Skip to main content
SpringerLink
Log in

Maximizing stakeholder trust as a tool for controlling corruption

Crime, Law and Social Change volume 71, pages 171–195 (2019)Cite this article

Abstract

Corruption, particularly bribery of government officials, inflicts substantial damage on people, society, and the world, and warrants control. Collective efforts to control corruption tend to focus on rules and compliance with those rules. This paper suggests that collective action also consider the creation of strong ethical cultures in business firms. Implementation of such programs is impeded by the difficulty in prescribing a course of action and by the difficulty in measuring the strength of an ethical culture. This paper suggests the measurement and maximization of stakeholder trust as a proxy for measures of ethical culture. The qualities that engender stakeholder trust correspond with ethical behaviors. Stakeholder trust confers benefits on business firms, which will incentivize and justify its measurement. Implementation of a program focused on ethical culture would benefit from collective action both by normalizing behaviors and in the development of sophisticated measurement tools.

This is a preview of subscription content, access via your institution.

Access options

Buy single article

Instant access to the full article PDF.

USD 39.95

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

Notes

  1. There is, of course, a lively debate within the sciences that study organizations on definitions and measurement of organizational culture in general [93]. A variety of terms, such as adhocratic, clan, entrepreneurial, hierarchical, have been suggested by academics to describe aspects of the cultures such as administrative flexibility, relationship structures and importance, and decision making processes, along with proposed methods to measure these cultural structures (see, for example, [94,95,96]). Business consultants advocate and propose methods of measuring cultural forms such as enterprise architecture management or total quality management (see, for example, [97, 98]). While those debates are of interest to the concept of culture in general, this paper focuses on the state and strength of an organization’s ethical culture.

References

  1. von Alemann, U. (2004). The unknown depths of political theory: The case for a multidimensional concept of corruption. Crime, Law and Social Change, 42(1), 25–34.

    Article  Google Scholar 

  2. Heidenheimer, A. J., Johnston, M., & LeVine, V. T. (1970). Political corruption: A handbook. New Brunswick: Transaction Publishers.

    Google Scholar 

  3. Persily, N., & Lammie, K. (2004). Perceptions of corruption and campaign finance: When public opinion determines constitutional law. University of Pennsylvania Law Review, 153(1), 119–180.

    Article  Google Scholar 

  4. Ackerman, S. (1999). Corruption and government: Causes, consequences and reform. New York: Cambridge University Press.

    Book  Google Scholar 

  5. Alon, I., Li, S., & Wu, J. (2016). Corruption, regime type, and economic growth. Public Finance & Management, 16(4), 332–361.

    Google Scholar 

  6. Johnston, M. (2005). Syndromes of corruption: Wealth, power, and democracy. New York: Cambridge University Press.

    Book  Google Scholar 

  7. Nichols, P. M. (2016). The neomercantilist fallacy and the contextual reality of the foreign corrupt practices act. Harvard Journal on Legislation, 53(1), 203–246.

    Google Scholar 

  8. Chang, C.-P., & Hao, Y. (2017). Environmental performance, corruption and economic growth: Global evidence using a new data set. Applied Economics, 49(5), 498–514.

    Article  Google Scholar 

  9. Escaleras, M., & Register, C. (2016). Public sector corruption and natural hazards. Public Finance Review, 44(6), 746–768.

    Article  Google Scholar 

  10. Nichols, P. M. (2015). The good bribe. University of California Davis Law Review, 49(2), 647–683.

    Google Scholar 

  11. Sulemana, I., Iddrisu, A. M., & Kyoore, J. E. (2017). A micro-level study of the relationship between experienced corruption and subjective wellbeing in africa. Journal of Development Studies, 53(1), 138–155.

    Article  Google Scholar 

  12. Johnston, M. (2014). Corruption, contention and reform: The power of deep democracy. New York: Cambridge University Press.

    Google Scholar 

  13. Spahn, E. K. (2012). Local law provisions under the OECD anti-bribery convention. Syracuse Journal of International Law and Commerce, 39(2), 249–301.

    Google Scholar 

  14. Coffee Jr., J. C. (1998). Modern mail fraud: The restoration of the public/private distinction. American Criminal Law Review, 35(3), 427–465.

    Google Scholar 

  15. Nichols, P. M. (2004). Corruption as an assurance problem. American University International Law Review, 19(6), 1307–1349.

    Google Scholar 

  16. Sandler, T. (2015). Collective action: Fifty years later. Public Choice, 164(3–4), 195–216.

    Article  Google Scholar 

  17. Runge, C. F. (1984). Institutions and the free rider: The assurance problem in collective action. Journal of Politics, 46(1), 154–181.

