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

Abstract

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.

How Do Controls Impact Employee Trust in the Employer?

“…First, further exploration is warranted on how external evaluations of the organization impact on employees’ attitudes toward their employer and their inner work life (see, for instance, Edwards, ; Lievens, Van Hoye, & Anseel, ). Second, while we find that control and prestige correlate positively, the assumption that controls might even restore organizational prestige and trust after a trust failure still needs to be tested empirically (Gillespie & Dietz, ; Gillespie, Dietz, & Lockey, ).…”

Changing Corporate Governance in Response to Negative Media Reports

“…A number of prior studies have considered how companies are trying to repair trust after their misconduct has been exposed. Researchers have described organizational responses to scandals in terms of repairing trust, reputation and legitimacy (Gillespie, Dietz and Lockey, 2014;Gomulya and Boeker, 2014;Pfarrer et al, 2008). Dirks, Lewicki and Zaheer (2009) point out that the challenges of repairing relationships have been described using different conceptual frameworks.…”

Promoting organisational recovery after wrongdoing: is this next challenge for nurse leaders?

“…The shared organisational identity of employees is most relevant in times of crisis or upheaval (Gillespie et al . ). Repairing shared identity‐narratives among the workforces can provide a resource for strength and resilience for employees to draw upon as they recover.…”