You are on page 1of 11

See

discussions, stats, and author profiles for this publication at: https://www.researchgate.net/publication/28578913

The ethical benefits of trust-based partnering:


The example of the construction industry

Article in Business Ethics A European Review · January 2002


DOI: 10.1111/1467-8608.00254 · Source: OAI

CITATIONS READS

56 256

3 authors, including:

Peter Mcdermott Will Swan


University of Salford University of Salford
35 PUBLICATIONS 321 CITATIONS 24 PUBLICATIONS 256 CITATIONS

SEE PROFILE SEE PROFILE

All content following this page was uploaded by Will Swan on 05 March 2015.

The user has requested enhancement of the downloaded file. All in-text references underlined in blue are added to the original document
and are linked to publications on ResearchGate, letting you access and read them immediately.
Volume 11 Number 1 January 2002

The ethical benefits of


trust-based partnering:
the example of the
construction industry1
Graham Wood, Peter McDermott and Will Swan

Introduction and sharp practice. Its previous adversarial re-


lationships often produced zero sum games for
In industries where inter-organisational relation- those involved, and delivered poorly on cost, time
ships are an increasingly important part of busi- and quality for its clients. The most frequently
ness the ability to build sustainable relationships discussed institutional form of co-operative be-
is necessary. To achieve sustainable relationships haviour in construction is partnering. The essence
parties need to develop from a low trust/low ethics of partnering is single-source, long-term relation-
base to a high trust/high ethics base in their relat- ships (Wilson and Wilson 1994). Such relation-
ing. Rhetoric and action must shift from meta- ships are business-focused; directed at solving
phors for business as competition, as in war or problems, rather than simply selling products. The
sport, to metaphors for business as co-operation partners move from a technology of selling to the
and trust, as in a moral community. This is not to process of interaction (Nooteboom 1992). New
suggest an absence of self-interest but to posit a relationships must be forged as the industry moves
situation where interest to self is balanced against from competitive, adversarial to co-operative re-
interests of others. This need to build trust and lations based on reciprocity and solidarity (Wood
ethics together has already been remarked upon and McDermott 1999). Trust is a key component
by Brenkert (1998) and Flores and Solomon (1998). of any such new architecture of networks, rela-
This paper aims to synthesise the ethics and trust tionships and communication (Anderson and
literatures with data from an on-going study into Narus 1991, Morgan and Hunt 1994). However,
trust-based partnering in order to test the proposi- much apparent trust may be illusory, the result of
tion that trust-based relationships improve and compliance by the less powerful in the relationship
reinforce ethical behaviour. Our argument is that (Hardy et al. 1998).
partnering in the construction industry is ethical Our data suggests that engaging in trust-based
partnering, because in this particular industry partnering encourages parties to adopt higher
context, trusting demands high ethical standards. ethical standards, and achieve improved ethical
Trust is thus an ethical construct. performance in all their business dealings. Trust-
For the UK construction industry improving based partnering has the potential to produce an
its ethical performance is recognised as important improvement in the ethical climate of the con-
(Latham 1994, Egan 1998). The industry has a struction industry. This study answers Noorder-
reputation for poor quality and service, a bad haven’s (1999) appeal for more empirical data and
safety record, and a history of broken promises less theory on trust.

# Blackwell Publishers Ltd. 2002. 108 Cowley Road, Oxford OX4 1JF, UK
4 and 350 Main St, Malden, MA 02148, USA.
Business Ethics: A European Review

