Trust, the Pharmaceutical Industry and Regulators in the UK

Chapter

Abstract

In recent years trust has been employed in academic, industry and policy circles as a common buzzword to describe some of the most complex issues underpinning the relationship between industry and regulators in relation to risk. The ongoing perception of a trust crisis in the pharmaceutical sector is the starting point for analysing how institutional trust is construed by the pharmaceutical industry. Through evidence collected from a set of interviews to individuals working in the pharmaceutical sector, this chapter examines what is meant when the industry talks about trust in respect to regulators. The chapter reviews the three broad functions of trust in relation to institutions as identified in the vast literature on trust; it details the role of the media in relation to trust vis-à-vis regulators and the industry; it defines which applied functions of trust were identified from the interviews; it considers the problems associated with operationalising trust from an industry perspective; and speculates on what can be learned for other sectors. Five typologies of trust which coincide with the diverse roles this plays for the various constituents are derived from the interviews.

Keywords

Obesity Depression Serotonin Marketing Nigeria 

References

  1. Aldrich, H E and Fiol, C M (1994) Fools Rush in? The Institutional Context of Industry Creation, The Academy of Management Review, Vol. 19, No. 4, pp645–670.Google Scholar
  2. Barney J B and Handsen, M H (2006) Trust worthiness as a source of competitive advantage, Strategic Management Journal, Vol. 15, pp175–190.CrossRefGoogle Scholar
  3. Beck, U (1992) Risk Society: Towards a New Modernity. London, California and New Delhi: Sage.Google Scholar
  4. Chiles, T H and McMackin, J F (1996) Integrating Variable Risk Preferences, Trust, and Transaction Cost Economics, The Academy of Management Review, Vol. 21, No. 1, pp. 73–99.Google Scholar
  5. Dasgupta, P (1988) Trust as a Commodity, in in Gambetta, D (ed.) in Trust: Making and Breaking Cooperative Relations, electronic edition, Department of Sociology, University of Oxford, Ch 4, 49–72.Google Scholar
  6. Fukuyama, F (1995) Trust: The Social Virtues and the Creation of Prosperity. New York: Free Press.Google Scholar
  7. Gartner, W B and Low, L (1990) Trust as an Organizing Trope. Paper presented at the annual meeting of the Academy of Management, San Francisco.Google Scholar
  8. Giddens, A (1990) The Consequences of Modernity. Stanford, CA: Stanford University Press.Google Scholar
  9. Giddens, A (1991) Modernity and Self-Identity. Self and Society in the Late Modern Age. Cambridge: Polity.Google Scholar
  10. Good, D (1988) Individuals, Interpersonal Relations, and Trust, in Gambetta, D (ed.) Trust: Making and Breaking Cooperative Relations, electronic edition, Department of Sociology, University of Oxford, pp vii-x.Google Scholar
  11. Gouldner, A W (1973) For Sociology: Renewal and Critique in Sociology Today London: Allen Lane.Google Scholar
  12. Habermas, J (1975) Legitimation crisis. London: Heinemann.Google Scholar
  13. Hardin, R (2006) Trust Cambridge: PolityGoogle Scholar
  14. Hill, C W (1990). Cooperation, Opportunism, and the Invisible Hand: Implications for Transaction Cost Theory. Academy of Management Review, 5, pp500–513.Google Scholar
  15. Lorenz, E (1988) Neither friends nor strangers: informal networks of subcontracting in French engineering, in Gambetta, D (ed.), in Trust: making and breaking cooperative relations, pp194–210. Oxford: Basil Blackwell.Google Scholar
  16. Luhmann, N (1979) Trust. Chichester: John Wiley & Sons.Google Scholar
  17. Luhmann, N (2000) The Reality of the Mass Media. Stanford, California: Stanford University Press.Google Scholar
  18. McKnight, D H, Cummings, L L and Chevany, N L (1998) Initial Trust Formation in New Organizational Relationships, Academy of Management Review, 23 (3), July 473–90.Google Scholar
  19. Meyer, J and Rowan, B (1977) Institutionalized Organizations: Formal Structure as Myth and Ceremony, American Journal of Sociology, 83(2), pp340–63.CrossRefGoogle Scholar
  20. Mistval, B A (1996) Trust in Modern Societies. Cambridge: Polity Press. O’Neill, O (2002) Autonomy and Trust in Bioethics. Cambridge: Cambridge UniversityPress.Google Scholar
  21. Parsons, T (1961) Theories of Society: Foundations of Modern Sociological Theory New York: Free Press.Google Scholar
  22. Powell (1990) Neither market nor hierarchy: Network forms of organization, Research in Organizational Behavior, 12, pp295–336.Google Scholar
  23. Reed, M I (2001) Organization, Trust and Control: A Realist Analysis, Organizational Studies, 22 (2), pp201–28.CrossRefGoogle Scholar
  24. Rousseau, D M and Parks, M J (1993) The contracts of individuals and organizations in B M Stow, B M and Cummings, L L (eds.) Research in Organisational Behaviour, pp1-47 Greenwich, CT: JAI Press.Google Scholar
  25. Sako, M (1998) Does Trust Improve Business Performance?, in Lane, C and Bachmann, D R (eds.) Trust Within and Between Organizations: Conceptual Issues and Empirical Applications, p88–117 Oxford: Oxford University Press. Suchman, M C (1995) Managing Legitimacy: Strategic and Institutional Approaches. Academy of Management Review, 20(3), 571–611.Google Scholar
  26. Williamson, O E (1993) Calculativeness, Trust and Economic Organization. Journal of Law and Economics, Vol. 36, pp453–486.CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media New York 2012

Authors and Affiliations

  1. 1.Innovation and Enterprise Group, Imperial College Business SchoolImperial College LondonLondonUK
  2. 2.School of Construction Management and EngineeringUniversity of ReadingReadingUK

Personalised recommendations