This paper investigates the relationships between organizational change and trust in management. It is argued that organizational change represents a critical episode for the production and destruction of trust in management. Although trust in management is seen as a semi stable psychological state, changes in organizations make trust issues salient and organizational members attend to and process trust relevant information resulting in a reassessment of their trust in management. The direction and magnitude of change in trust is dependent on a (...) set of change dimensions that reflect trust relevant experiences and information. We distinguish between dimensions related to trust relevant consequences of the change and trust relevant aspects of how the change process is performed. Empirical results indicate that increases in post change emotional stress and the use of referential accounts for justifying change are both negatively related to post change trust in management. The use of ideological accounts and participation were found to be positively related to post change trust in management, so was perceived decision quality. Findings also indicate that the effects of change on trust are negatively moderated by tenure. (shrink)

Hosmer's fourth edition of The Ethics of Management provides business students (future managers) with a very specific analytical process for understanding and resolving moral problems in management. A manager needs insight and understanding in a global economy to convince everyone involved, given his or her varied religious, cultural, economic and social backgrounds, to accept a proposed moral solution. Acceptance of managerial moral solutions, over time, brings trust, commitment and effort, and those three, also over time, are essential for organizational success.

This article explores the relational and motivational leadership behaviors that may promote stewardship in organizations. I conceptualize stewardship as an outcome of leadership behaviors that promote a sense of personal responsibility in followers for the long-term wellbeing of the organization and society. Building upon the themes presented in the stewardship literature, such as identification and intrinsic motivation, and drawing from other research streams to include factors such as interpersonal and institutional trust and moral courage, I posit that leaders foster stewardship (...) in their followers through various relational, motivational, and contextually supportive leadership behaviors. (shrink)

Great leaders are ethical stewards who generate high levels of commitment from followers. In this paper, we propose that perceptions about the trustworthiness of leader behaviors enable those leaders to be perceived as ethical stewards. We define ethical stewardship as the honoring of duties owed to employees, stakeholders, and society in the pursuit of long-term wealth creation. Our model of relationship between leadership behaviors, perceptions of trustworthiness, and the nature of ethical stewardship reinforces the importance of ethical governance in dealing (...) with employees and in creating organizational systems that are congruent with espoused organizational values. (shrink)

. American businesses and corporate executives are faced with a serious problem the loss of public confidence. Public criticism, increased government controls, and growing expectations for improved financial performance and accountability have accompanied this decline in trust. Traditional approaches to corporate governance, typified by agency theory and stakeholder theory, have been expensive to direct and have focused on short-term profits and organizational systems that fail to achieve desired results. We explain why the organizational governance theories are fundamentally, inadequate to build (...) trust. We advance a conceptual framework based on stewardship theory characterized by “covenantal relationships” and argue that design of governance mechanisms using a covenantal approach is more effective in building trust in organizations. A covenantal relationship is a specialized form of a relational contract between an employee and his or her organization. We argue that regardless of incentives and control mechanisms carefully designed through contractual mechanisms, in the absence of covenantal relationships it is extremely difficult to build trust within organizations. We propose that organizations are more likely to build trust – both at the organizational level and at the interpersonal level – when they create reinforcing and integrated systems that honor implied duties of “covenantal relationships.”. (shrink)

Recognized as a landmark of twentieth century intellectual history, I and Thou is Buber's masterpiece.

Business and Society: Ethics and Stakeholder Management, 5th edition employs a stakeholder management framework, emphasizing business' social and ethical responsibilities to both external and internal stakeholder groups. A twin theme of business ethics to illustrate how ethical or moral considerations are included the public issues facing organizations and the decision making process of managers. The text is written from a managerial perspective that along with the twin themes of stakeholders and ethics, shows how to identify stakeholders, incorporate their concerns into (...) the organization's strategy and operations, and also integrate ethical wisdom into their decision making process. In addition, 35 case histories are included to help connect theory and practice through timely and interesting examples. (shrink)

The Greek philosopher Aristotle, writing over two thousand years before Wall Street, called people who engaged in activities which did not contribute to society "parasites." In his latest work, renowned scholar Robert C. Solomon asserts that though capitalism may require capital, but it does not require, much less should it be defined by the parasites it inevitably attracts. Capitalism has succeeded not with brute strength or because it has made people rich, but because it has produced responsible citizens and--however unevenly--prosperous (...) communities. It cannot tolerate a conception of business that focuses solely on income and vulgarity while ignoring traditional virtues of responsibility, community, and integrity. Many feel that there is too much lip-service and not enough understanding of the importance of cooperation and integrity in corporate life. This book rejects the myths and metaphors of war-like competition that cloud business thinking and develops an "Aristotelean" theory of business. The author's approach emphasizes several core concepts: the corporation as community, the search for excellence, the importance of integrity and sound judgment, as well as a more cooperative and humane vision of business. Solomon stresses the virtues of honesty, trust, fairness, and compassion in the competitive business world, and confronts the problem of "moral mazes" and what he posits as its solution--moral courage. (shrink)

Theories of leadership have traditionally focused on leadership traits, styles, and situational factors that influence leader behaviors. We propose that The Four Umpires Model described herein, which examines how four leadership types view reality and perception, provides a useful example of an effective steward leader. We use the Five Beliefs Model identified by Edgar Schein and Peter Senge to frame the implicit assumptions underlying the core beliefs and mental models of each of the four umpires. We suggest that the stewardship (...) model of Umpire Number Four, the Facilitating Idealist, is the best model for leadership of the four umpires described. In our review of the Four Umpires Model we also explain why it is importance for every leader to thoughtfully assess the assumptions that form the ethical basis for leadership decisions and actions. (shrink)

The 7 habits of highly effective people.

