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The Ethical Limits of Trust in Business Relations

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  • Husted, Bryan W.

Abstract

This article defines and analyzes the nature of a trust relation. It specifically examines the internal and external morality of trust relations and the ethical limits of those relations. It examines both the ends pursued by trust relations as well as the means by which trust is developed. It shows that the ends need to be evaluated by traditional ethical theories, while the ethical constraints of the trust process depend upon the specific bases of trust. In addition, the consequences of the trust process differ in their impact on the trustor and third parties. Despite the popularity of trust in the literature, this study recommends caution in the use of trust as an ethical basis for economic organization. The optimal form of trust, although still subject to limitations, is fairness-based trust.

Suggested Citation

  • Husted, Bryan W., 1998. "The Ethical Limits of Trust in Business Relations," Business Ethics Quarterly, Cambridge University Press, vol. 8(2), pages 233-248, April.
    • Handle: RePEc:cup:buetqu:v:8:y:1998:i:02:p:233-248_00
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    Cited by:

    1. Małgorzata Dzimińska & Justyna Fijałkowska & Łukasz Sułkowski, 2018. "Trust-Based Quality Culture Conceptual Model for Higher Education Institutions," Sustainability, MDPI, vol. 10(8), pages 1-22, July.
    2. Marjo Siltaoja, 2006. "Value Priorities as Combining Core Factors Between CSR and Reputation – A Qualitative Study," Journal of Business Ethics, Springer, vol. 68(1), pages 91-111, September.
    3. Clyde W. Holsapple & Jiming Wu, 2008. "Building effective online game websites with knowledge-based trust," Information Systems Frontiers, Springer, vol. 10(1), pages 47-60, March.
    4. Erik Rietschoten & Koen Bommel, 2023. "A Critique of Utilitarian Trust: The Case of the Dutch Insurance Sector," Journal of Business Ethics, Springer, vol. 183(4), pages 1011-1028, April.
    5. Daniel-Rareș Obadă & Dan-Cristian Dabija, 2022. "“In Flow”! Why Do Users Share Fake News about Environmentally Friendly Brands on Social Media?," IJERPH, MDPI, vol. 19(8), pages 1-26, April.
    6. Jaepil Choi & Heli Wang, 2007. "The Promise of a Managerial Values Approach to Corporate Philanthropy," Journal of Business Ethics, Springer, vol. 75(4), pages 345-359, November.

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