Chapter VI.

TRUST,
JUSTICE AND
ETHICS

Trust,
justice

Reporter: Grace C. Resultan

TRUST, JUSTICE AND

ETHICS

Why companies care

about ethical issues?

REPUTATIO

TRUST, JUSTICE AND

ETHICS
REPUTATION
is an intangible asset that can
take a long time to build but,
as Benjamin Franklin once
noted, can be cracked as easily
as glass or china.

TRUST, JUSTICE AND

ETHICS
ORGANIZATIONS
REPUTATION
one of its most prized possessions
It reflects the prominence of its
brand in the minds of the public
and the perceived quality of its
goods and services.

TRUST, JUSTICE AND

ETHICS
REPUTATION
depends on one of the most
important factors: trust.
Trust in authorities depends
on two related concepts:
justice and ethics.

TRUST
The best way to learn if
you can trust somebody
is to trust them.
Ernest Hemingway

TRUST
Defined as the willingness to be
vulnerable to a trustee based on
positive expectations about the
trustees actions and intentions.
Trusting reflects a willingness to
put yourself out there, even you
could meet disappointment.

TRUST
Three Different
Sources Where
Trust Can Be
Rooted

TRUST
1.DISPOSITION-BASED
.Means that personality traits include
a general propensity to trust others.
.Has less to do with a particular
authority and more to do with trustor.
. Guides us in cases when we dont
yet have data about a particular
authority.

TRUST
1.DISPOSITION-BASED
.Some trustors are high in trust
propensity a general expectation
that
words,
promises,
and
statements of individuals and
groups can be relied upon.

TRUST
1.DISPOSITION-BASED
Where does trust propensity
come from?
.Nature
.Nurture

TRUST
2. COGNITION-BASED
.Denotes that trust is rooted in a rational
assessment
of
the
authoritys
trustworthiness.
.Trustworthiness is defined as the
characteristics or attributes of a trustee
that inspire trust.
.Driven by the authoritys track record.

TRUST
2.COGNITION-BASED
.Trustworthiness is judged
along three dimensions:
. Ability
.Benevolence
.Integrity

Three dimensions of
trustworthiness
ABILITY
Skills, competencies, and areas
of expertise that enable an
authority to be successful in some
specific area.

Three dimensions of
trustworthiness
BENEVOLENCE
Belief that the authority wants to do
good for the trustor, apart from any
selfish or profit-centered motives.
A benevolent authority means that they
care for employees, are concerned
about their well-being, and feel a sense
of loyalty to them.

Three dimensions of
trustworthiness
INTEGRITY
Perception that the authority adheres
to a set of values and principles that
the trustor finds acceptable.
Integrity also conveys an alignment
between words and deed.
sound character; good intentions and
strong moral discipline.

TRUST
3.AFFECT-BASED
.Means that it is rooted in
feelings toward the authority
that go beyond any rational
assessment.

Trusting or
suspicious??

OB Assessment
TRUST PROPENSITY
Are you a trusting person or a
suspicious person by nature? This
assessment is designed to
measure trust propensity a
dispositional willingness to trust
other people.

Measure your TRUST

PROPENSITY

Answer each question

using the response scale
provided.

Measure your TRUST

PROPENSITY

Measure your TRUST

PROPENSITY
Subtract your answers to the boldfaced
questions from 6, with the difference being
your new answers for these questions.
(For example, if your original answer for
question 4 was 4, your new answer is 2
(6 4).
Then sum up your answers for the eight
questions.

Measure your TRUST

PROPENSITY
Scoring and Interpretation:
If your scores sum up to 21 or above, you
tend to be trusting of other people, which
means youre often willing to accept some
vulnerability to others under conditions of risk.
If your scores sum up to 20 or below, you tend
to be suspicious of other people, which means
youre rarely willing to accept such
vulnerability.

Measure your TRUST

PROPENSITY

Are you
PERSON?

TRUSTING

Or
Are you a SUSPICIOUS
PERSON?

Types of Trust Over Time

justice
It is often difficult to gauge
trustworthiness accurately, so
employees instead look to
more observable behaviors
that can be used as indirect
evidence of trustworthiness.
These behaviors may center
on adherence of authorities to

JUSTICE
Justice reflects the perceived fairness
of an authoritys decision making and
can be used to explain why employees
judge some authorities to be more
trustworthy than others.
Justice provides that sort behavioral
evidence, because authorities who treat
employees more fairly are usually
judged to be trustworthy.

