Do corporations have a duty to be trustworthy?

Kirby, N., Kirton, A. and Crean, A. (2018) Do corporations have a duty to be trustworthy? Journal of the British Academy, 6(s1), pp. 75-129. (doi: 10.5871/jba/006s1.075)

Abstract

Since the global financial crisis in 2008, corporations have faced a crisis of trust, with growing sentiment against ‘elites and ‘big business’ and a feeling that ‘something ought to be done’ to re-establish public regard for corporations. Trust and trustworthiness are deeply moral significant. They provide the ‘glue or lubricant’ that begets reciprocity, decreases risk, secures dignity and respect, and safeguards against the subordination of the powerless to the powerful. However, in deciding how to restore trust, it is difficult to determine precisely what should be done, by whom, and who will bear the cost, especially if any action involves a risk to overall market efficiency and corporate profitability. The paper explores whether corporations have a moral duty to be trustworthy, to bear the cost of being so and thus contribute to resolving the current crisis of trust. It also considers where the state and other social actors have strong reason to protect and enforce such moral rights, while acknowledging that other actors have similar obligations to be trustworthy. It outlines five ‘salient factors’ that trigger specific rights to trustworthiness and a concomitant duty on corporations to be trustworthy: market power, subordination (threat and intimidation), the absence of choice, the need to preserve systemic trust, and corporate political power which might undermine a state’s legitimacy. Absent these factors and corporations do not have a general duty to be trustworthy, since a responsible actor in fair market conditions should be able to choose between the costs and benefits of dealing with generally trustworthy corporations.

• Item Type: Articles
• Status: Published
• Refereed: Yes
• Glasgow Author(s) Enlighten ID: Kirby, Dr Nikolas
• Authors: Kirby, N., Kirton, A., and Crean, A.
• College/School: College of Social Sciences > School of Social and Political Sciences > Politics
• Journal Name: Journal of the British Academy
• Publisher: British Academy
• ISSN: 2052-7217
• ISSN (Online): 2052-7217
• Published Online: 31 October 2018
• Copyright Holders: Copyright: © The British Academy 2018
• First Published: First published in Journal of the British Academy 6(s1): 75-129
• Publisher Policy: Reproduced under a Creative Commons licence