Hybrid happening: Organizational reputations in corporate crises

Public relations professionals strive to develop mutually beneficial relationships among key publics that will result in favorable organizational reputations, but crises typically threaten those reputations. Much of public relations crisis research focuses on how to respond after a crisis, but drawing on Expectation Violation Theory (EVT), this research focuses on the expectations of stakeholders before a crisis and how they process information during a crisis. Drawing from reputation management research in marketing, it conceptualizes corporate reputations as encompassing associations related to corporate ability (CA) and corporate social responsibility (CSR). Reputation management research generally has investigated reputations as strong on either CA or CSR, but this research examines the effects of a “hybrid” reputation, which is strong in terms of both CA and CSR associations. The results of an experiment reveal that stakeholders’ responses during a crisis vary based on their expectations, how they perceive a hybrid reputation, and the crisis type. The study has theoretical implications regarding stakeholders’ information processing during a crisis, and it provides public relations professionals insights regarding how to cultivate and protect an organizational reputation.     

Online strategic communication: A cross-cultural analysis of U.S. and Chinese corporate websites

This study applied a cultural divergence approach to examine online marketing interactivity and corporate public image on corporate websites. It analyzed different online strategic communication of corporate websites from two different nations—the United States and China. Results indicated that U.S. corporations were more likely to highlight online marketing interactivity and social responsibility, which integrated marketing and public relations as their online communication strategy. Chinese corporations provided more online spaces for the consumer–consumer interactions and emphasized corporation-oriented information.     

Attenuating public skepticism: Effects of pre-crisis corporate engagement and post-crisis CSR initiatives on corporate evaluations

This study examined the effects of stated motives in post-crisis corporate social responsibility (CSR) messages, CSR-crisis issue congruence, and pre-crisis corporate engagement on public skepticism toward CSR and subsequent corporate evaluations. We conducted a 3 (motive of post-crisis CSR initiative: no statement vs. firm-serving vs. public-serving) x 2 (issue congruence: CSR initiative incongruent vs. congruent with crisis) x 2 (pre-crisis corporate engagement: absence vs. presence) between-subjects online experiment via Qualtrics panel (N = 378). The findings showed that stating a public-serving motive or launching a CSR initiative incongruent with a crisis heightened some aspects of CSR skepticism. We further found that pre-crisis corporate engagement interacted with stated motive and issue congruence to influence corporate evaluations. Implications of the findings and directions for future research are discussed.     

Do public relations professionals understand corporate governance issues well enough to advise companies on stakeholder relationship management?

The King Reports on Governance for South Africa are internationally respected for proposing integrated reporting in a triple bottom-line business context to improve corporate governance. The most recent report, King III, views stakeholder relationship management as a key tenet of corporate governance. This raises the question whether public relations professionals (PRPs) understand the principles of corporate governance well-enough to inform and guide organizations on the management of stakeholder relationships. The views of senior PRPs at selected top performing companies were elicited on their practice of stakeholder relationship management in line with corporate governance principles. It was found that their knowledge on corporate governance was limited, although they recognized its importance. They propose six role functions for managing stakeholder relationships on a strategic or managerial level; these role functions are aligned with the King III principles on stakeholder relationships. The following three were of particular importance: developing a corporate strategy, giving advice to senior management and managing crisis communication. Different terminologies were used to build relations with stakeholders and different approaches were used to profile stakeholders. It is recommended that organizations leverage their public relations functions on strategic and managerial levels in support of their corporate governance efforts. In turn, PRPs are encouraged to ensure a deep knowledge on corporate governance issues when counseling senior management on building stakeholder relationships.     

Corporate public relations dynamics: Internal vs. external stakeholders and the role of the practitioner

Most public relations research advocates for stronger organization-public relationships and the implementation of dialogic theory to advance the practice and elevate the status of the public relations practitioner. However, this study reveals that internal relationship dynamics can prevent corporate public relations practitioners from carrying out this function of the public relations role. Twelve weeks of observation and eleven interviews were conducted at a Fortune 1000 technology company to gain insights on how corporate PR practitioners build relationships with external publics, to gauge practitioners’ orientation to dialogue, and to identify challenges to external relationship building. Results show that internal relationship management is a prerequisite to corporate public relations practitioners’ success in developing mutually beneficial relationships with key publics. These findings have implications for both the theory and practice of public relations especially when considering the discussion of the technician versus strategic manager role of public relations and the advancement of the field to a professional status.     