JUSTICE
The fairness of an
authoritys decision
making can be
judged along four
dimensions.

JUSTICE
1. DISTRIBUTIVE JUSTICE
.Reflects the perceived fairness of
decision-making outcomes.
.Employees gauge distributive justice
by asking whether decision outcomes,
such as pay, rewards, evaluations,
promotions and work assignments, are
allocated using proper norms.

JUSTICE
1. DISTRIBUTIVE JUSTICE
.Examples of Proper Norms:
.Equity
.Equality
.Need

JUSTICE
2. PROCEDURAL JUSTICE
.Reflects the perceived fairness
of decision-making process.
.Procedural justice is fostered
when authorities adhere to rules
of fair process.

JUSTICE
2. PROCEDURAL JUSTICE
.Examples of Rules of Fair
Process:
.Voice
.Correctability/Appeal

JUSTICE
2. PROCEDURAL JUSTICE
.Procedural justice is promoted when
authorities adhere to four rules that
serve to create equal employment
opportunity.
. Consistency
.Bias suppression
.Representativeness

JUSTICE
3. INTERPESONAL JUSTICE
.Reflects the perceived fairness
of the treatment received by
employees from authorities.

JUSTICE
3. INTERPESONAL JUSTICE
.Interpersonal justice is fostered
when authorities adhere to two
particular rules.
.Respect Rule
.Propriety Rule

JUSTICE
3. INTERPESONAL JUSTICE
.Interpersonally unjust actions
can create abusive supervision,
defined as the sustained display
of hostile verbal and nonverbal
behaviors, excluding physical
contact.

JUSTICE
4. INFORMATIONAL JUSTICE
.Reflects the perceived fairness
of the communication provided
to employees from authorities.

JUSTICE
4. INFORMATIONAL JUSTICE
.Informational justice is fostered when
authorities adhere to two particular rules.
.Justification Rule - decision-making
procedures and outcomes explained in
comprehensive and reasonable manner.
.Truthfulness Rule requires that
communications must be honest and
candid.

JUSTICE
4. INFORMATIONAL JUSTICE
.Information injustices are all too
common, for a variety of reasons.
Examples of them are:
.Sharing bad news is the worst part of
the job for most managers.
.Managers worry about triggering a
lawsuit

The Four Dimensions of Justice

JUSTICE
Be a voice, not an
echo.
Christian C. Resultan

THANK
YOU

Chapter VI.
TRUST,
JUSTICE AND
ETHICS

ethics

Reporter: Nikki I. Magleo

ETHICS
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.

ETHICS
The study of Business Ethics has
two primary threads to it.
Prescriptive how people ought to act
using various codes and principles.
Descriptive relying on scientific
studies to observe how people tend to
act based on certain individual and
situational characteristics.

ETHICS
Although the differences between
these two threads give the study of
business
ethics
a
certain
complexity the philosophical and
empirical approaches can be
integrated to develop a more
complete understanding of ethical
behavior.

ETHICS
Focus of Some Studies of
Business Ethics:

ETHICS
1. Unethical Behavior
.Behavior that clearly violates
accepted norms of morality.

ETHICS
1. Unethical Behavior
.Unethical behaviors in organizations
can be directed at:
.Employees
.Customers
.Financiers
.Society

ETHICS
2. Merely Ethical Behavior
.Behavior that adheres to some
minimally
accepted
standard
of
morality.
.Merely ethical behaviors might include
obeying labor laws and complying with
formal rules and contracts.

ETHICS
3. Especially Ethical Behavior
.Behavior that exceeds some
minimally accepted standard of
morality.
.Especially ethical behaviors
might include charitable giving or
whistle-blowing.

ETHICS
Four-component model of ethical
decision making
one set of answers that can be
derived from research in social
psychology in which explains why do
some authorities behave unethically
while others engage in ethical (or
especially ethical) behavior.

ETHICS
Four-component Model of
Ethical Decision-Making:

ETHICS
1. Moral Awareness
.The first step needed to explain why an
authority
acts
ethically
is
moral
awareness, which occurs when an
authority recognizes that a moral issue
exists in a situation or that an ethical
code or principle is relevant to the
circumstance.

ETHICS
1. Moral Awareness
.Ethical issues rarely come equipped with
red flags that mark as morally sensitive.
.Moral awareness depends in part on
characteristics of the issue itself, as some
issues have more built-in ethical salience
than others. A concept called moral
intensity captures the degree to which an
issue has ethical urgency.

