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Article
Publication date: 8 February 2013

Michael A. Gross, Raymond Hogler and Christine A. Henle

In this viewpoint, the authors argue that the predominant method of analyzing conflict management focuses too heavily on the managerial interests in administrative…

Abstract

Purpose

In this viewpoint, the authors argue that the predominant method of analyzing conflict management focuses too heavily on the managerial interests in administrative efficiency and productivity rather than on the needs of individuals and organizations. The aim of this paper is to employ Weber's analysis of conflict systems, specifically the distinction between formal and substantive rationality, to support the authors’ view.

Design/methodology/approach

This is a viewpoint, where content is dependent on the author's opinion and interpretation.

Findings

Conflict management based on Weber's theories of formal and substantive rationality will benefit organizations and society by promoting a more positive perception of corporate behavior.

Research limitations/implications

Future research could examine the relationship between organizational justice and the more global concepts of formality and rationality. Similarly, future research on justice may be expanded by through the notion and perception of legitimacy by members of the organization. How employees accept a system as fair and just has potential import for future justice research.

Practical implications

The combination of formal and substantive rationality offers a practical, and meaningful, way of dealing with conflict from a personal orientation as well as an organizational one. It orients conflict resolution toward people rather than productivity concerns. It further safeguards organizational interests by minimizing litigation, negative publicity, and other adverse effects of conflict.

Originality/value

Weber theorized that formal rationality requires organizations to develop clear, objective, and universal procedures in order to carry out administrative routines. Substantive rationality, in contrast, acknowledges that specific cases may demand particularized decision‐making focusing on individual cases. The paper draws on the procedural justice literature to show how these procedures can be implemented in a fair manner.

Details

International Journal of Conflict Management, vol. 24 no. 1
Type: Research Article
ISSN: 1044-4068

Keywords

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Article
Publication date: 16 September 2013

Pamela Kent and Tamara Zunker

The purpose of this study is to provide evidence on the category, quantity and quality of voluntary employee-related information Australian listed companies disclose in…

Abstract

Purpose

The purpose of this study is to provide evidence on the category, quantity and quality of voluntary employee-related information Australian listed companies disclose in their annual report. An explanation is also sought to determine whether companies adopt employee-related disclosures to legitimise their relationship with society. Voluntary adoption of corporate governance best practice recommendations is used as a measure of companies' attempts to attain ex ante legitimacy. Media agenda setting theory is used as a measure of an attempt to gain legitimacy ex post following adverse publicity from the media.

Design/methodology/approach

The annual reports of all companies with at least one employee listed on the Australian Stock Exchange with a 30th June balance date of 2004 are examined to identify employee-related disclosures. This employee-related information is categorised and identified as positive, negative or a combination of positive and negative information by three independent coders. Ordinary least squares regression is used to explain the quantity of disclosure with a corporate governance score and number of adverse newspaper articles included as experimental variables.

Findings

Adopting voluntary corporate governance mechanisms is associated with the quantity of voluntary annual report employee-related disclosures. Higher levels of adverse publicity are also significantly associated with higher quantities of employee-related disclosures. The quality of these disclosures is questioned because 124 companies had adverse publicity relating to employees and only two of these companies reported any negative employee-related disclosures. Few companies from the whole sample reported any negative information relating to their employees in their annual report, with 98 per cent of companies reporting positive news or no news.

Originality/value

Most previous social responsibility research has focused on environmental disclosures. This study is original because it focuses on employee-related disclosures. Honest, transparent employee disclosures are an international corporate governance recommendation by the Organisation for Economic Co-operation and Development and studies have not previously tested the relation between reporting recommended corporate governance mechanisms and employee-related disclosures in annual reports.

