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Book part

Benjamin Kutsyuruba and Keith D. Walker

It is well known that trust is an essential, yet a fragile part of organizational life. Because trust sometimes has to be placed without guarantees, it will inevitably be…

Abstract

It is well known that trust is an essential, yet a fragile part of organizational life. Because trust sometimes has to be placed without guarantees, it will inevitably be broken, violated, and damaged when parties involved in trustworthy relationships let others down. When trust-destroying events occur, trust is shattered and its level plummets quickly into the domain of distrust. The speed with which trust can be destroyed depends on the magnitude of damage from the act of untrustworthiness and the perceived intentionality of the untrustworthiness. Moreover, if seen as intentional, the destruction of trust is particularly severe, as intentional untrustworthiness reveals malevolent intentions that are seen as highly predictive of future untrustworthiness. Often, leaders are the ones responsible for improper handling of, destroying, or violating trust in their organizations. In this chapter, we explore the consequences of leaders for violating trust and examine how trust changes over time as a function of different types of violations and attempts at restoration. We argue that because distrust may irrevocably harm organizations, leaders as moral agents need to consciously work to rebuild relationships, restore broken trust, and instill hope.

Details

The Dark Side of Leadership: Identifying and Overcoming Unethical Practice in Organizations
Type: Book
ISBN: 978-1-78635-499-0

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Article

Beomjoon Choi and Suna La

This study seeks to examine perceived corporate social responsibility (CSR) with a focus on ethical and legal questions, related to the constructs such as recovery…

Abstract

Purpose

This study seeks to examine perceived corporate social responsibility (CSR) with a focus on ethical and legal questions, related to the constructs such as recovery satisfaction, customer trust, and loyalty after a service failure.

Design/methodology/approach

An empirical test was conducted on this relationship in the context of service failure and recovery. A structural equation model was employed to test the hypotheses.

Findings

Results indicate that perceived CSR has a significant impact on customer trust and loyalty and that customer trust serves as a key mediating variable in service recovery.

Research limitations/implications

This study provides a theoretical implication for the relationship between perceived CSR and the relationship constructs such as service recovery satisfaction, customer trust, and loyalty.

Practical implications

The results suggest that managers may need to be aware of perceived CSR as a key variable in restoring customer loyalty. The results further suggest that perceived CSR has a direct and indirect positive effect on loyalty; perceived CSR has a direct impact on loyalty, but it also has an indirect influence on loyalty through customer trust.

Originality/value

In an attempt to deepen the understanding of how customer perceptions of firm CSR are connected with other customer-related outcomes during service recovery, the present research proposes a comprehensive model which encompasses CSR and other key relationship constructs after a service failure and recovery.

Details

Journal of Services Marketing, vol. 27 no. 3
Type: Research Article
ISSN: 0887-6045

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Article

Julie Robson and Jillian Dawes Farquhar

Building on crisis management studies, this study aims to advance research on brand recovery from the existing focus on product brand/customer dyad into stakeholder…

Abstract

Purpose

Building on crisis management studies, this study aims to advance research on brand recovery from the existing focus on product brand/customer dyad into stakeholder marketing and corporate branding.

Design/methodology/approach

This study uses a single case of industry-dominant corporate brand in an enriched context through in-depth analysis of industry informant and secondary data.

Findings

The paper uncovers detail of corporate brand and stakeholder interactions directed towards recovering corporate brand and restoring trust in the industry.

Research limitations/implications

This study offers an evidence-based framework of stakeholder interactions designed to support corporate brand recovery (CBR). The rich data are bounded within a single case.

Practical implications

Framework illustrates the importance of drawing on stakeholders in CBR, particularly in an industry crisis, emphasises trust restoration and reveals the peripheral role of customers in CBR.

Social implications

This study points to significance of stakeholder networks, particularly in insurance and financial services, in addressing social and ethical issues related to corporate misdeeds is identified.

