Purpose -The purpose of this paper is to explore a stakeholder trust model of organizations and applies the model to diagnose the loss of trust in large banks (Universal and Investment Banks) after the global financial crisis (GFC). Prescriptions for the repair of trust are offered along with the diagnosis. Design/methodology/approach -The theoretical underpinnings of the stakeholder trust model of organizations are supported using the literature in marketing and management. Case study data on large and community banks are used to explore differences in these type of banks as they relate to trustworthiness as articulated in the stakeholder trust model of organizations. Findings -The stakeholder trust model of organizations and six dimensions of trustworthiness help to explain why trust eroded in large banks during the GFC but increased or remained stable among some community banks. This diagnosis of the loss of trust also points to interventions that will be necessary to restore trust going forward among large banks.Research limitations/implications -Scholars in marketing need to develop a more macro view of the firm that examines trust beyond customers to reflect a wider stakeholder focus and issues of corporate social responsibility, trust reputation and license to operate. Practical implications -This paper points out strategic changes, some of which are radical, that will be required to restore and sustain stakeholder trust in large banks. Social implications -Building trustworthy banks is essential to social and economic progress. Originality/value -This paper addresses a void in marketing research by moving beyond the product and transactional level focus and framing a more macro oriented approach to understand trust in banks.Economies depend on the social, structural, institutional, and cognitive preconditions that enable market exchange, namely, trust. Without the willingness of parties to rely on one another to fulfill obligations, markets breakdown and exchange grinds to a halt. The effect of a loss of trust was felt globally during the global financial crisis (GFC) of 2008 when money stopped moving and the economy ground to a halt. Joseph Stiglitz (2008), the Nobel-Prize-winning economist, summarized the problem well when he said, "financial markets hinge on trust, and that trust has eroded." This paper will offer a stakeholder trust model of organizations which seeks to correct what some have called the new marketing myopia (Smith et al., 2010) namely, the overemphasis on narrow-scope trust (products, salespeople) and an under emphasis on broad scope trust (wider stakeholders, firm-and system-level). We will use this model to explore why trust declined and how it might be repaired in large The current issue and full text archive of this journal is available at
The tremendous growth of information technology has abruptly changed the world into global village. It has caused the distances to shrink and information to flow across the globe as it occurs. At the same time it has also given boost to vulnerabilities, threats, frauds and criminals in the cyberspace. The ease of access, user friendly hacking tools and sophistication in cyber attacks has infringed the privacy of the individuals, organizations and states. Pakistan is facing multifaceted cyber threats in the present era. The cyber attacks occurred on the government, corporate and private sectors within last couple of years has been analyzed in this paper to identify nature dynamics of threat to Pakistani ICT infrastructure and resources. The study highlights wide range and variety of cyber threats ranging from normal website defacement to sophisticated and persistent cyber threat. Further, existing response capability at government and organizational level is evaluated and the shortcomings have been highlighted. It is feared that non existence of any cyber security laws, void of response mechanism and lack of organizational framework in the country may offer Pakistan cyberspace a heaven for the criminals and malicious operators / users. It is noted that Pakistan government not only requires realization of cyber threats and consequences of its uncontrolled usage but also needs appropriate response mechanism to guard against such threats. A top level organizational structure is proposed in this paper for establishment of essential cyber security bodies at different tiers, responsible for securing cyber space of the country by introducing necessary legislation and formulating the response mechanism at different government tiers.
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