1. Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Trust, Justice, and Ethics

2. 7-2 Class Agenda Trust defined Types of trust Using justice to gauge trust Using ethics to gauge trust How important is trust? Best practices

3. 7-3

4. 7-4 Trust Defined The willingness to be vulnerable to an authority based on positive expectations about the authority’s actions and intentions ๏ Trust = willing to be vulnerable ๏ Risk = actually becoming vulnerable

5. 7-5 Trust Drivers

6. 7-6 Disposition-Based Trust Trust Propensity ๏ A general expectation that the words, promises, and statements of individuals and groups can be relied upon ๏ Which is more damaging in organizational life: being too trusting or being too suspicious?

7. 7-7 Cognition-Based Trust Trustworthiness ๏ The characteristics of a trustee that inspire trust ๏ Ability ๏ Benevolence ๏ Integrity ๏ Which are most important with subordinates? With supervisors?

8. 7-8 Affect- Based Trust

9. 7-9 Justice Trustworthiness can sometimes be difficult to judge, especially early in work relationships Justice-relevant acts can serve as behavioral evidence of trustworthiness ๏ Distributive justice ๏ Procedural justice ๏ Interpersonal justice ๏ Informational justice

10. 7-10 Distributive and Procedural Justice

11. 7-11 Distributive and Procedural Justice

12. 7-12 Interpersonal & Informational Justice

13. 7-13 Interpersonal & Informational Justice

14. 7-14 Ethics The degree to which the behaviors of an authority are in accordance with generally accepted moral norms ๏ Unethical behavior ๏ “Merely ethical” behavior ๏ “Especially ethical” behavior

15. 7-15 Ethics Exercise ๏ Read the scenario on the next four slides ๏ Come up with three ideas for reducing theft in this grocery store

16. 7-16 The Four Component Model

17. 7-17 Ethics Can companies benefit from having better moral awareness and moral judgment, even if their costs rise as a result? How?

18. 7-18

19. 7-19 How Important is Trust?

20. 7-20 Application Corporate Social Responsibility ๏ Legal component ๏ Ethical component ๏ Social component

21. 7-21 Best Practices: Nike In 1998, brand evoked slave wages, forced overtime, abuse Now posts names and locations of all 700 factories on the Web Pays auditors to inspect plants and provide letter grades Now limiting last-minute design adjustments that strain the system Helps to convert factories to more modern technologies Working to make shoes more environmentally sustainable