Abstract

The proliferation of violations within industry sectors (e.g., banking, doping in sport, abuse in religious organizations) highlights how trust violations can thrive in particular sectors. However, scant research examines how macro institutional factors influence micro level trustworthy conduct. To shed light on how sectoral features may influence trust violations in organizations, we adopt a multilevel perspective to investigate the perceived causes of trust violations within the not-for-profit (NFP) sector, a sector that has witnessed a number of high-profile trust breaches. Drawing on interviews with board members and senior executives of NFPs with cross-sectoral experience, we analyze the causes of trust violations to inductively develop a conceptual model of the multilevel factors contributing to trust violations in NFPs. Our model highlights how trust violations have their roots in sectoral-level factors, which trickle-down to influence the ethical infrastructure at the organizational-level, and in turn individual-level factors and violations. We identify how three NFP sectoral features influence trustworthy behavior: corporatization, resource scarcity, and assumed moral integrity. Our findings speak to the importance of looking beyond the organization to understand both the causes and prevention of trust violations and developing the concept of sector-level ethical infrastructure.