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This research uses the distinction between communal relationships (based on mutual care and concern) and exchange relationships (based on the principle of quid pro quo) to propose a framework that predicts differences in the shape of consumer response function to increasing levels of brand transgressions.

The paper proposes a conceptual model based on insights from prior research on brand relationships.

The premise being proposed in this paper is that exchange-oriented consumers, being focused on the balance of inputs and outcomes, base their evaluations on an objective assessment of the final outcome, such that their response function will be relatively proportional to increasing levels of brand transgression. On the other hand, communally oriented consumers are concerned with whether or not the relationship partner cares for them, such that up to a point brand transgressions are overlooked while beyond a threshold there is a sudden negative shift in brand evaluations. These consumers thus exhibit a step-function response to brand transgressions.

This paper proposes a conceptual framework and leaves it to future researchers to test it empirically.

Managers now have a toolkit to better manage instances of product and service failure.

Findings from this model can be applied to better manage interpersonal relationships too.

This paper proposes a model that shows how and why consumers might differ in their response to brand transgressions. Further, this is a dynamic model in that it traces the response function of the consumers at increasing levels of transgressions.

We propose that brands with strong associations and dedicated customers may be vulnerable if customers perceive them as exploiting their relationship.

We start by reviewing the literature on brand meaning, brand attachment, brand relationships, and brand transgressions. The extant literature implies that as a result of their willingness to sustain their brand relationship, highly attached consumers will either discount negative information about a brand or attribute the responsibility for the negative information to some external factors. We propose, on the other hand, that when negative information dilutes the reason for brand attachment, the norm of the consumer–brand relationship is violated (brand transgression). Then we argue that highly attached consumers of that brand will react more negatively (when compared to consumers not feeling highly attached) toward the brand.

We introduce a typology of brand transgressions against the (1) expressive, (2) exclusive, (3) expert, and (4) empathic nature of brands. We discuss the possible effects of attachment levels on consumers’ reactions after such brand transgressions. Additionally, we articulate the moderating effects of four consumer motives (need for self-enhancement, need for uniqueness, need for risk avoidance, and need for justice) on consumer reactions.

Our reasoning counters the literature suggesting that highly attached consumers of a brand will engage in relationship-sustaining behaviors. We contribute to the brand-transgression literature by providing a more structured and detailed definition of brand transgressions by classifying them under four distinct types.

Purpose – To motivate efforts within the ethics, fairness, and justice literatures to address some largely unexamined questions regarding how reactions to potential transgressions might depend on the group context.

Design/approach – We draw on prior literature on ethics, fairness, and justice to develop a framework that highlights gaps in the literature. We develop a section on future work that provides suggestions to researchers on how to address these gaps.

Findings – Although it is important to understand how to prevent transgressions from being committed, we start from the point of view that they are likely to remain an unfortunate aspect of organizational life. Thus, it is important to consider how people not only interpret transgressions, but also how they might respond after such transgressions occur. Through a review of the prior literature, we highlight the relative lack of research on such responses, particularly at a collective level, by considering (1) the types and implications of attributions made for transgressions in a group context and (2) how collective reactions to potential transgressions may ultimately differ from those of individuals.

Originality/value – We attempt to spur greater understanding of how groups understand and collectively react to potential transgressions. By doing so, we motivate greater attention toward an important, though underexplored, area in the literature.

The purpose of this study is to investigate how brand communities collectively react towards brand transgressions, an area where previous research has been scant.

This study adopts a netnographic approach in studying the reactions of one particular brand community and its reactions to a marketer-initiated brand transgression.

Building on coping theory, we find evidence of brand community coping, a temporally bounded process in which the community seeks to come to terms with and even overturn the transgression. Overall, we define the brand community coping process as unfolding through three overlapping and temporally bounded stages of (1) making the problem communal, (2) exploring the problem’s meaning, and (3) co-creating responses.

Studies of consumer coping particularly in cases of brand transgressions have predominantly adopted an individualistic approach to coping, or have treated communities as coping resources for individual consumers. This study is the first study to truly look at brand communities’ collective coping endeavors. We also offer managerial implications by questioning the overtly positive tone of brand co-creation literature and underline potential threats to marketers when consumers decide to use their co-creative practices to punish the marketer.

This chapter proposes and provides evidence for a conceptual framework for understanding the restoration of justice. Specifically, there is a fundamental distinction between two primary symbolic concerns that follow from transgressions: concern over the status/power relations between the involved parties, and over the violation of the values those parties expect to share. Recognizing these concerns is paramount to understanding the psychological needs of injustice victims, how they conceptualize the restoration of justice, and the processes by which various interventions instill feelings of justice. This framework also elucidates when alternative avenues towards justice might be more effective than traditional retributive responses.