In the rest of the paper we seek to explain what Brenkert (1998) noted the growing importance
we call ‘ethical partnering’, to establish how this of trust within and between business organisa-
concept is supported by our data and to suggest tions. ‘‘Trust is said not only to reduce transaction
that improvements in ethical standards of be- costs, make possible the sharing of sensitive
haviour, that is ethical partnering, have the poten- information, permit joint projects of various
tial to end the dysfunctional inter-organisational kinds, but also to provide a basis for expanded
relations in the construction industry. moral relations in business’’ (Brenkert 1998: 195).
The managers reported on in this paper are moral
managers, though they might reject that label. In
Trust their daily business practice they engage with
values, principles and moral precepts as they seek
Traditionally organisations have looked to the in- to establish relationships, built on trust rather
stitutions of property rights, contracts and com- than contract, with those with whom they do
mercial law as a mechanism for sealing-in the business, though they would see this approach as
benefits from relationships. However, Williamson being pragmatic. Working this way is better in the
(1975) observed that because of bounded ration- sense that the returns, both short- and long-term,
ality, and the cost of negotiating, writing and are higher.
implementing a contract, no totally comprehen- Trust is a multidimensional (Sako 1992, Ganesan
sive contract is possible. If confidence between 1994, McAllister 1995), multifaceted social phen-
partners is to develop they need to build trust in omenon (Fukuyama 1995, Misztal 1996), which is
each other. Fukuyama (1995) argues that trans- regarded by some as an attitude (Luhmann 1988,
action costs can be lowered by social capital and Flores and Solomon 1998), and by yet others as a
trust. But it is not always possible to achieve this: vital social lubricant (Gambetta 1988, Fukuyama
in titling his interim report ‘‘Trust and Money’’ 1995). In spite of the large literature on the
Latham was signaling the importance he attached subject, Gambetta (1988) still saw trust as an
to the lack of trust in the UK construction elusive concept, and ten years later Misztal (1996)
industry (Latham 1993). noted the continuing conceptual confusion that
Trust is recognised as an essential component of surrounded this social phenomenon. It is not
increased inter-organisational relating (Mayer et al. within the scope of this paper to review the whole
1995, Kramer and Tyler 1996, Rousseau et al. of this literature, but there are good reviews in
1998). There is an increasing consensus that any Misztal (1996), Mayer et al. (1995) and Rousseau
definition of trust has to involve recognition of et al. (1998). Rather, we wish to focus on those
a willingness to be vulnerable (Mayer et al. 1995, particular sections germane to our interest in part-
Mishra 1996). Rousseau et al. (1998: 365) offered nering approaches to construction procurement.
the following definition: ‘‘Trust is a psychological
state comprising the intention to accept vulner-
ability based upon positive expectations of the Ethical partnering
intentions or behaviour of another.’’ Amongst the
dimensions of trust Mishra (1996) included con- Our argument is that partnering in the construc-
cern, indicating clearly that parties building trust tion industry is ethical partnering, because in this
accept at least partial responsibility for the welfare industry context trusting demands high ethical
of the other. Trust always involves an element of standards. Trust is an ethical construct. Among
risk that a partner will abuse the trust placed in the qualities of trust identified in the literature
them. Where there is no vulnerability, there is no are integrity, honesty, truthfulness, reliability,
need for trust. Trust is built up over a series of dependability, openness, and respect for the
interpersonal encounters (Moorman et al. 1993), other’s autonomy and fairness. Ethical partnering
in which the parties establish reciprocal obliga- places trust at the centre, but it involves other
tions (Nooteboom 1992). features that need at least to be identified. Any

