The BBC on business trust issues

In an article titled “Business struggles to regain public trust” Tim Weber, the business editor of the BBC News website, addresses the battle organizations are currently fighting in trying to regain the trust of the consumer after the events of the global economic crisis. Focusing specifically on banks, Weber clearly describes the issues that are impeding this process; citing the financial crunch that marked the beginning of the current recession. However, while Weber’s explanation is sufficient to a point, considering the definition of an organization can provide further insight into the issues these institutions are having.

As discussed in class and in the text “Organizations and Organizing” there are many different definitions for what a organization truly is. Yet one feature that these definitions do share is the idea that organization are a form of ” social structure created by individuals to support the collaborative pursuit of specified goals” (11). This understanding of organizations can shed further light onto why institutions like banks are having difficulties regaining the public’s trust. If the current economic crisis is viewed as a large scale failure of organizations to effectively pursue their specified goals, it is easy to see how the public might be hesitant to put their trust back in these organizations. There is little or no incentive for many individuals to trust that these organizations will now be able to reach their goals when they have so clearly failed to do so in the past. Consequently, considering the definition of what an organization is ties directly into Weber’s article, and provides important insight into the reasons behind the public’s lack of trust.

Weber’s article can be found at http://news.bbc.co.uk/2/hi/business/8481238.stm

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