The Primary Importance of Corporate Social Responsibility and Ethicality in Corporate Reputation: An Empirical Study

We examine three assumptions commonly held in the corporate reputation literature: (1) reputation ratings of owners and investors are generally representative of all stakeholders; (2) stakeholders will generally provide a higher reputation rating to firms that emphasize corporate social responsibility versus firms that do not; and (3) profitability is the primary criterion of importance to all stakeholders when rating a firm's reputation. Using an exploratory in‐class exercise, our findings suggest that: (1) there are significant differences among stakeholder groups in their reputation ratings; (2) firms that emphasize corporate social responsibility are not rated more highly across all stakeholder groups; and (3) for all stakeholder groups, the ethicality criterion explained more of the variance in firms' reputation ratings than the profitability criterion.     

When reputation management is people management: Implications for employee voice

This article explores the relationship between internal reputation management, HRM, and employee voice. Drawing on qualitative data from 25 medium-size and large Norwegian organizations, we find that organizations pursue a desired reputation through a single, official corporate voice by discouraging prohibitive employee voice through technocratic control and coercive HRM practices. The emphasis on technocratic control and coercive HRM occurs despite the widely held belief in reputation and branding literatures that employees should be committed corporate ambassadors who enthusiastically promote their organization's desired reputation and deeply believe in the images they convey to internal and external stakeholders. The findings contribute to studies on reputation management by linking internal reputation management, HRM, and employee voice, pointing out “people management” aspects of reputation management and highlighting important organizational and employee-based consequences.     

The social responsibility of organizations: Perceptions of organizational morality as a key mechanism explaining the relation between CSR activities and stakeholder support

Prior research on Corporate Social Responsibility (CSR) has documented how specific CSR activities relate to responses of relevant stakeholders, mainly examining employees. However, it is as yet unclear whether these findings generalize to other types of CSR activities or to responses of other stakeholder groups. In fact, results from studies to date also show inconsistent effects in need of further explanation.In this contribution we offer a new perspective on this literature. We extend current insights on organizational CSR activities and stakeholder support, by elaborating on the psychological mechanisms that can explain these relations. We draw together recent developments on organizational anthropomorphism with insights on organizational identification, to argue that the impact of CSR activities on a broad range of stakeholder responses depends on perceptions of organizational morality. We connect prior work on organizational ethics, CSR, and stakeholder support, to social psychological theory and research on impression formation, impression management, and impression updating. This new perspective allows us to broaden the current debate on CSR and stakeholder support.Building on this analysis, we propose a new model that offers a roadmap for future research. We explain the impact of organizational CSR on stakeholder responses, by highlighting perceived organizational morality as a key mediating variable. We then proceed to consider likely moderators of this relation distinguishing between (a) characteristics of the organization, (b) characteristics of (communications about) CSR activities, and (c) characteristics of the perceivers. On the basis of this extended model we develop specific predictions, and review initial evidence supporting these prediction.     

Exploring the drivers of corporate reputation integrated with a corporate responsibility perspective: some reflections in theory and in praxis

Corporate reputation is a multi-stakeholder concept that is reflected in the perceptions that stakeholders have of an organization. There is much evidence that reputation interacts diversely with different stakeholder groups and in relation to other concepts such as corporate responsibility. In this paper, we propose the implementation of the reputational quotient on a sample of Italian SMEs and attempt to discover and measure the relationship with corporate responsibility. Thus concluding that the instruments used for measuring and managing reputation can also be usefully employed in terms of corporate responsibility.     

Corporate Social Responsibility Reporting as Substantive and Symbolic Behavior: A Multilevel Theoretical Analysis

This article describes a multilevel theoretical framework that examines the multiple causes of corporate social responsibility (CSR) reporting in the social environment of business. We argue that substantive and/or symbolic reporting flows from individual‐, aggregate‐, organizational‐, and institution‐level phenomena, and is thus a complex outcome of CSR and corporate social performance (CSP). Theoretical lenses range from reinforcement theory at the microlevel to legitimacy and stakeholder theories at the macrolevel, and include a discussion of the emergence of lower‐level CSR‐relevant characteristics to higher level constructs. Our goal is to clarify how this behavior develops from microlevel, mesolevel, and macrolevel processes with a view toward assisting corporations to better enact CSR reporting, and their stakeholders to effectively promote substantive reporting behavior.     

