Understanding Reputational Crisis: Definition,Properties, and Consequences

To better understand the nature of reputational crisis, this study examined two crisis events using the corporate ability (CA) and corporate social responsibility (CSR) crisis categorization frameworks. This scenario-based experimental study validates the usefulness of the CA–CSR crisis categorization by demonstrating that not only do people actually discern differences between these two types of crises, but their awareness of a crisis type also influences their interpretation of the crisis, as well as their perceptions of and attitudes toward the target firm. In particular, this study shows that a CSR crisis, versus a CA crisis, is interpreted more seriously and, consequently, causes heavier damage to the evaluation of the firm. In addition, the halo effect of a favorable prior reputation was found in the CA crisis condition, but not in the CSR condition. Based on these findings, this study suggests that the recognition of CA and CSR crises provides a boundary condition, which determines divergent effects of crises on perceivers' evaluation of the target firm.     

Exploring the role of CSR fit and the length of CSR involvement in routine business and corporate crises settings

This 2 × 2 experimental study examines the influence of CSR fit and the length of CSR involvement on corporate reputation and CSR skepticism in a routine business setting and crisis responsibility in a victim crisis. The study demonstrates a significant interaction between the two variables on the construction of corporate reputation. The length of CSR involvement is also found to influence people’s attribution of crisis responsibility in a crisis. By comparing corporate reputation and CSR skepticism before and after a crisis, the study further articulates the destructive power of crises. Theoretical and practical implications are discussed.     

The effects of CSR communication in corporate crises: Examining the role of dispositional and situational CSR skepticism in context

Although consumer skepticism about corporate social responsibility (CSR) is on the rise, research is sparse on the psychological dynamics of this skepticism, particularly when CSR communication serves as a company’s crisis response strategy. Employing two between-subjects design experiments, this study aims to fill this gap by looking at the role consumer CSR skepticism plays in consumer reactions to CSR communications in different types of crises. The study 1 results show that dispositional CSR skepticism did not moderate the effect of crisis type on attitudes and intentions when CSR was used as a post-crisis response strategy. The study 2 findings, however, indicated that situational CSR skepticism significantly mediated the impact of crisis type and CSR motives on purchase intentions only when the crisis stemmed from some accidental rather than preventable circumstance. Theoretical and practical implications are discussed.     

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.     

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.     

Netizens’ evaluations of corporate social responsibility: Content analysis of CSR news stories and online readers’ comments

Analyzing stories about corporate social responsibility (CSR) published in two online Korean newspapers and reader's comments about them, this study investigated how the online readers interpreted the CSR activities, looking at the effect of CSR types, situations, and the degree of corporate fame. The study found that readers tend to be cynical toward CSR activities after a crisis and a monetary donation type of CSR. In addition, the more famous the company, the more likely there were cynical comments about its CSR activities.     

Sea change: Santa Barbara and the eruption of corporate social responsibility

Corporate social responsibility (CSR) programs have proliferated among the world's largest corporations. While the lion's share of scholarly attention has been devoted to the competitive advantage of CSR as a branding strategy, very little notice has been taken of CSR's history, particularly the emergence of CSR programs during the politically turbulent l960s and l970s. The paucity of historical attention has led to several distortions, including the failure to recognize CSR's origins as a survivalist reaction to crisis, and the resulting overemphasis of CSR as an unambiguously ethical model of managerial proactive effectiveness. Based on an examination of newspaper records of a politically crystallizing oil spill in the waters off the coast of Santa Barbara, California, and an analysis of CSR's market penetration and rhetoric, this paper offers an alternative framework for reexamining corporate social responsibility.     

