Ch. 8 - Trust, Justice, and Ethics Flashcards
Trust
The willingness to be vulnerable to a trustee based on positive expectations about the trustee’s actions and intentions
Reputation of a company
The prominence of an organization’s brand from the public’s POV and the perceived quality of its goods and services
Risk
Actually becoming vulnerable by doing something based on positive expectations without a guaranteed result
Justice
The perceived fairness of an authority’s decision making
Ethics
The degree to which an authority’s behaviours align with generally accepted moral norms
Trust Propensity
A general expectation that the words, promises, and statements of individuals and groups can be relied upon
Distributive Justice
Reflects perceived fairness of decision-making outcomes. Outcomes include pay, promotions, and assignments.
Procedural Justice
Reflects the perceived fairness of decision-making procedures.
Interpersonal Justice
Reflects the perceived fairness of an authority’s treatment of their employees.
Informational Justice
Reflects the perceived fairness of the communications provided to employees from authorities.
What rules must be followed to foster distributive justice?
Rewards must be allocated according to the proper norm. Depending on the situation, the proper norm could be equity, equality, or need (typically equity).
What rules must be followed to foster procedural justice?
-Voice
-Correctability
-Consistency
-Bias Suppression
-Representativeness
-Accuracy
What rules must be followed to foster interpersonal justice?
-Respect
-Propriety
What rules must be followed to foster informational justice?
-Justification
-Truthfulness
What are the steps involved in the Four-Component Model of Ethical Decision Making?
- Moral Awareness
- Moral Judgement
- Moral Intent
- Ethical Behaviour
Moral Awareness
An authority recognizes that a moral issue exists in a situation or that an ethical code/principle is relevant to the situation.
Will firms tend to act ethically even if there is a high chance that they face no consequences for acting unethically?
No. If it is unlikely that they will face negative consequences, most organizations tend to make unethical decision to maximize profit.
Moral Judgement
Reflects the process people use to determine whether a particular course of action is ethical or unethical.
Moral Intent
An authority’s degree of commitment to the moral course of action.
Economic Exchange Relationships
Relationships that lack trust, are narrowly defined, and function through quid pro quo obligations
Social Exchange Relationships
Relationships that have increased trust (characterized by mutual investment and going above and beyond expectations).
What is the relationship between Trust and Job Performance
Moderate positive correlation
What is the relationship between Trust and Organizational Commitment?
Strong positive relationship
Disposition-Based Trust
Trust rooted in one’s own personality rather than due to a careful assessment of the trustee’s trustworthiness
Cognition-Based Trust
Trust rooted in a rational assessment of the authority’s trustworthiness (analyzing their ability, benevolence, and integrity)
Affect-Based Trust
Trust dependent on feelings toward the authority that go beyond any rational assessment of trustworthiness
Whistle-blowing
Employees exposing illegal or immoral actions by their employer.
Analogy: Think of a referee blowing their whistle on an illegal play
