Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. Slide 7-1 Chapter Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 7 Trust, Justice and Ethics

Slide 7-2 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?

Slide 7-3 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?

Slide 7-4 Trust, Justice, and Ethics  Reputation  Trust  Justice  Ethics

Slide 7-5 “World’s Most Admired Companies” Table 7-1

Slide 7-6 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?

Slide 7-7 Trust  Disposition-based trust  Cognition-based trust  Affect-based trust

Slide 7-8 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.

Slide 7-9 Trust Propensities by Nation Figure 7-2

Slide 7-10 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.  Trustworthiness  Driven by the authority’s “track record.”

Slide 7-11 The Track Record  Ability  Benevolence  Integrity

Slide 7-12 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.

Slide 7-13 Types of Trust Over Time Figure 7-3

Slide 7-14 Factors that Influence Trust Levels Figure 7-1

Slide 7-15 Justice  Distributive justice  Procedural justice

Slide 7-16 Procedural Justice Rules  Voice  Correctability  Consistency, bias suppression, representativeness, and accuracy

Slide 7-17 Some of the 50 Best Companies for Minorities Table 7-3

Slide 7-18 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.

Slide 7-19 Combined Effects of Distributive and Procedural Justice Figure 7-4

Slide 7-20 Justice, Cont’d  Interpersonal justice  Interpersonal justice is fostered when authorities adhere to two particular rules.  Respect rule  Propriety rule  When taken to the extremes, interpersonally unjust actions create abusive supervision.

Slide 7-21 Justice, Cont’d  Informational justice  Informational justice is fostered when authorities adhere to two particular rules.  Justification rule  Truthfulness rule

Slide 7-22 The Effects of Justice on Theft During a Pay Cut Figure 7-5

Slide 7-23 The Four Dimensions of Justice Table 7-2

Slide 7-24 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  Prescriptive  Descriptive  Whistle-blowing

Slide 7-25 The Four-Component Model of Ethical Decision Making Figure 7-6 INSERT ONCE REVISED

Slide 7-26 The Four Component Model of Ethical Decision Making  Moral awareness  Moral intensity  Moral attentiveness  Moral judgment  Cognitive moral development theory  Preconventional stage  Conventional stage  Principled (or postconventional) stage  Moral principles

Slide 7-27 The Dimensions of Moral Intensity Table 7-4

Slide 7-28 Ethical Dilemma Used to Assess Moral Development Table 7-5

Slide 7-29 Moral Principles Used in the Principled Stage Table 7-6

Slide 7-30 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

Slide 7-31 Why Are Some Authorities More Trusted Than Others? Figure 7-7

Slide 7-32 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

Slide 7-33 Effects of Trust on Performance and Commitment Figure 7-8

Slide 7-34 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.

Slide 7-35 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.

Slide 7-36 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.

Slide 7-37 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.