Corporate Social Responsibility Practices,Corporate Identity,and Purchase Intention: A Dual-Process Model

The relationships among corporate social responsibility (CSR) practices, corporate identity, and purchase intention were evaluated for 4 corporations: Microsoft, Nike, Philip Morris, and Wendy's. Discretionary CSR practices and moral/ethical CSR practices emerged as significant predictors of the corporate social values dimension of identity. Relational CSR practices, however, contributed mainly to the expertise dimension of corporate identity. Also, familiarity with CSR practices of a corporation had a significant effect on corporate identity, which in turn affected purchase intention. For 2 of the 4 companies, Nike and Wendy's, both corporate expertise and corporate social values were significant predictors of purchase intention. For Microsoft, only the expertise dimension was predictive of purchase intention, whereas for Philip Morris, only the corporate social values dimension was a significant predictor of purchase intention. The results are interpreted within a dual-process model of corporate identity.     

An Integrated Symmetrical Model for Crisis-Communications Management

This article presents an integrated four-step symmetrical model for the effective management of crises. Although the model is also applicable to the management of accidental and operational crises, it is formulated primarily for those crises whose occurrence is more likely a consequence of the inherent fallibility of management—that is, mismanagement. It is based on Grunig's situational theory and on the emerging theoretical framework of issues management—that is, on an early identification, redirection, or influence of issues. A biological analogy is used to suggest an early crisis intervention that averts further development of a potentially troublesome issue. The model incorporates both proactivity and symmetry and has three overarching principles: issues management, planning-prevention, and implementation. Two widely known corporate crises—Intel's Pentium flaw and McDonald's hot coffee spill—are used to illustrate the model.     

Making nice may not matter: The interplay of crisis type,response type and crisis issue on perceived organizational responsibility

Experimental findings suggest limited effects for corporate social responsibility (CSR) to inoculate a company prior to a crisis. CSR may be viewed as accommodative window dressing that diminishes resources to assure corporate competence. When an accident occurs, emphasis in crisis communication on corporate ability (CA) may be more effective than CSR, especially when corporate culpability is low.     

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.     

Welfare and capital-theoretic foundations of corporate social responsibility and corporate sustainability

Corporate social responsibility (CSR) and corporate sustainability (CS) are variously defined in the literature. Providing formal definitions for the two concepts, we show in this article that CS and CSR are distinct but interrelated concepts that can be usefully formalized with capital-theoretic and welfare economic approaches. CSR can particularly constitute a strategy to cope with externalities and serve as insurance against reputational risks that harm profit prospects and corporate value. Moreover, we present a formal approach for integrating the societal perspective of sustainable development with the corporate perspective of CSR and CS. This approach is complementary to a company's internal CSR and CS evaluation.     

McDonald's Japan: A case study of effective public relations

This case study presents how McDonald's Japan improved its corporate image through food education as corporate social responsibility activity. Email interviews with a CSR representative and seven public school teachers who experienced the company's educational program reveal the company has successfully improved its corporate image, which may have contributed to its increased sales performance.     

The Effects of Corporate Elitism and Groupthink on Organizational Empathy in Crisis Situations

This study is to empirically testify that corporate elitism is an antecedent to groupthink, which prevents organizational empathy from working effectively in crises. The current study is expected to expand the boundary of crisis management literature into a company’s crisis-preparedness before a crisis occurs. The findings offer the useful guidance to organizations on how to better manage their crisis proneness through identifying the early signs of corporate elitism and groupthink.     

Corporate social responsibility and the oil industry: Theory and perspective fuel a longitudinal view

To gain an in-depth theoretically-grounded understanding of managing corporate social responsibility (CSR), the current study offers four key propositions for CSR theory development: (1) Living corporate social responsibility from the inside out, (2) Earning trust of the public and the media, (3) Giving back as a community citizen, and (4) Accepting that we’re all in this together, but still unique. Also offered are five best practices for public relations in the oil industry. All emerged during in-depth interviews with three senior public relations managers of a leading independent US oil company; executives who have navigated CSR decision making and practices through nearly five decades (1966-2010) at different points in time. In the wake of two massive 2010 oil spill crises in North American waters that garnered extensive media attention, findings are particularly relevant for advancing CSR theory and for providing complex insider perspectives less traveled in the public relations literature.     

