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Article
Publication date: 28 June 2019

Felice Matozza, Anna Maria Biscotti and Elisabetta Mafrolla

This paper aims to examine whether firms in polluting industries improve their environmental performance to effectively repair their financial reputation in the aftermath…

Abstract

Purpose

This paper aims to examine whether firms in polluting industries improve their environmental performance to effectively repair their financial reputation in the aftermath of an accounting restatement – a financial reputation-damaging event.

Design/methodology/approach

The authors test their hypotheses using multiple regression analysis of a sample of firms listed in International Financial Reporting Standards (IFRS)-adopting countries. They use a comparative empirical design in which a sample of firms that underwent a restatement (henceforth, restating firms) are compared with control groups of pair- and multiple-matched firms that did not undergo restatements (non-restating firms).

Findings

The study finds that restating firms have higher environmental performance in the aftermath of restatement events. Additionally, the authors demonstrate that this environmentally based reputation repair positively influences the financial reputation of the firms, as measured by analyst coverage and recommendations and which previously decreased because of the restatement event.

Practical implications

Because environmental levers are a substantial contextual factor in polluting industries, shifting the stakeholder debate to firms’ environmental commitment can improve financial stakeholders’ opinions and favour the repair of the multifaceted reputation of the financially damaged firm.

Social implications

With a worldwide growing attention to environment there is a critical need for understanding how polluting firms integrate sustainability and financial reputation. We demostrate that polluting firms recover from a financial failure pursuing their environmental performance.

Originality/value

Contributing to the behavioural theory of reputation repair and in line with the legitimacy perspective in environmental disclosure research, this paper shows that polluting firms recover from a loss to their financial reputation by diverting stakeholders’ attention towards the environmental field, thus restoring their financial reputation, as financial analysts value environmental performance improvement – a substantial contextual factor of polluting firms’ reputation repair process.

Details

Sustainability Accounting, Management and Policy Journal, vol. 10 no. 5
Type: Research Article
ISSN: 2040-8021

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Article
Publication date: 21 April 2020

Darko Dimitrovski

This paper aims to determine the influence of travel fair selection factors on exhibitor intention to attend, in conjunction with the role of political risk within that…

Abstract

Purpose

This paper aims to determine the influence of travel fair selection factors on exhibitor intention to attend, in conjunction with the role of political risk within that relationship.

Design/methodology/approach

Following the basic premises of image repair theory, this quantitative study examines the perceptions of 205 exhibitors – both domestic and international – at Belgrade Travel Fair.

Findings

Two variables – travel fair customer acquisition and retention orientation and market orientation – were found to influence travel fair intention in a statistically significant manner, while multi-group structural equation modeling indicates a positive statistically significant correlation between travel fair customer acquisition and retention and travel fair market orientation and travel fair intention for exhibitors that place higher importance on political risk in the region.

Research limitations/implications

The limitations of the research are its regional focus and its small sample size.

Practical implications

Travel fair organizers should consider market orientation and customer acquisition and retention orientation as important antecedents of travel fair intention. Exhibitor perception of political risk enhances image repair efforts.

Social implications

The study focuses on the perception of travel fair exhibitors when attending a travel fair in a region which is continually exposed to political risk. Thus, travel fairs can act as image repair instruments for companies affected by political risk in a region, as they have the capacity to present a positive image to a specific audience.

Originality/value

The study enhances the existing work related to image repair theory by observing how travel fairs can be used as image repair instruments. The originality of the study lies in its provision of further understanding of the reasons for exhibitor attendance at travel fairs and, more specifically, the role of political risk in this context. The study’s findings extend the applicability of the image repair theory in the context of the behavioral nature of travel fair attendance.

