Credibility in taxation environments Harvard Case Solution & Analysis


One can define the concept of credibility on the basis of its objective and subjective factors. Because of the subjectivity along with objectivity, one can say that credibility is linked with opinions and feelings along with striving for evidences and facts. Young & McCroskey (2002) defined credibility as something with more than one dimension concept that is made up of individual’s evaluation and judgment on the integrity and knowledge of the counterparty. According to Milewics and Herbig (1995), credibility is related to the individual’s ability to attract and trust someone at some point of time. The relationship between credibility and influence on the individual is directly proportional to each other that is the more the credibility is present, the more person can influence the other one. The phenomena of credibility take place when a person or a group can be relied on someone and being able to follow his direction with trust.

Credibility is additionally sensitive in terms of time because, in these days, the company's apparent believability may vary totally from its apparent credibility by the same company in the future. Validity in terms of credibility is likewise focused around an association's expectation and exists when one can unquestionably use past activities to foresee future conduct. Simons (2002) expresses that credibility is a perceiver's evaluation of authenticity, or of whether a given speaker is prone to give messages that will be dependable advisers for conviction and conduct". He contends that the idea of believability covers with the most extensive idea of trust and thus, may be viewed as another class of trust. He sees behavioral uprightness as a critical measurement of believability.

Keller and Hoeffler (2002) contend that credibility likewise shows itself in a brand of an organization. Brand credibility ought to be seen regarding three measurements, specifically mastery (competency, inventiveness and being a business sector pioneer), dependability (being tried and true and helping) and affability (being fun, fascinating and worth investing time with). They express that brand believability and credibility can be created by the corporate societal showcasing in light of the fact that the association may be seen as fair-minded and as an exceptionally dependable source because of its certain contribution in the group.

The ideas of believability and reputation are linked with each other. Milewicz & Herbig in1995 case in point, the argument that a decent reputation produces credibility, though Swift in 2001 views reputation as the consequence of dependable (above methodology) attitude, which is said to be a measurement of the idea of credibility. As indicated by Milewicz & Herbig (1995), the idea behind the concept of credibility is a "historical thought" focused around the aggregate of past activities of a company and thusly obliges consistency of activities over a time. This estimation is focused around the element's readiness and capacity to perform a certain task or activity more than once in a comparative manner. Kottasz and Bennett in 2000 contends that the idea contrasts with that of reputation on the grounds that the previous ones are linked to "the general population's most recent convictions" about an association. The idea of the reputation, then again, "speaks to a quality judgment about the association's qualities 'developed over a period and concentrating on what it does and how it acts'". Milewicz & Herbig in 1995 include that credibility must be formed before the association's message will have any impact. The recipient assesses the validity of the source. Validity impacts reputation just through the last conclusion - that is, guaranteed quality must be conveyed.

In order to be credible or to be credible for someone, one should capable of being trustworthy and worthy to make them believe. Credibility is important in all aspects, however; here are some specific key areas where one has to build credibility to gain customer interest and trust (Aranya & Ferris, 1984).


It is a basic and foremost responsibility of any organization to be transparent and fair to the employees and with their customers as well. Number of credibility issues and scandals have been observed in the accounting and finance department of the company. In addition to this, this is not the case with profitable organizations only, nonprofit organizations also have to maintain a proper check and balance on their accounts as they are answerable to the money donors as well. Thus, there is a high in every organization to manage their finance and accounting properly and to increase credibility...........................

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