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Why has the reporting of scandal in sport been increasing? This paper focuses on the commercialisation of sport and changes in the media landscape. A case study of the Australian Rugby League competition and its long-running series of scandals concludes that scandal is inevitable in sport, and that marketing strategies must incorporate this. The authors propose a new strategy - embracement - as an effective way of mitigating scandal and leveraging for sponsor market position.

This chapter, against studies on success history, puts its attention on the firm's behaviour facing a critical socio-political problem. The specific question is how the relationship between business and socio-political actors in an emerging market under a scandal develops and how these actors manage such a situation. To reach this aim the study concerns with the Roche Scandal in Turkey and discusses the reactions of business and socio-political actors before and after the scandal, and further, how Roche subsequently managed these relationships. The theoretical framework for analysis of the Roche Turkey Scandal is constructed on relationship elements of trust, legitimacy and learning. The analysis provides some answers to the question of how Roche Turkey in the face of reactions given by the network actors managed the aftermath of the scandal and how the legitimacy loss was recovered by learning and adaptation. Conclusions enhance our knowledge on the behaviour of firms under critical condition.

The role of retailers in influencing consumer attitude during a brand scandal is quite complex, as retailers are in direct contact with both marketers and consumers. The purpose of the exploratory research is to propose a theoretical model to capture the influences retailers exercise on consumers during brand scandals.

A qualitative approach has been adopted in the study. The study employs the grounded theory approach on the data collected by conducting in-depth interviews with 25 retailers.

Four contextual conditions and six behavioral antecedents of the retailer's role in the context of the brand scandal were identified. Then, the study finds that companies tend to follow two broad approaches during a brand scandal to address retailers' queries and apprehensions. On these bases, the study proposes a six-pronged typology to better understand retailers' role in shaping consumers' brand perception.

Existing literature has not paid adequate attention to this aspect of retailers' role in influencing consumer choices during brand scandal. To the best of the authors' knowledge, there is no prior research which investigates the role and influence of retailers in shaping consumer attitude during brand scandals. It is important to underline that the current research advocates retailers' significant role during a performance-based brand scandal. Specifically, the authors explored a health-related defective scandal of a well-known food brand. In addition, the study focuses on traditional grocery retailers, which already have special relationships with their consumers. Based on retailer perspectives, the authors' contribution is also updating the discussion of branding theory in case of scandals. The identified variables and constructs may be used for empirical investigation on the role of retailers in shaping consumer attitudes toward the scandalized brand.

The paper aims to discuss the management of financial market scandals using two different approaches – regulatory and values‐based.

The paper discusses the motivations behind financial scandals to occur and then explains in detail both the approaches. The paper first presents the elements of the regulatory approach. Using the teachings of Bhagavan Sri Sathya Sai Baba, the values‐based approach are delineated. The paper also compares the two approaches and identifies their respective utilities.

While both the regulatory and values based approaches have their own utilities; stressing the values‐based approach helps with preventing financial scandals on a sustainable basis.

The practical implication is that it is necessary to stress the evocation of human values among investors and capital market intermediaries so that scandals can be avoided.

The social implication of the paper is that values evocation is very important to tackle the behavioural motivations behind financial scandals. Unless values are evoked, the root causes of financial scandals will not be removed. In such cases, regulation will have only a limited effect.

The paper uses the philosophy and teachings of Bhagavan Sri Sathya Sai Baba to develop value guidelines to prevent financial scandals.

The purpose of this paper is to highlight the circumstances in which a crisis response strategy can compound a crisis, especially a corporate scandal, as evidenced by the case of AWB Limited, where the organisational damage of the “cover‐up” escalated the scandal further and caused additional damage to the company.

The AWB case study provides a unique insight into the application of theories and research on crisis and reputation management and the specific challenges and risks of corporate scandals.

As a specific form of crisis, corporate scandals can easily descend into a secondary or “double crisis” if incorrectly managed, or even mismanaged.

The paper shows that the information provided to the Australian Government's Royal Commission and other documents relating to the management of the scandal by the company further embarrassed AWB and exposed the inappropriateness of the original defensive apologia crisis response strategy pursued by the company.

The AWB case study provides an opportunity for alignment with the crisis response theories of Coombs and De Maria, based on the evaluation of the initial failed response strategy and the more appropriate response eventually undertaken by the company.

The paper offers the additional insights of the author (as a former member of the management team at the company) into the documents tendered to the Royal Commission, which have not been evaluated and studied for their contribution to crisis communication and crisis management.