The interplay between post-crisis response strategy and pre-crisis corporate associations in the context of CSR crises

How should a company respond to a crisis that is related to its social responsibility by capitalizing on consumers’ existing corporate associations? To answer this question, the present study focuses on two primary types of corporate associations, corporate ability (CA) associations and corporate social responsibility (CSR) associations, and proposes two different types of response strategies that are association-based: CA strategy and CSR strategy. Drawing on the framework of CA-CSR, Expectancy Violation Theory, and information processing literature, this study examines whether and how these crisis response strategies interact with consumers’ pre-crisis associations and collectively influence consumer reactions in times of CSR crises. Results of two experiments render support for the predicted interaction effect. Furthermore, the results show that crisis response diagnosticity and novelty, as perceived by consumers with varied pre-crisis associations, serve as the underlying process explanations that drive the observed interaction effect. Theoretical contributions and practical implications of these results to crisis communication are also discussed.     

Effects of issue ownership and issue obtrusiveness on corporate reputation at two Korean corporations

This study attempts to identify the effects of issue ownership of a corporation on its reputation, and the moderating effect of issue obtrusiveness. Two representative Korean corporations (Hyundai and SK) were selected and their reputations were measured. It was shown that a corporation, which owns issues that were perceived as important by publics, has a higher corporate reputation. There was no moderating effect of issue obtrusiveness on the relationship between issue ownership and corporate reputation; however, there was a possibility of issue obtrusiveness as an independent variable. Implication for public relations research and practice was discussed.     

Reconsidering the corporate narrative in U.S. PR history: A critique of Alfred Chandler's influence on PR historiography

This study explores the influence and dominance of Alfred Chandler Jr.’s theory of corporate development within public relations [PR] history. Chandler's work on late 19th Century corporate development is influential in PR historiography. PR oftentimes places its genesis in the late 19th Century corporate sphere to distance itself from press agentry. Examining critiques of Chandler's work on corporate development, this study argues that rooting PR in a corporate context does not provide legitimacy to PR practice and skews PR history to favor a corporate narrative. Implications for both history and normative PR theory development are discussed.     

Corporate responsibility in U.S. corporate websites: A pilot study

Corporate social responsibility (CSR) has become an essential component in the management of companies around the globe. Any key strategy used for CSR administration must reflect strong and effective communication channels to show CSR efforts. This study analyzes how the top 50 American profitable corporations from the Fortune 500 of 2009 communicate their CSR initiatives to different stakeholders through their corporate websites. To do this, an evaluation framework has been designed to examine features presented in CSR corporate websites.     

Polarized public opinion responding to corporate social advocacy: Social network analysis of boycotters and advocators

Despite growing attention to corporate social-political advocacy, little is known about how publics mobilize and establish relationships in social media when firms are involved in hot-button issues. Using the social network approach, this study examines a network structure which emerged around boycotting and advocating for Starbucks and Budweiser when these two brands responded to President Donald Trump’s immigration ban executive order in 2017. The study identified three unique characteristics in the boycotters’ networks. The boycotters appeared not only in the aggregated brand boycotting networks, but also in the advocators’ networks. In addition, boycotters in Budweiser and Starbucks networks were engaged in boycotting other brands or organizations which were opposed to Republicans or President Trump’s policy. Finally, the network of boycotters was very dense and highly connected among subgroups while that of advocators was sparse. Theoretical and practical implications are discussed.     

Agenda-building in the corporate sphere: Analyzing influence in the 2008 Yahoo!-Icahn proxy contest

This study further extends agenda-building theory into the corporate sphere. This investigation tested for agenda-building relationships between the issues emphasized in corporate candidate-controlled information subsidies and financial news media coverage during the 2008 Yahoo! Inc.-Carl Icahn proxy contest for control of Yahoo!’s board of directors. Solid support was found for issue agenda-building associations. Cross-lagged correlation analyses revealed that both Yahoo!’s and Icahn's information subsidies enjoyed some success in shaping media coverage during the proxy fight. The theoretical and practical implications of these findings are discussed.     

Linking human factors to corporate strategy with cognitive mapping techniques

For human factors (HF) to avoid being considered of "side-car" status, it needs to be positioned within the organization in such a way that it affects business strategies and their implementation. Tools are needed to support this effort. This paper explores the feasibility of applying a technique from operational research called cognitive mapping to link HF to corporate strategy. Using a single case study, a cognitive map is drawn to reveal the complex relationships between human factors and achieving an organization's strategic goals. Analysis of the map for central concepts and reinforcing loops enhances understanding that can lead to discrete initiatives to facilitate integration of HF. It is recommended that this technique be used with senior managers to understand the organizations` strategic goals and enhance understanding of the potential for HF to contribute to the strategic goals.     