    Article  Google Scholar 

  18. Sen, A. K. (1967). Isolation, assurance and the social rate of discount. Quarterly Journal of Economics, 81(1), 112–124.

    Article  Google Scholar 

  19. Nichols, P. M. (2012). The business case for complying with bribery laws. American Business Law Journal, 49(2), 325–368.

    Article  Google Scholar 

  20. Hansich, C. (2013). Why the law matters to you: Citizenship, agency, and public identity. Berlin: de Gruyter.

    Book  Google Scholar 

  21. Mangiu-Pippidi, A. (2013). Controlling corruption through collective action. Journal of Democracy, 24(1), 101–115.

    Article  Google Scholar 

  22. Ang, Y. Y. (2014). Authoritarian restraints on online activism revisited: Why “I-paid-A-bribe” worked in India but failed in China. Comparative Politics, 47(1), 21–40.

    Article  Google Scholar 

  23. Williams, S. (2007). The debarment of corrupt contractors from World Bank-financed contracts. Public Contract Law Journal, 36(3), 227–306.

    Google Scholar 

  24. Petkoski, D., Jarvis, M., & Frauscher, K. (2013). Fighting corruption through collective action in today’s competitive marketplace. Ethics, 5, 60–61.

    Google Scholar 

  25. Anti-Corruption Working Group. (2012). Anti-corruption guidelines (“toolkit”) for MBA curriculum change. New York: PRME.

    Google Scholar 

  26. Waddock, S., Rasche, A., Werhane, P., & Unruh, G. (2010). The principles for responsible management education: Implications for implementation and assessment. In D. L. Swanson & D. G. Fisher (Eds.), Toward assessing business ethics education (pp. 13–28). Charlotte: Information Age Publishing.

    Google Scholar 

  27. Transparency International. (2012). NIS assessment toolkit. Berlin: Transparency International.

    Google Scholar 

  28. Larmour, P. (2005). Civilizing techniques: transparency international and the spread of anti-corruption. Asia Pacific School of Economics and Government Discussion Papers Series no. 05–11.

  29. Sampford, C., Smith, R., & Brown, A. J. (2005). From Greek temple to bird’s nest: Towards a theory of coherence and mutual accountability for national integrity systems. Australian Journal of Public Administration, 64(2), 96–108.

    Article  Google Scholar 

  30. Alexandra, C., & Fort, T. L. (2015). Catalyst, obstacle, or something in between? Dealing with the law in building ethical corporate culture. Notre Dame Journal of Law, Ethics & Public Policy, 29(1), 1–34.

    Google Scholar 

  31. Verhezen, P. (2010). Giving voice in a culture of silence, from a culture of compliance to a culture of integrity. Journal of Business Ethics, 96(2), 187–206.

    Article  Google Scholar 

  32. UNODC. (2013). An anti-corruption ethics and compliance programme for business: A practical guide. Vienna: United Nations.

    Google Scholar 

  33. OECD-UNODC-WB. (2013). Anti-corruption ethics and compliance handbook for business. Paris: OECD.

    Google Scholar 

  34. Dudley, W.C. (2017). Reforming culture for the long term. At https://www.newyorkfed.org/newsevents/speeches/2017/dud170321

  35. Lencioni, P. M. (2002). Make your values mean something. Harvard Business Review, 80(7), 113–117.

    Google Scholar 

  36. Wimbush, J. C. (1994). Toward an understanding of ethical climate: Its relationship to ethical behavior and supervisory influence. Journal of Business Ethics, 13(8), 637–647.

    Article  Google Scholar 

  37. Fusch, G. E., Fusch, C. J., Booker, J. M., & Fusch, P. I. (2016). Why culture matters in business research. Journal of Social Change, 8(1), 39–47.

    Google Scholar 

  38. Miska, C., Stahl, G. K., & Fuchs, M. (2016). The moderating role of context in determining unethical managerial behavior: A case survey. Journal of Business Ethics, 1–20.

  39. Victor, B., & Cullen, J. B. (1987). A theory and measure of the ethical climate in organizations. Research in Corporate Social Performance and Policy, 9(1), 51–71.

    Google Scholar 

  40. Victor, B., & Cullen, J. B. (1988). The organizational bases of ethical work climates. Administrative Science Quarterly, 33(1), 101–125.

    Article  Google Scholar 

  41. Applebaum, S. H., Deguire, K. J., & Lay, M. (2005). The relationship of ethical climate to deviant workplace behavior. Corporate Governance: The International Journal of Business in Society, 5(4), 43–55.

    Article  Google Scholar 

  42. Forte, A. (2004). Business ethics: A study of the moral reasoning of selected business managers and the influence of organizational ethical climate. Journal of Business Ethics, 51(2), 167–173.

