In a world that has become increasingly dependent upon employee ownership, commitment, and initiative, organizations need leaders who can inspire their␣employees and motivate them individually. Love, forgiveness, and trust are critical values of today’s organization leaders who are committed to maximizing value for organizations while helping organization members to become their best. We explain the importance of love, forgiveness, and trust in the modern organization and identify 10 commonalities of these virtues.

Individuals who demonstrate organizational citizenship behavior (OCB) contribute to their organization’s ability to create wealth, but they also owe their organizations a complex set of ethical duties. Although, the academic literature has begun to address the ethical duties owed by organizational leaders to organizational citizens, very little has been written about the duties owed by those who practice OCB to their organizations. In this article, we identify an array of ethical duties owed by those who engage in extra-role behavior and (...) describe those duties in context with personality theory. We suggest that employees who understand the complex nature of OCB and the associated duties they owe to others are more likely to reach their potential and make greater contributions within their organizations. (shrink)

The ability of leaders to be perceived as trustworthy and to develop authentic and effective relationships is largely a function of their personal identities and their self-awareness in understanding and making accommodations for their weaknesses. The research about self-deception confirms that we often practice denial regarding our identities without being fully aware of the ethical duties that we owe to ourselves and to others. This article offers insights about the nature of identity and selfawareness, specifically examining how self-deception can create (...) barriers to self-awareness within both a personal and a business context. (shrink)

Extending the literature on social capital development in the community, this article examines the impact of diverse social interactions on the development of social trust in the workplace, and investigates whether their effects differ in individualistic and collectivistic cultures. Using survey data collected in Canada and China, the authors find that the diversity of one’s social interactions in the community is positively associated with one’s social trust in the workplace, and this relationship is not significantly different between the two cultures. (...) Diversity of one’s social interactions in the workplace is also positively associated with one’s social trust in the workplace, though only in collectivistic cultures. (shrink)

Although the foundation of financial accounting and auditing has traditionally been based upon a rule-based framework, the concept of a principle-based approach has been periodically advocated since being incorporated into the AICPA Code of Conduct in 1989. Recent high profile events indicate that the accountants and auditors involved have followed rule-based ethical perspectives and have failed to protect investors and stakeholders – resulting in a wave of scandals and charges of unethical conduct. In this paper we describe how the rule-based (...) traditions of auditing became a convenient vehicle that perpetuated the unethical conduct of firms such as Enron and Arthur Andersen. We present a model of ten ethical perspectives and briefly describe how these ten ethical perspectives impact rule-based and principle-based ethical conduct for accountants and auditors. We conclude by identifying six specific suggestions that the accounting and auditing profession should consider to restore public trust and to improve the ethical conduct of accountants and auditors. (shrink)

Organizational citizenship behavior (OCB) has been widely recognized as a contributor to improving organizational performance and wealth creation. The purpose of this article is to briefly summarize the motives of many employees who exercise OCB and to identify the ethical duties owed by organizational leaders to the highly committed employees with whom they work. After reviewing the nature of OCB and the psychological contracts made with highly committed employees, we then use Hosmer’s framework of ten ethical perspectives to identify how (...) OCB is viewed from each of those ethical viewpoints. We offer six propositions about OCB that relate to building employee commitment and trust. (shrink)

The buyer–supplier relationship is the nexus of the economic partnership of many commercial transactions and is founded upon the reciprocal trust of the two parties that participate in this economic exchange. In this article, we identify how six ethical elements play a key role in framing the buyer–supplier relationship, incorporating a model articulated by Hosmer (The ethics of management, McGraw-Hill, New York, 2008 ). We explain how trust is a behavior, the relinquishing of personal control in the expectant hope that (...) the other party will honor the duties of a psychological contract. Presenting information about six factors of organizational trustworthiness, we offer insights about the relationship between ethics and trust in the buyer–supplier relationship. (shrink)

In this paper we suggest that the ethical duties of business schools can be understood as representing stewardship in the Aristotelian tradition. In Introduction section we briefly explain the nature of ethical stewardship as a moral guideline for organizations in examining their duties to society. Ethical Stewardship section presents six ethical duties of business schools that are owed to four distinct stakeholders, and includes examples of each of those duties. Utilizing this Framework section identifies how this framework of duties can (...) be used in the process of self-examination and transformation within business schools. Why It Matters section concludes by explaining why the process of examining ethical duties at business schools is vitally important for both business schools and the larger communities that they serve. (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)

Leaders in today's world face the challenge of earning the trust and commitment of organizational members if they expect to guide their companies to success in a highly competitive global context. In this article, we present empirical results indicating that when leadership behaviors are perceived as trustworthy through the observer's mediating lens, trust increases and leaders are more likely to be viewed as ethical stewards who honor a higher level of duties. This article contributes to the growing body of literature (...) about the importance of ethical stewardship in the trust relationship. (shrink)

