Organizations with Purpose

Trust in business is improving from its nadir in 2009, but still remains dishearteningly low. Recent surveys report that only one in four members of the general public trusts business leaders to correct issues, and only one in five trusts them to tell the truth and make ethical and moral decisions....

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Bibliographic Details
Published in:Academy of Management journal 2014-10, Vol.57 (5), p.1227-1234
Main Authors: Hollensbe, Elaine, Wookey, Charles, Hickey, Loughlin, George, Gerard, Nichols, Vincent
Format: Article
Language:English
Subjects:
Business
Decision
Employees
International
Organization
Polls & surveys
Stakeholder
Success
Trust
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Summary:Trust in business is improving from its nadir in 2009, but still remains dishearteningly low. Recent surveys report that only one in four members of the general public trusts business leaders to correct issues, and only one in five trusts them to tell the truth and make ethical and moral decisions. The 2014 Edelman Trust Barometer, a 27-country survey with more than 33,000 respondents, finds that overall trust declined across countries and sectors, with CEOs ranking second lowest at 43% and government officials the lowest at 36% as credible spokespeople to win public trust (Edelman Berland, 2014). A trust deficit reflects a fractured relationship between people and business. An unswerving focus on purpose will engender trust that can support innovation and growth and position companies for long-term success. Purpose that is defined by the common good provides a basis for organizations and its stakeholders to reflect on the scope of business activities and the implicit contract they have with their employees, communities, and society.
ISSN:0001-4273
1948-0989
DOI:10.5465/amj.2014.4005