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.

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)

Although trust has been widely recognized as a vital component ofrelationships and a critical element to the success of organizations,the literature describing trust and trustworthiness is known for itsvarying perspectives and its inconsistencies. Trustworthiness has beenidentified as a condition precedent to the development of trust.Building upon the established constructs of interpersonaltrustworthiness, we propose a related model containing the sevenconstructs of Competence, Legal Compliance, Responsibility to Inform,Quality Assurance, Procedural Fairness, Interactional Cour-tesy, andFinancial Balance. Citing evidence from trust-related literature, weidentify the utility (...) of these seven constructs in encompassingorganizational trustworthiness as a subjectively perceived aspect oforganizational effectiveness. We analyzed questionnaire data andconducted comparative world-region analyses. (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)

Employees perception of the existence of a covenantal relationship between themselves and their employer indicates that they believe there is a mutual commitment to shared values and the welfare of the other party in the relationship. Research suggests that these types of employment relationships have positive benefits for both employees and employers. There has been little research, however, on the factors that determine whether such relationships will develop and thrive.In this paper, we suggest that the organizations ethical work climate may (...) be an important factor affecting employees perceptions about the nature of the relational contract between themselves and their employer. Specifically, we argue that work climates emphasizing benevolence and principle will be associated with covenantal relationships. Conversely, we believe that work climates emphasizing egoism will make it less likely that covenantal relationships will develop between an employer and employee. (shrink)

The debate on sustainable globalized development rests on two clearly stated economic assumptions: that "development" proceeds, solely and inevitably, through industrialization and the proliferation of capital intensive high-technology, towards the creation of service sector economies; and that globalization, based on a neoliberal, capitalist, free market ideology, provides the only vehicle for such development. Sustainability, according to the proponents of globalized development, is merely a function of market forces, which will generate the solutions for all problems including the environmental dilemmas that (...) loom over the globe today. The social focus of globalized development is clearly the "individual" and the much-touted goal of development in the context of these debates, is the emancipation of the individual from want. This glorification of the individual, so characteristic of the Enlightenment, has defined all aspects of modernity, leading to approaches that are self-focused and that give little thought to the needs of society or even the social context. The increasing impoverishment of human life and the growing environmental degradation, however, provide a poignant counterpoint to this onrush of capital interests, demanding a reassessment of sustainability separate from the logic of industrialization and globalized development. This paper examines the unfolding of the logic of capitalism, which underlies the structure of the Rostowian model of development and the problems in the assumptions underlying today''s globalized development process. The evident impossibility of sustainability in the current growth-based market system leads to the examination of alternatives including a reflexive understanding of the choices and the inclusion of opportunity costs, related to the social, environmental and economic aspects of decision making. The integration of all factors of production into the logic of development provides a sustainable alternative to the current system. (shrink)

Establishes the intellectual foundations of a new movement in American thought: communitarianism. Emerging in part as a response to the excesses of American individualism, communitarianism seeks to restore the balance between individual rights and social responsibilities.

Distributive, procedural, and interactional justice are constructs that are increasingly being recognized as important factors that affect individual perceptions in the workplace environment. This paper presents a theoretical perspective that suggests that justice is perceived through a subjective lens that consists of individualized beliefs and proposes that cultural attributes and demographic characteristics play an integral part in determining the perception of justice. The distinctions between these three constructs are presented in context with the core beliefs of individual employees – affected (...) by a multitude of perceptual and demographic factors that we briefly identify herein. Based on the theoretical perspective, an instrument that measures the constructs of justice as perceived by individuals was developed. With a focus on justice within the business setting, hypotheses about attitudes related to justice were tested. Survey results confirm that the three constructs of justice are distinct but correlated. Significant differences were found in the perceptions of African-American respondents with regard to procedural justice. Although the empirical findings do not support all the hypotheses, this research highlights the need for further development of measures to assess the perception of justice in business settings and at an applied level, underscores the importance of recognizing cultural attributes and demographic characteristics in understanding how justice is perceived. (shrink)

Distributive, procedural, and interactional justice are constructs that are increasingly being recognized as important factors that affect individual perceptions in the workplace environment. This paper presents a theoretical perspective that suggests that justice is perceived through a subjective lens that consists of individualized beliefs and proposes that cultural attributes and demographic characteristics play an integral part in determining the perception of justice. The distinctions between these three constructs are presented in context with the core beliefs of individual employees – affected (...) by a multitude of perceptual and demographic factors that we briefly identify herein. Based on the theoretical perspective, an instrument that measures the constructs of justice as perceived by individuals was developed. With a focus on justice within the business setting, hypotheses about attitudes related to justice were tested. Survey results confirm that the three constructs of justice are distinct but correlated. Significant differences were found in the perceptions of African-American respondents with regard to procedural justice. Although the empirical findings do not support all the hypotheses, this research highlights the need for further development of measures to assess the perception of justice in business settings and at an applied level, underscores the importance of recognizing cultural attributes and demographic characteristics in understanding how justice is perceived. (shrink)