How Subgroup Interests and Reputations Moderate the Effect of Organizational Identification on Cooperation

Two experiments tested the effects of organizational identification on individual decisions to cooperate. These decisions occurred in the context of a nested social dilemma in which individuals, subgroups, and the larger collective each held distinct and incompatible interests. In Study 1, when the two subgroups in the dilemma were from different real organizations, higher organizational identification caused lower cooperation with the collective (and higher cooperation with the subgroup) when the opposing organization had a purportedly individualistic culture and reputation. The results of Study 2 supported this interpretation by showing that organizational identification had a negative effect on collective cooperation, and a corresponding positive effect on subgroup cooperation, when decision makers perceived the opposing department to have an individualistic reputation. I discuss the implications of these results for organizations that try to elicit cooperation by fostering members’ organizational identification.     

Reputation for Quality

We propose a model of firm reputation in which a firm can invest or disinvest in product quality and the firm's reputation is defined as the market's belief about this quality. We analyze the relationship between a firm's reputation and its investment incentives, and derive implications for reputational dynamics. Reputational incentives depend on the specification of market learning. When consumers learn about quality through perfect good news signals, incentives decrease in reputation and there is a unique work–shirk equilibrium with ergodic dynamics. When learning is through perfect bad news signals, incentives increase in reputation and there is a continuum of shirk–work equilibria with path‐dependent dynamics. For a class of imperfect Poisson learning processes and low investment costs, we show that there exists a work–shirk equilibrium with ergodic dynamics. For a subclass of these learning processes, any equilibrium must feature working at all low and intermediate levels of reputation and shirking at the top.     

The role of organizational leaders in employee emotion management: A theoretical model

The actions of organizational leaders are important determinants of the emergence, management, and consequences of employee emotional experience. However, the nature and dimensionality of leader emotion management and the behaviors that constitute such management are largely unknown. The authors present a comprehensive, theoretically-derived model of leader emotion management which clarifies the nature of emotion management and its role in leadership. This model also delineates the knowledge and skill-based antecedents of emotion management and the consequences of such management. Specifically, we propose linkages between particular KSAOs and specific emotion management dimensions and between those dimensions and particular individual and organizational outcomes. The model is meant to serve as a framework to guide empirical efforts in investigating the nature and correlates of leader emotion management.     

Corporate Reputation and Women on the Board

In this paper, we investigate the determinants of corporate reputation, derived from the assessments of managers and market analysts, of a sample of large UK firms. Along with the influences of a variety of firm attributes, we find a reputational effect associated with a female presence at board level. This effect varies across sectors and demonstrates the influence of a firm's stakeholder environment in determining whether a female presence on the board enhances or harms the reputation of the firm. The pattern that emerges indicates that the presence of women on the board is favourably viewed in only those sectors that operate close to final consumers. We argue that the nature of this effect reflects an imperative for equality of representation that highlights the need to reflect gender diversity among customers.     

Organizational Stages and Cultural Phases: A Critical Review and a Consolidative Model of Corporate Social Responsibility Development

Based on a stakeholder-oriented conceptualization of corporate social responsibility (CSR), this paper offers a multi-dimensional, dynamic perspective which integrates moral, cultural and strategic aspects of the CSR development process, together with its organizational implications. Therefore, the authors link existing stage models of CSR development with stakeholder culture and social responsiveness continuums and provide a consolidative model which highlights a seven-stage development process towards CSR, articulated around three cultural phases (i.e. CSR reluctance, CSR grasp and CSR embedment). In a context in which literature on CSR development and implementation tends to be overly segmented, this consolidative model integrates organizational values and culture together with management processes and operations. In its emphasis on the importance of the organizational context and characteristics in analyses of organizations' CSR development, the proposed consolidative model offers novel research perspectives and highlights the relevance of adopting a phase-dependent approach.     

