Sabotaging trust: how deception, gaslighting and self-sabotaging behavior erode institutional trust

Purpose This paper aims to examine the decline of institutional trust in American society, arguing that institutional self-sabotage (denial, deception, and related behaviors) deepens public distrust. It offers a framework for understanding this erosion and provides recommendations for restoring trust. Design/methodology/approach This conceptual paper integrates psychological contract, stakeholder, and institutional theories. Historical cases from corporate, financial, governmental and media sectors illustrate how perceived breaches of societal expectations erode trust. Findings Self-sabotaging behaviors exacerbate mistrust and undermine institutional legitimacy. Breaches of psychological contracts and stakeholder expectations reduce confidence, with economic and noneconomic consequences. Trust can be rebuilt when leaders acknowledge mistakes, practice radical transparency, and embrace diverse perspectives. Research limitations/implications As a conceptual paper focused on the American context, this study provides a theoretical foundation for future cross-cultural and empirical research on trust restoration strategies. Practical implications The paper offers a roadmap for leaders emphasizing transparency, accountability, and ethical crisis response, alongside proactive measures to prevent trust erosion. Social implications Findings underscore the societal importance of institutional trust for individual autonomy and democratic health, warning against cynicism and urging institutions to recognize and act on their civic responsibilities. Originality/value The paper presents a holistic framework integrating micro-level psychological contract theory with stakeholder and institutional theories to explain trust erosion and link self-sabotaging behaviors to mechanisms that yield actionable recommendations.