Journal of Banking & Finance Vol. 26 No. 9 2002
Trustworthiness and self-interest
Abstract
This essay discusses the benefits to a firm from morality – specifically trustworthiness – by exploring the analogy between firms and individuals. It identifies five factors that help to align trustworthiness and the interest of an individual: (1) reputation, (2) the social limits on how much trustworthiness demands, (3) uncertainty, (4) the ambiguities of self-interest, and (5) the role of trustworthiness in constituting an individual's interest. Each of these factors has analogues in the case of a firm, and the essay suggests the slightly paradoxical conclusion that in certain environments firms may serve the interests of their stakeholders by placing moral constraints on their actions.
- DOI
- 10.1016/s0378-4266(02)00190-5
- Volume
- 26
- Issue
- 9
- Pages
- 1767-1783
- Language
- en
- Sources
- openalex crossref bibtex:phds-export.bib