    Article  Google Scholar 

  43. Schminke, M., Arnaud, A., & Kuenzi, M. (2007). The power of ethical work climates. Organizational Dynamics, 36(2), 171–186.

    Article  Google Scholar 

  44. Bartels, K. K., Harrick, E., Martell, K., & Strickland, D. (1998). The relationship between ethical climate and ethical problems within human resource management. Journal of Business Ethics, 17(7), 799–804.

    Article  Google Scholar 

  45. Kish-Gephart, J. J., Harrison, D. A., & Treviño, L. K. (2010). Bad apples, bad cases, and bad barrels: Meta-analytic evidence about sources of unethical decisions at work. Journal of Applied Psychology, 95(1), 1–31.

    Article  Google Scholar 

  46. Martin, K., & Cullen, J. (2006). Continuities and extensions of ethical climate theory: A meta-analytic review. Journal of Business Ethics, 69(2), 175–194.

    Article  Google Scholar 

  47. Ambrose, M., Arnaud, A., & Schminke, M. (2008). Individual moral development and ethical climate: The influence of person-organization fit on job attitudes. Journal of Business Ethics, 77(3), 323–333.

    Article  Google Scholar 

  48. Babin, B. J., Boles, J. S., & Robin, D. P. (2000). Representing the perceived ethical work climate among marketing employees. Journal of the Academy of Marketing Science, 28(3), 345–358.

    Article  Google Scholar 

  49. Bulutlar, F., & Öz, E. Ü. (2009). The effects of ethical climates on bullying behaviour in the workplace. Journal of Business Ethics, 86(3), 273–295.

    Article  Google Scholar 

  50. Cullen, J. B., Parboteeah, K. P., & Victor, B. (2003). The effects of ethical climates on organizational commitment: A two-study analysis. Journal of Business Ethics, 46(2), 127–141.

    Article  Google Scholar 

  51. Erben, G. S., & Güneşer, A. B. (2008). The relationship between paternalistic leadership and organizational commitment: Investigating the role of climate regarding ethics. Journal of Business Ethics, 82(4), 955–968.

    Article  Google Scholar 

  52. Mulki, J. P., Jaramillo, J. F., & Locander, W. B. (2008). Effect of ethical climate on turnover intention: Linking attitudinal-and stress theory. Journal of Business Ethics, 78(4), 559–574.

    Article  Google Scholar 

  53. Neubert, M. J., Carlson, D. S., Kacmar, K. M., Roberts, J. A., & Chonko, L. B. (2009). The virtuous influence of ethical leadership behavior: Evidence from the field. Journal of Business Ethics, 90(2), 157–170.

    Article  Google Scholar 

  54. Schwepker, C. H. (2001). Ethical climate’s relationship to job satisfaction, organizational commitment, and turnover intention in the salesforce. Journal of Business Research, 54(1), 39–52.

    Article  Google Scholar 

  55. Shapira-Lishchinsky, O., & Even-Zohar, S. (2011). Withdrawal behaviors syndrome: An ethical perspective. Journal of Business Ethics, 103(3), 429–451.

    Article  Google Scholar 

  56. Treviño, L. K., Butterfield, K. D., & McCabe, D. L. (1998). The ethical context in organizations: Influences on employee attitudes and behaviors. Business Ethics Quarterly, 8(3), 447–476.

    Article  Google Scholar 

  57. Tsai, M. T., & Huang, C. C. (2008). The relationship among ethical climate types, facets of job satisfaction, and the three components of organizational commitment: A study of nurses in Taiwan. Journal of Business Ethics, 80(3), 565–581.

    Article  Google Scholar 

  58. Weeks, W. A., Roberts, J., Chonko, L. B., & Jones, E. (2004). Organizational readiness for change, individual fear of change, and sales manager performance: An empirical investigation. Journal of Personal Selling & Sales Management, 24(1), 7–17.

    Article  Google Scholar 

  59. Weeks, W. A., Loe, T. W., Chonko, L. B., Martinez, C. R., & Wakefield, K. (2006). Cognitive moral development and the impact of perceived organizational ethical climate on the search for sales force excellence: A cross-cultural study. Journal of Personal Selling & Sales Management, 26(2), 205–217.

    Article  Google Scholar 

  60. Elçi, M., & Alpkan, L. (2009). The impact of perceived organizational ethical climate on work satisfaction. Journal of Business Ethics, 84(3), 297–311.

    Article  Google Scholar 

  61. Jaramillo, F., Mulki, J. P., & Solomon, P. (2006). The role of ethical climate on salesperson’s role stress, job attitudes, turnover intention, and job performance. Journal of Personal Selling & Sales Management, 26(3), 271–282.