The purpose of this paper is to investigate the impact of scandal on investor valuation of sport by examining changes in share prices of three football clubs involved in the 2006 Italian “Calciopoli” scandal.

Share price variation and volatility across 2006 is analysed for Juventus (the centre of the scandal), Lazio (also involved) and Roma (uninvolved) over different (qualitatively defined) phases of the scandal. Movements in share price are compared to three benchmark indices – FTSE MIB, DJ Stoxx Europe 600, and DJ Stoxx Europe Football – indexed from 2 Jan 2006. Unadjusted analysis of share price movement matched with events to inform the likely causes of variation.

Despite speculation and high volatility, the share price of all three clubs increased by 30 per cent in 2006, outperforming benchmark indices (15 per cent). This suggests the Calciopoli scandal increased the perceived value of the clubs.

Generalisation of these findings requires more sophisticated statistical and econometric analysis of the Calciopoli scandal, and application of the method to other instances of scandals in sport.

Intuitively, scandals in sport have a negative impact. This paper suggests that scandal could have a positive impact on a club's share price and therefore the overall financial value of sport.

There is a dearth of literature on the economic consequences of scandals in sport. This paper contributes to the development of that literature and investigates some economic consequences of a particular scandal in Italian football.

The purpose of this paper, a set of two studies, is to elaborate on the concept of scansis and its effects upon crisis communication theory and practice. A scansis represents the intersection of a scandal and crisis, essentially when a crisis becomes a scandal. A new term was created due to the varied ways in which the term scandal is used and misused. The effects of scansis on crisis communication are examined through two studies. A scansis is unique because it creates moral outrage and is a function of a perception of injustice coupled with greed.

Experimental design is used in both studies to test for the effects of specific crisis response strategies used during a scansis. The crisis response strategies were manipulated to determine whether or not corrective action with moral recognition is more effective at helping organizations during a crisis than those crisis response strategies that do not contain a moral component.

The two studies found no short-term effect for crisis responses during scansis. This included no difference between corrective action with moral recognition and the other three response conditions for the short-term factors of organizational reputation, negative word-of-mouth intentions, purchase intentions and anger. However, Study 2 found that corrective action with moral recognition was perceived as the most empathetic response and created the lowest levels of moral outrage. The authors postulate that corrective action with moral recognition has a long-term effect after a scansis by creating a positive response that moves organizations away from being stigmatized.

The results raise questions about the current configuration of the intentional crisis cluster articulated in situational crisis communication theory (SCCT). When just consider assessments crisis responsibility, a scansis would be part of the preventable crisis cluster. However, the evaluation of justice and greed suggest a scansis may be a unique crisis type that does not fit within the intentional crisis cluster and the prescribed short-term effects of crisis response strategies recommend by SCCT. The scansis establishes a boundary condition for the limits of crisis response strategies on short-term effects such as reputation and purchase intention. These findings require us to rethink elements of current crisis communication theory.

The lack of short-term benefits should not be an argument for abandoning accommodative crisis response strategies. Practitioners need to realize the limits of crisis response strategies for creating short-term benefits and think about the potential long-term benefits offered by crisis response strategies.

Scansis is a new concept for crisis communication and provides a link between the crisis communication and organizational stigma literatures. The two studies are the first attempts to empirically examine scansis and opens new avenues of thinking and research for crisis communication and organizational stigma researchers.

Marketers and brand managers are subject to reputational crises when their endorsers are involved in scandals. To effectively manage such crises, it is imperative to understand (1) the underlying mechanisms through which consumers process negative information surrounding morally tainted endorsers, and (2) how these mechanisms affect consumer behavior in the context of athlete scandals.

Drawing on attribution theory and the moral reasoning strategy framework, we investigate the impact of attribution on moral reasoning strategies, and the impact of such strategies on consumers' responses to scandalized athletes and endorsements.

Overall, our results demonstrate that the same scandal can be evaluated differently, depending on its information, including the consensus, distinctiveness, and consistency of the scandal. The results of Study 1 show that in the context of an on-field scandal, individuals engage in a sequential cognitive process in which they go through attribution, the choice of a moral reasoning strategy, and ultimately a response. The results of Study 2 reveal that in the context of an off-field scandal, attribution directly influences consumers' responses.

We extend the existing literature on the moral reasoning of athlete scandals by suggesting that attribution is a determinant of moral reasoning choice in the context of on-field scandals. We also extend the sports marketing and consumer behavior literature by suggesting that consumers' diverse reactions to athlete scandals depend on their attribution patterns and moral reasoning choices.