# Blackwell Publishers Ltd. 2002 5


Volume 11 Number 1 January 2002

ethical partnership will be entered into freely, with party as the only way to build enduring and
no coercion involved on any of the partners to join sustainable relationships.
or stay within the relationship. All ethical partner- A number of virtues associated with partnering
ships are voluntary arrangements, but given the relationships have already been identified above:
economic imperative that drives most business honesty, fairness, benevolence, integrity, reliabil-
organisations the freedom to choose business ity, reputation, commitment and trust. Organisa-
partners is sometimes relative. What remains true tions, then, are seeking honest, fair, reliable,
is that any ethical relationship needs to establish benevolent partners who will commit themselves
an equitable basis on which to share any surplus to the relationship and prove trustworthy. In
(Nooteboom 1992). However, as Husted (1998) other words, they seek ethical partners.
and Watson (1998) argue, developing trust is not a
guarantee that ethical purposes are being pursued.
Many criminal groups, such as the Mafia, develop Research methodology
high levels of trust, but they are not ethical, since
criminal behaviour is regarded as unethical as well The fieldwork for the project was conducted over
as illegal. Ends are important. an eighteen-month period that covered the prep-
The potential for abuse and vulnerability is aration for and the initial phase of the present
greater the closer the relationship that develops, study. Twenty-one semi-structured interviews
which is why trust and ethical conduct are so were collected, focused around questions about
critical. Engaging in partnering has highlighted the respondent’s conception of trust, and the
the need for open and honest communications, behaviours they associate with trust. Four of the
which have the potential to develop into an ethical interviewees helped with the initial conceptualisa-
dialogue. Thus the operative conception of ‘com- tion and framing of the study but have taken no
munication’ is critical. Each partner must come further part in the funded phases of the project.
openly and genuinely into a relationship based The other seventeen were all employees of con-
upon reciprocity and the gaining of mutual ad- struction organisations which are joint sponsors
vantage. This is not to argue for the absence of of the research project. Of these seventeen, eight
self-interest from these relationships; they are were interacting with each other on one partnered
commercial relationships, if they did not remain project and four on another, with both of these
so the relationship would end, but to argue that construction projects forming the initial phase
self-interest will be balanced against the interests of the research study. Members of the group of
of the other parties. If parties do not gain satis- twenty-one represented a number of construction-
faction from the relationship they will withdraw. related professions or disciplines, including archi-
At a prima facie level we would anticipate that tects/designers, quantity surveyors, development
the notion of virtue ethics would appear especially managers or directors, builders, project managers:
pertinent to partnering relationships. Partners in a there was one HR director and one contracts con-
relationship usually go beyond the cost-benefit sultant. Their experience in the industry ranged
calculation associated with consequences-oriented from less than five years to over thirty years, and
ethical approaches. Even the best of intentions their experience ranged from junior managers
and sense of honour of the partners (duty based up to main board directors. No interviews were
theories) are sometimes not enough to make a conducted with people below junior managerial
relationship endure over long periods of time. A level. No other personal details were collected be-
set of good habits, or virtues is essential for those cause within the objectives of the study there was
involved in partnering relationships (Laczniak and no intention to relate the data to individuals.
Murphy 1993, Williams and Murphy 1990). Mishra Each interview was conducted around a short
(1996) suggested concern as one of four dimensions questionnaire of six open-ended questions (see
of trust, which is expressed in a willingness to take Appendix 1), with all interviews recorded to allow
some responsibility for the welfare of the other for the verification of the contemporaneous notes

6 # Blackwell Publishers Ltd. 2002


Business Ethics: A European Review

taken at each interview. All interviews were reduce this to manageable proportions it is
conducted face to face on the interviewee’s own possible to eliminate from the lexicon any words
premises. The length of interview ranged from which carry no obvious relevant content, either
forty-five minutes to one and a half-hours, with a because they are commonly used words such as,
mean length of one hour five minutes. None of the ‘the’, ‘and’, ‘also’ and so on, or because the word
six questions directly addresses the issue of ethical did not carry any relevant content connection.
standards or behaviour. We adopted the position Where there was any doubt it is possible to read
of ‘active and reflexive’ interviewers (Mason 1996) the fragment of text within which the word
by taking the opportunity to pursue clarification appears to eliminate any doubt or ambiguity. This
where necessary. This has enabled us to explore allowed us to reduce the lexicon to 152 words.
more deeply issues of particular concern to re- This is a systematic and efficient way of examining
spondents, or interesting observations they made. a large volume of data.
As already reported above, eight of the inter- At the second stage of analysis each fragment of
viewees were interacting on one construction project, text containing one of the 152 words in the lexicon
and a further four on another. In answering the was examined to determine the meaning within
questions in the questionnaire respondents were which the word was being used and its context.
told to base their answers on their experience: From this content analysis we were able to
many of the twelve interpreted this to mean generate fourteen groups of words, with words
experience largely, but not exclusively, on the in each group reflecting instances when respon-
current project. This provided us with a useful way dents were discussing the same dimension of trust.
of validating respondents’ narratives on trust For example, whether the word we isolated was,
building and ethics. The construction industry is trust, trusted, trustworthiness or mistrust the
currently so suffused with the rhetoric of partner- respondents would be discussing their concept of
ing that it is difficult to assess reliably whether or what it is to trust. Or where the word used was
not respondents are offering interviewers what promise, promise-keeping, delivery or reliability
they want to hear rather than the reality of their respondents were talking about their own or other
experience. The common membership of construc- parties’ ability to keep promises. The results of
tion projects within our study enabled us to intro- this coding of the content analysis in terms of the
duce a useful verification mechanism. Stories and fourteen groups with their relative emphasis
narratives tally amongst the respondents engaged (determined by number of mentions) is given in
on the same projects, adding reliability to the find- Table 1.
ings reported below. It is also useful to remember Further examination of the fragments of text
that no questions were asked specifically on ethics extracted by the software allowed the identifica-
topics; indeed the suggestion that trust and ethics tion of those instances where the ethical content or
were closely intertwined came, without prompting, meaning was strongest and reduced the fourteen
from one of the interviewees not associated with groups to eight: promise-keeping, fairness/reason-
the current research study. ableness, mutuality/reciprocity, honesty/integrity,
openness/communications, values/ethics, repu-
tation, and blame culture. These interviews were
Analysis focussed on respondents’ conceptions and experi-
ence of the construct trust, but, for instance, there
We used the SphinxLexica software package to are 94 instances where respondents discuss the
analyse the data, which consisted of the twenty- issue of honesty and integrity, and similarly with
one interview transcripts. Using a lexical analysis the values and ethics category, where there are
option to analyse the content of the transcripts, 72 instances when respondents raise the issue. This
the programme scans the whole text and generates suggests that in their minds they perceive that
a lexicon of all words used in the twenty-one ethics is inextricably entwined with trust and trust
transcripts, in our case this was 1597 words. To building.

