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Once a corporate crisis is entangled with a social issue, how consumers make sense of the crisis can be impacted by issue-based opinion polarization. This study investigates the underlying mechanisms as consumers go through this process. This study also examines whether corporate social advocacy (CSA) can be an effective crisis-response strategy for mitigating reputational loss.

Theoretical inquiries were empirically tested using an online experiment (N = 792). The experiment set the context in China, in a working-overtime-issue-related crisis. It had a 2 (online exposure: anti-issue opinion vs. pro-issue opinion) × 2 (CSA: absence vs. presence) between-subject design with a continuous variable (pre-existing issue attitudes) measured before the manipulation.

This study found that pre-existing issue attitudes can be directly and indirectly associated with corporate reputation, for the issue attitudes influence how consumers attribute crisis blame. Such a direct effect of pre-existing issue attitudes varies depending on which polarized opinion consumers were exposed to on social media. This study also found CSA to be a robust crisis response strategy, through multiple mechanisms, in protecting the corporate reputation.

Scholars are scarcely aware of the threats that issue-based opinion polarization poses to corporate reputation. This study serves as an early attempt to provide theoretical explanations. In addition to this, this study extends the current conceptual understandings of CSA during corporate crises that involve social issues while adding fresh insights into the established typology of crisis-response strategies.

Fake news stories have become a central element of crises that corporate public relations practitioners have confronted. Whether such stories are rumors, outright lies or deliberate attempts to discredit corporations, they have the same impact and require specific strategies for public relations practitioners to effectively respond. The purpose of this study is to uncover strategies to manage crises that arise from fake news and if and how these strategies differ for other corporate crises.

In this multi-method study of 21 in-depth interviews and a 8-person focus group with senior-level corporate public relations practitioners, authors explored decision-making strategies for responding to fake news crises. Transcripts of interviews and the focus group were thematically analyzed.

Results reveal insights regarding how public relations practitioners determine if and when to respond to fake news crises in corporations; what response strategies public relations practitioners have the autonomy to employ for fake news crises in corporations, and how public relations practitioners control media narratives during fake news crises in corporations.

The findings guide public relations practitioners to craft an autonomous decision-making process and effective online listening strategies—establishing a watchful waiting approach—and determine if the fake news issue is a passing moment or movement swirling into a crisis.

Few studies have examined the perspectives of crisis communication experts about minimizing and managing fake news crises. The study identifies opportunities for future research focused on crises originating from fake news and disinformation.

This study aims to examine how governing bodies demonstrated stakeholder engagement during the time of the COVID-19 crisis in South Africa.

This study uses a qualitative approach based on semi-structured interviews with 18 participants, comprising of preparers of financial statements, board members and management consultants/advisors. The study also relied on the analysis of articles on corporate webpages and publications produced by professional bodies on the economic, social and environmental impact of COVID-19.

The results of this study indicated that governing bodies demonstrated stakeholder engagement during times of crisis through transparent reporting, corporate social responsibility initiatives and active stakeholder inclusivity.

This study contributes to the body of research on stakeholder engagement during a crisis and provides evidence of the role stakeholder inclusivity can play in responding to a crisis. The findings will be useful in understanding the importance of stakeholder engagement during times of crisis. The study is one of the first, to the best of the authors’ knowledge, to evaluate how stakeholder engagement principles can be followed by governing bodies during a crisis.

This study examines the interplay between media-induced emotional crisis framing (anger vs sadness) and message sidedness of crisis response on publics’ attribution of crisis responsibility as well as subsequent company evaluation and supportive behavioral intention.

A 2 (emotion: anger vs sadness) x 2 (crisis response: one-sided vs two-sided) online experiment was conducted among 161 participants in the USA.

Results showed that anger-inducing media framing of the crisis elicited higher levels of crisis responsibility attribution and more negative company evaluation, compared with sadness-inducing media framing. One-sided message response was more effective than two-sided message response in lowering attribution of crisis responsibility when sadness was induced, but no difference was found under the anger-induced condition. Attribution of crisis responsibility fully mediated the effects of emotional crisis framing on company evaluation and supportive behavioral intention toward the company.

This study is among the first to examine the interaction effect between emotional media framing and response message sidedness in an ambiguous crisis. Drawing on the interdisciplinary theoretical frameworks, this study integrates the situational crisis communication theory, appraisal-tendency framework and message sidedness in persuasion literature. As such, it contributes to theoretical development in crisis communication and offers communication managers guidance on how to effectively address emotionally framed crises.

In October 2016, Timothy Sloan, the newly appointed CEO of American banking giant Wells Fargo, faced a massive public-relations crisis. A few weeks earlier, a United States government agency had announced the results of its regulatory review of the bank and exposed a shocking practice common in the retail division, in which aggressive community bankers had created more than a million fraudulent accounts and credit card applications on behalf of unaware customers for the past several years. Over the next few weeks, the bank—and Sloan's predecessor, John Stumpf, in particular—suffered from harsh criticism from politicians, journalists, and former employees alike, ultimately forcing Stumpf's resignation. As Sloan sought to minimize the public-image backlash and restore general trust in Wells Fargo, he struggled to construct the best communication strategy for the bank's next chapter.

