Trust and Stakeholder Theory: Trustworthiness in the Organisation–Stakeholder Relationship [Book Review]
Journal of Business Ethics 95 (3):425-438 (2010)
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
|Keywords||stakeholder theory trust trustworthiness power dependent stakeholders|
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References found in this work BETA
Can Corporations Be Citizens? Corporate Citizenship as a Metaphor for Business Participation in Society.Jeremy Moon, Andrew Crane & Dirk Matten - 2005 - Business Ethics Quarterly 15 (3):429-453.
Stakeholder Theory and A Principle of Fairness.Robert A. Phillips - 1997 - Business Ethics Quarterly 7 (1):51-66.
Corporate Character: Modern Virtue Ethics and The Virtuous Corporation.Geoff Moore - 2005 - Business Ethics Quarterly 15 (4):659-685.
The Question of Organizational Consciousness: Can Organizations Have Values, Virtues and Visions? [REVIEW]Peter Pruzan - 2001 - Journal of Business Ethics 29 (3):271 - 284.
Citations of this work BETA
Agonistic Pluralism and Stakeholder Engagement.Cedric Dawkins - 2015 - Business Ethics Quarterly 25 (1):1-28.
Moral Salience and the Role of Goodwill in Firm-Stakeholder Trust Repair.Jill A. Brown, Ann K. Buchholtz & Paul Dunn - 2016 - Business Ethics Quarterly 26 (2):181-199.
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