This paper investigates the substance of institutions in the context of business ethics. In particular, I test a theory of stakeholder attention to resource commitments by firms that implement the Ethics and Compliance Officer (ECO) position, from 1990 to 2008. Results support the hypothesized curvilinear relationship between resource commitments and stakeholder attention – while both high and low levels of ECO implementation generate low levels of reported ethics transgressions (the former due to good firm behavior and the latter due to stakeholder disengagement), moderate ECO implementation produces elevated transgression reports (due to raised expectations and increased engagement). Contrary to extant theory, results are consistent across both internal and external firm stakeholder groups.

Purpose – To develop a new model of restorative reparation that attempts to capture the dynamic role of shared identity perceptions.

Design/methodology/approach – Drawing on recent advances in restorative justice theory (Wenzel, Okimoto, Feather, & Platow, 2008), we explore the theoretical proposition that a greater understanding of the identity relations between victims, offenders, and the groups in which they are embedded is key to understanding a victim's underlying motives toward justice, and thus, predicting when victims will react favorably to restorative justice processes and prefer them over traditional retributive justice interventions.

Findings – We argue that a perceived shared identity between the victim and the offender determines the extent to which the victim understands the transgression as requiring a revalidation of the rules, values, or morals undermined by the offense. Moreover, we propose that these identity relations are dynamic in that they both affect and are affected by the experience of injustice. Thus, identity is also shaped by the transgression itself through, inter alia, processes associated with positive social identity maintenance. Importantly, these shifts in identity determine how injustice victims are likely to respond to constructive approaches to conflict resolution such as restorative justice.

Originality/value – We offer a series of testable hypotheses aimed at engendering future research in the domain of constructive justice restoration in groups. Moreover, this work suggests that to develop effective resolution strategies, we must consider how an injustice event shapes the relations between the affected parties over time rather than simply assuming identity relations are static.

Globalization, advanced by technologies of production and information, created seamless world markets with profound impacts on the world economy. Vast amounts of wealth have been created, but that wealth has been unequally distributed. Such inequality has meant that large numbers of young people have not been able to find the kinds of jobs and careers that provide the “goods” life extolled in a consumer society. Nor do the dominant values of rationality, neo-liberalism or secularism hold much appeal. These conditions have encouraged the emergence of a number of subcultures of transgression, identity-granting communities of meaning which provide members with a sense of community with recognition and empowerment. As many such subcultures repudiate dominant norms, we note how they resemble the medieval carnival, which Bakhtin showed was a time and place of inversion, transgression, and celebration of the grotesque. It allowed the common people encapsulate realms of agency to articulate disdain and resistance. Yet this served to reproduce the dominant system.

In much the same way, insofar as globalization is intimately tied to cities, we have seen the growing importance of cities as nodal points for global commerce as well as sites for entertainment and tourism. These factors, together with the longstanding anonymity and toleration of the city, have become focal points for the emergence of a number of oppositional subcultures. They include those who embrace extreme body modification, numerous forms of body adornment through piercings (rings, posts, studs), tattoos, and surgical modifications such as implanted horns, furrows, or split tongues. Following Simmel, adornment can be seen as a means of inclusion within a group and differentiation from others. The practitioners of extreme body modification label themselves “urban primitives,” who see themselves rejecting global modernity, the occupation-based status hierarchies of the dominant occupational system and its shallow, materialistic culture. They see themselves as a moment of the “transvaluation of values” in which Dionysian passion triumphs over Apollonian control and restraint. This is especially evident in various genital decorations in which what heretofore has been private and exposure was a matter of shame. There has been a “cultural transformation of the pubic sphere.” While such groups find community, identity and recognition, they must also be understood as a key ingredient of the city in a global age in which diversity, cosmopolitanism, and the offbeat constitute essential moments of urban ambience.

Purpose – This chapter reviews the challenges faced by top management teams as they strive to create corporate cultures that combine a high performance with a strong sense of integrity.

Methodology/approach – The chapter integrates diverse theories from organizational research and cognitive psychology, as well as published accounts of ethical breakdowns, to shed new light on the barriers to corporate integrity.

Findings – The chapter distinguishes between two major types of ethical breakdowns.

Conscious transgressions, where the individuals know what they should or should not do, but choose nonetheless to follow the unethical path, a decision that they then need to rationalize and which often places them on a slippery slope.

Unconscious transgressions, where the individuals do not even realize that they are making an inappropriate decision, as they fall prey to ethical fading or to other cognitive biases.

Practical implications – The chapter proposes that top management plays a key role in establishing a climate where employees can speak up, emphasizing the importance of all stakeholders, and investing in training to increase awareness of the cognitive biases that support transgressions.

Social implications – The chapter recommends that management educators must alert students more forcefully to the personal and organizational repercussions of “minor” ethical transgressions; increase student awareness of key cognitive concepts, including ethical fading and other mental biases; and highlight the possible dysfunctions of intuitive remedies, like incentives or rules and regulations.

Originality/value of chapter – The chapter provides a clearer analysis of the causes of ethical breakdowns, allowing for more effective prevention.