The Determinants of Public Trust in Business as an Agent of Social Change: Empirical Evidence from South Korea

The COVID-19 pandemic has showcased businesses' potential in addressing societal issues, with public opinion surveys showing sizable approval. This study uses South Korean survey data to explore elements fostering public trust in businesses as agents of social change, a notable context due to its historically anti-business sentiments. Applying Mayer's organizational trust model, the study formulates a framework to investigate public trust in business societal engagements and empirically examines potential determinants. The results show that ability and integrity positively influence trust in businesses. However, the risk factor is negatively significant, and the interaction of risk and ability factors also negatively affects corporate trust. By identifying these key factors and elucidating the complex dynamics between different trust dimensions and potential risk, this research makes an important contribution to the growing discourse on the relationship between business and society.