Cam Caldwell

This paper presents conceptual arguments to suggest that trust within organizations and trustworthiness of organizations are built through ethical governance mechanisms. We ground our analysis of trust, trustworthiness, and stewardship in the business literature and provide the context of business school governance as the focus of our paper. We present a framework that highlights the importance of knowledge, resources, performance focus, transparency, authentic caring, social capital and citizenship expectations in creating a basis for the ethical governance of organizations.

In a world increasingly described as turbulent and chaotic, management scholars have acknowledged the importance of a virtue-based set of criteria to serve as a moral rubric for the stakeholders that an organization serves. Business schools play a unique role in helping their students to understand the ethical issues facing business. Business schools can also model the way for creating a clear statement of values and principles, by creating a bill of rights for business schools that recognizes the importance of rights and responsibilities and articulates the important ethical issues that apply not only to business but to the business school context. Four models for creating a bill of rights in schools of business are presented and a framework of a bill of rights is provided. The advantages of a virtue ethics model for a bill of rights are explained as the most practical approach for business faculty to consider.

Leaders in today's world face the challenge of earning the trust and commitment of organizational members if they expect to guide their companies to success in a highly competitive global context. In this article, we present empirical results indicating that when leadership behaviors are perceived as trustworthy through the observer's mediating lens, trust increases and leaders are more likely to be viewed as ethical stewards who honor a higher level of duties. This article contributes to the growing body of literature about the importance of ethical stewardship in the trust relationship.