Skip to main content
Log in

Digital Trust and Cooperation with an Integrative Digital Social Contract

  • Original Paper
  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

I argue for the role of trust and cooperation as part of the foundation of digital commerce by expanding the reach of the Integrative Social Contract Theory (ISCT) of Donaldson and Dunfee (Ties that Bind, 1999). I propose that a digital business community can be a community in the morally relevant ways that Donaldson and Dunfee describe, and that the basic framework of ISCT can apply to the digital business world similarly to its application in the offline business world. I then analyze the roles of trust and cooperation in e-commerce, showing how they are important to the digital business community and explaining their moral relevance under a digital form of ISCT. I use the ISCT framework to show that trust and cooperation are an instantiation of the hypernorm of necessary social efficiency, and that authentic microsocial norms developed for the ends of trust and cooperation carry moral responsibility.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1

Similar content being viewed by others

References

  • Airbnb. (2016). The Airbnb community commitment. The Airbnb Blog. Retrieved from http://blog.airbnb.com/the-airbnb-community-commitment/.

  • Babylonian Talmud. Tractate Bava Batra 176b.

  • Bailey, B. P., Gurak, L. J., & Konstan, J. A. (2001). An examination of trust production in computer-mediated exchange. In Proceedings of the 7th Conference on Human Factors and the Web (pp. 1–7).

  • Ball, J. (2013, March 22). Silk road: The online drug marketplace that officials seem powerless to stop. The Guardian. Retrieved from http://www.theguardian.com/world/2013/mar/22/silk-road-online-drug-marketplace.

  • Becker, L. C. (1996). Trust as noncognitive security about motives. Ethics,107(1), 43–61.

    Article  Google Scholar 

  • Bews, N. F., & Rossouw, G. J. (2002). A role for business ethics in facilitating trustworthiness. Journal of Business Ethics,39(4), 377–390.

    Article  Google Scholar 

  • Boyd, D. M., & Ellison, N. B. (2007). Social network sites: Definition, history, and scholarship. Journal of Computer-Mediated Communication,13(1), 210–230.

    Article  Google Scholar 

  • Brenkert, G. G. (1998). Trust, morality and international business. Business Ethics Quarterly,8(2), 293–317.

    Article  Google Scholar 

  • Byron, K. (2008). Carrying too heavy a load? The communication and miscommunication of emotion by email. Academy of Management Review,33(2), 309.

    Article  Google Scholar 

  • Calton, J. M. (2006). Social contracting in a pluralist process of moral sense making: A dialogic twist on the ISCT. Journal of Business Ethics,68(3), 329–346.

    Article  Google Scholar 

  • Celebi, E. (2015). On agent’s codes of conduct in social media. Turkish Journal of Business Ethics,8(2), 278–288.

    Google Scholar 

  • Cerreta, M. (2003). The human sustainable city: Challenges and perspectives from the habitat agenda. Farnham: Ashgate Publishing Ltd.

    Google Scholar 

  • Chiles, T. H., & McMackin, J. F. (1996). Integrating variable risk preferences, trust, and transaction cost economics. Academy of Management Review,21(1), 73–99.

    Article  Google Scholar 

  • Choi, C. J., Kim, S. W., & Yu, S. (2009). Global ethics of collective Internet governance: Intrinsic motivation and open source software. Journal of Business Ethics,90(4), 523–531.

    Article  Google Scholar 

  • Cohen, D., & Prusak, L. (2001). In good company: How social capital makes organizations work. Boston: Harvard Business Press.

    Google Scholar 

  • Cook, K. S., & Cooper, R. M. (2003). Experimental studies of cooperation, trust, and social exchange. Trust and Reciprocity, 209–244.

  • Craigslist. Craigslist: About. Retrieved from http://www.craigslist.org/about/prohibited.

  • Das, T. K., & Teng, B.-S. (2001). Trust, control, and risk in strategic alliances: An integrated framework. Organization Studies,22(2), 251–283.

    Article  Google Scholar 

  • de los Reyes, G., Jr., Scholz, M., & Smith, N. C. (2017). Beyond the “Win-Win” creating shared value requires ethical frameworks. California Management Review,59(2), 142–167.

    Article  Google Scholar 

  • Desmet, P., Cremer, D. D., & van Dijk, E. (2011). In money we trust? The use of financial compensations to repair trust in the aftermath of distributive harm. Organizational Behavior and Human Decision Processes,114(2), 75–86.

