A couple of articles, that I found previously here on HN address this exact self-perpetuating downward spiral of mistrust.

https://hbr.org/1998/03/the-set-up-to-fail-syndrome

https://sites.insead.edu/facultyresearch/research/doc.cfm?di...

Previous discussion: https://news.ycombinator.com/item?id=8166701