We revisit the problem of redesigning the Master in Business Administration (MBA) program, curriculum, and pedagogy, focusing on understanding and seeking to tame its “wicked problems,” as an intrinsic part and challenge of the MBA program venture, and to render it more realistic and relevant to address major problems and their consequences. We briefly review the theory of wicked problems and methods of dealing with their consequences from multiple perspectives. Most characterization of problems classifies them as simple (problems that have known formulations and solutions), complex (where formulations are known but not their resolutions), unstructured problems (where formulations are unknown, but solutions are estimated), and “wicked” (where both problem formulations and their resolutions are unknown but eventually partially tamable). Uncertainty, unpredictability, randomness, and ambiguity increase from simple to complex to unstructured to wicked problems. A redesigned MBA program should therefore address them effectively through the four semesters in two years. Most of these problems are real and affect life and economies, and hence, business schools cannot but incorporate them into their critical, ethical, and moral thinking.

Although situational crisis communication theory (SCCT) is centered on rationality and cognitive information processing, it ignores that people are also driven by irrationality and non-cognitive information processing. The purpose of this study aims to fill this gap by examining how gender stereotypes, based on perceived spokesperson sex influence the public’s perceptions of crisis response messages.

A 2 (industry type: automotive vs daycare industry) × 2 (spokesperson’s sex: male vs female) × 2 (crisis response appeal: rational vs emotional) between-subject online experiment was conducted to examine the effect of gender stereotype in crisis communication.

Results showed that either matching spokesperson sex with sex differed industry or matching sex differed industry with appropriate crisis response appeal can generate a more positive evaluation of the spokesperson and the organization. The results also revealed under which circumstances, the attractiveness of different sex of the spokesperson can either promote or mitigate people’s perceptions of the organization. Furthermore, when people are aware of a spokesperson’s sex, in a female-associated industry, a mismatching effect of a positive violation of a male-related stereotype overrides a matching effect of a female-related stereotype in crisis communication.

This study is among the first to identify how the gender of a spokesperson and industry type affect publics’ crisis response.

The purpose of this paper is to examine whether board characteristics moderate the relationship between capital adequacy regulation and bank risk-taking of universal banks in Sub-Saharan Africa (SSA).

The paper uses 700 bank-year observations of universal banks in SSA between 2009 and 2019. The paper further uses the two-step generalized method of moments as the baseline estimator.

The paper finds that capital adequacy regulation is positively related to overall bank and liquidity risks. Nonetheless, capital adequacy regulation increases credit risk in the sampled banks. The paper further reports that board characteristics individually and significantly moderate the relationship between capital adequacy regulation and risk-taking.

The findings have implications for regulators of universal banks that board characteristics matter for capital adequacy regulation to impact risk-taking behavior.

The paper extends the existing literature on the effect of board characteristics on the capital adequacy regulations and risk-taking behavior nexus of universal banks.

This study examines the effects of corporate governance on market returns during the first four waves of the COVID-19 crisis.

Event study and linear regression methods were applied on a sample of 293 US firms.

The results show that differences in abnormal returns are more significant during the second wave of COVID-19 and the two following waves. Moreover, estimations show that good corporate governance alleviated the effect of COVID-19 during the second wave and the two following waves. However, corporate governance did not affect abnormal returns during the first wave. Furthermore, evidence highlights that the effect of corporate governance is more observed in the industries most affected by COVID-19 than in the least affected industries.

Many studies have attempted to investigate the effect of corporate governance on stock returns during the first wave of the pandemic. However, to the authors' knowledge, this is the first study that focuses on different waves that occurred during 2020 and 2021.

This paper aims to identify the effect of environmental management systems (EMSs), commitment to stakeholders and gender diversity on corporate environmental performance (CEP) and the extent to which an economic crisis moderates these relationships.

A regression analysis was conducted on a sample of 14,217 observations from 1,933 firms from 26 countries from 2002 to 2010. The estimator used is ordinary least squares with heteroscedastic panel-corrected standard errors (PCSEs), which allows us to obtain consistent results in the presence of heteroscedasticity and autocorrelation.

The results show that EMSs and stakeholder engagement are mechanisms that drive CEP but lose their effectiveness in times of crisis. However, the presence of women on boards has a positive effect on CEP that is not affected by an economic crisis.

The study has some limitations that could be addressed in the future. We present board gender diversity as a governance mechanism because its role is strongly related to non-financial performance. Future studies could focus on other corporate governance mechanisms, such as the presence of institutional or long-term investors. In addition, other mechanisms could be found that can counteract poor environmental performance in times of crisis. Finally, it might be useful to contrast these results with the crisis generated by the coronavirus pandemic.

The results obtained have important practical implications at the corporate and institutional levels. At the corporate level, they highlight, as essential contributions, that environmental management systems and stakeholder orientation are not effective in times of economic crisis, except for with the presence of women on the board.

Following the crisis, the European Commission has promoted gender diversity on boards as a mechanism to improve the governance of entities – improving, among other aspects, sustainability. In this sense, another one of the practical implications of the study is support for the policies that the European Union has implemented over the last two decades.

The paper analyses how a crisis affects the moral and cultural institutional mechanisms that promote CEP. Gender diversity on the board of directors not only promotes environmental performance but also appears to be a governance mechanism that ensures this performance in times of crisis when the other mechanisms lose their effectiveness. The study proposes specific policies that help maintain environmental performance in an economic crisis.