# Blackwell Publishers Ltd. 2002 7


Volume 11 Number 1 January 2002

...........................................................................................................................................................................................................
Table 1: An initial coding of categories of ethical dimensions in trust

Coding category Example vocabulary


Trust (654) Trust/trusted/trustworthiness (577), mistrust/untrustworthy (24), betray trust (17)
Relationships (124) Partnering/relating/friendship (57), support/co-operation (26)
Value (76) Value (76)
Confidence (51) Confidence (33), faith (18)
Competence (28) Competence (28)
Professional (21) Professional (20), unprofessional (1)
Promise-keeping (149) Promise/promise-keeping (42), delivery (74), reliability (27)
Fairness/reasonableness (110) Fairness (58), unfairness (16), reasonable (28)
Mutuality/reciprocity (97) Mutuality (39), reciprocity (14), expectations/obligations/duty (32)
Honesty/integrity (94) Honesty (51), integrity (13), truth (16)
Openness/communications (82) Communications (42), openness/frankness (40)
Values/ethics (72) Values (39), ethics/morals (19)
Reputation (70) Reputations (44), respect/valued (26)
Blame culture (21) Blame culture (21)
...........................................................................................................................................................................................................

In a study focused on trust-based partnering we as with trust. By incorporating the openness/


are inevitably going to see the word trust and its communications into our observations on honest/
derivatives appear frequently. It was evident that integrity and the observations on blame culture
it was often discussed in the context of our other into the fairness/reasonableness category, these
categories, such as promise-keeping, honesty and eight were reduced to a final six ethical dimensions
fairness, so the same observations are being cap- of trust (see Table 2).
tured twice. Further, we would not be surprised to
discover that our respondents wanted to develop
relationships, and to do so with those who were Discussion
competent and professional who could add value
to their organisations. These are necessary pre- We have six dimensions in Table 2, all of which
requisites for having the confidence to engage in are very much dimensions defined around ethics.
business relationships with other organisations. Openness of communications and honesty receives
Again after further investigation we were able to the most mentions at 176, followed reasonably
eliminate these categories, because either there closely by promise-keeping with 149 mentions
were no ethical aspects to the observations or they and fairness/reasonableness with 131. This closely
were being captured in another of the categories, matches the results in other studies into trust

...........................................................................................................................................................................................................
Table 2: A refined coding of categories of ethical dimensions in trust

Coding category Example vocabulary


Honesty/openness in communications (176) Honesty (51), integrity (13), openness/frankness (40),
Promise-keeping (149) Promise/promise- keeping (42), delivery (74), reliability (27)
Fairness/reasonableness (131) Fairness (58), reasonable (28), blame culture (21)
Mutuality/reciprocity (97) Mutuality (39), reciprocity (14), expectations/obligations/duty (32)
Values/ethics (72) Values (39), ethics/morals (19)
Reputation (70) Reputation(s) (44), respect/valued (26)
...........................................................................................................................................................................................................