    Article  Google Scholar 

  62. Wang, Y.-D., & Hsieh, H.-H. (2012). Toward a better understanding of the link between ethical climate and job satisfaction: A multilevel analysis. Journal of Business Ethics, 105(4), 535–545.

    Article  Google Scholar 

  63. Andreoli, N., & Lefkowitz, J. (2009). Individual and organizational antecedents of misconduct in organizations. Journal of Business Ethics, 85(3), 309–332.

    Article  Google Scholar 

  64. Balthazard, P. A., Cooke, R. A., & Potter, R. E. (2006). Dysfunctional culture, dysfunctional organization: Capturing the behavioral norms that form organizational culture and drive performance. Journal of Managerial Psychology, 21(8), 709–732.

    Article  Google Scholar 

  65. Deshpande, S. P., & Joseph, J. (2009). Impact of emotional intelligence, ethical climate, and behavior of peers on ethical behavior of nurses. Journal of Business Ethics, 85(3), 403–410.

    Article  Google Scholar 

  66. Fritzsche, D. J. (2000). Ethical climates and the ethical dimension of decision making. Journal of Business Ethics, 24(2), 125–140.

    Article  Google Scholar 

  67. Fu, W., & Deshpande, S. P. (2012). Factors impacting ethical behavior in a Chinese state-owned steel company. Journal of Business Ethics, 105(2), 231–237.

    Article  Google Scholar 

  68. Laratta, R. (2011). Ethical climate and accountability in nonprofit organizations: A comparative study between Japan and the UK. Public Management Review, 13(1), 43–63.

    Article  Google Scholar 

  69. Mayer, D. M., Kuenzi, M., & Greenbaum, R. L. (2010). Examining the link between ethical leadership and employee misconduct: The mediating role of ethical climate. Journal of Business Ethics, 95(suppl 1), 7–16.

    Article  Google Scholar 

  70. McKendall, M. A., & Wagner III, J. A. (1997). Motive, opportunity, choice, and corporate illegality. Organization Science, 8(6), 624–647.

    Article  Google Scholar 

  71. Özer, G., & Yılmaz, E. (2011). Effects of procedural justice perception, budgetary control effectiveness and ethical work climate on propensity to create budgetary slack. Business and Economics Research Journal, 2(4), 1–18.

    Google Scholar 

  72. Peterson, D. K. (2002). Deviant workplace behavior and the organization’s ethical climate. Journal of Business and Psychology, 17(1), 47–61.

    Article  Google Scholar 

  73. Prachsriphum, S., & Ussahawanitchakit, P. (2008). Causes and consequences of corporate governance in Thai listed companies. Review of Business Research, 8(2), 178–189.

    Google Scholar 

  74. Ross, W. T., & Robertson, D. C. (2000). Lying: The impact of decision context. Business Ethics Quarterly, 10(02), 409–440.

    Article  Google Scholar 

  75. Shacklock, A., Manning, M., & Hort, L. (2011). Ethical climate type, self-efficacy, and capacity to deliver ethical outcomes in public sector human resource management. Journal of New Business Ideas & Trends, 9(2), 34–49.

    Google Scholar 

  76. Shafer, W. E. (2008). Ethical climate in Chinese CPA firms. Accounting, Organizations and Society, 33(7), 825–835.

    Article  Google Scholar 

  77. Shin, Y. (2012). CEO ethical leadership, ethical climate, climate strength, and collective organizational citizenship behavior. Journal of Business Ethics, 108(3), 299–312.

    Article  Google Scholar 

  78. Smith, H. J., Thompson, R., & Iacovou, C. (2009). The impact of ethical climate on project status misreporting. Journal of Business Ethics, 90(4), 577–591.

    Article  Google Scholar 

  79. 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 

  80. Wimbush, J. C., Shepard, J. M., & Markham, S. E. (1997). An empirical examination of the relationship between ethical climate and ethical behavior from multiple levels of analysis. Journal of Business Ethics, 16(16), 1705–1716.

    Article  Google Scholar 

  81. Abdullah, A., Sulong, Z., & Said, R. M. (2014). An analysis on ethical climate and ethical judgment among public sector employees in Malaysia. The Journal of Applied Business and Economics, 16(2), 133–142.

    Google Scholar 

  82. Sathappan, M., Omar, Z., Arif, I., & Sathappan, R. (2016). Exploring causes of bribery: A case study in a public organization in Malaysia. International Journal of Human Resource Studies, 6(3), 1–16.

    Article  Google Scholar 

  83. Nguyen, L. D., Ermasova, N., & Ermasov, S. (2016). Business ethics perceptions of Russian working adults: Do age, gender, education, and various work experiences make a difference? SAM Advanced Management Journal, 81(1), 4–33.

