Lies in the Sky: Effects of Employee Dishonesty on Organizational Reputation in the Airline Industry

Abstract

Conventional wisdom suggests that dishonesty on the part of an organization's employees has a negative effect on the organization's reputation. However, many organizations condone (or even require) dishonesty under certain circumstances. In this research of 128 airline passengers, we examine situations in which employees are perceived to be dishonest within one such industry, the international airlines, and examine the impact of this dishonesty on organizational reputation and customer satisfaction. We found that the reputation of the firm was most damaged when the lie benefited the company or the employee, rather than the passenger. In addition, the view of the airline significantly decreased when the lie caused a high amount of harm (compared with a low amount) to the passenger.

The relationship between empowerment and the three-component model of organisational commitment: an empirical study of Thai employees working in Thai and American airlines

“…Organisational commitment is of particular importance to the service sector, whereas employees act as boundary-spanners, thus having great influence on customers’ perception of organisational image and reputation. In the airline industry at which issue of trust is a primary concern, these perceptions created by employees will ultimately influence whether or not customers will repeat patronage with that specific airliner (Jehn and Scott, 2015). Based on the extant literature, Allen and Meyer proposed and refined the three-component model of commitment: affective, continuance and normative (Allen and Meyer, 1996; Meyer and Allen, 1991, 1997).…”

Factors Influencing Organizational Attractiveness among Millennial Job Seekers: A Study on Students in Malaysian Research Universities

“…Therefore, the national level decision-makers (ministry) can take theoretical support from this research to develop or redesign a policy that will insist millennials venture onto the job market. Research findings can assist the management of an organization with strategic planning and policy development capable of constructing a fairer and substantial work environment for Millennial youth employees (Jehn & Scott, 2015). Moreover, a well-defined strategy can be designed for better talent management and attraction.…”

When unethical practices harm relationship outcomes: testing the influence of consumer-perceived unethical behaviour on trust and satisfaction in the banking sector

“…This lack of transparency and dishonesty leads consumers to make poor decisions, risking their resources and worsening bank-customer relationships (Graafland and van de Ven, 2011). Consequently, such deceitful encounters may lead consumers to perceive the bank's service quality as low, further diminishing their satisfaction (Jehn and Scott, 2015).…”