THE UNIVERSITY OF HULL Measuring Public Trust in Charities in the UK: An Empirical Study based on Scale Development Thesis submitted for the Degree of Ph.D in the University of Hull by Yongjiao Yang MPhil (Beijing Normal University, China) BA (Sichuan University, China) August, 2015 Abstract This study describes the development and initial utilizations of a scale measuring public trust in charities in the UK. It improves on past empirical studies of public trust in charities by regarding the concept as a multidimensional construct. The scale is developed first from a conceptual model consisting of five dimensions. Using data from 490 respondents, item analysis, exploratory factor analysis, and internal consistency analysis are undertaken, of which results yield a three-factor principal components model of public trust in charities. Confirmatory factor analysis, construct validity analysis, and criterion-related validity analysis, based on another sample of 253 respondents, confirm the validity of the model with a slight modification. The initial five-factor model of trust in charities derived from literature, which include perceived competence, perceived benevolence, perceived integrity, value similarity, and willingness to be vulnerable, is rejected in favor of a three-factor principal components model. Of the three separate domains of public trust in charities, “perceived integrity” reflects the importance of morality in charity work; “perceived competence” reflects the necessity of charities’ capability to uphold and further public interests; and “value similarity” emphasizes the alignment of values between charities and individuals. Scale utilization demonstrates that this multidimensional tool will allow the U.K. charitable sector to better understand public trust and perceptions, to discern the manifestations of public trust, as well as to be responsive to trends in trust and perceptions. It can be used to predict pro-charity behaviors, which is helpful to strategically plan and target fundraising techniques. The measure will also remedy drawbacks of current measurement of charity performance. Overall, the multidimensional scale is accurate, more straightforward, more in-depth, and is able to provide more useful information than current crude measurements of public trust in charities. The study has important implications for researchers, practitioners, and policy makers as it provides a new, robust measure of a feature that is essential to the charitable sector’s welfare. Acknowledgement First, I would like to express my sincere gratitude to my two supervisors Dr. Iain Brennan and Dr. Mick Wilkinson. Their expertise, guidance, and patience added considerably to my graduate experience and helped me make enormous progress. Very special thanks for Professor Dahai Wang, without whose motivation and encouragement I would not have a huge passion for philanthropy research. I wish to thank the participants of my study for contributing their time and providing insight for this project. Thanks to Dr. Michael McCahill, Dr. Samantha Nabb, and Dr. John Toner for their assistance with the survey. Thanks to Hanh Tran, Shu Zeng, and Xiongxiong Zhang for their kindly help of distributing questionnaires. I am also grateful for the advice from my dear friends, particularly Professor Yanhua Chen, Ann Hutchison, and Professor Delong Tang. Thanks also for the continuous encouragement from friends in China, particularly Zongping Yin and Dr. Rui Nan. Furthermore, I would like to thank Professor Adrian Sargeant and Professor Monica Magadi for taking time out from their busy schedules to serve as my examiners. I would like to acknowledge that this research would not have been possible without the generous financial assistance of China Scholarship Council and University of Hull. Thanks also go out to the School of Social Sciences and the Graduate School of the University of Hull for providing such a supportive environment. Finally, big thanks to my family, particularly my mum, dad, and my future husband Xiongxiong. I would not have the courage to start or finish this without their love. Table of Contents CHAPTER 1: INTRODUCTION ..................................................................................................1 1.1 Background of the Study .....................................................................................................1 1.2 Objectives and Research Questions .....................................................................................6 1.3 Research Strategy .................................................................................................................7 1.4 The Significance of the Study ............................................................................................10 1.5 Definitions..........................................................................................................................12 1.6 Organization of the Thesis .................................................................................................13 CHAPTER 2: LITERATURE REVIEW -PART 1 ......................................................................15 2.1 Introduction ........................................................................................................................15 2.2 Summary of Trust Literature..............................................................................................16 2.3 Trust as a Multifaceted Concept ........................................................................................19 2.3.1 Topological Structure of Trust Literature ...................................................................19 2.3.2 Dimensionality of Trust ..............................................................................................24 2.3.3 Discussion ...................................................................................................................28 2.4 Definitions of Trust ............................................................................................................30 2.4.1 Trust in Social Psychology .........................................................................................30 2.4.2 Trust in Sociology .......................................................................................................34 2.4.3 Trust in Organizational Science ..................................................................................40 2.4.4 Discussion ...................................................................................................................43 2.5 Measures of Trust in Organizational Research ..................................................................45 2.5.1 Scales of Trust in Organizations based on Previous Reviews ....................................46 2.5.2 Representative Trust Scales ........................................................................................48 2.5.3 Measurement of Trust in Charities ..............................................................................58 2.5.4 Discussion ...................................................................................................................61 2.6 Conceptualizations of Trust in This Study .........................................................................63 CHAPTER 3: LITERATURE REVIEW -PART 2 ......................................................................68 3.1 Introduction ........................................................................................................................68 3.2 Conception of Charity and Public Trust in Charities .........................................................69 3.2.1 Definitions of Charity .................................................................................................69 3.2.2 Relevant Terminology and Characteristics of Charities .............................................73 3.2.3 Value Similarity and Trust in Charities ......................................................................76 I 3.2.4 Conceptual Model of Public Trust in Charities ...........................................................78 3.3 Charities in the UK ............................................................................................................80 3.3.1 Scale ............................................................................................................................80 3.3.2 Income .........................................................................................................................84 3.3.3 Beneficiaries and Participants .....................................................................................89 3.3.4 Roles and Social Functions .........................................................................................92 3.3.5 Public Relations and the Effect on Trust in Charities .................................................95 3.4 Public Trust in Charities in the UK ..................................................................................104 3.4.1 The Importance of Public Trust in Charities .............................................................104 3.4.2 The Overall Level and Features of Trust ..................................................................109 3.4.3 Attributes of Trust or Lack of Trust ..........................................................................112 3.5 Discussion ........................................................................................................................114 3.5.1 The Importance of this Study