Unconventional Insights for Managing Stakeholder Trust

24 Pages Posted: 2 Feb 2008 Last revised: 23 Oct 2014

See all articles by Michael Pirson

Michael Pirson

Fordham University - Graduate School of Business Administration; Harvard University; Humanistic Management Network

Deepak K. Malhotra

Harvard Business School - Negotiation, Organizations & Markets Unit

Date Written: January 1, 2008

Abstract

Initiatives to build and maintain trust with various stakeholders — customers, employees, suppliers and investors — have risen to the top of the executive agenda at many organizations. We continually hear about “transparency” initiatives, open-door policies and 360-degree evaluations, customer-retention programs, voluntary product recalls, initiatives for corporate social responsibility, rethinking of “customers as partners” and other trust-building moves. But the problem is that most companies don’t really understand how to manage stakeholder trust effectively. In fact, our research suggests that many of the trust-building initiatives and approaches that organizations invest in may be of questionable value. Others might actually destroy trust.

Suggested Citation

Pirson, Michael and Malhotra, Deepak K., Unconventional Insights for Managing Stakeholder Trust (January 1, 2008). Harvard Business School NOM Working Paper No. 08-057. Available at SSRN: https://ssrn.com/abstract=1088111 or http://dx.doi.org/10.2139/ssrn.1088111

Michael Pirson

Fordham University - Graduate School of Business Administration ( email )

1790 Broadway 1147
New York, NY New York 10019
United States

Harvard University

1875 Cambridge Street
Cambridge, MA 02138
United States

Humanistic Management Network ( email )

St. Gallen
Switzerland

Deepak K. Malhotra (Contact Author)

Harvard Business School - Negotiation, Organizations & Markets Unit ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

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