8 # Blackwell Publishers Ltd. 2002


Business Ethics: A European Review

(Mayer et al. 1995, Mishra 1996) which find that on each other to keep promises are unlikely to be
there are three or four major dimensions to the able to develop trust in each other, and thus go on
construct trust. In this paper we wish to stress that to develop a sustainable relationship, which is a
in building trust, the respondents build ethics as vital component of the partnering philosophy.
well so that the term ‘ethical partnering’ is a You should never promise what you cannot
reality. Each of these dimensions will be discussed deliver – do not mislead with false promises – DB.
and illustrated by direct quotations from the Not surprisingly we recorded more observations
interview transcripts. for promise-keeping than any other of the ethically
related categories amongst our respondents. This
appears to be the key test of a partner’s reliability,
1 Honesty/openness in communications
their ability to deliver what they promise. This
Many respondents highlighted the need for constant manifested itself in many guises within the inter-
trading of information and open communications. view data, whether respondents were lamenting
Indeed just more than half of the observations in the problems of people not delivering on time –
the openness/communications category refer to HM
this need. The other half are very much focused on or that companies need to be able to rely on
the need to be open and frank, others,
communicating honestly – HM you have to rely on people because you haven’t
as one respondent put it. Central to open com- got the time, resources or knowledge to do
munications, to operating with overt not covert everything yourself – SP.
agendas was a requirement that the partner was To our respondents,
honest, a person of integrity, trust is about being reliable– DF,
integrity is the most important quality – EW and being reliable is about delivering what you
which is why these two categories have been promise. Even the most trivial of promises, agree-
collapsed together. Probably the most important ing to return a telephone call, must be delivered to
characteristic an individual needs to possess if they gain trust as a promise-keeper.
are to be trusted is honesty. Reliability is the key factor in my willingness to
You have to have integrity in what you say – EW trust – DG
Partners are judged on their honesty, and the out- For these respondents failure to keep to what was
come of that judgement determines the willingness promised is a breach of trust or betrayal. This is a
to trust. Many previous studies have reported on particularly acute issue in construction, which can
the importance of honesty, integrity and openness be likened to a process of constant re-negotiation
to the development of trust in another (Anderson of the contract or specification. Ganesan’s (1994)
and Narus 1991, Mayer et al. 1995, Kumar 1996, results suggest that the decision to trust is based on
Clark and Payne 1997). Indeed Beccera and objective evidence of reliability. Promise-keeping,
Huemer (2000) argue that integrity appears to be then, is one test of reliability.
a fundamental dimension of trust. Where the
other is revealed as deceitful or lying is one of the
3 Fairness/reasonableness
few instances where trust is immediately and
irrevocably withdrawn. A lack of openly shared Respondents wanted to partner with those they
information leads to distrust (see Gambetta 1988). perceived as fair and reasonable in their approach
Telling lies is a reason to mistrust – IW. to business dealing. Respondents had a strong
desire for equity in their partnerships.
People have to be fair and reasonable – AJ.
2 Promise-keeping
By fair they may mean
Promise-keeping is seen as vital for the develop- being willing to share benefits coming out of the
ment of any trusting partnership or relationship situation – EF,
(Swan et al. 1985). Two partners who cannot rely and again,

