The Double-Edged Sword of Accountability: How Organizational Accountability Affects Public Trust

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Abstract

A central motivation behind efforts to increase organizational accountability is to build trust with key stakeholders such as the public. Although numerous works suggest that organizational accountability has a positive effect on public trust, others point to potential negative effects of it. Interestingly, neither side actually connects organizational accountability with public trust, overlooking most notably, how organizational demonstrations of accountability affect the public’s judgements. The aim of this conceptual paper, thus, is to clarify why and how organizational demonstrations of accountability may (or may not) lead to public trust. First, I synthesize the relevant literature and identify three conceptual differences between accountability and trust that may help explain the above divergent suggestions. Second, building on the critical accounting and trust literature, I develop a set of propositions to capture how organizational accountability demonstrations may actually affect public trust. Third, I explain how societal trust levels can moderate those relationships. My theorizing not only shows that organizational demonstrations of accountability can have both, positive and negative effects on public trust. Importantly, it also suggests that, especially in times of high institutional-based trust, the negative effects of formal accountability demonstrations are likely to be more detrimental regarding public trust than those of informal accountability. My theorizing advances knowledge by highlighting the importance of studying account receivers’ judgements with regard to organizational accountability, and by clarifying the relationship between organizational accountability and public trust. It is also important for organizations and policy makers.
Original languageEnglish
ProceedingAcademy of Management Proceedings
Volume2024
Issue number1
ISSN0065-0668
DOIs
Publication statusPublished - 09.07.2024
MoE publication typeA4 Article in conference proceedings

Keywords

  • 512 Business and Management

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