1. Trust, Justice and Ethics7

2. Learning Goals
What is trust, and how does it relate to justice and ethics?
In what three sources can trust be rooted?
What dimensions can be used to describe the trustworthiness of an authority?
What dimensions can be used to describe the fairness of an authority’s decision making?

3. Learning Goals, Cont’d
What is the four-component model of ethical decision making?
How does trust affect job performance and organizational commitment?
What steps can organizations take to become more trustworthy?

4. Trust, Justice, and Ethics
Reputation – prominence of the company’s brand in the public mind and the perceived quality of its goods and services
Trust – willingness to be vulnerable based on expectations about the other’s actions and intentions
Justice – perceived fairness of an authority’s decision making
Ethics – degree to which behaviors are in accordance with generally accepted moral norms

5. Trust
Disposition-based trust – a general propensity to trust others (or not)
Cognition-based trust - rooted in a rational assessment of the authority’s trustworthiness
Affect-based trust – depends on feelings toward the authority that go beyond any rational assessment

6. Disposition-Based Trust
Has less to do with the authority and more to do with the trustor
General expectation that the words, promises, and statements of individuals and groups can be relied upon
Shaped from both genetics and environment
Trust propensity levels in the United States are relatively high, compared to those in Europe and South America

7. Trust Propensities by Nation
Figure 7-2

8. Cognition-Based Trust
With experience or observation, trust begins to be based on cognitions we‘ve developed about the authority
Trustworthiness is defined as the characteristics of a trustee that inspire trust
Ability
Benevolence
Integrity

9. Track Record
Ability – the skills, competencies, and areas of expertise that enable an authority to be successful in a particular area
Benevolence – the belief that the authority wants to do good for the trustor, apart from any selfish or profit-centered motives
Integrity – the perception that the authority adheres to a set of values and principles that the trustor finds acceptable
“Walk the talk”

10. Affect-based Trust More emotional than rational
We trust because we have feelings for the person in question
Sometimes acts as a supplement to the other types of trust
An emotional bond develops, and feelings for the trustee increase our willingness to accept vulnerability

11. Factors that Influence Trust Levels
Figure 7-1

12. Justice
Distributive justice – the perceived fairness of decision outcomes
Procedural justice – the perceived fairness of decision-making processes

13. Procedural Justice Rules
Voice
Correctability
Consistency
Bias suppression
Representativeness
Accuracy

14. Procedural Justice
Don’t people just care about the outcomes that they receive?
Distributive and procedural justice combine to influence employee reactions.
When outcomes are bad, procedural justice becomes enormously important.
Procedural justice tends to be a stronger driver of reactions to authorities than distributive justice.

15. Interpersonal Justice
Reflects the perceived fairness of the treatment received by employees from authorities
Fostered when authorities adhere to:
Respect rule – treat employees in a dignified and sincere manner
Propriety rule – refrain from making improper or offensive remarks
Taken to extremes, interpersonally unjust actions create abusive supervision

16. Informational Justice
Reflects the perceived fairness of the communications to employees from authorities
Fostered when authorities adhere to:
Justification rule – explain decision-making procedures and outcomes in a comprehensive and reasonable manner
Truthfulness rule – communications are honest and candid

17. Ethics Research on ethics seeks to explain…
Why people behave in a manner consistent with generally accepted norms of morality
Why they sometimes violate those norms

18. The Four-Component Model of Ethical Decision Making
Figure 7-6
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19. The Four-Component Model of Ethical Decision Making
Moral awareness occurs when an authority recognizes:
A moral issue exists, or
An ethical code is relevant to the situation
Moral intensity – the degree to which the issue has ethical urgency
Potential for harm
Social pressure
Moral attentiveness – the degree to which people chronically perceive and consider issues of morality in their experiences

20. The Four Component Model of Ethical Decision Making
Moral judgment – the process people use to determine whether a course of action is ethical or unethical
Cognitive moral development theory
As people age and mature, they move through several stages of moral development
Each is more mature and sophisticated than the prior one

21. The Four Component Model of Ethical Decision Making
Moral judgment, cont’d
Preconventional stage – Viewed in terms of the consequences of actions for the individual
Conventional stage – Referenced to expectations of one’s family and society
Principled (or postconventional) stage – Referenced to a set of defined, established moral principles

22. The Four Component Model of Ethical Decision Making
Philosophers have identified a number of moral principles that serve as prescriptive guides for making moral judgments.
Consequentialist
Utilitarianism
Egoism
Non-consequentialist
Ethics of duties
Ethics of rights
Virtue ethics

23. The Four Component Model of Ethical Decision Making
Moral intent reflects the degree of commitment to the moral course of action.
The distinction between awareness or judgment and intent is important
Many unethical people know and understand that what they’re doing is wrong—they just choose to do it anyway.
Moral identity —the degree to which a person self- identifies as a moral person
Moderates the effects of moral judgment on ethical behavior.

24. Importance of Trust Positive relationship with performance
Increases an employee’s ability to focus
Influences citizenship behavior and counterproductive behavior
Allows employees to develop social exchange relationships, instead of economic exchange relationships, with their employers
Economic exchange relationships
Narrowly defined, quid pro quo obligations
Specified in advance
Explicit repayment schedule.
Social exchange relationships
Vaguely defined obligations
Open-ended and long-term in repayment

25. Application: Social Responsibility
Corporate social responsibility – acknowledges that the responsibility of a business encompasses the economic, legal, ethical, and citizenship expectations of society
A company’s obligations do not end with profit maximization.
Organizations have an obligation to do what is right, just, and fair and to avoid harm.