Strategic role of public relations in enterprise strategy,governance and sustainability—A normative framework

The purpose of the study was to suggest a normative framework for the development of an organization's enterprise (societal role/stakeholder) strategy, indicating its relationship with governance, sustainability, and CSR. The normative framework contains two dimensions: Enterprise strategy is developed within the context of enterprise governance as well as social and environmental sustainability and responsibility, to achieve the organization's strategic non-financial goals (the sustainability dimension). Corporate strategy is developed within the context of corporate governance as well as economic sustainability and responsibility, to achieve strategic financial/economic goals (the business dimension). PR/communication management plays a strategic role in enterprise strategy development but a support role in corporate strategy development. The development of enterprise strategy necessitates a Triple Bottom Line approach to strategic management.     

College Students' Perception of Philip Morris's Tobacco-Related Smoking Prevention and Tobacco-Unrelated Social Responsibility

This study examined the effects of 2 Philip Morris corporate social responsibility (CSR) programs—a tobacco-related smoking prevention versus a tobacco-unrelated program—on college students' perceived CSR motive, attitudes toward Philip Morris, and behavioral intentions to support the company. Using 2 college student samples in the United States and South Korea, this study found that the tobacco-unrelated program and a positively perceived CSR motive elicited more positive responses about CSR values, attitudes toward CSR activities and the company, and behavioral intentions to support Philip Morris. Korean college students were more likely to perceive Philip Morris's CSR activities as mutually beneficial and to support Philip Morris than were American college students.     

Economics or ethics? Exploring the role of CSR expectations in explaining consumers’ perceptions,motivations, and active communication behaviors about corporate misconduct

The purpose of this study was to explore the role of corporate social responsibility expectations in explaining consumers’ perceptions, motivations and communication behaviors about corporate misconduct, especially in the context of allegations of workplace gender discrimination. A survey was conducted in December 2016 among 473 Americans. The results show that while people with economic CSR expectations do not evaluate corporate misconduct negatively, those with ethical CSR expectations perceive it morally wrong. However, both types of CSR expectations were found to impact consumers’ motivations to engage in communication behaviors about the crisis. Theoretical and empirical implications are discussed.     

Emotional crisis communication

Organizational crises are usually highly emotional experiences for both organizations and stakeholders. Hence, crisis situations often result in emotionally charged communication between the two parties. Despite the attention of organizations and scholars to the emotions of stakeholders during crises, little is known about the effects of the emotions communicated by organizations on corporate reputations. Through the use of vignettes, this experiment reveals that besides crisis-response strategy (diminish vs. rebuild), the communicated emotion (i.e., shame and regret) has a positive effect on corporate reputation. Mediation analyses showed that this effect of communicated emotion could be explained by the public's (negative) affective as well as cognitive responses (i.e., account acceptance). This study confirms that emotional signals embedded in crisis responses may affect corporate reputations by reducing feelings of anger and by increasing the acceptance of the organizational message. In doing so, this study provides a starting point for further exploration of the effectiveness of other emotions in crisis communication.     

U.S. Fortune 500’s stakeholders engagement during the COVID-19 pandemic: Evidence for proactive approaches

In times of a national crisis such as COVID-19, it is important for organizations to show that they are good corporate citizens. At the same time, organizations should carefully select the type of messages that resonate with stakeholders so as to reduce stakeholder skepticism. This study examines how U.S. Fortune 500 companies discussed their COVID-19 pandemic CSR actions on Facebook over 15 months and how the public responded to such messages. We identified three CSR themes: internal stakeholder proactive CSR, external stakeholder proactive CSR, and external stakeholder accommodative CSR. When publics engaged, external stakeholder proactive CSR was significantly associated with better behavioral engagement outcomes, more positive emotional engagement outcomes, and less negative emotions. However, such effects are moderated by industry type. Our findings inform public relations theory and practice and suggest that in times of major crises, organizations should prioritize proactive approaches to engage external stakeholders while being mindful of specific institutional contexts.