Details

International Journal of Contemporary Hospitality Management, vol. 32 no. 5
Type: Research Article
ISSN: 0959-6119

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Book part
Publication date: 11 October 2017

Finn Frandsen, Winni Johansen and Heidi Houlberg Salomonsen

Based on the assumption that the identity and self-understanding of an academic discipline determines how it conceptualizes different domains of social reality, including…

Abstract

Based on the assumption that the identity and self-understanding of an academic discipline determines how it conceptualizes different domains of social reality, including how it imports and/or exports concepts from or to other disciplines, this chapter presents some of the findings of a major ongoing comparative and cross-disciplinary study of how five key concepts within the combined fields of crisis management and reputation management are applied in three different disciplinary contexts. In this chapter, however, the focus is on just one of these concepts: the concept of reputation.

Details

How Strategic Communication Shapes Value and Innovation in Society
Type: Book
ISBN: 978-1-78714-716-4

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Book part
Publication date: 11 October 2017

Augustine Pang, Ratna Damayanti and Eugene Yong-Sheng Woon

In 2015, Malaysia’s investment vehicle, 1Malaysia Development Berhad (1MDB), came under international scrutiny after it amassed a debt of US$11 billion (10.3 billion…

Abstract

In 2015, Malaysia’s investment vehicle, 1Malaysia Development Berhad (1MDB), came under international scrutiny after it amassed a debt of US$11 billion (10.3 billion) (Wright & Clark, 2015), which it had difficulty repaying. More disturbingly, investigators found that US$700 million (658 million) was transferred into the personal bank account of Malaysia’s prime minister, Najib Razak, founder and chairman of 1MDB’s advisory board (Wright & Clark, 2015). Najib was also accused of embezzling state money (Reuters, 2015) and damaging the image of the country (“Najib tried to bribe me”, 2015). This chapter aims to examine the strategies used by the Malaysian prime minister to repair his image in the 1MDB scandal, the effectiveness of these strategies, and how these impacted Malaysia’s public diplomacy efforts in restoring the country’s image and reputation. Findings showed that the prime minister denied wrongdoing, and simultaneously bolstered his position and promised to turn 1MDB around. In contrast to the current explication of Benoit and Pang’s (2008) image repair strategies, Najib’s way of attacking the accusers sheds light into how image repair strategies may be operationalized in the Asian context. A new image repair strategy – diversion – is proposed to be added to the existing framework.

Details

How Strategic Communication Shapes Value and Innovation in Society
Type: Book
ISBN: 978-1-78714-716-4

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Article
Publication date: 27 March 2019

Etayankara Muralidharan, Hari Bapuji and Manpreet Hora

This study aims to investigate the effects of firm characteristics and crisis characteristics on remedies offered to consumers by firms in the event of a product recall crisis.

Abstract

Purpose

This study aims to investigate the effects of firm characteristics and crisis characteristics on remedies offered to consumers by firms in the event of a product recall crisis.

Design/methodology/approach

Published data on 868 product recalls in the US toy industry from 1988 to 2011 have been used to investigate the effects of firm experience in product recalls, type of firm (company versus intermediary) and product recall severity in predicting remedies offered to consumers in the event of a product recall.

Findings

The findings show that firm recall experience, firm type and recall severity are negatively associated with recall remedies offered. Specifically, firms offer lower remedies if they have higher recall experience, if they are upstream firms in the supply chain (farther from consumers) and if the recall is more severe.

Research limitations/implications

This study focuses on the toy industry and does not consider product complexity, firm reputation and the role of external regulatory agencies in the prediction of remedies offered by firms. Future research may extend this study to include the above factors.

Practical implications

Offering a high remedy to consumers of a recalled product may be a responsible decision by a firm, but it may also attract shareholder wrath. The study has implications for managing multiple goals in product recall crisis management.

Originality/value

Studies focused on issues of interest to consumers during a recall crisis, such as swift recalls and appropriate remedies, are limited. This study contributes to the understanding of the antecedents of recall remedies.

