If Strata is a Form of Government, How Do We Influence Behaviour and Improve Social

Outcomes within Our Properties?

I was sitting in the SCA A100 seminar when the instructor introduced an idea that initially
seemed problematic. They suggested strata is the fourth level of government, envisioning
government consisted of federal, state, local, and then… strata? Governing involves both the
administration and control of a community. There is no doubt strata management involves
administration. We prepare budgets, hold elections, and more. Instead, I realized the reason I
instinctively had a problem with the idea of strata as government is because we are so limited
in how we can exert authority. We have minimal access to forms of coercive power. We do
have some ability to take offenders to VCAT, but this only happens in a minority of cases.
Despite our lack of coercive power, we manage many societal issues. This includes waste
management, vandalism, and more. Owners Corporations therefore need to find other ways to
discourage bad behaviour. This essay explains how Owners Corporations can influence
behaviour without use of coercive power.

Nudge Theory is a concept from behavioural economics which argues small interventions (or
nudges) can have a large impact. These nudges are not dictatorial; they do not involve
punishment. Instead, they involve attempts to amend the context within which we make
decisions to ‘nudge’ us to good choices. For example, In Chicago, there is a road which has a
series of sharp bends. Many drivers ignored the speed limit in these areas. To mitigate this
problem, white stripes were painted on the road which get closer together as you reach the
most dangerous section. This gives drivers the sensation their speed is increasing, and they slow
down. Owners Corporations can implement nudges as they have some control over the
environment. For example, during the corona virus pandemic, some properties placed large x’s
on the floor of lifts. The X’s highlight only two people should be in a lift at a time to maintain
social distancing. Other examples include planting flowers on nature strips to deter hard
rubbish dumping. Green spaces can also improve the health of residents and even reduce
aggression. The effect of these small changes on behaviour can be huge and they are often
inexpensive to implement.
Owners Corporations have a role in governing societies at a micro-level and have a role in
managing societal issues and behaviour. While managers do not have access to coercive power,
we do have some control over the context in which choices are made. Nudge theory
demonstrates small changes to this environment can have a large impact on behaviour.
Changes to the environment can mitigate problems such as hard rubbish dumping and
speeding. These changes do not just need to be to the built environment. Social influence can
be wielded to nudge because most individuals will conform to group behaviour. Owners
Corporation Managers can therefore exert social influence by mentioning most residents are
behaving well. Even just asking how an individual intends to act can change their behaviour.
Finally, the state of the environment holistically can send a message to residents. Run down
environments can encourage crime. Conversely, environments that are well maintained send a
message bad behaviour will not be tolerated.