The Structure of Optimal Trust: Moral and Strategic Implications

Abstract

In this article we discuss trust in ethics and management as a qualified and conditional good, arguing that researchers should focus on optimal trust—a mixture of trust and distrust appropriate in most contexts, including business. Trust is an important part of strategic choice, and managers who develop optimal trust in relationships with stakeholders will improve firm performance. We offer a definition of optimal trust, develop propositions based on the definition, and include indicators managers might use to assess whether trust is optimal in relationships with various stakeholders.