# Blackwell Publishers Ltd. 2002 9


Volume 11 Number 1 January 2002

I am looking more seriously at doing more gain meet the expectations of their partners, which in-
sharing – IW. volves not only co-operative behaviour but also that
Or they mean that their views and attitudes should parties respond to each other, again, without
be being asked – RL.
fairly represented – NE, The benefits do not have to be equal, but they do
and that each party’s interests should be advanced have to be equitable.
in a reasonable way: People have to be fair and reasonable – AJ.
you really have to commit yourself to what is The relationship has to benefit all parties, not just
reasonable – JN. one or two, otherwise the commitment of some
The concern for fairness particularly manifested parties cannot be guaranteed. The relationships
itself in respondent’s comments on the need for remain business relationships even though some of
problem solving on projects. This is not surprising them develop social aspects or elements; thus the
if we recognise that most construction projects, desire for mutuality is not about altruism, but
even the smallest, are a series of problems to be about fair exchange. Nooteboom (1992) discussed
solved if the building is ever to be constructed or how the new approaches in procurement and
reconstructed. Many respondents saw the part- marketing were relations of reciprocity, which are
ners’ approach to problem solving as indicative of typified by competence, trustworthiness, reputa-
their willingness to be open and honest and to tion and working to mutual advantage.
share information (see below), but particularly
that it should be one which produces joint
5 Values/ethics
satisfaction and benefit.
The important point is to solve the problem with The seventy-two observations including ethics or
everybody’s agreement and thus move the ground values across the twenty-one respondents is a good
for everybody – AJ. indicator of the importance of ethical standards
This is a good illustration of the desire not to and behaviour for those engaging in trust-based
engage in a blame culture, but rather to show partnering. Some respondents actively sought
reasonableness in not singling out any one person, evidence that potential partners had high ethical
but standards, and that this was central to the decision
if something goes wrong or happens do not blame to trust.
one but blame all parties – NEl. In construction you have to ask how they deal
with safety, training and ethics – DF.
If a company were bad, in a moral as well as a
4 Mutuality/reciprocity
commercial sense, I wouldn’t trade with them at
A willingness to work for reciprocal and mutually any price – IW.
advantageous arrangements was another import- There is good evidence, then, that a move to trust-
ant ethical aspect that respondents looked for in based partnering in construction will lead to an
relationships as they sought to build trust with improvement in the ethical standards of the
their partners. Partners who work to mutual industry, which in view of its public reputation
advantage and seek to ensure that the relationship will be welcome.
produces benefits for all parties are preferred. This To me business ethics is a big part of it [trust] –
again is a reference to the desire for fairness. CRd’E.
However, here the concept is extended to incor-
porate the principle that partners work to assist
6 Reputation
each other.
Showing reciprocity to each other goes beyond Reputation is the key to being trusted and our
contract – RL. willingness to trust. Gambetta (1988) reported that
This requires parties to not only fulfil their duty, a favourable reputation influences the decision to
but to go beyond mere contractual obligations to trust, because building a reputation takes time and

10 # Blackwell Publishers Ltd. 2002


Business Ethics: A European Review

resources, so people can be trusted because they Partners who seek to develop trust-based relation-
do not want to lose this valuable asset. Our re- ships are required to demonstrate their honesty
spondents agreed in wanting to build a reputation and integrity, willingness to forsake all forms of
for fairness and honesty, for a willingness to work deception as they communicate openly and with
for their partner’s advantage as well as their own, frankness. Companies that demonstrate their reli-
and for a willingness to protect the interests of ability as partners by keeping their promises,
their partners. however small and trivial they may seem, are more
The reputation of my business is very important likely to be trusted than those who do not. No one
to me. The reputation has been gained because wants to partner with others who do not wish to
this practice is able, honest and truthful – AJ. share fairly the benefits or gains of the partnership
Reputation of any organisation is important – or who wish to impose unreasonable demands
EW. upon their partners. Many respondents talk of the
Certainly it is critical in the initial selection of need for respect, and of their concern to respect
contractors and sub-contractors to work with; their partners in all their actions and statements.
reputation is very important to the client – JN. Trust-based partnering is characterised by
honest/open communications, promise-keeping,
an absence of deception, fair sharing of benefits
Conclusions and respect and reciprocity. All this is best seen in
the need for relationships characterised by reci-
In drawing conclusions from the work presented procity. Trust-based relations are marked by the
here we need to enter a caveat that the sample size mutuality of objectives and outcomes. This is how
remains small at twenty-one respondents, though reputation for fair dealing, honesty and openness
the small sample size enabled us to explore more in communications and information sharing is
completely the meanings that respondents attached gained and leads others to offer their trust.
to their conception of trust. Our sample covers If it should be countered that trust-based part-
a range of organisations, professional or trade nering is attractive only to those who already have
groups, a number of geographical locations, and a high ethical standards of behaviour, we would
group of respondents who vary in experience and reply that that in itself would be a benefit worth
seniority in their organisations. gaining. But we would also want to argue that as
We have demonstrated how the organisations those engaged in trust-based partnering are able to
represented in this study are developing ‘ethical demonstrate the benefits in terms of time, cost and
partnering’ by embedding the development of high quality (Barlow et al. 1997, Bennett and Jayes
ethical standards into the process of building trust. 1995, 1998), this will encourage others to adopt
A spreading of this practice across the construc- this approach, making the necessary improve-
tion industry, or indeed any other industry be- ments to their ethical standards as they do.
deviled by adversarial inter-organisational relations, Further work continues on the study reported
will do much to end the present dysfunctional here with the development of an instrument to
system of business-to-business relations. It holds measure trust. This should in time yield more
the promise of ridding the industry of its reputa- evidence to support the proposition that trust-
tion for poor quality and time-keeping, broken based partnering leads to improvements in ethical
promises, sharp practice, and even from some standards and behaviour, and that there is a real
quarters allegations of deception and corruption. prospect of developing ‘ethical partnering’.
Movement towards more co-operative relations in
the industry through the adoption of trust-based
partnering will lead to higher ethical standards. Note
Phase two of the research study aims to measure
the benefits of trust-based partnering in terms of 1. We thank Chris Cowton, Laura Spence and
time, cost and quality. Richard Varey for their helpful comments on an