    Article  Google Scholar 

  • Dobrescu, L. I., Luca, M., & Motta, A. (2013). What makes a critic tick? Connected authors and the determinants of book reviews. Journal of Economic Behavior & Organization,96, 85–103.

    Article  Google Scholar 

  • Donaldson, T., & Dunfee, T. W. (1994). Toward a unified conception of business ethics: Integrative social contracts theory. Academy of Management Review,19(2), 252–284.

    Article  Google Scholar 

  • Donaldson, T., & Dunfee, T. W. (1999). Ties that bind: A social contracts approach to business ethics. Cambridge, MA: Harvard Business Press.

    Google Scholar 

  • Dunn, J., Ruedy, N. E., & Schweitzer, M. E. (2012). It hurts both ways: How social comparisons harm affective and cognitive trust. Organizational Behavior and Human Decision Processes,117(1), 2–14.

    Article  Google Scholar 

  • eBay. Rules for everyone. Retrieved from http://pages.ebay.com/help/policies/everyone-ov.html.

  • Eckel, C. C., & Wilson, R. K. (2003). The human face of game theory: Trust and reciprocity in sequential games. In: Ostrom, E., Walker, J. (Eds.), Trust and reciprocity: Interdisciplinary lessons from experimental research (Vol. 6, pp. 19–79).

  • Ecommercebytes. (2017, Dec 18). Is eBay losing sellers and failing to attract new buyers? Retrieved from https://www.ecommercebytes.com/C/letters/blog.pl?/pl/2017/12/1513651209.html.

  • Erez, M., Lisak, A., Harush, R., Glikson, E., Nouri, R., & Shokef, E. (2013). Going global: Developing management students’ cultural intelligence and global identity in culturally diverse virtual teams. Academy of Management Learning & Education,12(3), 330–355.

    Article  Google Scholar 

  • Featherman, M. S., & Hajli, N. (2016). Self-service technologies and e-services risks in social commerce era. Journal of Business Ethics,139(2), 251–269.

    Article  Google Scholar 

  • Fiske, A. P. (1992). The four elementary forms of sociality: Framework for a unified theory of social relations. Psychological Review,99(4), 689.

    Article  Google Scholar 

  • Fukuyama, F. (1995). Social capital and the global economy. Foreign Affairs,74(5), 89.

    Article  Google Scholar 

  • Furst, S. A., Reeves, M., Rosen, B., & Blackburn, R. S. (2004). Managing the life cycle of virtual teams. The Academy of Management Executive,18(2), 6–20.

    Google Scholar 

  • Gambetta, D. (1988). Trust: Making and breaking cooperative relations. New York, NY: B. Blackwell.

    Google Scholar 

  • Gauthier, D. P. (1986). Morals by agreement. Oxford: Oxford University Press.

    Google Scholar 

  • Gefen, D., Srinivasan Rao, V., & Tractinsky, N. (2003). The conceptualization of trust, risk and their electronic commerce: The need for clarifications. In System Sciences, 2003. Proceedings of the 36th Annual Hawaii International Conference on IEEE.

  • Gibson, C. B., & Gibbs, J. L. (2006). Unpacking the concept of virtuality: The effects of geographic dispersion, electronic dependence, dynamic structure, and national diversity on team innovation. Administrative Science Quarterly,51(3), 451–495.

    Article  Google Scholar 

  • Gluck, L. (2018, Jan 10). Admin post - revamped guidelines announcement. Retrieved from https://www.facebook.com/groups/ImaKadima/permalink/1859529764074521/.

  • Gonkov, V. (2014). Which trust indicators really matter in today’s ecommerce? Retrieved from http://blog.mageworx.com/2014/05/trust-indicators-in-ecommerce.

  • Grabner-Kräuter, S. (2009). Web 2.0 social networks: The role of trust. Journal of Business Ethics,90(4), 505–522.

    Article  Google Scholar 

  • Grabner-Kräuter, S., & Bitter, S. (2015). Trust in online social networks: A multifaceted perspective. Forum for Social Economics,44(1), 48–68.

    Article  Google Scholar 

  • Greenwood, M., & Van Buren, H. J., III. (2010). Trust and stakeholder theory: Trustworthiness in the organisation–stakeholder relationship. Journal of Business Ethics,95(3), 425–438.

