Abstract:Recent work on the subject speaks to the importance trust has for firm performance (e.g., Hagen and Choe, 1999; Hill, 1995). Yet little work has been done to show how context affects the ability of firms to create trust in relationships with key stakeholders. This paper looks at how the institutional environment may affect the performance of different strategies for managing firm-stakeholder relationships, and in turn, how this affects firm performance. The authors put forward propositions that build on these theoretical (...) insights and offer prospects for future empirical work. (shrink)

The organizational trust literature relies strongly on the notion of trust and trustworthiness as a calculative cause-and-effect relationship aimed at assessing the advantages and disadvantages between two actors. This utilitarian notion of trust has been critiqued by studies that highlight _construct inconsistencies_ related to utilitarian trust, which, it is argued, is deficient, incomplete and misleading. Our empirical study of the Dutch insurance sector identifies and categorizes three _process inconsistencies_ that help to explain why the calculation of trust in a utilitarian (...) sense is seemingly impossible in practice and is a barrier to the unambiguous assessment of individual needs and individual utility. These process inconsistencies successively concern insufficient information, complex behavioural dynamics, and a convoluted pattern of stakeholder influence to assess utility in trust relationships, specifically within complex socio-economic systems. Our findings contribute to the trust literature by proposing a classification of the previous critiques on utilitarian trust, and by showing that in scenarios of systematic rather than dyadic trust, process inconsistencies may be too strong to endure a ‘leap of faith’, at least with regard to suspension and assessing utilitarian trust in these more complex socio-economic systems. (shrink)

This article explores the nature of corporate social responsibility (CSR) and corporate reputation using qualitative research approach. Specifically, the relationship between CSR and corporate reputation is examined from the viewpoint of value theory. This paper brings up for discussion the various value priorities lying in the background of CSR actions. The aim is to form categories of value priorities around CSR and reputation, based on qualitative research approach. The main concepts in this paper – CSR, reputation and value – are (...) also defined. This paper further discusses the theory of value structure and content, which identifies certain principal values among different cultures. The data consist of eight interviews with employees of a newspaper company. The results suggest that value priorities play an influential role in CSR actions, influencing to the essence of certain reputation stories in the corporate context. (shrink)

Trust is an important phenomenon to reduce organisational complexity and uncertainty. In the literature many types of trust are distinguished. An important framework to understand the variety and development of trust in organisations is provided by Zucker. She distinguishes three types of trust: process-based trust.

ABSTRACT:The purpose of this paper is to critically evaluate the instrumental perspective on Corporate Social Responsibility (CSR) in practice and theory by relying on sociological analyses of a well known organization: the Italian Mafia. Legal businesses might share features of the Mafia, such as the propensity to exploit a governance vacuum in society, a strong organizational identity that demarcates the inside from the outside, and an extreme profit motive. Instrumental CSR practices have the power to accelerate a firm's transition to (...) Mafia status through its own pathologies. The boundaries of such instrumentalism are explored and lessons for future CSR research derived, with specific emphasis on a firm's social and normative embeddedness, taking into account the inherent challenge of regulating corporate behaviour in the global economy. (shrink)

. Management scholars and practitioners often believe that individuals and organizations benefit by trusting their work contacts. (Husted, 1998; Sonnenberg, 1994) Trust is generally viewed as “good” and imperative to a modern functioning economy (Blau, 1964; Hosmer, 1995; Zucker, 1986) Consequently, scholars and practitioners have given scant attention to the “downside” of trust, despite the fact that trust involves taking risk under conditions of uncertainty (Rousseau et al., 1998) Recent corporate scandals show that people suffer when they misplace trust in (...) untrustworthy organizations and individuals. This paper develops a model of the causes and consequences of “over-trust,” which we define as a state where a trustor’s trust exceeds that which is warranted given the conditions. The antecedents of overtrust related to characteristics of the trustee, the trustor, and situational characteristics. We examine the role played by self-monitoring and perceived power base of the trustee as two key trustee characteristics. Among trustor characteristics, we examine the role (played by trustor’s core evaluation, core values). based on cultural affiliation), prior experiences with trustees, and use of habitual thinking behavior. Under characteristics of the situation, we examine the role played by uncertainty inherent in the situation, perceived threat from the context, degree of task interdependence, and organizational systems and routines. Next, we examine three consequences of over-trust – leniency in judging the trustee, delay in perceiving exploitation, and increased risk-taking. We conclude our paper by developing a set of guidelines that organizational members may employ to avoid over-trust. (shrink)

This paper presents a holistic, contextualised case study of reintegration and trust repair at a UK utilities firm in the wake of its fraud and data manipulation scandal. Drawing upon conceptual frameworks of reintegration and organizational trust repair, we analyze the decisions and actions taken by the company in its efforts to restore trust with its stakeholders. The analysis reveals seven themes on the merits of proposed approaches for reintegration after an integrity violation , and novel insights on the role (...) of organizational identity, “changing of the guard” and cultural reforms alongside procedural modifications. The case further supports the dynamic nature of stakeholder salience across the reintegration process. The study both supports propositions from existing frameworks and suggests novel theoretical extensions for future research. (shrink)

This article presents an alternative rationale for corporate philanthropy based on managerial values of benevolence and integrity. On the one hand, top managers with benevolence and integrity values are more likely to spread their intrinsic concern for others into the wider society in the form of corporate philanthropy. On the other hand, top managers high in benevolence and integrity are likely to contribute to improved managerial credibility and trusting firm-stakeholder relationships, thereby improving corporate financial performance. Therefore, the article makes the (...) argument that both corporate philanthropy and corporate financial performance can better be interpreted as resulting from managers’ benevolence and integrity values. (shrink)

The relationship between ethics and trust is ambiguous as ethics can promote trust, whilst trust can simultaneously be abused resulting in unethical behaviour. In this contribution to the debate on trust and ethics the focus is specifically on the role that ethics can play in facilitating trustworthiness. The article starts with a definition of the concept trustworthiness. It then reports on an empirical longitudinal study on trustworthiness that was conducted in a South African company in the insurance industry. The facilitators (...) of trustworthiness that were identified in this study and their relative contributions to trustworthiness are then discussed. Finally the implications of these findings for the ethical conduct of managers are discussed. It is demonstrated how ethical managerial conduct can enhance the trustworthiness of managers. (shrink)

Solidarity could be defined in the broad sense either as a means or as an end. Considered as an end, solidarity is the motive of any virtuous action based on altruistic reasons, such as helping others to rescue someone in order to prevent a harmful situation. E. g. contributing to lift and rescue a heavy person, lying unconscious in the street on the floor, who is being handled by rescuers, but who might be needing an additional person, could express the (...) value of solidarity as an end, since an answer to others request for help is given in the situation of emergency and risk, without having a particular obligation to help. Solidarity as a means (to an end, not an end), could be understood as a property of dependency of a set of parts to a whole (in solidum), as when in a family or a professional group, individual and collective roles and responsibilities are melt together to some extent.This idea of benefiting others could be understood either as a way of sharing together moral sentiments as love, social virtues as friendship and shared commitments and common economic and educational interests, in a limited community circle, that of the family. Even if the division of labour is not simply based on patriarchal authority, mutual consent of family members to rules and to a common circle of interests, those of the family, resemble to a egoism of the group, and not yet to truly social and altruistic values. Solidarity as cohesion of human beings, by the means of "interchangeability of ideas, services, goods, of workforce, virtues and vices", is solidarity limited to the constitution of a process of exchange that is a means that could be used to different ends. (shrink)