    Google Scholar 

  84. Parboteeah, K. P., Seriki, H. T., & Hoegl, M. (2014). Ethnic diversity, corruption and ethical climates in sub-Saharan Africa: Recognizing the significance of human resource management. The International Journal of Human Resource Management, 25(7), 979–1001.

    Article  Google Scholar 

  85. Hess, D. (2014). Combating corruption in international business: The big questions. Ohio Northern University Law Review, 41(3), 679–696.

    Google Scholar 

  86. Thomas, T., Schermerhorn Jr., J. R., & Dienhart, J. W. (2004). Strategic leadership of ethical behavior in business. Academy of Management Executive, 18(2), 56–68.

    Google Scholar 

  87. Murray, B., & Fortinberry, A. (2015). The science of creating the right culture for your organization. Effective Executive, 18(2), 45–51.

    Google Scholar 

  88. Schminke, M., Ambrose, M. L., & Neubaum, D. O. (2005). The effect of leader moral development on ethical climate and employee attitudes. Organizational Behavior and Human Decision Processes, 97(2), 135–151.

    Article  Google Scholar 

  89. Dess, G. G., & Robinson Jr., R. B. (1984). Measuring organizational performance in the absence of objective measures: The case of the privately-held firm and conglomerate business unit. Strategic Management Journal, 5(3), 265–273.

    Article  Google Scholar 

  90. Merry, S. E. (2011). Measuring the world: Indicators, human rights, and global governance. Current Anthropology, 52(S3), S83–S95.

    Article  Google Scholar 

  91. Shore, C., & Wright, S. (2015). Audit culture revisited: Rankings, ratings, and the reassembling of society. Current Anthropology, 56(3), 431–432.

    Article  Google Scholar 

  92. Warren, D. E., & Laufer, W. S. (2009). Are corruption indices a self-fulfilling prophecy? A social labeling perspective of corruption. Journal of Business Ethics, 88(Suppl 4), 841–849.

    Article  Google Scholar 

  93. Alvesson, M. (2011). Organizational culture: Meaning, discourse and identity. In N. M. Ashkanasy, C. P. M. Wilderom, & M. F. Peterson (Eds.), The handbook of organizational culture and climate (2d ed., pp. 11–28). Los Angeles: Sage.

  94. Gimenez-Espin, J. A., Jiménez-Jiménez, D., & Martínez-Costa, M. (2013). Organizational culture for total quality management. Total Quality Management and Business Excellence, 24(5–6), 678–692.

    Article  Google Scholar 

  95. Naranjo-Valencia, J. C., Jiménez-Jiménez, D., & Sanz-Valle, R. (2016). Estudiando el vinculo entre cultura organizacional, innovación y desempeño en empresas españolas. Revista Latinoamericana de Psicología, 48(1), 30–41.

    Article  Google Scholar 

  96. Spigel, B. (2017). The relational organization of entrepreneurial ecosystems. Entrepreneurship Theory Into Practice, 41(1), 49–72.

    Article  Google Scholar 

  97. Aier, S. (2014). The role of organizational culture for grounding, management, guidance and effectiveness of enterprise architecture principles. Information Systems and e-Business Management, 12(1), 43–70.

    Article  Google Scholar 

  98. Evans, J. R., & Dean, J. W. (2002). Total quality management: Management, organization and strategy. Cincinnati: South-Western College Publishing.

    Google Scholar 

  99. O’Donohue, W., & Nelson, L. (2009). The role of ethical values in an expanded psychological contract. Journal of Business Ethics, 90(2), 251–263.

    Article  Google Scholar 

  100. Nichols, P. M. (2012). United States v Lazarenko: The trial and conviction of two former prime ministers of Ukraine. University of Chicago Legal Forum, 2012(1), 41–89.

    Google Scholar 

  101. Jensen, N.M. & Rahman, A. (2011). The silence of corruption: identifying underreporting of business corruption through randomized response techniques. World Bank Policy Research Working Paper no. 5696.

  102. Cook, K. S. (2005). Networks, norms, and trust: The social psychology of social capital. Social Psychology Quarterly, 68(1), 4–14.

    Article  Google Scholar 

  103. Newton, K., & Zmerli, S. (2011). Three forms of trust and their association. European Political Science Review, 3(2), 169–200.

    Article  Google Scholar 

  104. Freitag, M., & Traunmüller, R. (2009). Spheres of trust: An empirical analysis of the foundations of particularised and generalised trust. European Journal of Political Research, 48(6), 782–803.

    Article  Google Scholar 

  105. Coleman, J. S. (1990). Foundations of social theory. Cambridge: Harvard University Press.

    Google Scholar 

  106. Fukuyama, F. (1995). Trust: The social virtues and the creation of prosperity. New York: Free Press.

    Google Scholar 

  107. Bac, M. (2009). Generalized trust and wealth. International Review of Law and Economics, 29(1), 46–56.

    Article  Google Scholar 

  108. Paxton, P. (2007). Association memberships and generalized trust: A multilevel model across 31 countries. Social Forces, 86(1), 47–76.