Organizational governance has historically focused around the perspective of principals and managers and has traditionally pursued the goal of maximizing owner wealth. This paper suggests that organizational governance can profitably be viewed from the ethical perspective of organizational followers - employees of the organization to whom important ethical duties are also owed. We present two perspectives of organizational governance: Principal Theory that suggests that organizational owners and managers can often be ethically opportunistic and take advantage of employees who serve them (...) and Principle Theory that focuses on guiding principles that are sometimes taken too far in organizations. In introducing these two new organizational governance perspectives, we offer insights into the value of rethinking ethical duties owed to organizational followers. (shrink)

Trust is a fundamental aspect of the moral treatment of stakeholders within the organization-stakeholder relationship. Stakeholders trust the organization to return benefit or protections from harm commensurate with their contributions or stakes. However, in many situations, the firm holds greater power than the stakeholder and therefore cannot necessarily be trusted to return the aforementioned duty to the stakeholder. Stakeholders must therefore rely on the trustworthiness of the organization to fulfill obligations in accordance to Phillips' principle of fairness (Business Ethics Quarterly (...) 7(1), 1997, 51-66), particularly where low-power stakeholders may not be fully consenting (Van Buren III, Business Ethics Quarterly 11(3), 2001, 481-499). The construct of organizational trustworthiness developed herewith is presented as a possible solution to the problem of unfairness in organizationstakeholder relations. While organizational trustworthiness does not create an ethical obligation where none existed before, stakeholders who lack power wiU likely be treated fairly when organizational trustworthiness is present. (shrink)

Although trustworthiness has been described as a source of competitive advantage, its value extends to organizational governance and wealth creation. We identify the importance of the commitment—compliance continuum in the decision to trust and note that trustworthiness is a subjective perception viewed through each person's mediating lens. That lens and each person's interpretation of the social contract impact one's commitment to cooperate. We suggest five propositions that integrate trustworthiness, governance, and wealth creation.

Trust is a fundamental aspect of the moral treatment of stakeholders within the organization–stakeholder relationship. Stakeholders trust the organization to return benefit or protections from harm commensurate with their contributions or stakes. However, in many situations, the firm holds greater power than the stakeholder and therefore cannot necessarily be trusted to return the aforementioned duty to the stakeholder. Stakeholders must therefore rely on the trustworthiness of the organization to fulfill obligations in accordance to Phillips’ principle of fairness (Business Ethics Quarterly (...) 7(1), 1997, 51–66), particularly where low-power stakeholders may not be fully consenting (Van Buren III, Business Ethics Quarterly 11(3), 2001, 481–499). The construct of organizational trustworthiness developed herewith is presented as a possible solution to the problem of unfairness in organization–stakeholder relations. While organizational trustworthiness does not create an ethical obligation where none existed before, stakeholders who lack power will likely be treated fairly when organizational trustworthiness is present. (shrink)

Based on a field study, this paper explores the differential role that perceived top management trustworthiness has on female and male employees’ negative emotions and turnover intentions in organizations. A theoretical model is established that explicates a negative indirect effect of perceived top management trustworthiness on employee turnover intentions through employee negative emotions. The results reveal that there is a negative relationship between perceived top management trustworthiness and employee negative emotions and resulting turnover intentions and that this effect is stronger (...) for female employees than for male employees. These results demonstrate the pivotal role played by top management trustworthiness, provide an explanation for the turnover gender gap, and highlight the subjectivity in reactions to trustworthiness perceptions. The implications for organizations are discussed in line with the need for top management to positively influence employees and particularly women, to retain them in their workforce. (shrink)

Trust is a crucial factor for the long-term economic success of a company. However, not only does the company establish trust, but the CEO representing the company builds up trust as well and, therefore, also influences the company's success. Our study examines how different dimensions of trust (i.e., ability, integrity, benevolence, and information quality) influence the degree of overall trust in a company and in CEOs. Nevertheless, dimensions that influence trust in a CEO can be completely different to those influencing (...) trust in companies. Companies and CEOs that act on an international level can hardly be experienced individually, and thus people get information about the company via media use. Therefore, additionally we examine which kind of media is used for getting information about a company or CEO and whether a relationship exists between media use and trust. Findings from a survey in Switzerland (n = 245) show that companies are more trusted than CEOs and that the items which influence overall trust differ between CEOs and companies. Social responsibility as a benevolence item is important for both groups. Regarding information on different media channels, users of traditional media like newspapers, TV, and radio are most critical regarding trust in companies and CEOs. (shrink)

This study explores the ways in which trust deficit undermines anti-corruption initiatives in a context with systemic corruption. Anti-corruption measures as panacea to systemic corruption are not new, but their effectiveness is debatable. Whilst understanding the causal relationship between corruption and trust remains germane to fighting corruption, a growing number of recent studies advocate better context sensitivity in developing anti-corruption initiatives. Consistent with this, we unpack the perceptions of a significant section of the population in which corruption is rampant to (...) identify factors that could enhance trust in the effectiveness of anti-corruption measures. Using commentaries from Nigerian Netizens on two critical corruption incidents that are significant to corporations, we uncover poignant narratives of perception of incompetence, dishonesty and confusion that undermine the anti-corruption measures in the context. We argue that donors, international organisations and businesses must encourage and support beneficiaries’ governments to secure and sustain trust in the anti-corruption initiatives as a condition for better results. (shrink)

