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With the investigation of the US stock market response to the Volkswagen Dieselgate, this paper aims to empirically demonstrate a case of dissemination of corporate scandals and events through industries and supply chains (i.e. inertial effect).

Individual event studies were conducted in the analysis of the market value fluctuations of 33 companies of the American automotive industry upon the disclosure of the scandal.

Results show that the fraud held by the German automaker spread to surrounding companies within the industry and supply chain levels of analysis, contaminating market values and costing around 6.44 billion dollars to American firms.

Building on the efficient market hypothesis and on the literature on supply chain management, empirical evidences support the conceptualization of the inertial effect as a valid rationale to address the dissemination of events through companies not directly involved. In that sense, the study contributes to an emerging and promising research field within the supply chain management literature. Beyond that, its interdisciplinary approach may inspire future research in the applicability of the event study methodology in similar contexts, as well as of alternative forms to empirically test other theoretical constructs.

The chapter aims to bridge theory-practice by proposing an in-depth examination of three cases of companies accused of greenwashing, namely Volkswagen for Dieselgate, Nestlè and Golden Agri-Resources (a palm oil plantation company included in DJSI). The chapter thus reflects on deliberate communicative practices and organisational processes that lie beyond the most visible manifestations of greenwashing. Drawing on these cases, common communication errors and practices of corporate misconduct in corporate sustainability are disclosed. Readers, such as practitioners, who are not interested in academic mechanisms and more in the practical effects of the phenomenon can appreciate the analysis of the cases linked with the presentation of a series of principles and guidelines. Managerial solutions to contrast the different types of greenwashing risks, and to reduce associated negative effects on corporate image and reputation, are presented.

This study aims to explore how corporate discourses enact legitimation strategies aimed at repairing pragmatic, moral and cognitive legitimacy types (Suchman, 1995) after a scandal involving sustainability, namely, the Volkswagen’s 2015 diesel scandal.

By drawing on the discursive nature of legitimacy, this study conducts a critical discourse analysis to identify how the scandal is depicted and which semantic, grammatical and lexical features characterise discourses. It then relates discourses and their features to legitimation strategies that help repair diverse types of legitimacy.

To repair pragmatic legitimacy, discourses on a few actors and processes enact strategies of creating monitors and avoiding panic. Such discourses include grammatical features only. Discourses on the event, actors, processes and topics of apology, trust and integrity aim to repair moral legitimacy. Enriched with grammatical and lexical features, they mobilise disassociation, excuse, justify and restructure strategies. Discourses on the event, actors, processes and topics of corporate qualities, history and future strategy help repair cognitive legitimacy by enacting an avoiding panic strategy. Grammatical, lexical and semantic features characterise such discourses.

The study reveals the potentials of critical discourse analysis to bring out from texts practical modes of communicating, and specifically those discourses and features of discourses that serve legitimacy purposes.

This study offers insights into the connection among discourses, relegitimation strategies and legitimacy types by combining the discursive nature of legitimacy with critical discourse analysis. It also contributes to the growing literature on how organisations face the legitimacy challenges raised by scandals involving sustainability.

The Volkswagen (VW) emissions scandal was one of the largest examples of organizational wrongdoing in corporate history, costing the firm immense damage to its reputation and over $33 billion in fines, penalties, financial settlements, and buyback costs. In this paper, we draw on the concept of boundary work to provide insight into the causes of wrongdoing at VW. Supplementing other work on the scandal, we show how the ways in which boundaries became established in the organization resulted in an internal context that defined “in” and “out” groups, normalized certain behaviors, and limited communication across intraorganizational boundaries. This allowed wrongdoing to not only become established but also to go unchallenged. We provide contributions to broader understandings of organizational wrongdoing and to the temporal unfolding of boundary work by theorizing how a combination of cognitive, horizontal, and vertical boundaries can create an infrastructure of organizational design that permits organizational wrongdoing, prevents it being challenged, and ultimately normalizes it in everyday activities.

This study aims to propose a framework to drive organizations, and particularly multinational enterprises, to understand and internalize a sustainable mindset for implementing efficient and effective corporate sustainability initiatives and helping them achieve sustainable development goals (SDGs).

The framework is based on the bidirectional iterative process of the flexible pattern matching methodology. The literature on ecocentric management was examined from top to bottom in its dialogue with corporate sustainability and corporate social responsibility (CSR). The bottom-up phase was based on highly visible deviant cases of companies that were significantly recognized for their CSR or for their sustainability programs but became well-known examples of unsustainability. Additionally, an illustrative case was analyzed to examine the mindset in practice.