    Article  Google Scholar 

  109. Stolle, D. (2002). Trusting strangers – The concept of generalized trust in perspective. Austrian. Journal of Political Science, 31(4), 397–412.

    Google Scholar 

  110. Mitchell, R. K., Agle, B. R., & Wood, D. J. (1997). Toward a theory of stakeholder identification and salience: Defining the principle of who and what really counts. Academy of Management Review, 22(4), 853–886.

    Article  Google Scholar 

  111. Freeman, R. E. (1984). Strategic management: A stakeholder approach. Boston: Pitman.

    Google Scholar 

  112. Hardin, R. (1991). Trusting persons, trusting institutions. In R. J. Zeckhauser (Ed.), The Strategy of Choice (pp. 185–209). Cambridge: MIT Press.

    Google Scholar 

  113. Hardin, R. (1993). The street-level epistemology of trust. Politics and Society, 21(4), 505–529.

    Article  Google Scholar 

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

    Article  Google Scholar 

  115. Hardin, R. (2002). Trust and trustworthiness. New York: Russell Sage Foundation.

    Google Scholar 

  116. Herreros, F. (2004). The problem of forming social capital: Why trust? New York: Palgrave Macmillan.

    Book  Google Scholar 

  117. McAllister, D. J. (1995). Affect-and cognition-based trust as foundations for interpersonal cooperation in organizations. Academy of Management Journal, 38(1), 24–59.

    Google Scholar 

  118. 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 

  119. Tschannen-Moran, M., & Hoy, W. K. (2000). A multidisciplinary analysis of the nature, meaning, and measurement of trust. Review of Educational Research, 70(4), 547–593.

    Article  Google Scholar 

  120. Delgado-Márquez, B. L., Hurtado-Torres, N. E., & Aragón-Correa, J. A. (2013). On the measurement of interpersonal trust transfer: Proposal of indexes. Social Indicators Research, 113(1), 443–449.

    Article  Google Scholar 

  121. Bisschoff, A. C. & Moolla, I. A. (2014). A simplified model to measure brand loyalty. Proceedings of the Second International Conference on Contemporary Marketing, pp. 1113–1119.

  122. Chang, J., Chang, J., O’Neill, G., O’Neill, G., Travaglione, A., & Travaglione, A. (2016). Demographic influences on employee trust towards managers. International Journal of Organizational Analysis, 24(2), 246–260.

    Article  Google Scholar 

  123. Schoorman, F. D., Mayer, R. C., & Davis, J. H. (2007). An integrative model of organizational trust: Past, present, and future. Academy of Management Review, 32(2), 344–354.

    Article  Google Scholar 

  124. Levi, M., & Stoker, L. (2000). Political trust and trustworthiness. Annual Review of Political Science, 3(1), 475–507.

    Article  Google Scholar 

  125. Sandbu, M. E. (2011). Just business: arguments in business ethics. Upper Saddle River: Prentice Hall.

    Google Scholar 

  126. Edwards, M. G., & Kirkham, N. (2014). Situating ‘giving voice to values’: A metatheoretical evaluation of a new approach to business ethics. Journal of Business Ethics, 121(3), 477–495.

    Article  Google Scholar 

  127. Gentile, M. C. (2010). Giving voice to values: How to speak your mind when you know what’s right. New Haven: Yale University Press.

    Google Scholar 

  128. Gentile, M. C. (2012). Values-driven leadership development: Where we have been and where we could go. Organization Management Journal, 9(3), 188–196.

    Article  Google Scholar 

  129. Heffernan, T. (2004). Trust formation in cross-cultural business-to-business relationships. Qualitative Market Research: An International Journal, 7(2), 114–125.

    Article  Google Scholar 

  130. Mayer, R. C., Davis, J., & Schoorman, D. (1995). An integrative model of organisational trust. Academy of Management Science, 20(3), 709–734.

    Google Scholar 

  131. Andresen, K. A. (2011). Marketing through social networks: Business considerations-from brand to privacy. William Mitchell Law Review, 38(1), 290–327.

    Google Scholar 

  132. Pirson, M., Martin, K. & Parmar, B. (2017). Formation of stakeholder trust in business and the role of personal values. Journal of Business Ethics, 145(1), 1–20.

  133. Tyler, T. R. (2016). Trust in the twenty-first century: Interdisciplinary perspectives on trust. In E. Shockley, T. M. S. Neal, L. M. PytlikZillig, & B. H. Bornstein (Eds.), Interdisciplinary perspectives on trust: Towards theoretical and methodological integration (pp. 203–215). Berlin: Springer International Press.