Details

Accounting, Auditing & Accountability Journal, vol. 26 no. 7
Type: Research Article
ISSN: 0951-3574

Keywords

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Article
Publication date: 1 July 2004

Simon Rines

Global icon David Beckham was alleged by the tabloid media in April 2004 to have had an extra-marital affair. Given his carefully nurtured image as a family man and model…

Abstract

Global icon David Beckham was alleged by the tabloid media in April 2004 to have had an extra-marital affair. Given his carefully nurtured image as a family man and model father, would the adverse publicity damage that image and affect his lucrative sponsorship endorsements? Research undertaken in the UK by IJSM&S suggests that there has been some negative impact, but it is probably not enough to make him a sponsorship liability. The findings also demonstrate very high levels of prompted and unprompted awareness for his endorsements.

Details

International Journal of Sports Marketing and Sponsorship, vol. 6 no. 1
Type: Research Article
ISSN: 1464-6668

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Article
Publication date: 24 July 2009

Peter Cartwright

The purpose of this paper is to consider whether a move from self‐regulation in the form of the Banking Code to statutory regulation by the Financial Services Authority…

Abstract

Purpose

The purpose of this paper is to consider whether a move from self‐regulation in the form of the Banking Code to statutory regulation by the Financial Services Authority (FSA) of retail banking conduct of business is to be supported.

Design/methodology/approach

The paper begins by examining the nature of the self‐regulatory process and then considers its strengths and weaknesses in the context of the Banking Code. It then looks at the changes proposed by the FSA. Focusing in particular on the issue of enforcement, the paper contrasts the powers of the Banking Code Standards Board and the FSA.

Findings

The paper concludes that, while a move to statutory regulation is to be supported, there is concern about whether such a move will bring the benefits that might have been expected.

Practical implications

More attention needs to be paid to the ways that different forms of regulation operate in practice, with empirical research particularly valuable.

Originality/value

The paper adds to the (relatively brief ) literature on consumer protection in banking, and the even briefer body of research on self‐regulation.

Details

Journal of Financial Regulation and Compliance, vol. 17 no. 3
Type: Research Article
ISSN: 1358-1988

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Article
Publication date: 1 July 1983

John A. Meenaghan

Argues that the general area of commercial sponsorship activity, while attracting increasing interest from marketing practitioners as an important strategic option in…

Abstract

Argues that the general area of commercial sponsorship activity, while attracting increasing interest from marketing practitioners as an important strategic option in marketing communications, has not been the subject of sufficiently rigorous and comprehensive investigation by theoreticians. States the purpose is to establish and consolidate the available body of knowledge combining an overview of the standard conceptual approaches to marketing communication with an examination of the recent academic research in sponsorship, while maintaining a focus on current marketplace practice. Argues for a coherent and structured approach to the management of sponsorship expenditure through the application of a ‘management by objectives’ approach. Parameters are established in terms of a working definition of sponsorship, a review of its commercial development and an overview of current activity. Develops a commercially ration framework within which sponsorship activity may be undertaken. Views objective‐setting as the cornerstone of sponsorship management and outlines a classification of sponsorship objectives that subsumes current practice clarifies the range of potential benefits. Examines the criteria that govern rational sponsorship selection and proposes an evaluation strategy based on stated criteria. Methods of evaluating effects of marketing communications (sponsorship particularly) are examined and new evaluation techniques are advanced to facilitate the implementation of this rigorous scientific approach.

Details

European Journal of Marketing, vol. 17 no. 7
Type: Research Article
ISSN: 0309-0566

Keywords

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Article
Publication date: 1 April 2001

Roger Bennett and Helen Gabriel

Presents the results of an empirical investigation into whether the attribution by members of the public of an unfavourable reputational trait (e.g. dishonesty) to a…

Abstract

Presents the results of an empirical investigation into whether the attribution by members of the public of an unfavourable reputational trait (e.g. dishonesty) to a company covaries with other traits ascribed to the same enterprise. Additionally it examines whether people aggregate successive pieces of unfavourable information received about a business to form a continuously worsening impression of it; or whether they mentally average bad news, so that successive adverse items can actually improve the overall impression – provided the later messages are not as damaging as the earlier ones. The study is based on the UK pensions mis‐selling scandal, which generated severe, long‐term media criticism of the large UK insurance companies. Hence it analyses a unique reputational management situation in that the firms involved are subject to continuous and intense scrutiny, protracted and hostile media coverage, periodic public censure by regulatory authorities, and interference in day‐to‐day management by government agencies. The proposition that pensions are an “avoidance product” is also explored.