Originality/value

This study makes noteworthy contribution to brand recovery research in two ways: firstly, by investigating the recovery of brands at corporate level and, secondly, by detailing the interactions between corporate brand and industry stakeholders in recovering the brand within a stricken industry.

Details

European Journal of Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0309-0566

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Article

Keith Walker, Benjamin Kutsyuruba and Brian Noonan

The purpose of this paper is to examine the trust‐related aspect of the work of school principals. The authors' exploratory examination of the Canadian school principals'…

Abstract

Purpose

The purpose of this paper is to examine the trust‐related aspect of the work of school principals. The authors' exploratory examination of the Canadian school principals' perceptions of their moral agency and trust‐brokering roles described their establishing, maintaining, and recovering of trust in schools. This article is delimited to the selected perceptions of Canadian principals' regarding the fragile nature of trust in their school settings.

Design/methodology/approach

This study used the open‐ended responses from surveys sent to school principals (n=177), who responded to the authors' invitation to complete a survey, as part of a larger study, in the ten provinces and three territories of Canada. The data analyses included theme and cross‐theme analyses.

Findings

This study has pointed to the perception that trust‐related matters are an important, yet a fragile, aspect of the work of principals. Principals often have to deal with trust‐related matters, which have caused trustworthiness to be threatened and trusting relationships to be broken. Trust‐related problems contribute to the fragility of trust and frequently seem to pertain to relationships between principal and other administrators, staff members, parents, and students. Most of the time, principals as leaders felt personal responsibility to make sure relationships among all stakeholders were sustained and, if broken, restored. The prevalent belief among participants in the study was that trusting relationships, though fragile and often broken, are subject to the hope of restoration and renewal.

Originality/value

This study provided valuable findings that enhance the understanding of ethical decision making and trust brokering amongst the Canadian school principals. While the discussions of trust and moral agency are certainly present in the educational literature, not much is known about the self‐perceived role of a principal as both a moral agent and trust broker. Moreover, there is perceived need for qualitative studies in the area of trust in educational leadership.

Details

Journal of Educational Administration, vol. 49 no. 5
Type: Research Article
ISSN: 0957-8234

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Article

Jae Choi and Derek L. Nazareth

The aim of this paper is to study the critical role of trust in electronic commerce extensively in the context of establishing initial trust between trading partners…

Abstract

Purpose

The aim of this paper is to study the critical role of trust in electronic commerce extensively in the context of establishing initial trust between trading partners. Ongoing trust between partners can quickly be eroded through security or other trust violations. This paper examines whether customers are willing to transact with an eCommerce vendor in light of security and trust violations.

Design/methodology/approach

The paper draws upon research in professional trust relationships and adapts it to the e-commerce context to create a process view of trust violation and repair. Using a design science framework, this paper employs agent-based modeling as the simulation technique to study the implications of security and trust violations on the willingness of customers to continue transacting with the vendor. The simulations are conducted for a variety of trust violations and reconciliation actions.

Findings

While some of the results are predictable, the key finding for managers is that moderate reconciliation tactics are effective for all cases but the most severe trust violations, where trust is irrevocably broken. This has clear financial implications, particularly in cases where vendors may operate with small margins in competitive markets.

Originality/value

Given the increasing push toward mobile and Internet-based commerce, and the large range of possible trust violations and security incidents in online purchases, coupled with increasing competition among vendors, it becomes imperative for vendors to provide effective tactics to repair customer trust violations when they arise.

Details

Information Management & Computer Security, vol. 22 no. 5
Type: Research Article
ISSN: 0968-5227

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Article

Shivashish Bose

Practical conservation of heritage buildings in Kolkata started in the 1990s and the first restoration project was the Town Hall, a public building built by the British in…

Abstract

Purpose

Practical conservation of heritage buildings in Kolkata started in the 1990s and the first restoration project was the Town Hall, a public building built by the British in 1813, in the central business district by a public‐private partnership. The purpose of this paper is to demonstrate the restoration process and adaptive reuse of the Town Hall as a case study.

