The interaction of employee trust & ethical decision making

Abstract

Trust is seen to include both emotional and cognitive dimensions and to function as a deep assumption underwriting social order. In the past three decades, the importance of trust in the workplace & its influence on organizational performance has been recognized by research scholars, and practitioners. This research paper aims to examine the impact of employee trust on leaders' ethical decision-making. This study applies literature review method to address the above subject showing that the impact of employee trust on leaders’ ethical decision-making relates to organizational aspects, as well as personal characteristics of leaders. Consideration of organizational aspects include performance, effective communication, and organizational culture. The personal aspects relate to leadership self-certification, guilt, rational attitude, leader learning, and moral model. Further, this study suggests that employee trust enhances e& & motivates leaders to make ethical decisions. However, organizational culture and leadership personal characteristics may have a negative impact on ethical decision-making. This study suggests that organizations could make collective decisions on major issues to reduce the impact of these negative factors on ethical decision-making.