytelling in your communication can strengthen bonds, inspire action, and create lasting, trust-based relationships.

Checklist: Science-Backed Tips for Fostering Generosity in Business

• Women are more generous than men
• Older people are more generous than younger people
• Those who have stronger social relationships are more generous
• Work with people that are less aggressive, competitive or impatient
• Meet in spaces with natural light, plants, and comfortable seating
• Spaces with calming colors (blues and greens)
• Engage in calm acoustic environments
• Maintain eye contact within social norms
• Respectful physical touch like handshakes or a pat on the back can be beneficial
• Share a meal or connect through some other shared experience like an activity or event
• Choose late morning meeting times when possible
• Ask for small favors (a.k.a. The Ben Franklin Effect)
• Be an active listener and communicate with empathy
• Tell stories with emotional narratives
• Always follow up after interactions.

References

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