ETHICS
1. Moral Awareness
.Moral Intensity is driven by two
general concerns, both have more
specific facets.
. Potential for harm
.Social pressure

ETHICS
1. Moral Awareness

ETHICS
1. Moral Awareness
.Moral awareness also depends on the
way authorities observe and perceive the
events that happen around them. A
concept called moral attentiveness
captures the degree to which people
chronically perceive and consider issues
of morality during their experiences.

ETHICS
2. Moral Judgment
.Sometimes authorities recognize that a
moral issue exists in a given situation
but then be unable to determine whether
a given course of action is right or
wrong. Therefore, the second step
needed to explain why an authority acts
ethically is moral judgment.

ETHICS
2. Moral Judgment
.Moral judgment reflects the process
people use to determine whether a
particular course of action is ethical
or unethical.

ETHICS
2. Moral Judgment
.One of the most important factors
influencing
moral
judgment
is
described in Kohlbergs theory of
cognitive moral development.

ETHICS
2. Moral Judgment
.Kohlbergs theory of cognitive moral
development
This theory argues that as people age and
mature, they move through various stages of
moral development each more mature and
sophisticated than the prior one. All else equal,
authorities who operate at more mature stages
of moral development should demonstrate
better moral judgment.

ETHICS
2. Moral Judgment
Kohlbergs theory of cognitive
moral development

ETHICS

ETHICS

ETHICS

ETHICS
3. Moral Intent
.If an authority recognizes that a moral
issue exists in a situation and
possesses
the
cognitive
moral
development to choose the right
course of action, one step remains: The
authority has to want to act ethically.

ETHICS
3. Moral Intent
.Moral intent reflects an authoritys
degree of commitment to the moral
course of action.
.One factor which explains why some
people has the ability to resist
situational pressures and stay true to
their moral judgment is moral identity.

ETHICS
3. Moral Intent
.Moral Identity is the degree
to which a person selfidentifies as a moral person.

ETHICS
4. Ethical Behavior
.When authorities are morally
aware,
when
they
have
sophisticated moral judgment,
and when they possess strong
moral intent, chances are their
actions will tend to be ethical.

ETHICS
Ethics must begin at the top of
an organization. It is a
leadership issue and the chief
executive must set the
example
Edward Hennessy

TRUST, JUSTICE AND

ETHICS

WHY ARE SOME

AUTHORITIES MORE
TRUSTED THAN
OTHERS?

TRUST, JUSTICE AND

ETHICS

TRUST, JUSTICE AND

ETHICS

HOW
IMPORTANT IS
TRUST?

TRUST, JUSTICE AND

ETHICS
Trust has a moderate positive effect on
task performance. Employees who are
willing to be vulnerable to authorities
tend to have higher levels of task
performance. They are also more likely
to engage in citizenship behavior and
less likely to engage in
counterproductive behavior.

TRUST, JUSTICE AND

ETHICS
Trust has strong positive effect on
commitment. Employees who are
willing to be vulnerable to authorities
tend to have higher levels of affective
commitment and higher levels of
normative commitment. Trust has no
effect on continuance commitment.

TRUST, JUSTICE AND

ETHICS
Trust has strong positive effect on
commitment. Employees who are
willing to be vulnerable to authorities
tend to have higher levels of affective
commitment and higher levels of
normative commitment. Trust has no
effect on continuance commitment.

TRUST, JUSTICE AND

ETHICS

HOW CAN
ORGANIZATIONS
BECOME MORE
TRUSTWORTHY?

TRUST, JUSTICE AND

ETHICS
One strategy is to focus the
organizations attention on Corporate
Social Responsibility, a perspective that
acknowledges that the responsibilities of
a business encompass the economic,
legal, ethical, and citizenship
expectations of the society.

Corporate social
responsibility
Legal Component of CSR:
Following laws and rules which
speaks to the integrity of the
organization and suggests that it
has reached the conventional
level of moral development.

Corporate social
responsibility
Ethical Component of CSR:
Obliges to do what is right, just
and fair to avoid harm which is
relevant to benevolence and
integrity and suggests that it has
reached principled level of moral
development.

Corporate social
responsibility
Citizenship Component of CSR:
Contributes resources to improve
the quality of life in the
communities in which they work
and involves effort geared to
environmental sustainability.

Lets have
fun and
play

THAN
K
YOU