    Article  Google Scholar 

  • Gulati, R., & Sytch, M. (2008). Does familiarity breed trust? Revisiting the antecedents of trust. Managerial and Decision Economics,29(2–3), 165–190.

    Article  Google Scholar 

  • Gulati, R., Wohlgezogen, F., & Zhelyazkov, P. (2012). The two facets of collaboration: Cooperation and coordination in strategic alliances. The Academy of Management Annals,6(1), 531–583.

    Article  Google Scholar 

  • Hardin, R. (1992). The street-level epistemology of trust. Analyse & Kritik,14(2), 152–176.

    Article  Google Scholar 

  • Hardin, R. (1996). Trustworthiness. Ethics,107(1), 26–42.

    Article  Google Scholar 

  • Hargreaves-Heap, S., & Varoufakis, Y. (2004). Game theory: A critical introduction. London: Routledge.

    Google Scholar 

  • Hollander, H. (1990). A social exchange approach to voluntary cooperation. American Economic Review,80(5), 1157–1167.

    Google Scholar 

  • Hollis, M. (1998). Trust within reason. Cambridge: Cambridge University Press.

    Book  Google Scholar 

  • Horsburgh, H. J. N. (1960). The ethics of trust. The Philosophical Quarterly,10(41), 343–354.

    Article  Google Scholar 

  • Horsburgh, H. J. N. (1961). Trust and social objectives. Ethics,72(1), 28–40.

    Article  Google Scholar 

  • Hosmer, L. T. (1995). Trust: The connecting link between organizational theory and philosophical ethics. Academy of Management Review,20(2), 379–403.

    Article  Google Scholar 

  • Ims, K. J., & Jakobsen, O. D. (2006). Cooperation and competition in the context of organic and mechanic worldviews—a theoretical and case based discussion. Journal of Business Ethics,66(1), 19–32.

    Article  Google Scholar 

  • Jarvenpaa, S. L., & Leidner, D. E. (1998). Communication and trust in global virtual teams. Journal of Computer-Mediated Communication,3(4), JCMC346.

    Google Scholar 

  • Jones, K. (1996). Trust as an affective attitude. Ethics,107(1), 4–25.

    Article  Google Scholar 

  • Jones, K. (2013). Trusting interpretations. In P. Makela & C. Townley (Eds.), Trust: Analytic and applied perspectives (pp. 1–14). Amsterdam: Rodopi.

    Google Scholar 

  • Kim, P. H., Cooper, C. D., Dirks, K. T., & Ferrin, D. L. (2013). Repairing trust with individuals vs groups. Organizational Behavior and Human Decision Processes,120(1), 1–14.

    Article  Google Scholar 

  • Koehn, D. (2003). The nature of and conditions for online trust. Journal of Business Ethics,43(1), 3–19.

    Article  Google Scholar 

  • Kollock, P. (1998). Social dilemmas: The anatomy of cooperation. Annual Review of Sociology,24, 183–214.

    Article  Google Scholar 

  • Kracher, B., & Corritore, C. L. (2004). Is there a special e-commerce ethics? Business Ethics Quarterly,14(1), 71–94.

    Article  Google Scholar 

  • Kramer, R. M., & Lewicki, R. J. (2010). Repairing and enhancing trust: Approaches to reducing organizational trust deficits. The Academy of Management Annals,4(1), 245–277.

    Article  Google Scholar 

  • Laczniak, G. R., & Murphy, P. E. (2006). Marketing, consumers and technology: Perspectives for enhancing ethical transactions. Business Ethics Quarterly,16(3), 313–321.

    Article  Google Scholar 

  • Lesser, E. (2000). Knowledge and social capital. Woburn, MA: Butterowrth-Heinemann.

    Google Scholar 

  • Lessig, L. (2001). Preface to a conference on trust. Boston University Law Review,81, 329.

    Google Scholar 

  • Li, A. N., & Tan, H. H. (2013). What happens when you trust your supervisor? Mediators of individual performance in trust relationships. Journal of Organizational Behavior,34(3), 407–425.

    Article  Google Scholar 

  • Malhotra, D., & Lumineau, F. (2011). Trust and collaboration in the aftermath of conflict: The effects of contract structure. Academy of Management Journal,54(5), 981–998.