    Chapter  Google Scholar 

  134. Fairholm, M. R., & Fairholm, G. (2000). Leadership amid the constraints of trust. Leadership and Organization Development Journal, 21(2), 102–109.

    Article  Google Scholar 

  135. Simpson, J. A. (2007). Psychological foundations of trust. Current Directions in Psychological Science, 16(5), 264–268.

    Article  Google Scholar 

  136. Tschannen-Moran, M. (2014). Trust matters: Leadership for successful schools. New York: Wiley.

    Google Scholar 

  137. Whitener, E. M., Brodt, S. E., Korsgaard, M. A., & Werner, J. M. (1998). Managers as initiators of trust: An exchange relationship framework for understanding managerial trustworthy behavior. Academy of Management Review, 23(3), 513–530.

    Article  Google Scholar 

  138. Teuber, A. (1983). Kant’s respect for persons. Political Theory, 11(3), 369–392.

    Article  Google Scholar 

  139. Confucius. ([500 b.c.e.?] 1998). The analects (Lau, D.C. trans.). London: Penguin Random House.

  140. Aristotle. ([340 b.c.e.] 1908). Nicomachean Ethics (trans: Ross, W.D.). Oxford: Clarendon Press.

  141. Brandeis, L. D. (1914). Other people’s money and how the bankers use it. Boston: Bedford Books.

    Google Scholar 

  142. Roberts, J. (2009). No one is perfect: The limits of transparency and an ethic for ‘intelligent’accountability. Accounting, Organizations and Society, 34(8), 957–970.

    Article  Google Scholar 

  143. Donaldson, T. (1996). Values in tension: Ethics away from home. Harvard Business Review, 74(5), 48–52.

    Google Scholar 

  144. Deming, W. E. (2000). The new economics for industry, government, education (2nd ed.). Cambridge: MIT Press.

    Google Scholar 

  145. Hunter, J. (2015). Myth: If you can’t measure it, you can’t manage it. The Deming Institute Blog. https://blog.deming.org/2015/08/myth-if-you-cant-measure-it-you-cant-manage-it/.

  146. Zak, P. (2013). Measurement myopia. Drucker Institute. http://www.druckerinstitute.com/2013/07/measurement-myopia/.

  147. Davenport, T., & Manville, B. (2012). Judgment calls. Boston: Harvard Business Review Press.

    Google Scholar 

  148. Davenport, T., & Prusak, L. (2003). What’s the big idea? Creating and capitalizing on the best new management thinking. Boston: Harvard Business Review Press.

    Google Scholar 

  149. Slaper, T. F., & Hall, T. J. (2011). The triple bottom line: What is it and how does it work? Indiana Business Review, 86(1), 4–8.

    Google Scholar 

  150. Norman, W., & MacDonald, C. (2004). Getting to the bottom of “triple bottom line”. Business Ethics Quarterly, 14(02), 243–262.

    Article  Google Scholar 

  151. Elkington, J. (2004). Enter the triple bottom line. In A. Henriques & J. Richardson (Eds.), The triple bottom line: Does it all add up? (pp. 1–16). New York: Earthscan.

    Google Scholar 

  152. Savitz, A. (2012). The triple bottom line: How today’s best-run companies are achieving economic, social and environmental success. New York: Wiley.

    Google Scholar 

  153. Willard, B. (2012). The new sustainability advantage: Seven business case benefits of a triple bottom line. British Columbia: New Society.

    Google Scholar 

  154. Sanger, M. (1998). Supporting the balanced scorecard. Work Study, 47(6), 197–200.

    Article  Google Scholar 

  155. Hoque, Z. (2014). 20 years of studies on the balanced scorecard: Trends, accomplishments, gaps and opportunities for future research. The British Accounting Review, 46(1), 33–59.

    Article  Google Scholar 

  156. Nair, M. (2004). Essentials of balanced scorecard. New York: Wiley.

    Book  Google Scholar 

  157. Hubbard, G. (2009). Measuring organizational performance: Beyond the triple bottom line. Business Strategy and the Environment, 18(3), 177–191.

    Article  Google Scholar 

  158. Metcalfe, J. S. (1998). Evolutionary economics and creative destruction, vol. 1. Hove: Psychology Press.

    Book  Google Scholar 

  159. Shapiro, C., & Varian, H. R. (1998). Information rules: A strategic guide to the network economy. Boston: Harvard Business Review Press.