# Blackwell Publishers Ltd. 2002 11


Volume 11 Number 1 January 2002

earlier draft of this paper. This research project is Kramer, R.M. and Tyler, T.R. (Eds.) 1996. Trust in
funded by the Engineering and Physical Sciences Organizations: Frontiers of Theory and Research.
Research Council under grant number GRN33942/ London: Sage Publications.
01 and by the nine participating construction Kumar, N. 1996. ‘The power of trust in manufacturer-
companies. retailer relationships.’ Harvard Business Review,
74:6, 92–106.
Laczniak, G.R. and Murphy, P.E. 1993. Ethical
Marketing Decisions: The Higher Road. Needham
References Heights, MA: Allyn and Bacon.
Latham, M. 1993. Trust and Money: Interim Report of
Anderson, J.C. and Narus, J.A. 1991. ‘Partnering as a the Joint Government/Industry Review of Procure-
focused market strategy.’ California Management ment and Contractual Arrangements in the United
Review, 33:3, 95–113. Kingdom Construction Industry. London: HMSO.
Barlow, J. et al. 1997. Towards Positive Partnering. Latham, M. 1994. Constructing the Team, Final Report
Bristol: Polity Press. of the Joint Government/Industry Review of Procure-
Beccera, M. and Huemer, L. 2000. ‘Moral Character ment and Contractual Arrangements in the United
and Relationship Effectiveness: An Empirical In- Kingdom Construction Industry. London: HMSO.
vestigation of Trust Within Organizations.’ Proceed- Luhmann, N. 1988. ‘Familiarity, confidence, trust:
ings of 2nd ISBEE World Congress, Business, problems and alternatives’. In Gambetta, D. (Ed.),
Economics and Ethics, Sao Paulo, July 19–23. Trust: Making and Breaking Cooperative Relations,
Bennett, J. and Jayes, S. 1995. Trusting the Team. 94–108. Oxford: Basil Blackwell.
Centre for Strategic Studies in Construction, Uni- McAllister, D.J. 1995. ‘Affect and cognition based
versity of Reading. trust as a foundation for interpersonal cooperation
Bennett, J. and Jayes, S. 1998. The Seven Pillars of in organizations.’ Academy of Management Review,
Partnering. London: Thomas Telford. 38:1, 24–59.
Brenkert, G. 1998. ‘Trust, Business and Business Mason, J. 1996. Qualitative Researching. London: Sage
Ethics: An Introduction.’ Business Ethics Quarterly, Publications.
8:2, 195–203. Mayer, R.C., Davis, J.H. and Schoorman, F.D. 1995.
Clark, M. C. and Payne, R. L. 1997. ‘The Nature ‘An integrative model of organizational trust.’
and Structure of Workers’ Trust in Management.’ Academy of Management Review, 20:3, 709–734.
Journal of Organisational Behaviour, 8:3, 205–224. Mishra, A.K. 1996. ‘Organizational responses to crises:
Egan, J. 1998. Rethinking Construction: Report of the the centrality of trust. In Kramer, R.M. and Tyler,
Construction Task Force. www.detr.gov.uk T.R. (Eds.), Trust in Organizations: Frontiers of Theory
Flores, F. and Solomon, R. C. 1998. ‘Creating Trust.’ and Research, 261–287. London: Sage Publications.
Business Ethics Quarterly, 8:2, 205–232. Misztal, Barbara A. 1996. Trust in Modern Societies.
Fukuyama, F. 1995. Trust: The Social Virtues and the Cambridge: Polity Press.
Creation of Prosperity. Harmondsworth: Penguin Moorman, C., Deshandé, R. and Zaltman, G. 1993.
Books. ‘Factors affecting trust in market research relation-
Gambetta, D. (Ed.) 1988. Trust: Making and Breaking ships.’ Journal of Marketing, 57, 81–101.
Cooperative Relations. Oxford: Basil Blackwell. Morgan, Robert M. and Hunt, Shelby D. 1994. ‘The
Ganesan, S. 1994. ‘Determinants of long-term orienta- commitment-trust theory of relationship marketing.’
tion in buyer-seller relationships.’ Journal of Market- Journal of Marketing, 58, 20–38.
ing, 58, 1–19. Noorderhaven, N. 1999. ‘National culture and the
Hardy, C., Phillips, N. and Lawrence, T. 1998. ‘Dis- development of trust: the need for more data and less
tinguishing trust and power in interorganizational theory.’ Academy of Management Review, 24:1, 9–10.
relations: forms and facades of trust. In Lane, C. and Nooteboom, Bart 1992. ‘Marketing, reciprocity and
Bachmann, R. (Eds.), Trust Within and Between ethics.’ Business Ethics: A European Review, 1:2,
Organizations, 64–87. Oxford: Oxford University 110–116.
Press. Rousseau, D.M., Sitkin, S.B., Burt, R.S. and Camerer, C.
Husted, B.W. 1998. ‘The ethical limits of trust in 1998. ‘Not so different after all: a cross-discipline
business relations’. Business Ethics Quarterly, 8:2, view of trust.’ Academy of Management Review, 23:3,
233–249. 393–404.

