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Apology, Restitution, and Forgiveness After Psychological Contract Breach

Author

Listed:
  • Nicholas DiFonzo

    (Rochester Institute of Technology)

  • Anthony Alongi

    (Rochester Institute of Technology
    Change Sciences)

  • Paul Wiele

    (Rochester Institute of Technology)

Abstract

Using forgiveness theory, we investigated the effects of organizational apology and restitution on eliciting forgiveness of a transgressing organization after transactional psychological contract breach. Forgiveness theory proposes that victims are more likely to forgive offenders when victims’ positive offender-oriented emotions replace negative ones. Three pre-post laboratory experiments, using vignettes about a broken promise of financial aid, found that while apology-alone and restitution-alone each increased likelihood of forgiving, restitution-alone was the more effective of the two responses. When combined with an apology, restitution boosted the effect of apology-alone. However, restitution was unnecessary if positive emotions replaced negative ones; third-party blame accomplished this negative-to-positive emotion replacement. Consistent with forgiveness theory, offender-oriented negative-to-positive emotion replacement partially mediated all effects, and negative emotion reductions were strongly correlated with positive emotion gains. We discuss implications for the repair of damaged norms and relationships within an organizational community. These include reparative effects of apology and restitution, dual-process conceptions of violation and repair, repair after psychological contract breach, and emotion replacement models of forgiveness.

Suggested Citation

  • Nicholas DiFonzo & Anthony Alongi & Paul Wiele, 2020. "Apology, Restitution, and Forgiveness After Psychological Contract Breach," Journal of Business Ethics, Springer, vol. 161(1), pages 53-69, January.
  • Handle: RePEc:kap:jbuset:v:161:y:2020:i:1:d:10.1007_s10551-018-3984-1
    DOI: 10.1007/s10551-018-3984-1
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    References listed on IDEAS

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    5. Johannes M Kraak & Yannick Griep & Yochanan Altman, 2024. "Self-initiated expatriates in menial jobs: Destructive psychological contracts in the hospitality sector," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 45(2), pages 447-469, May.
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    7. Jörn S. Basel & Katja Rubin, 2021. "Repair of Trust Through Apology at a Reputable Company: The Case of PostBus In Switzerland," International Journal of Business Research and Management (IJBRM), Computer Science Journals (CSC Journals), vol. 12(3), pages 116-138, June.
    8. Demek, Kristina C. & Kaplan, Steven E., 2023. "Cybersecurity breaches and investors’ interest in the firm as an investment," International Journal of Accounting Information Systems, Elsevier, vol. 49(C).
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