Details

European Journal of Marketing, vol. 35 no. 3/4
Type: Research Article
ISSN: 0309-0566

Keywords

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Article
Publication date: 1 December 1999

Tony Hines, Karen McBride and Michael Page

The Financial Reporting Review Panel (‘the Panel’) was set up in 1991 as part of the new regime under the Financial Reporting Council, with the objective of improving the…

Abstract

The Financial Reporting Review Panel (‘the Panel’) was set up in 1991 as part of the new regime under the Financial Reporting Council, with the objective of improving the quality of financial reporting in the UK. Arguably, the Panel was the most radical innovation since it was concerned with the previously not addressed issue of the enforcement of financial reporting regulations. However, it has no direct powers of enforcement and is funded at a level at which it can only react to complaints about company accounts rather than seek out problems. While the Panel has been granted powers to take companies to court with a view to compelling them to revise their accounts, these powers have not been exercised. Nevertheless, there is some evidence that its existence encourages companies to be more scrupulous about compliance with accounting standards and relevant company law before publishing their annual reports. Explanations for compliance include the possibility that adverse findings by the Panel result in economic damage or loss of reputation to the company or its management. This paper investigates a key aspect of possible economic damage: that press notices issued by the Panel about individual cases have an adverse effect on the share price of the company concerned. A share price event study was carried out on 33 companies that, since the inception of the Panel, had been the subject of press notices. We have found no evidence of an adverse share price reactions following the publication of press notices. Improvements in compliance may be attributable to other reasons, one possibility being the belief by management that an adverse finding will affect the share price.

Details

Journal of Applied Accounting Research, vol. 5 no. 2
Type: Research Article
ISSN: 0967-5426

Keywords

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Article
Publication date: 4 November 2014

Harlan E. Spotts, Marc G. Weinberger and Michelle F. Weinberger

– The purpose of this research is to understand the relationship between publicity, advertising activity and corporate sales in the context of a company’s existing reputation.

Abstract

Purpose

The purpose of this research is to understand the relationship between publicity, advertising activity and corporate sales in the context of a company’s existing reputation.

Design/methodology/approach

The study brings together four unique industry datasets and uses discriminant analysis and multiple regression methods to examine the relationship between existing corporate reputation, publicity, advertising activity and sales levels for major multi-national companies in the technology products sector.

Findings

Positive publicity is most important in distinguishing between firms with higher and lower sales. The effects of negative publicity and advertising are dependent on a firm’s existing reputation. For companies with weaker reputations, positive publicity in tandem with business-to-consumer (B2C) advertising is most highly associated with higher company sales. Conversely, for firms with stronger existing reputations, advertising has a significantly diminished role; positive and even negative publicity are most crucial in distinguishing between companies with high and low sales. Negative publicity can be harmful to these firms though if it is not balanced by more positive publicity. Finally, the topic of news coverage is related to sales. Generally, stories that are positive reporting on business outcomes, leadership and business future and marketing practices are most important in discriminating between firms with stronger vs weaker sales.

Practical implications

For this set of technology product firms, publicity and advertising are relevant for sales. Firms with higher levels of sales have both more positive and negative publicity, but the volume of positive stories is much higher. Attracting negative publicity is common for firms that achieve higher sales, but it is offset by a greater number of positive stories, an aspect that public relations efforts can influence. B2C advertising spending meanwhile matters more for firms with weaker rather than stronger existing corporate reputations. It is most effective for firms with weaker existing reputations to maximize the positive signals in the marketplace as exemplified by positive publicity and B2C advertising efforts.