Organizational citizenship behaviors (OCBs) are essential for effective organizational functioning. Decisions by employees to engage in these important discretionary behaviors are based on how they make sense of the organizational context. Using fairness heuristic theory, we tested two important OCB predictors: manager trustworthiness and interactional justice. In the process, we control for the effects of dispositional factors (propensity to trust) and for system-based organizational fairness (procedural and distributive justice). Results, based on surveys collected from 120 employee–supervisor dyads, indicate that manager (...) trustworthiness explains variance in OCBs over and above the variance accounted for by interactional fairness. Implications for theory and practice are discussed. (shrink)

Tacit knowledge sharing discussed in this study is important in the area of business ethics, because an unwillingness to share knowledge that may hurt an organization’s survival is seen as being seriously unethical. In the proposed model of this study, distributive justice, procedural justice, and cooperativeness influence tacit knowledge sharing indirectly via two mediators: organizational commitment and trust in co-workers. Accordingly, instrumental ties and expressive ties influence tacit knowledge sharing indirectly only via the mediation of trust in co-workers. The model (...) is assessed by using data from different companies’ employees, who attend an evening college in Taiwan for advance study. The test results of this study indicate that tacit knowledge sharing is affected by distributive justice, procedural justice, and cooperativeness indirectly via organizational commitment. Additionally, tacit knowledge sharing is also affected by distributive justice, instrumental ties, and expressive ties via trust in co-workers. The paths from procedural justice and cooperativeness to trust in co-workers are shown to be insignificant. Managerial implications of the empirical findings are also provided. (shrink)

Drawing on the dual process framework from social and cognitive psychology, this paper reconciles two distinct conceptualizations of trust prevalent in the literature: “rational” calculative and irrational “affective” or normative. After critically reviewing previous attempts at reconciliation between these distinctions, we argue that the notion of trust as “reliance” is the higher order category of which “deliberate trust” and “intuitive faith” are subtypes. Our revised approach problematizes the conflation of epistemic uncertainty with phenomenological uncertainty while providing sound footing for a (...) key sociological insight: that reliance on the routine social order is both the cognitive default and based on substantial practical evidence. We develop two broad suggestions for future research from these implications: sociological research should examine the role of intuitive faith—as opposed to deliberate trust—in late modern societies, and analysts should challenge the role of deliberate trust as the “modal” form of reliance in contemporary research. (shrink)

The raging cynicism felt toward businesses and business leaders is a by-product of perceived violations in the social contracts owed to the public. Business schools have a unique opportunity to make a significant impact on present and future business leaders, but ‘practicing what we teach’ is a critical condition precedent. This paper presents frameworks for ethical practices for assessing the social contracts owed by business schools in their role as citizens in the larger community. We identify the ethical implications of (...) business school practices to guide the development of tools for self-assessment and to focus on delivering the implied duties owed to the stakeholders of business schools. (shrink)

In a world increasingly described as turbulent and chaotic, management scholars have acknowledged the importance of a virtue-based set of criteria to serve as a moral rubric for the stakeholders that an organization serves. Business schools play a unique role in helping their students to understand the ethical issues facing business. Business schools can also model the way for creating a clear statement of values and principles, by creating a bill of rights for business schools that recognizes the importance of (...) rights and responsibilities and articulates the important ethical issues that apply not only to business but to the business school context. Four models for creating a bill of rights in schools of business are presented and a framework of a bill of rights is provided. The advantages of a virtue ethics model for a bill of rights are explained as the most practical approach for business faculty to consider. (shrink)

This paper presents conceptual arguments to suggest that trust within organizations and trustworthiness of organizations are built through ethical governance mechanisms. We ground our analysis of trust, trustworthiness, and stewardship in the business literature and provide the context of business school governance as the focus of our paper. We present a framework that highlights the importance of knowledge, resources, performance focus, transparency, authentic caring, social capital and citizenship expectations in creating a basis for the ethical governance of organizations.

Trust within a secular or organizational context is much like the concept of faith within a religious framework. The purpose of this article is to identify parallels between trust and faith, particularly from the individual perspective of the person who perceives a duty owed to him or her. Betrayal is often a subjectively derived construct based upon each individual's subjective mediating lens. We analyze the nature of trust and betrayal and offer insights that a wise believer might use in understanding (...) his or her relationship with the divine. We suggest that the parallels between trust and faith involve a willingness to relinquish one's power or control in the expectant hope that our needs will be met. Betrayal, however, is often profoundly misunderstood. (shrink)