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Organizational Reintegration and Trust Repair after an Integrity Violation: A Case Study

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  • Gillespie, Nicole
  • Dietz, Graham
  • Lockey, Steve

Abstract

This paper presents a holistic, contextualised case study of reintegration and trust repair at a UK utilities firm in the wake of its fraud and data manipulation scandal. Drawing upon conceptual frameworks of reintegration and organizational trust repair, we analyze the decisions and actions taken by the company in its efforts to restore trust with its stakeholders. The analysis reveals seven themes on the merits of proposed approaches for reintegration after an integrity violation (including open investigations, accurate explanations, apologies, penance, and systemic reforms), and novel insights on the role of organizational identity, “changing of the guard” and cultural reforms alongside procedural modifications. The case further supports the dynamic nature of stakeholder salience across the reintegration process. The study both supports propositions from existing frameworks and suggests novel theoretical extensions for future research.

Suggested Citation

  • Gillespie, Nicole & Dietz, Graham & Lockey, Steve, 2014. "Organizational Reintegration and Trust Repair after an Integrity Violation: A Case Study," Business Ethics Quarterly, Cambridge University Press, vol. 24(3), pages 371-410, July.
    • Handle: RePEc:cup:buetqu:v:24:y:2014:i:03:p:371-410_00
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    Cited by:

