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11 - Roles of third parties in trust repair: lessons from high-tech alliances for public trust

Published online by Cambridge University Press:  05 July 2014

By
Rosalinde Klein Woolthuis ,
Bart Nooteboom  and
Gjalt de Jong
Edited by
Jared D. Harris ,
Brian Moriarty  and
Andrew C. Wicks
Rosalinde Klein Woolthuis
Affiliation:
VU University Amsterdam
Bart Nooteboom
Affiliation:
Royal Netherlands Academy of Arts and Sciences
Gjalt de Jong
Affiliation:
University of Groningen
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

The relationship between organizations and their stakeholders has become increasingly problematic due to breaches of trust. This trust problem is at the heart of the recent financial crisis in which individuals and whole societies were shown to be highly dependent on large corporations. For example, banks have control over savings, mortgages, and pensions, while – individually and often even collectively – affected stakeholders have no means of control over these parties.

key questions

What is the role of third parties in trust repair? Given power imbalances, can trust be repaired, and if so, how?

new knowledge

This chapter presents one of the first empirical tests of the role of third parties in trust repair.

Third parties are tasked with repairing damage to trust that results from three disruptive events among partner organization: legal haggling, misuse of power, and cultural distance.

With regard to legal haggling, the process of drawing up a contract and its actual use tend to evoke distrust unless a third party steers it clear from suspicion. Third parties can help eliminate misunderstandings, clarify causes of disappointed expectations, and help negotiate altered conditions. Under the guidance of a third party, legal haggling need not harm trust.

Type
Chapter
Information
Public Trust in Business , pp. 290 - 325
Publisher: Cambridge University Press
Print publication year: 2014

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