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5 - Public trust in business and its determinants

Published online by Cambridge University Press:  05 July 2014

By
Michael Pirson ,
Kirsten Martin  and
Bidhan L. Parmar
Edited by
Jared D. Harris ,
Brian Moriarty  and
Andrew C. Wicks
Michael Pirson
Affiliation:
Fordham Schools Business
Kirsten Martin
Affiliation:
George Washington University School of Business
Bidhan L. Parmar
Affiliation:
University of Virginia’s Darden School of Business
Jared D. Harris
Affiliation:
University of Virginia
Brian Moriarty
Affiliation:
University of Virginia
Andrew C. Wicks
Affiliation:
University of Virginia
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Summary

Executive summary

The situation

As the importance of public trust in business becomes ever more obvious to both practitioners and scholars, the levels of generalized trust in business have reached alarmingly low levels.

Key questions

Is an emerging trust gap – where the need for trust outpaces the actualization of trust in business – likely to impair successful business development? What are the determinants of public trust in the institution of business? Do stakeholder-role-specific perspectives impact public trust in business? If so, how do they do so?

New knowledge

Men tend to be more trusting of business than are women. Age plays a role in people’s trust in business, with those 23 years old or younger being much more likely to trust business.

While it is commonly supposed that the public has greater trust in smaller companies, this study finds that changing the size of the firm from small, regional, national, or global does not substantially “move the dial” for trust. The authors’ research, however, does find that public trust in business will be affected by a firm’s industry.

Key lessons

Public trust in the institution of business matters to all companies, since it colors stakeholder trust in particular businesses.

Age and gender play a role in stakeholder trust. Business leaders should be cognizant of these differences when assessing the status of their relationships with various stakeholders.

Type
Chapter
Information
Public Trust in Business , pp. 116 - 153
Publisher: Cambridge University Press
Print publication year: 2014

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