How financial crisis history informs ethical corporate communication: Insights from corporate communication leaders

This study explored how financial crisis history can inform corporate crisis communication practice across industries and over time. Thirty-eight interviews with chief communications officers (CCOs) and their counselors were conducted to explore what lasting lessons these corporate communication leaders learned from their crisis communication practice during the 2008 Financial Crisis. Key lessons learned include: 1) the importance for corporations to tailor their financial communication strategies according to victim vs. perpetrator perception and ethical response expectations held by stakeholders; 2) the importance of stakeholders, and employees in particular, when creating and implementing the plan; 3) the balance between speed and legal concerns, as well as the need for reducing complexity by making sure stakeholder communications are delivered with clarity and accessibility; and 4) a recipe for success includes honesty, transparency, trust/integrity, taking action to reform questionable practices, and abiding by one’s own personal morals. Insights from this study shed light on how learning contributes to ethical corporate communication practice in times of crisis and crisis spillover.     

Factors shaping activists’ perceptions of corporate organizations: An empirical case from South Korea

The current study aims to explore the factors that shape activists’ perceptions of corporate organizations. This study administered the survey method to examine how activists perceive corporate operations and reputation in South Korea. The three factors that directed how the activist groups perceived the corporate sector are “corporate social responsibility,” “internal corporate culture,” “and “the extent of corporate openness.” Factor analysis showed that the activist groups used these criteria when they evaluate corporate reputation.     

Balancing uniqueness and similarity: A content analysis of textual characteristics in Dutch corporate stories

Writing corporate stories to articulate identity is challenging because one must balance between the recognizable similarities with other companies (e.g., core activities, type of industry) and the company's own uniqueness. In the present study, we propose a conceptualization of corporate stories in terms of similarity and uniqueness, and present a scheme of six main categories of textual characteristics: general, style, structure, content, genre, and layout. The scheme is illustrated in a content analysis of 45 Dutch consumer-focused corporate stories. The results indicate that, contrary to the literature and guidelines on corporate stories, similarities in textual characteristics with other corporate stories are as typical for a corporate story as its uniqueness. Theoretical and managerial implications are discussed.     

America's most admired companies: A descriptive analysis of CEO corporate social responsibility statements

This study analyzes the CEO corporate social responsibility statements (N = 50) of Fortune magazine's America's Most Admired Companies. The results find that CEOs describe corporate social responsibility primarily in performance and shareholder driven language. The implications of the findings are discussed and compared to previous research in the communication and business disciplines.     

Conditioning effect of prior reputation on perception of corporate giving

Prior corporate reputation, one responsibility of a public relations department, affects public perceptions toward corporate philanthropic messages and ultimately affects public attitudes toward the company. Using an experiment that emulates the sort of news consumption individuals normally undertake, participants inferred corporate charitable giving as a mutually beneficial activity when a company had a good reputation (H1a). Participants inferred corporate charitable giving as a self-interested activity when the company had a bad reputation (H1b). Also, public inference (suspicion) successfully mediated corporate prior reputation on public attitude toward the company (H2). Participants showed positive attitude toward the company when they inferred the company had an altruistic motive for charitable giving (H3a). However, participants showed negative attitude toward the company when they inferred the company had a self-interested motive for charitable giving (H3b).     

Strategic communication of corporate social responsibility (CSR): Effects of stated motives and corporate reputation on stakeholder responses

This study examined stakeholder responses toward two communication strategies of CSR motives: stating both self- and society-serving motives or only society-serving motives. How the effect of stated motives differs by corporate reputation was studied as well. The study found that acknowledging a self-serving motive reduces skeptical attribution and enhances stakeholders’ favorable intent to support, seek employment with, invest in, and purchase from the company. Possible backlash effects were detected when companies with poor reputations emphasize only society-serving motives and omit self-serving motives.     

Good management,sound finances,and social responsibility: Two decades of U.S. corporate insider perspectives on reputation and the bottom line

This research sought to expand practitioner and scholarly understanding of the relationship between corporate reputation and the bottom line. An analysis of 706 firms over a 21-year timeframe revealed three attributes of reputation – management quality, financial soundness, and social responsibility – made consistently positive contributions to several measures of firm financial performance. Perceptions of corporate reputation were gathered exclusively from U.S. executives, directors, and financial analysts, referred to herein as corporate insiders.