    Article  Google Scholar 

  • Maner, W. (1996). Unique ethical problems in information technology. Science and Engineering Ethics,2(2), 137–154.

    Article  Google Scholar 

  • Martin, K. (2016). Understanding privacy online: Development of a social contract approach to privacy. Journal of Business Ethics,137(3), 551–569.

    Article  Google Scholar 

  • McGowan, M. K., Stephens, P., & Gruber, D. (2007). An exploration of the ideologies of software intellectual property: The impact on ethical decision making. Journal of Business Ethics,73(4), 409–424.

    Article  Google Scholar 

  • Michalos, A. C. (1990). The impact of trust on business, international security and the quality of life. Journal of Business Ethics,9(8), 619–638.

    Article  Google Scholar 

  • Mislin, A. A., Campagna, R. L., & Bottom, W. P. (2011). After the deal: Talk, trust building and the implementation of negotiated agreements. Organizational Behavior and Human Decision Processes,115(1), 55–68.

    Article  Google Scholar 

  • Neiman, P. (2013). A social contract for international business ethics. Journal of Business Ethics,114(1), 75–90.

    Article  Google Scholar 

  • Pennace, L. (2005). Craig Newmark: Craigslist offers a “Culture of Trust.” This is not a blog. Retrieved from http://journalism.nyu.edu/publishing/archives/notablog/story/newmark/.

  • Pettit, P. (1995). The cunning of trust. Philosophy & Public Affairs,24(3), 202–225.

    Article  Google Scholar 

  • Phillips, R., & Johnson-Cramer, M. (2006). Ties that unwind: Dynamism in integrative social contracts theory. Journal of Business Ethics,68, 283–302.

    Article  Google Scholar 

  • Putnam, R. D. (1993). The prosperous community. The American Prospect,4(13), 35–42.

    Google Scholar 

  • Putnam, R. D. (1995). Tuning in, tuning out: The strange disappearance of social capital in America. Political Science and Politics,28(4), 664–683.

    Article  Google Scholar 

  • Rawls, J. (1971). A theory of justice. Cambridge: Harvard University Press.

    Google Scholar 

  • Reddit. (a). Reddit: Turkkit. Retrieved from /www.reddit.com/r/mturk/.

  • Reddit. (b). Welcome to/r/Startups. Retrieved from http://www.reddit.com/r/startups.

  • Reddit. (c). Reddiquette. Retrieved from http://www.reddit.com/wiki/reddiquette.

  • Resnick, P., Zeckhauser, R., Friedman, E., & Kuwabara, K. (2000). Reputation systems. Communications of the Association for Computing Machinery,43(12), 45–48.

    Article  Google Scholar 

  • Rhodes, M. (2009, March 12). Why Do people write reviews? Fresh Minds. Retrieved from http://www.freshminds.net/2009/03/why-do-people-write-reviews/.

  • Robertson, D. C., & Ross, W. T. (1995). Decision-making processes on ethical issues: The impact of a social contract perspective. Business Ethics Quarterly,5(2), 213–240.

    Article  Google Scholar 

  • Rost, K., Stahel, L., & Frey, B. S. (2016). Digital social norm enforcement: Online firestorms in social media. PLoS ONE,11(6), e0155923.

    Article  Google Scholar 

  • Rousseau, D. M., Sitkin, S. B., Burt, R. S., & Camerer, C. (1998). Not so different after all: A cross-discipline view of trust. Academy of Management Review,23(3), 393–404.

    Article  Google Scholar 

  • Roy, A., Huh, J., Pfeuffer, A., & Srivastava, J. (2017). Development of trust scores in social media (TSM) algorithm and application to advertising practice and research. Journal of Advertising,46(2), 269–282.

    Article  Google Scholar 

  • Ryan, L. V., & Buchholtz, A. K. (2001). Trust, risk, and shareholder decision making: An investor perspective on corporate governance. Business Ethics Quarterly,11(1), 177.

    Article  Google Scholar 

  • Scherer, A. G. (2015). Can hypernorms be justified? Insights from a discourse–ethical perspective. Business Ethics Quarterly, 25(4), 489–516.

    Article  Google Scholar 

  • Schmidt, D. P. (2004). Intellectual property battles in a technological global economy. Business Ethics Quarterly,14(4), 679–693.