Seeing Is Believing: The Transitory Influence of Reputation Information on E‐Commerce Trust and Decision Making

This research examines the transitory influence of reputation information on consumer decision making regarding an e‐vendor. Using social judgment theory to explain how reputation information's effect on perceptions may be fleeting, we specifically examined how user trusting beliefs related to an e‐vendor change after a simple exposure to the Web site. A total of 369 college students participated in an experiment that found that reputation information was initially strongly related to trusting beliefs regarding the e‐vendor, but a brief nonpurchase‐related exposure to the e‐vendor's Web site—that is, direct experience—reduced reputation's effects significantly. This research provides insights into why reputation information may be more important in certain circumstances than in others and enhances our understanding of how consumer decision making is affected by different purchasing contexts. This research also has implications on the design and use of trust‐building technologies.     

A Matter of Reputation and Pride: Associations between Perceived External Reputation,Pride in Membership,Job Satisfaction and Turnover Intentions

This study investigates how job satisfaction and turnover intentions are related to external reputation as perceived by employees and their pride in membership. Based on a cross‐sectional survey including 439 employees, it also provides insights into external reputation as a possible source of collective pride. Study results indicate that, in agreement with social identity theory, outsiders' views of the organization are closely associated with employees' pride in organizational membership as well as job satisfaction. Both pride and job satisfaction mediate the relationship between perceived external reputation and turnover intentions. Hence, a favourable reputation matters in managing turnover intentions and is closely related to employee pride and satisfaction. Tenure of employees is positively associated with pride while intensive customer contact is negatively related to perceived external reputation and pride. Implications pinpoint the need for alignment of reputation management and human resources management. Furthermore, managers need to focus on new staff and employees with frequent customer contact and should implement pride‐building strategies according to the tenure of employees and intensity of customer contact.     

Happiness at Work

Happiness in the form of pleasant moods and emotions, well‐being, and positive attitudes has been attracting increasing attention throughout psychology research. The interest in happiness has also extended to workplace experiences. This paper reviews what is known about the definition, causes and consequences of happiness at work, drawing also on insights from the expanding positive psychology literature on happiness in general. Many discrete organizational behavior constructs arguably belong to a larger family of happiness‐related constructs, and share some common causes and consequences. Happiness at work includes, but is far more than, job satisfaction. A comprehensive measure of individual‐level happiness might include work engagement, job satisfaction, and affective organizational commitment. Aspects of happiness have been (and should be) conceptualized and measured at multiple levels, including transient experiences, stable person‐level attitudes, and collective attitudes, and with respect to multiple foci, such as discrete events, the job, and the organization. At all levels, there is evidence that happiness has important consequences for both individuals and organizations. Past research has tended to underestimate the importance of happiness at work.     

Examining the Antecedents and Consequences of Corporate Reputation: A Customer Perspective

This paper extends previous work to examine the antecedents and customer-related consequences of corporate reputation for one important stakeholder group, customers, and within a special service sector where product and corporate associations are synonymous. We begin by linking the concept of corporate reputation to related concepts. Then, using structural equation modelling on customer survey data (n=511), we examine the impact of customer satisfaction and trust on corporate reputation, as well as how corporate reputation affects customer loyalty and word of mouth behaviour. The management implications of these results are discussed.     

More than a Metaphor: Organizational Identity Makes Organizational Life Possible

Recent papers by Cornelissen (2002a, 2002b) and Gioia, Schultz and Corley (2002a, 2002b ) have debated the utility of organizational identity as a metaphor for understanding organizational life. In the present paper we argue that this debate is limiting because it frames issues of organizational identity purely in metaphorical terms and fails to explore the social psychological basis and consequences of the discontinuity between personal and organizational identity. Extending this debate, we argue that the power of organizational identity as a theoretical and applied construct derives from the fact that it has the capacity to be both an externally shared and negotiated product and an internalized aspect of the collective self. Consistent with recent research informed by the social identity approach to organizational psychology, we discuss how an appreciation of the identity‐based dynamic between the social facts of organizations and the socially‐structured psychology of organizational members is essential for both theoretical and practical understanding of organizational life.     

