Breaches of stakeholder trust and the long road to recovery

Marcos Aguiar, Oliver Schilke, Russell Dubner, Amanda B.M. Barros Ambrogini and Jeff Kiderman

Business Horizons, 2026, vol. 69, issue 4, 503-516

Abstract: Trust is vital for businesses, yet our empirical analysis of thousands of news articles and social media posts covering 177 publicly traded firms reveals that almost 30% grapple with trust crises, driven by factors like general or top management scandals and efficacy issues, among others. Our analysis shows a challenging recovery landscape, with only about 2% of companies experiencing immediate trust restoration. During crises, stakeholders shift their focus to how companies manage these challenges. Effective trust repair strategies require a blend of resilience and competence, which can significantly boost trust recovery. However, the path to rebuilding trust varies significantly depending on the nature of the trust breach and the company’s trust-recovery capabilities.

Keywords: Trust; Stakeholders; Crisis management; Scandals; Reputation (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:eee:bushor:v:69:y:2026:i:4:p:503-516

DOI: 10.1016/j.bushor.2025.07.001

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