Details

European Journal of Marketing, vol. 53 no. 5
Type: Research Article
ISSN: 0309-0566

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Book part
Publication date: 20 October 2020

Jane Sell, Katie Constantin and Chantrey J. Murphy

Purpose – We delineate how the concept of reputation has been used in different literatures. We develop some formal definitions of observers and reputation that bring…

Abstract

Purpose – We delineate how the concept of reputation has been used in different literatures. We develop some formal definitions of observers and reputation that bring together the different literatures. We then ask how noncooperative or “bad” reputations might be repaired. Based on the developed definitions and past research, we suggest some possibilities for reconciliation. We also work on developing an experimental paradigm to investigate reputation.

Methodological/Approach – We review research from different disciplines, develop definitions, and design an experiment.

Findings – We suggest that, under certain conditions, group reconciliation can occur. However, these conditions are quite specific.

Practical Implications – When the goal is to solve a social dilemma, reconciliation is an important part of the process. Without reconciliation, group integration is problematic.

Social Implications – Reconciliation can be a powerful process that encourages cooperation. We suggest some ways that reconciliation might be possible.

Originality/Value of the Chapter – This chapter suggests a new formalization to connect different conceptualizations of reputations.

Details

Advances in Group Processes
Type: Book
ISBN: 978-1-80043-232-1

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Article
Publication date: 9 January 2020

Mukesh Kumar, Chandan Parsad, Umesh Kumar Bamel, Sanjeev Prashar and Archana Parashar

This paper aims to report the results of an experiment undertaken to investigate the effect of country of origin (COO) in shielding the company’s image and retaining the…

Abstract

Purpose

This paper aims to report the results of an experiment undertaken to investigate the effect of country of origin (COO) in shielding the company’s image and retaining the trust and supportive behavioural intentions when it faces a crisis and the interactive effect of COO and the company’s pre-crisis reputation in shielding the company’s image.

Design/methodology/approach

A quasi-experimental study was undertaken to test the proposed hypotheses. Specifically, a two (pre-crisis reputation: low versus high) × two (country of origin: Indian versus Non-Indian) between-subjects factorial experimental design is configured and operationalized.

Findings

The results demonstrate that COO of a company fails to protect trust and supportive behaviour on its own, but, in the presence of a high pre-crisis reputation, it shields trust in the company more effectively. However, the interaction of COO and reputation does not induce supportive behaviour for the company during a crisis.

Originality/value

The findings of this research may help organizations to enhance trust/supportive behaviour toward their brand/company using attributes such as COO and pre-crisis reputation of the company.

Details

International Journal of Organizational Analysis, vol. 28 no. 4
Type: Research Article
ISSN: 1934-8835

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Book part
Publication date: 25 July 2008

Dwight D. Frink, Angela T. Hall, Alexa A. Perryman, Annette L. Ranft, Wayne A. Hochwarter, Gerald R. Ferris and M. Todd Royle

Accountability is ubiquitous in social systems, and its necessity is magnified in formal organizations, whose purpose has been argued to predict and control behavior. The…

Abstract

Accountability is ubiquitous in social systems, and its necessity is magnified in formal organizations, whose purpose has been argued to predict and control behavior. The very notion of organizing necessitates answering to others, and this feature implies an interface of work and social enterprises, the individuals comprising them, and subunits from dyads to divisions. Because the nature of workplace accountability is multi-level as well as interactive, single-level conceptualizations of the phenomenon are incomplete and inherently misleading. In response, this chapter sets forth a meso-level conceptualization of accountability, which develops a more comprehensive understanding of this pervasive and imperative phenomenon. The meso model presented integrates contemporary theory and research, and extends our perspectives beyond individual, group, unit, or organizational perspectives toward a unitary whole. Following this is a description of challenges and opportunities facing scholars conducting accountability research (e.g., data collection and analysis and non-traditional conceptualizations of workplace phenomenon). Theoretical and practical implications are discussed, as are directions for future research.

