In what manner can punitive damages intentionally influence behavior?

Punitive damages are designed to serve as a deterrent against wrongful conduct rather than to compensate the victim for losses, which is the primary function of compensatory damages. When punitive damages are awarded, they send a strong message that certain behaviors or actions, particularly those that are malicious or reckless, are unacceptable and will result in severe consequences. This can influence both the defendant and others in society by creating an example that discourages similar wrongful actions in the future.

The focus on deterring wrongful conduct is crucial because it aligns with the broader goals of the legal system to promote ethical behavior and discourage activities that could harm others. By imposing significant financial penalties, the legal system aims to reshape behaviors and encourage individuals and corporations to adhere to certain standards of conduct. Thus, punitive damages play a critical role in promoting accountability and responsible behavior within society.