Trust and Mistrust: Radical Risk Strategies in Business Relationships

269 Pages·2003·0.69 MB·English

by  Aidan Ward

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Trust and Mistrust
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Relationships
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Aidan Ward
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Library of Congress Cataloging-in-Publication Data
Ward, William Aidan.
Trust and mistrust: radical strategies in business relationships/
William Aidan Ward and John Robert Smith.
p. cm.
Includes bibliographical references and index.
ISBN 0-470-85318-2 (cloth: alk. paper)
1. Strategic alliances (Business) 2. Trust. 3. Business ethics.
4. Organizational effectiveness. I. Smith, John Robert. II. Title.
HD69.S8W37 2003
650′.01–dc21 2003007461
British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library
ISBN 0-470-85318-2
Typeset in 11/13 Goudy by Florence Production Ltd., Stoodleigh, Devon
Printed and bound in Great Britain by TJInternational Ltd., Padstow, Cornwall
This book is printed on acid-free paper responsibly manufactured from sustainable
forestry in which at least two trees are planted for each one used for paper production.
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8 Contents
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7111 Preface xi
8 Glossary xv
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20111 An Introduction to Trust 1
1 The Importance of Trust in Business Environments 3
2 A Cycle of Abuse 3
3 The Power and Trust Dilemma 5
4 Trust in Business 7
5 What is Trust? 8
6 Different Types of Trust 11
7 The Economic Impact of Trust 12
8 Developing a Trust Model that Works 16
9 Trust in Context 16
30 Dimensions of Trust 17
Trust Space Mapping: The Dimensions of Trust 18
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The Roots of the Model 21
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Living with Business 22
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Value Propositions 23
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How it All Started 24
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Some Model Ideas 25
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To Trust or Not to Trust? 26
8 Immediate Concerns Are Pressing Needs 26
9 The Nature of Business 28
40111 Overcoming Limitations 30
vi C O N T E N T S
POSIWID: The Purpose of a System Is What it Does 31
POSIWID: The Model, the Natural World and the
Business World 32
The Medium Is the Message 34
A Case of Paying Attention to Trust 34
PART 1 AUTHENTIC TRUST IS THE
GOLD STANDARD 37
Conditions Far from Certainty 39
Rational and Reasonable Action 40
Parallel Universes 40
Introducing the Shadow Side 41
1 Authentic Trust 43
Seeing Authentic Trust 45
The Risk of Authentic Trust 47
Applying Checking Behaviour 49
2 The Authentic Trust Benchmark 51
Using the Benchmark 51
The Benchmark 52
Thread 1: The Act of Giving Trust 52
Thread 2: Underpinning Performance 53
Thread 3: Generating Inter-Subjectivity 54
The Threats to Trust Checklist 55
3 The Application of Authentic Trust 65
Sharks and Conmen 67
Putting Our Trust in Devices 69
Relationship Choices 72
Principled Talk and Engagement 74
The Creation of Vulnerability 76
Pretending to Be Trustworthy 77
PART 2 NETWORK TRUST 79
Needs Must 80
Dilemma and Tragedy 81
The Prisoners’ Dilemma in Business 82
The Tragedy of the Commons 84
C O N T E N T S vii
1111 Network Trust Power in Action 85
2 Proprietary Software, Genetically Modified Crops
3 and Groups 86
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4 Network Trust in Action 88
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Banking on Network Trust in Action 90
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7 The Good and the Bad 91
8 Challenging Orthodoxies 92
9 From Byzantium to the High Street 92
10 A Byzantine Coda 94
1 Principled Talk and Engagement in Action 95
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5 Radical Strategies for Networks of Value 96
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Communicating Across Values 96
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5 Network Risk 97
6 Commodity Risk to Network Trust 98
7111 Devices, Commodities and Networks 100
8 Commodity Trust, Hierarchies, Pyramids and Sharp Operators 103
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6 A World Running on Network Trust 107
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1 Social Systems Run on Trust 107
2 Big Structures, Little People 112
3 The Paradox 114
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7 Building Network Trust in an Adversarial World 117
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6 An Adversarial Context 117
7 Trust Markers: Milestones on the Road to Abuse 119
8 Radical Trust Strategies in an Adversarial World 123
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8 Network Trust and Federation 127
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Pluralism, Inconsistency and Robustness 128
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2 The Value of Words 131
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PART 3 Authority Trust 135
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Deriving Authority Trust 136
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7 Trust in Unitary Worlds 137
8 The Leadership Question 138
9 Whistle Blowing 140
40111 The Risk of Authority Trust 141
viii C O N T E N T S
9 The Crucial Link between Authority Trust and
Business Risk 142
The Shadow Side of Process 143
The Customer Is Always Right 144
Control Behaviour and Business Risk 146
Trust Dynamics 148
Reforming Authority Trust 149
Ways Forward 150
10 A Case Study in Authority Trust and Institutions:
When POSIWIDs Collide 153
Institutions from the Inside 157
Building Trust in Institutions 159
PART 4 Commodity Trust 163
Its Power and Reach 164
Its Character 165
Its Price 166
Its Scope 167
11 The Commodity Trust Deal and its Effects 168
Models and Systems 170
Reification and Rules 175
12 Commodity Trust and Radical Brand Solutions 177
Commodities and Cash Cows 178
The Supplier Perspective 180
The Brand as Social Token 181
Blue Chip Blues 182
Entrepreneurial Products 183
The Market for Art 184
13 Commodity Trust in Contracts 186
The Other Way Up 188
The Legal Side of Contracts 189
Combining the Worlds 190