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Author:Caldwell, C.
Karri, R.
Title:Organizational governance and ethical systems: a covenantal approach to building trust
Journal:Journal of Business Ethics
2005 : APR II+MAY, VOL 58:1,2,3, p. 249-259
Index terms:ethics
business ethics
trust
corporate governance
organizational commitment
Freeterms:covenantal relationships
Language:eng
Abstract:American corporations are loosing the public confidence, and are facing increased governmental controls and performance expectations. Traditional approaches to corporate governance have directed the focus to short-term profits. This paper explains why these theories are fundamentally inadequate to build trust. A conceptual framework based on "covenantal relationships" (a relational contract between an employee and the organization) is developed and it is argued that this approach is more effective in building trust in organizations. The paper suggests that organizations are more likely to build trust at the organizational and interpersonal levels when they create reinforcing and integrated systems that honour implied duties of "covenantal relationships".
SCIMA record nr: 262222
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