    1. Sanneke Kuipers & Michael Schonheit, 2022. "Data Breaches and Effective Crisis Communication: A Comparative Analysis of Corporate Reputational Crises," Corporate Reputation Review, Palgrave Macmillan, vol. 25(3), pages 176-197, August.
    2. Bozic, Branko, 2017. "Consumer trust repair: A critical literature review," European Management Journal, Elsevier, vol. 35(4), pages 538-547.
    3. Nicole Gillespie & Mattia Anesa & Morgana Lizzio-Wilson & Cassandra Chapman & Karen Healy & Matthew Hornsey, 2024. "How do Sector Level Factors Influence Trust Violations in Not-for-Profit Organizations? A Multilevel Model," Journal of Business Ethics, Springer, vol. 191(2), pages 373-398, May.
    4. Matthew J. Hornsey & Cassandra M. Chapman & Heidi Mangan & Stephen Macchia & Nicole Gillespie, 2021. "The Moral Disillusionment Model of Organizational Transgressions: Ethical Transgressions Trigger More Negative Reactions from Consumers When Committed by Nonprofits," Journal of Business Ethics, Springer, vol. 172(4), pages 653-671, September.
    5. Matthäus Rest, 2019. "Dreaming of pipes: Kathmandu’s long-delayed Melamchi Water Supply Project," Environment and Planning C, , vol. 37(7), pages 1198-1216, November.
    6. Barron, Andrew & Pereda, Asier & Stacey, Stephen, 2017. "Exploring the performance of government affairs subsidiaries: A study of organisation design and the social capital of European government affairs managers at Toyota Motor Europe and Hyundai Motor Com," Journal of World Business, Elsevier, vol. 52(2), pages 184-196.
    7. Joel B. Carnevale & K. Ashley Gangloff, 2023. "A Mixed Blessing? CEOs’ Moral Cleansing as an Alternative Explanation for Firms’ Reparative Responses Following Misconduct," Journal of Business Ethics, Springer, vol. 184(2), pages 427-443, May.
    8. Pazit Ben-Nun Bloom & Shaul Kimhi & Shani Fachter & Michal Shamai & Daphna Canetti, 2020. "Coping with Moral Threat: Moral Judgment amid War on Terror," Journal of Conflict Resolution, Peace Science Society (International), vol. 64(2-3), pages 231-260, February.
    9. Thomas Aichner & Paolo Coletti & Frank Jacob & Robert Wilken, 2021. "Did the Volkswagen Emissions Scandal Harm the “Made in Germany” Image? A Cross-Cultural, Cross-Products, Cross-Time Study," Corporate Reputation Review, Palgrave Macmillan, vol. 24(4), pages 179-190, November.
    10. Bozic, Branko & Siebert, Sabina & Martin, Graeme, 2019. "A strategic action fields perspective on organizational trust repair," European Management Journal, Elsevier, vol. 37(1), pages 58-66.
    11. Kai Lamertz & Devasheesh P. Bhave, 2017. "Employee perceptions of organisational legitimacy as impersonal bases of organisational trustworthiness and trust," Journal of Trust Research, Taylor & Francis Journals, vol. 7(2), pages 129-149, July.
    12. Oussama Ouriemmi, 2023. "The Legalistic Organizational Response to Whistleblowers’ Disclosures in a Scandal: Law Without Justice?," Journal of Business Ethics, Springer, vol. 188(1), pages 17-35, November.
    13. Afzal Izzaz Zahari & Dewi Izzwi Abdul Manan & Norhayati Mohamed & Jamaliah Said, 2023. "Impact of Dynamic Leadership and Marketing Planning on Organizational Resilience During Covid-19: Higher Learning Institutions," SAGE Open, , vol. 13(4), pages 21582440231, November.
    14. Razvan Lungeanu & Srikanth Paruchuri & Wenpin Tsai, 2018. "Stepping across for social approval: Ties to independent foundations' boards after financial restatement," Strategic Management Journal, Wiley Blackwell, vol. 39(4), pages 1163-1187, April.
    15. Bozic, Branko & Kuppelwieser, Volker G., 2019. "Customer trust recovery: An alternative explanation," Journal of Retailing and Consumer Services, Elsevier, vol. 49(C), pages 208-218.
    16. Maximilian J. L. Schormair & Lara M. Gerlach, 2020. "Corporate Remediation of Human Rights Violations: A Restorative Justice Framework," Journal of Business Ethics, Springer, vol. 167(3), pages 475-493, December.
    17. Chuanhui Liao & Yu Luo & Weiwei Zhu, 2020. "Food Safety Trust, Risk Perception, and Consumers’ Response to Company Trust Repair Actions in Food Recall Crises," IJERPH, MDPI, vol. 17(4), pages 1-16, February.
    18. Božič, Branko & Siebert, Sabina & Martin, Graeme, 2020. "A grounded theory study of factors and conditions associated with customer trust recovery in a retailer," Journal of Business Research, Elsevier, vol. 109(C), pages 440-448.
    19. Kähkönen, T. & Blomqvist, K. & Gillespie, N. & Vanhala, M., 2021. "Employee trust repair: A systematic review of 20 years of empirical research and future research directions," Journal of Business Research, Elsevier, vol. 130(C), pages 98-109.
    20. Yu Zhang & Bingjia Shao, 2018. "The Effect of Customer Participation Types on Online Recovery Satisfaction: A Mental Accounting Perspective," Future Internet, MDPI, vol. 10(10), pages 1-20, October.
    21. Masoud Shadnam & Andrew Crane & Thomas B. Lawrence, 2020. "Who Calls It? Actors and Accounts in the Social Construction of Organizational Moral Failure," Journal of Business Ethics, Springer, vol. 165(4), pages 699-717, September.
    22. Brühl, Rolf & Basel, Jörn S. & Kury, Max F., 2018. "Communication after an integrity-based trust violation: How organizational account giving affects trust," European Management Journal, Elsevier, vol. 36(2), pages 161-170.
    23. Kougiannou, Nadia K. & O'Meara Wallis, Matthew, 2020. "‘Chimneys don't belch out carnations!’ The (in)tolerance of corporate hypocrisy: A case study of trust and community engagement strategies," Journal of Business Research, Elsevier, vol. 114(C), pages 348-362.
    24. Eva Baarle & Steven Baarle & Guy Widdershoven & Roland Bal & Jan-Willem Weenink, 2024. "Sexual Boundary Violations: Exploring How the Interplay Between Violations, Retributive, and Restorative Responses Affects Teams," Journal of Business Ethics, Springer, vol. 191(1), pages 131-146, April.
    25. Paolo Antonetti & Ilaria Baghi, 2023. "Projecting lower competence to boost apology effectiveness: Underlying mechanism and boundary conditions," Journal of the Academy of Marketing Science, Springer, vol. 51(3), pages 695-715, May.

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