More about the work by Pepper et al.
How could this article contribute to our student's understanding of the topic? For a generation that grew up with so much technology, this article could lead to discussions of how business adapts to changes in the environment. It also could initiate a lively discussion on the "bad is good" paradox. In other words, by admitting to misdeeds, an organization gains trust. Organizations that don't admit to misdeeds are perceived as too good to be true - and probably are.
How can a business person relate to the information presented in this article? Employees develop psychological contracts with their organizations. These contracts are promises, stated or implied, about the relationship between the person and the organization. If the organization violates the contract, trust declines. All business people should be able to relate to how the psychological contract affects their trust in the organization and their perceptions of the organization's commitment to its stated goals.
Were there any sources that you used for this article that should be "must-reads" for our alumni? The article cites many of the ideas presented by Tapscott and Ticoll in The Naked Corporation: How the Age of Transparency will Revolutionize Business. This book is a must-read for anyone who would like to understand how the information age is affecting business.
Citation: Pepper, M.B., Tredennick, L., & Reyes, R.F. (in press). Transparency and trust as antecedents to perceptions of commitment to stated diversity goals. Diversity in Higher Education.