Effects of data breaches from user-generated content: A corporate reputation analysis

A threat for a growing number of firms in various industries is the occurrence of different breaches of sensitive corporate data. These critical events represent vulnerability for firms' corporate reputations, whose multiple dimensions are affected by customers negative perceptions in various ways. Further, in the Industry 4.0 era, the redundancy of scandals on social media can exacerbate negative effects. This paper reports an investigation into the effects of data breaches on corporate reputation dimensions. In this context, the study conducted latent Dirichlet allocation analysis on social media user-generated content (UGC) for a sample of 35 firms in nine industries that suffered a data breach incident between 2013 and 2016. Incidents have been categorized into three categories: “intentional and internal,” “unintentional and internal,” and “intentional and external” data breaches. The aim of the study was to discover how reputational dimensions changed after these critical events and to identify the differences among the types of data breaches.Results reveal that after critical events, more reputational dimensions appear to be relevant. While before critical events, users typically discuss the “perceived quality” of a firm's offer, after all three types of data breaches, users also pay attention to “customer orientation” and “corporate performance” dimensions. Another key reputation dimension, especially after intentional and internal data breaches, is the “firm as employer,” particularly in the context of a lack of investment in training regarding these events.These findings provide key insights for academics and practitioners to understand large-scale data breaches effects and reputational drawbacks after such incidents.     

Enriching Absorptive Capacity through Social Interaction

Absorptive capacity is frequently highlighted as a key determinant of knowledge transfer within multinational enterprises. But how individual behaviour translates into absorptive capacity at the subsidiary level, and how this is contingent on subsidiaries' social context, remains under‐addressed. This not only limits our understanding of the relationship between individual‐ and organizational‐level absorptive capacity, but also hampers further research on potentially relevant managerial and organizational antecedents, and limits the implications we can draw for practitioners who seek to increase their organization's capacity to put new knowledge to use. To address this shortcoming we conduct an in‐depth comparative case study of a headquarters‐initiated knowledge transfer at two subsidiaries of the same multinational enterprise. The findings demonstrate that social interaction is a prerequisite for subsidiary absorptive capacity as it enables employees to participate in the transformation of new knowledge to the local context and the development of local applications. The findings also illustrate how organizational conditions at the subsidiary level can impact subsidiary absorptive capacity by enabling or constraining local interaction patterns. These insights contribute to the absorptive capacity literature by demonstrating the scale and scope of social interaction as a key link between individual‐ and organizational‐level absorptive capacity.     

Cognitive Mapping Tools: Review and Risk Management Needs

Risk managers are increasingly interested in incorporating stakeholder beliefs and other human factors into the planning process. Effective risk assessment and management requires understanding perceptions and beliefs of involved stakeholders, and how these beliefs give rise to actions that influence risk management decisions. Formal analyses of risk manager and stakeholder cognitions represent an important first step. Techniques for diagramming stakeholder mental models provide one tool for risk managers to better understand stakeholder beliefs and perceptions concerning risk, and to leverage this new understanding in developing risk management strategies. This article reviews three methodologies for assessing and diagramming stakeholder mental models—decision‐analysis‐based mental modeling, concept mapping, and semantic web analysis—and assesses them with regard to their ability to address risk manager needs.     

Stakeholder Actions and Their Impact on the Organizational Cultures of Two Tobacco Companies

We link the behaviors of executives and lawyers in two tobacco companies, in defending their tobacco products to the actions of stakeholders (e.g., the U.S. Government and Congress, medical researchers, consumers, public‐health organizations, tobacco‐control advocates, and insiders who have spoken out). Included in our analysis, which is based on publicly available documents spanning over a period of almost six decades, are critical incidents in which moral disengagement tactics were applied in the decision‐making process. We infer that the disengagement tactics applied by tobacco decision makers are indicative of what Schein and other organizational scientists describe as organizational culture. We equate the critical incidents to the espoused beliefs and values and underlying assumptions which comprise organizational culture and explain that the cultures of these two tobacco companies are not consistent with the stakeholder theory of management. We conclude that the critical incidents we analyze were immoral and the representatives were indeed accountable for these behaviors. From an organizational change perspective, we discuss how analyzing these critical incidents can serve to assess the extent to which an organizational culture is ethical. Furthermore, these critical incidents can be fed back to organizational decision makers and can then be used to initiate organizational changes.