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I use a controlled experiment to examine, in the context of Corporate Social Responsibility (CSR) crises, whether investors' investment judgments are influenced by a firm's CSR reputation and CSR crisis response strategy. I find that for good CSR reputation firms, the use of a rebuild or deny crisis response strategy does not lead to improvements in investment judgments. However, for bad CSR reputation firms, the use of a deny response strategy leads to improvements in investment judgments while the use of a rebuild strategy does not.

Self-inflicted crises (SIC)– either intentionally induced or at least carelessly accepted – can tremendously damage a corporation’s reputation and legitimacy in the eyes of the stakeholders. While academia usually advices companies to accept full responsibility, practice shows that by far not all companies rely on such a responsible strategy. In practice, corporations choose various response strategies ranging from apologies, over diminishing approaches to full denials. By investigating a large data set embracing several countries and industries covering 696 cases of SIC, the authors analyze how corporations respond to such events and compare these response strategies across countries and types of crises.

This book chapter follows a domain-spanning approach by combining corporate social responsibility (CSR), crisis management, and stakeholder management to investigate how companies aim at solving crises. Drawing on attribution theory and situational crisis communication theory, the results reveal that corporations often do not follow the prevailing recommendation to take responsibility. The authors find that in the majority of cases, internationally active corporations try to deny or diminish their responsibility for the crises. Hence, the findings suggest that the concept of CSR is not working in the case of SIC since not only the existence of such corporate behavior but also the use of denial and diminish strategies contradicts the idea of corporate responsibility. Moreover, the authors shed light on possible differences and preferences toward a specific response strategy between countries and between different types of crises.

The authors contribute to the growing literature in the field of crisis management and crisis response strategies by investigating a large data set embracing several countries and industries. In this regard, the study differs from previous qualitative studies and experimental research as it is based on a large cross-country and cross-company set of secondary data. Thereby, the study allows drawing conclusions for a wide range of corporations and countries, hence increasing its general applicability.

This case study analyzes Countrywide Financial’s responses to its recent financial crisis and illustrates the use of communication theory and image restoration strategies by utilizing several crisis response frameworks. The study uses a critical analysis methodology to examine the communication strategies employed by Countrywide, a large mortgage lending company in order to attempt to restore its image. The authors look at excerpts from media stories, carefully examine the language used by company representatives in response to the banking crisis, and categorize the corporate communications into various strategies as defined in the crisis communication literature. Countrywide faced several crisis situations during the period of this study, including the subprime mortgage crisis, public criticism of its CEO’s executive compensation package, allegations of insider trading, and financial difficulties. Corporate responses are critical in determining what amount of damage is done to the firm’s image during a crisis. Countrywide responded to these situations most often using the strategies of image bolstering, reducing the credibility of its accuser, and minimizing the crisis (Benoit, 1995). Through these communications, the company attempted to appear well established and untarnished. It also criticized the media, the courts, and the regulators in an attempt to reduce their credibility. Countrywide made no deliberate attempt to admit fault or to take measures to prevent the problem from reoccurring.

Organizational crises are complex events for researchers to assess. However, research in this domain remains fragmented, and advanced empirical techniques remain underutilized. In this chapter, we offer an integrated approach to assessing crises. We first specify a behavioral process model of crisis management comprised of three stages: interpretations, responses, and outcomes. Within each stage, we identify areas of opportunity and provide methodological recommendations that enhance our understanding of crises and crisis management. We also provide recommendations that could be applied across stages of the model. Taken together, we present a framework by which researchers can more effectively measure and analyze critical crisis dimensions.

Purpose – When organisations behave irresponsibly, a question remains: Can they use a messaging strategy based in the organisation's commitment social responsibility to effectively respond to the crisis? The purpose of this chapter is to analyse stakeholder attitudes and their antecedents in such a case. Because of its scope, magnitude and use of a response strategy based on messages of social responsibility, the 2010 BP oil spill in the Gulf of Mexico serves as an excellent case for measuring the effectiveness of such a messaging strategy.

Methodology/approach – The present study drew from two data sources: a content analysis of interactions on BP's Facebook page (N=1,515) as well as an image survey of BP (N=749).

Findings – BP's messaging strategy had limited positive effects in terms of (1) being viewed as a ‘socially responsible’ organisation and (2) creating significant good will towards the company. However, these data also reveal that BP has effectively opened lines of communication between stakeholders and the company.

Practical and social implications – This study has two central implications. First, for both organisations and activists, personal investment and the relevance of issues are both critical in order to change stakeholder attitudes about organisations. Second, based on this research, we can begin to develop stakeholder profiles based on age, sex and political identity.

Originality/value – In the last couple of years, considerable attention has been paid to describing and analysing the response strategies that organisations deploy; however, scant attention has been paid to measuring stakeholder evaluations of those crisis response strategies.

This manuscript reports an exploratory investigation to integrate emotions into the study of post-crisis communication. Using the discussion of the role of affect in Attribution Theory, the research integrates emotion into Situational Crisis Communication Theory (SCCT), one approach to post-crisis communication. SCCT uses crisis responsibility, how much people believe the organization is responsible for the crisis, to determine the most effective post-crisis communication strategy for protecting the organization's reputation. The research examines the amount of sympathy, anger, and schadenfreude generated by a variety of crisis types. The focus is on the connection between these three emotions and perceptions of crisis responsibility. The results suggest how emotion can be integrated into post-crisis communication and supports the value of including emotion in future research.

Product harm crises are becoming increasingly common, and recent examples include Toyota and Vioxx. This chapter examines country differences that impact consumer blame attributions for an ambiguous product harm crisis, and proposes a framework for a crisis response strategy. The first step involves assessing the level of uncertainty avoidance and crisis severity which serve as an indicator of the urgency felt by consumers to assess blame. The second step involves examining consumer beliefs and information processing biases to determine who consumers will most likely blame in order to resolve the uncertainty. Based on information gathered from these steps, a crisis response strategy is suggested for global brand managers.