    Article  Google Scholar 

  • Smith, A. (1776). An inquiry into the nature and causes of the wealth of nations. Retrieved from http://www.econlib.org/library/Smith/smWN1.html.

  • Solomon, R. C. (1992). Corporate roles, personal virtues: An aristotelean approach to business ethics. Business Ethics Quarterly,2(3), 317–339.

    Article  Google Scholar 

  • Son, J.-Y., Tu, L., & Benbasat, I. (2006). A descriptive content analysis of trust-building measures in B2B electronic marketplaces. Communications of the Association for Information Systems,18(1), 6.

    Google Scholar 

  • Spinello, R. (2005). Cyberethics: Morality and law in cyberspace. Journal of Information Ethics,14(1), 70–90.

    Article  Google Scholar 

  • Steinfield, C., Ellison, N. B., & Lampe, C. (2008). Social capital, self-esteem, and use of online social network sites: A longitudinal analysis. Journal of Applied Developmental Psychology, 29(6), 434–445.

    Article  Google Scholar 

  • Strudler, A. (2005). Deception unraveled. The Journal of Philosophy,102(9), 458–473.

    Article  Google Scholar 

  • Strudler, A. (2015). Normative business ethics in a global economy: New directions on donaldsonian themes. Business Ethics Quarterly,25(4), 507–508.

    Article  Google Scholar 

  • Tavani, H. T. (2001). The state of computer ethics as a philosophical field of inquiry: Some contemporary perspectives, future projections, and current resources. Ethics and Information Technology,3(2), 97–108.

    Article  Google Scholar 

  • Uslaner, E. M. (2002). The moral foundations of trust. Cambridge: Cambridge University Press.

    Book  Google Scholar 

  • Valenzuela, S., Park, N., & Kee, K. F. (2009). Is there social capital in a social network site?: Facebook use and college students’ life satisfaction, trust, and participation. Journal of Computer-Mediated Communication,14(4), 875–901.

    Article  Google Scholar 

  • Van Lange, P. A., Joireman, J., Parks, C. D., & Van Dijk, E. (2013). The psychology of social dilemmas: A review. Organizational Behavior and Human Decision Processes,120(2), 125–141.

    Article  Google Scholar 

  • Vardi, Y. (2001). The effects of organizational and ethical climates on misconduct at work. Journal of Business Ethics,29(4), 325–337.

    Article  Google Scholar 

  • Wellman, B., Haase, A. Q., Witte, J., & Hampton, K. (2001). Does the internet increase, decrease, or supplement social capital? Social networks, participation, and community commitment. American Behavioral Scientist,45(3), 436–455.

    Article  Google Scholar 

  • Wempe, B. (2009). Extant social contracts and the question of business ethics. Journal of Business Ethics,88, 741–750.

    Article  Google Scholar 

  • Whiteley, P. F. (2000). Economic growth and social capital. Political Studies,48(3), 443–466.

    Article  Google Scholar 

  • Windsor, D. (2018). Dynamics for integrative social contracts theory: Norm evolution and individual mobility. Journal of Business Ethics,149(1), 83–95.

    Article  Google Scholar 

  • Wikipedia. (n.d.). Wikipedia: Introduction. Retrieved from http://en.wikipedia.org/wiki/Wikipedia:Introduction.

  • Yang, M.-H., Chandlrees, N., Lin, B., & Chao, H.-Y. (2009). The effect of perceived ethical performance of shopping websites on consumer trust. Journal of Computer Information Systems,50(1), 15.

    Google Scholar 

  • Yates, J. F., & Stone, E. R. (1992). The risk construct. Risk-taking behavior (pp. 1–25). Oxford: Wiley.

    Google Scholar 

  • Zaheer, A., McEvily, B., & Perrone, V. (1998). Does trust matter? Exploring the effects of interorganizational and interpersonal trust on performance. Organization Science,9(2), 141–159.

    Article  Google Scholar 

Download references

Funding

This study was funded by the Carol and Lawrence Zicklin Center for Business Ethics Research.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Livia Levine.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Levine, L. Digital Trust and Cooperation with an Integrative Digital Social Contract. J Bus Ethics 160, 393–407 (2019). https://doi.org/10.1007/s10551-019-04201-z

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10551-019-04201-z

Keywords

Navigation