Details

Research in Personnel and Human Resources Management
Type: Book
ISBN: 978-1-84855-004-9

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Article
Publication date: 5 December 2018

Yeonsoo Kim and Chang Wan Woo

The purpose of this paper is to examine the role of prior-CSR reputation in protecting a company’s CSR reputation during product-harm crises and how it influences…

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Abstract

Purpose

The purpose of this paper is to examine the role of prior-CSR reputation in protecting a company’s CSR reputation during product-harm crises and how it influences consumers’ crisis-related behavioral intentions (i.e. supportive communication, resistance to negative information and crisis resiliency). The authors test whether the impact of prior-CSR reputation differs by crisis type as well.

Design/methodology/approach

A randomized 2 (CSR reputation: good vs bad) × 2 (product-harm crisis type: tampering vs preventable) full factorial design in two industry settings (food industry and retail industry) with consumer samples was conducted.

Findings

The results revealed the determinant role of positive prior-CSR reputation in protecting reputational assets. A company with positive CSR reputation experiences no decrease in its CSR reputation during victim crises and fairly minor decreases during preventable crises. However, a company with a bad prior-CSR reputation experiences a greater decline in its CSR reputation across both crises; the level of decline during victim crises was as substantial as the decline experienced during a preventable crisis. The prior-CSR reputation directly affects consumers’ crisis-related intentions, and indirectly does so through post-CSR reputation. As post-CSR reputation becomes more positive, consumers display greater resistance to negative information, supportive communication intent and crisis resiliency.

Originality/value

This study advances the understanding of the role of corporate reputation during crises and provides additional empirical evidence of how the buffering effect of CSR can extend beyond product-related intentions among consumers. The findings can induce companies to adopt CSR programs more systematically and proactively under a long-term strategic plan.

Details

Corporate Communications: An International Journal, vol. 24 no. 1
Type: Research Article
ISSN: 1356-3289

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Article
Publication date: 12 March 2018

Xian Liu, Helena Maria Lischka and Peter Kenning

This research aims to systematically explore the cognitive and emotional effects of values-related and performance-related negative brand publicity and investigate how the…

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1443

Abstract

Purpose

This research aims to systematically explore the cognitive and emotional effects of values-related and performance-related negative brand publicity and investigate how the psychological effects translate into different behavioural outcomes. In addition, it examines the relative effectiveness of two major brand response strategies in mitigating negative publicity.

Design/methodology/approach

Two experimental studies were conducted to test the hypotheses. Study 1 examines the effects of values- and performance-related negative brand publicity, using a 3 (negative brand publicity: values-related vs performance-related vs control) × 2 (brand: Dove vs Axe) between-subjects experiment. Study 2 further compares the effects of two major brand response strategies on consumers’ post-crisis perceived trustworthiness and trust and responses towards a brand involved in negative publicity. A 2 (negative brand publicity: values-related vs performance-related) × 2 (brand response strategy: reduction-of-offensiveness vs corrective action) between-subjects design was used.

Findings

The results suggest that values-related negative brand publicity is perceived as being more diagnostic and elicits a stronger emotion of contempt, but a weaker emotion of pity than performance-related negative brand publicity. Moreover, values-related negative brand publicity has a stronger negative impact on consumer responses than performance-related negative brand publicity. Interestingly, compared to perceived diagnosticity of information and the emotion of pity, the emotion of contempt is more likely to cause differences in consumer responses to these two types of negative brand publicity. Regarding brand response strategy, corrective action is more effective than reduction-of-offensiveness for both types of negative brand publicity, but the advantage of corrective action is greater for the performance-related case.

Originality/value

This research enriches the negative publicity and brand perception literature, showing the asymmetric cognitive, emotional and behavioural effects of values- and performance-related negative brand publicity. It also identifies the psychological mechanisms underlying consumer responses to negative brand publicity, and it provides empirical evidence for the relative effectiveness of two major brand response strategies.

Details

Journal of Product & Brand Management, vol. 27 no. 2
Type: Research Article
ISSN: 1061-0421

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