Originality/value

Little research has examined the relationship between different forms of corporate communications and sales; this study is a rare examination using publicity, advertising spending, existing reputation and sales in a durable goods and services context where there has been a particular dearth of even basic advertising studies. Beyond understanding the relative importance of publicity v. advertising, it also uniquely focuses on the individual topics of news publicity.

Details

European Journal of Marketing, vol. 48 no. 11/12
Type: Research Article
ISSN: 0309-0566

Keywords

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Article
Publication date: 9 November 2010

Pekka Aula

This paper aims to discuss the emergence of corporate reputational risk in terms of social media, exploring its threats to and possibilities for organizations' strategic

Abstract

Purpose

This paper aims to discuss the emergence of corporate reputational risk in terms of social media, exploring its threats to and possibilities for organizations' strategic reputation management.

Design/methodology/approach

Reputation risk, the possibility of damaging one's reputation, presents a threat to organizations in many ways. Little is known, however, about the connections between reputation risk management and social media as a mediated business environment. Following the latest conceptualizations of strategic reputation management and social media, the paper identifies several challenges for organizations. To make sense of this issue, the paper proposes a novel context for strategic reputation management, founded on the metaphor of ambient publicity, which involves not only social media, but also organizations and their stakeholders.

Findings

The paper argues that social media expands the spectrum of reputation risks and boosts risk dynamics, and that social media can have notable effects on corporate‐level strategic endeavors, which must be considered in order to be successful in the modern business environment. Nine tenets for corporate leaders involved in strategic reputation management are presented.

Originality/value

The paper offers new insights on social media's relation to reputation risk and its management. The ambient publicity, for example, has value to leaders involved in strategic reputation management when trying to identify factors characterizing the changing business environment. Understanding ambient publicity as an environment of meaning indicates that organizations, their stakeholders, and the public create a “complex narrative web” surrounding reputation. The more unified this web is, the stronger the organization is in terms of reputation risk.

Details

Strategy & Leadership, vol. 38 no. 6
Type: Research Article
ISSN: 1087-8572

Keywords

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Article
Publication date: 25 May 2018

Angie Chung

The purpose of this paper is to contribute to understanding the effects of framing apology statements with corporate social responsibility (CSR) communications after a…

Abstract

Purpose

The purpose of this paper is to contribute to understanding the effects of framing apology statements with corporate social responsibility (CSR) communications after a company has suffered negative publicity. Specifically, this study examined the role of CSR fit on consumers’ skepticism toward the apology statement and attitude toward the company compared to a no-CSR message condition. In addition, the study also analyzed the interaction effects between CSR fit and history on skepticism toward the apology statement and attitude toward the company.

Design/methodology/approach

A 2 (CSR fit: high or low) × 2 (CSR history: long or short) between-subject design was employed to examine the hypotheses. In addition, a no-CSR message group without any mention of CSR activities was included. To test the hypothesized constructs of main interest (i.e. CSR fit and CSR history) and incremental validity in the same set of model equations, this study used a hierarchical regression approach.

Findings

The high CSR fit condition led to less skepticism toward the apology statement and a more positive attitude toward the company than the no-CSR message condition did. The low CSR fit condition, in contrast, led to more skepticism toward the apology statement and a less positive attitude toward the company than the no-CSR message condition did. In addition, the results showed that the interaction effects between CSR fit and history will predict skepticism toward the apology statement and attitude toward the company.

Originality/value

There is little research on the effectiveness of high (congruent) and low (incongruent) CSR fit compared to a no-CSR message condition. To address this gap, this paper compared the effectiveness of the two conditions to a no-CSR condition.

Details

Corporate Communications: An International Journal, vol. 23 no. 3
Type: Research Article
ISSN: 1356-3289

Keywords

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