Design/methodology/approach

A team of conservationists, architects and structural engineers worked during 1996‐1998. The methodology included surveying and documenting the existing structure; examining old materials and methods of construction, earlier repairs and the suitability of matching new materials; analysing the structure, defects and their causes; prescribing remedial measures; preparing items of work, estimating and tendering for appointment of contractors; allocating funds for restoration; supervision and monitoring of the works.

Findings

It was necessary to undertake structural strengthening and physical restoration through corrective measures, and reinstallation of all service systems, which resulted in the opening up of this edifice again for various kinds of public use, that included a museum.

Social implications

This was a pilot project for the state administration and the people of Kolkata. After this project, the conservation of historic buildings became an agenda of government and civil society. The lessons learned here were applied to the restoration of other similar buildings in Kolkata.

Originality/value

Conservation‐researchers, academics and practitioners will gain from this paper an in‐depth understanding of the restoration process in Kolkata.

Content available
Article

Ken Kalala Ndalamba

This paper aims to explore the problematic of public policies and leadership challenges for socio-economic transformation in South Africa. The paper illustrates that…

Abstract

Purpose

This paper aims to explore the problematic of public policies and leadership challenges for socio-economic transformation in South Africa. The paper illustrates that policies and laws of socio-economic reform have been introduced in democratic South Africa. However, socio-economic transformation remains a challenge. Lack of trust in the leadership relationships amongst political and economic agents is pointed as a contributing factor. Hence, LE emerges as a leadership strategy to help mitigate the problem.

Design/methodology/approach

The paper starts by presenting the current economic situation of South Africa touching on some important economic indicators to illustrate the consequences of poor leadership in public policy implementation process. The paper then analyses the leadership challenges to drive socio-economic reforms that have been introduced in South Africa since the end of apartheid with focus on the current National Development Plan. Lack of trust in leadership is identified as a problematic factor and leadership ethos (LE) emerges as a leadership strategy to enable the building of trust in leadership for the purpose of a successful implementation of public policies.

Findings

Lack of trust in leadership is identified as a problematic factor contributing in the absence of cooperation and collaboration in the leadership relationship amongst public servants (from up to bottom) and citizens for the purpose of successful implementation of public policies. Hence, there is need for a new leadership paradigm that would enable the building of trust in these leadership relationships. LE emerges as such a leadership strategy.

Practical implications

The paper calls for an exploration into the understanding and practice of LE and its inherent critical success factors (CSFs) considered as a leadership strategy that can help drive particularly public policies implementation process. LE intends to promote moral leadership that helps public servants to build good character and thus the will to do the right thing, and mutually trusting relationship is a CSF of LE. Therefore LE enables build the much needed trust in leadership relationships for a successful organisational leadership and management.

Originality/value

This paper provides significant implications by identifying lack of trust as a problematic factor in the leadership relationships amongst political and economic agents in South Africa, contributing thus in the poor implementation of public policies. LE emerges as a leadership strategy that would help mitigate the problem by enabling the building, the maintenance and restoration of trust in organisational and or institutional management for a successful public policy implementation process.

Details

International Journal of Excellence in Government, vol. 1 no. 1
Type: Research Article
ISSN: 2516-4384

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Article

Jean-François Bonnefon, Marco Heimann and Katia Lobre-Lebraty

The purpose of this paper is to show how overall performance can help foster trust in financial institutions. While a climate of mistrust amongst investors and the general…

Abstract

Purpose

The purpose of this paper is to show how overall performance can help foster trust in financial institutions. While a climate of mistrust amongst investors and the general public toward financial institutions has developed since the recent turmoil in the financial markets, it is believed that mutual funds adopting the overall performance approach can help recover a climate of trust owing to the implied balance between economic, social and environmental performance. More specifically, overall performance promotes values that are similar to investors’ values and could be used by responsible investment funds if they want to contribute to the restoration of trust in investment funds.

