Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

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Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

7Trust, Justice and Ethics

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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?

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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?

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Trust, Justice, and Ethics

Reputation

Trust

Justice

Ethics

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“World’s Most Admired Companies”Ta

ble

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Discussion Questions

Why are some authorities more trusted than others?

Would you be willing to let that person have significant influence over your professional or educational future?

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Trust

Disposition-based trust

Cognition-based trust

Affect-based trust

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Disposition-Based Trust

Has less to do with the authority and more to do with the trustor. Some trustors are high in trust propensity Trust propensity levels are actually relatively high

in the United States, especially in relation to countries in Europe and South America.

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Trust Propensities by NationFi

gure

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Cognition-Based Trust

Our trust begins to be based on cognitions we‘ve developed about the authority, as opposed to our own personality or disposition.TrustworthinessDriven by the authority’s “track record.”

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The Track Record

Ability

Benevolence

Integrity

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Affect-Based Trust

Often more emotional than rational. We trust because we have feelings for the person in

question; we really like them and have a fondness for them.

Affect-based trust sometimes acts as a supplement to the types of trust discussed previously.

An emotional bond develops, and our feelings for the trustee further increase our willingness to accept vulnerability.

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Types of Trust Over TimeFi

gure

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Factors that

Influence Trust

Levels

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re 7

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Justice

Distributive justice

Procedural justice

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Procedural Justice Rules Voice

Correctability

Consistency, bias suppression, representativeness, and accuracy

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Some of the 50 Best Companies for Minorities

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e 7-

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Procedural Justice

Does procedural justice really matter—don’t people just care about the outcomes that they

receive?

Distributive justice 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.

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Combined Effects of Distributive and Procedural Justice

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re 7

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Justice, Cont’d

Interpersonal justice Interpersonal justice is fostered when authorities

adhere to two particular rules.Respect rulePropriety rule

When taken to the extremes, interpersonally unjust actions create abusive supervision.

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Justice, Cont’d

Informational justiceInformational justice is fostered when

authorities adhere to two particular rules.Justification ruleTruthfulness rule

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The Effects of Justice on Theft During a Pay Cut

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re 7

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The Four Dimensions of JusticeTa

ble

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Ethics Research on ethics seeks to explain why

people behave in a manner consistent with generally accepted norms of morality, and why they sometimes violate those norms. Two primary threads

PrescriptiveDescriptive

Whistle-blowing

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The Four-Component Model of Ethical Decision Making

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INSERT ONCE REVISED

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The Four Component Model of Ethical Decision Making

Moral awareness Moral intensity Moral attentiveness

Moral judgment Cognitive moral development theory

Preconventional stageConventional stagePrincipled (or postconventional) stage

Moral principles

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The Dimensions of Moral IntensityTa

ble

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Ethical Dilemma Used to Assess Moral Development

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e 7-

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Moral Principles Used in the Principled Stage

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The Four Component Model of Ethical Decision Making, Cont’d

Moral intent The distinction between awareness or judgment

on the one hand and intent on the other is important, because many unethical people know and understand that what they’re doing is wrong—they just choose to do it anyway.

One driver of moral intent is moral identity

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Why Are Some Authorities

More Trusted Than Others?

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re 7

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How Important Is Trust? Trust relates to performance because it

increases an employees ability to focus. Trust also influences citizenship behavior and

counterproductive behavior because it allows employees to develop social exchange relationships instead of economic exchange relationships with their employers.Economic exchange Social exchange

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Effects of Trust on Performance and Commitment

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Application: Social Responsibility

Corporate social responsibility

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.

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Takeaways Trust is the willingness to be vulnerable to an authority based on positive

expectations about the authority’s actions and intentions. Justice reflects the perceived fairness of an authority’s decision making and can be used to explain why employees judge some authorities as more trustworthy than others. Ethics reflects the degree to which the behaviors of an authority are in accordance with generally accepted moral norms and can be used to explain why authorities choose to act in a trustworthy manner.

Trust can be disposition-based, meaning that one’s personality includes a general propensity to trust others. Trust can also be cognition-based, meaning that it’s rooted in a rational assessment of the authority’s trustworthiness. Finally, trust can be affect-based, meaning that it’s rooted in feelings toward the authority that go beyond any rational assessment of trustworthiness.

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Takeaways, Cont’d Trustworthiness is judged along three dimensions. Ability reflects the

skills, competencies, and areas of expertise that an authority possesses. Benevolence is the degree to which an authority wants to do good for the trustor, apart from any selfish or profit-centered motives. Integrity is the degree to which an authority adheres to a set of values and principles that the trustor finds acceptable.

The fairness of an authority’s decision making can be judged along four dimensions. Distributive justice reflects the perceived fairness of decision-making outcomes. Procedural justice reflects the perceived fairness of decision-making processes. Interpersonal justice reflects the perceived fairness of the treatment received by employees from authorities. Informational justice reflects the perceived fairness of the communications provided to employees from authorities.

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Takeaways, Cont’d The four-component model of ethical decision making argues that ethical

behavior depends on three concepts. Moral awareness reflects whether an authority recognizes that a moral issue exists in a situation. Moral judgment reflects whether the authority can accurately identify the “right” course of action. Moral intent reflects an authority’s degree of commitment to the moral course of action.

Trust has a moderate positive relationship with job performance and a strong positive relationship with organizational commitment.

Organizations can become more trustworthy by emphasizing corporate social responsibility, a perspective that acknowledges that the responsibilities of a business encompass the economic, legal, ethical, and citizenship expectations of society.