    Google Scholar 

  160. Stigler, G. J. (1961). The economics of information. The Journal of Political Economy, 63(3), 213–225.

    Article  Google Scholar 

  161. Edwards, J. R. (2013). A history of financial accounting. London: Routledge.

    Google Scholar 

  162. McDaniel, C. D., & Gates, R. H. (2013). Marketing research essentials (8th ed.). New York: Wiley.

    Google Scholar 

  163. Lim, T. (2010). Measuring the value of corporate philanthropy: Social impact, business benefit, and investor returns. New York: Committee Encouraging Corporate Philanthropy.

    Google Scholar 

  164. Sawhill, J. C., & Williamson, D. (2001). Mission impossible? Measuring success in nonprofit organizations. Nonprofit Management & Leadership, 11(3), 371–385.

    Article  Google Scholar 

  165. Epstein, M. J., & Yuthas, K. (2014). Measuring and improving social impacts: A guide for nonprofits, companies, and impact investors. Oakland: Berrett-Koehler Publishers.

    Google Scholar 

  166. Mehrez, A., & Gafni, A. (1989). Quality-adjusted life years, utility theory, and healthy-years equivalents. Medical Decision Making, 9(2), 142–149.

    Article  Google Scholar 

  167. World Economic Forum. (2015). The evolution of trust in business: From delivery to values. Geneva: World Economic Forum.

    Google Scholar 

  168. Kim, H., Hur, W. M., & Yeo, J. (2015). Corporate brand trust as a mediator in the relationship between consumer perception of CSR, corporate hypocrisy, and corporate reputation. Sustainability, 7(4), 3683–3694.

    Article  Google Scholar 

  169. Austin, R. D. (2013). Measuring and managing performance in organizations. Boston: Addison-Wesley.

    Google Scholar 

  170. Ridgway, V. F. (1956). Dysfunctional consequences of performance measurements. Administrative Science Quarterly, 1(2), 240–247.

    Article  Google Scholar 

  171. Malbon, J. (2013). Taking fake online consumer reviews seriously. Journal of Consumer Policy, 36(2), 139–157.

    Article  Google Scholar 

  172. Soltani, B. (2014). The anatomy of corporate fraud: A comparative analysis of high profile American and European corporate scandals. Journal of Business Ethics, 120(2), 251–274.

    Article  Google Scholar 

  173. Hurley, R. F. (2006). The decision to trust. Harvard Business Review, 84(9), 55–62.

    Google Scholar 

  174. Mara, G. M. (2001). Thucydides and Plato on democracy and trust. The Journal of Politics, 63(3), 820–845.

    Article  Google Scholar 

  175. Chen, Y. S., & Chang, C. H. (2013). Greenwash and green trust: The mediation effects of green consumer confusion and green perceived risk. Journal of Business Ethics, 114(3), 489–500.

    Article  Google Scholar 

  176. Thomas, J. R. (2014). Shades of green: A critical assessment of greenwashing in social and environmental business performance reports. Journal for International Business and Entrepreneurship Development, 7(3), 245–252.

    Article  Google Scholar 

  177. Wexler, L. (2012). Extralegal whitewashes. DePaul Law Review, 62(3), 817–855.

    Google Scholar 

  178. Kolk, A., & Pinkse, J. (2005). Business responses to climate change: Identifying emergent strategies. California Management Review, 47(3), 6–20.

    Article  Google Scholar 

  179. Casanova, L. (2009). Business model innovation in latin america: Making the unusual usual. In L. Casanova (Ed.), Global latinas (pp. 82–100). London: Palgrave Macmillan.

    Chapter  Google Scholar 

  180. Hart, S. L. (2005). Capitalism at the crossroads: The unlimited business opportunities in solving the world’s most difficult problems. Philadelphia: Wharton School Publishing.

    Google Scholar 

  181. Sandoval, R. (2005). Block by block. Stanford Social Innovation Review, 3(2), 34–37.

    Google Scholar 

  182. Segel, A. I., Chu, M., & Herrero, G. A. (2004). Patromonio hoy: A financial perspective. Boston: Harvard Business Review Press.

    Google Scholar 

  183. Zeff, S. A. (2016). Forging accounting principles in five countries: A history and an analysis of trends. London: Routledge.

    Book  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Wharton School of Business, University of Pennsylvania, 655 Jon M. Huntsman Hall, 3730 Walnut Street, Philadelphia, PA, 19104, USA

    Philip M. Nichols

  2. Center for Business Ethics and Corporate Governance, Philadelphia, PA, USA

    Patricia E. Dowden

Authors
  1. Philip M. Nichols
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Patricia E. Dowden
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Philip M. Nichols.

Rights and permissions

Reprints and Permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Nichols, P.M., Dowden, P.E. Maximizing stakeholder trust as a tool for controlling corruption. Crime Law Soc Change 71, 171–195 (2019). https://doi.org/10.1007/s10611-017-9767-2

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10611-017-9767-2

search

Navigation