Design/methodology/approach

This paper uses an innovative, experimental design to test the effect of value similarity on the trust that investors have in the investment fund. This effect cannot be studied in isolation, which is why it is compared with the effects of financial performance and ethical labeling on trust.

Findings

The authors find that funds with similar values are perceived as more trustworthy by investors. Consequently, overall performance should be added to fund managers' toolbox if they want to foster trust in their fund. The effect of financial performance on trust applies only when the investor has no other information regarding the fund. As for the ethical labeling of funds, it has no effect on trust.

Research limitations/implications

The findings encourage research that aims to develop a comprehensive approach of integrated overall performance focusing on financial and extra-financial values. Bonnet et al.’s (2016) fieldwork on socio-economic management and Naro and Travaillé©’s (2016) work on management controllers provide promising examples in this regard.

Practical implications

Investment funds can acquire an edge by communicating on overall performance and specific values of their target investors. Merely labeling funds as ethical is not sufficient to increase trust.

Social implications

Increasing similarity in values to investors and adopting the overall performance approach in investment funds will increase investors' trust. Trust contributes to social capital and allows societies to create flexible large-scale businesses needed to be competitive in a global environment.

Originality/value

Using an innovative experimental methodology, this paper shows that the underlying factor of overall performance on trust in investment funds is value similarity. It provides researchers and practitioners with insight about the underlying mechanisms of the effect of overall performance on trust.

Details

Society and Business Review, vol. 12 no. 2
Type: Research Article
ISSN: 1746-5680

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Book part

Murray Bryant, Throstur Olaf Sigurjonsson and Már Wolfgang Mixa

This chapter examines the formal governance mechanisms put in place by various authorities within Iceland after the crash. In contrast to one of our earlier papers …

Abstract

This chapter examines the formal governance mechanisms put in place by various authorities within Iceland after the crash. In contrast to one of our earlier papers (Bryant, Sigurjónsson, & Mixa, 2014), we find that, no matter how well the mechanisms work, formal mechanisms are insufficient to restore trust. To that end, we examine the trust literature from political science that suggests that trust is a lubricant of the social system that consequently causes individuals to open themselves up to vulnerability. When trust is broken in a society with a high-existing degree of trust, such as Iceland, the loss of trust is significant and leads even apparently minor incidents to be perceived as betrayals. We examine the various processes put in place by both the government and other institutions and show how they mostly worked in concert. Nonetheless, we find that the processes by themselves have been insufficient to restore society’s trust in the affected institutions.

Details

The Return of Trust? Institutions and the Public after the Icelandic Financial Crisis
Type: Book
ISBN: 978-1-78743-348-9

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Article

Shantanu Prasad, Arushi Garg and Saroj Prasad

The purpose of this paper is to propose the concept of conviction in online environment. It examines the vital role of conviction and firm’s brand reputation while…

Abstract

Purpose

The purpose of this paper is to propose the concept of conviction in online environment. It examines the vital role of conviction and firm’s brand reputation while understanding the impact of social media usage and electronic word-of-mouth (EWOM) on purchase decisions of Generation Y.

Design/methodology/approach

Literature review resulted in six constructs – social media usage, EWOM, conviction, firm’s brand reputation and purchase intention and customer loyalty. The authors adopted the concept of conviction from another field of enquiry (organizational learning), conducted a qualitative study and an e-mail survey with post-graduate management students (Generation Y) of a university to examine the impact of social media and EWOM on customer purchase decision. Data were collected and analyzed with the help of structural equation modeling.

Findings

Results indicated that impact of social media usage and EWOM on purchase decision is mediated by conviction. Firm’s reputation as brand (perceived by the customer) moderates the relationship between EWOM and purchase intention in a manner that this relationship is significantly stronger if there is more positive brand reputation.

Originality/value

This study validates the concept of conviction in online environment. The purchase decision is defined as purchase intention and loyalty of the customer.

Details

Marketing Intelligence & Planning, vol. 37 no. 4
Type: Research Article
ISSN: 0263-4503

Keywords

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