12 # Blackwell Publishers Ltd. 2002


Business Ethics: A European Review

Sako, M. 1992. Prices, Quality and Trust: Interfirm Appendix 1


Relations in Britain and Japan. Cambridge, Cam-
bridge University Press.
Swan, J. E., Trawick, I.F. and Silva, D.W. 1985. ‘How Questions for semi-structured interviews on
industrial salespeople gain customer trust.’ Industrial trust
Marketing Management, 14, 203–211.
Watson, T.J. 1998. ‘Ethical codes and moral commu- 1. What do you understand by trust? Words/
nities: the gunlaw temptation, the Simon solution phrases, thoughts/ideas that come to mind?
and the David dilemma’. In Parker, M. 1998 (Ed.), 2. What characteristics do you look for in others,
Ethics and Organization, 253–269. London: Sage. in terms of behaviours, attitudes, to assess
Williams, O. and Murphy, P.E. 1990. ‘The ethics of whether you can trust them?
virtue: a moral theory for marketing.’ Journal of 3. What characteristics lead you to distrust some-
Macromarketing, Spring, 19–29. one?
Williamson, Oliver E. 1975. Markets and Hierarchies: 4. How do you begin to build/increase trust in
Analysis and Antitrust Implications. New York: The
others?
Free Press.
5. What behaviour leads you to lose trust in
Wilson, L. and Wilson, H. 1994. Stop Selling, Start
Partnering: the New Thinking About Finding and
others?
Keeping Customers. New York: John Wiley and Sons. 6. How do you communicate your own trust-
Wood, G. and McDermott, P. 1999. ‘Searching for worthiness to others?
trust in the UK construction industry: an interim 7. Can you give an example of when trust was an
view.’ CIB W92 International Procurement Systems issue on the project you are currently working
Conference, Thailand. on?

# Blackwell Publishers Ltd. 2002 13

You might also like