The study offers a framework based on six constructs that were identified in ecocentric management literature. It translates the ecocentric management mindset framework into behaviors for organizations that want to conduct efficient sustainable programs that help them achieve the SDGs.

The proposed new framework highlights the conceptual pillars of ecocentric management, and offers practical and theoretical perspectives on how sustainability can be better addressed at the corporate level, and help achieve the SDGs.

The purpose of this paper is to investigate the communication behaviour on Twitter during the rise of a preventable corporate crisis. It aims to contribute to situational crisis response strategies, and to broaden the authors’ understanding of legitimacy management. In September 2015, Volkswagen’s (VW) emission scandal became public and caused debates also in social media. By applying complementing tools of data analysis to the Twitter communication around the “Dieselgate” crisis, this study unfolds a field of tension between corporate strategy and public perception.

The authors collected Twitter data and analysed approximately 2.1m tweets relevant to the VW crisis. The authors approached the data by separating the overall communication in peak and quiet phases; analysing the peaks with social network analysis techniques; studying sentiments and the differences in each phase; and specifically examining tweets from VW’s corporate accounts with regard to the situational crisis communication theory (SCCT) and legitimacy.

VW’s very few tweets were not able to reduce the emotionality and sentiment of the ongoing Twitter discussion. Instead, even during quiet phases, the communication remained rather negative. The analysis suggests that VW followed a strategy not covered by SCCT, i.e. keeping silent.

The discovered strategy of keeping silent extends the SCCT and is linked to legitimacy management. Learnings from this study help decision makers to put social media response strategies into practice to swiftly recover from crises or refrain from certain strategies to avoid further reputational damage.

Examining the underlying communication patterns of a crisis case with societal magnitude such as “Dieselgate” helps sensitising customers and executives to utilise social media channels more comprehensible in future crises.

The study uncovers the unconventional and yet barely addressed crisis response strategy of a global enterprise while devising unique realisations for practitioners and communication researchers. It contributes to existing knowledge about situational crisis response strategies, and broadens the authors’ understanding of legitimacy management in times of social media ubiquity.

Scandals regularly sweep through organizational fields: they wreak havoc in markets, vaporize billions of dollars in firm value, bring down giant corporations, get CEOs fired, alter the evolution of technologies, and trigger major changes in society. In spite of their significance for organizational life, scandals have received remarkably limited attention in management research. I build on the social sciences’ sparse but growing stream of research on scandals to explore the concept beyond its usual representation as a discrete event. I propose that an organizational scandal may be understood as an interactional process associated with the disclosure of alleged organizational misconduct that involves: a public struggle between alleged perpetrators and social control agents over the framing of organizational misconduct; moralizing by audience members; collective effervescence at the societal level; and the potential rewriting of the moral rules applicable to organizations and their members.

This paper aims to explore in depth how internal and external knowledge-based drivers actually affect the firms’ green innovation performance. Subsequently, this study analyzes the relationships between absorptive capacity (internal knowledge-based driver), relationship learning (external knowledge-based driver) and green innovation performance.

This study relies on a sample of 112 firms belonging to the Spanish automotive components manufacturing sector (ACMS) and uses partial least squares path modeling to test the hypotheses proposed.

The empirical results show that both absorptive capacity and relationship learning exert a significant positive effect on the dependent variable and that relationship learning moderates the link between absorptive capacity and green innovation performance.

This paper presents some limitations with respect to the particular sector (i.e. the ACMS) and geographical context (Spain). For this reason, researchers must be thoughtful while generalizing these results to distinct scenarios.

Managers should devote more time and resources to reinforce their absorptive capacity as an important strategic tool to generate new knowledge and hence foster green innovation performance in manufacturing industries.

The paper shows the importance of encouraging decision-makers to cultivate and rely on relationship learning mechanisms with their main stakeholders and to acquire the necessary information and knowledge that might be valuable in the maturity of green innovations.

This study proposes that relationship learning plays a moderating role in the relationship between absorptive capacity and green innovation performance.

This article takes stock of interdisciplinary research on Multinational Corporations (MNCs) by elucidating paradigmatic shifts in the world of MNCs in the new millennium and analysing more recent developments in the disciplines of International Business (IB) and Organization Theory (OT). The article also introduces the altogether 14 individual contributions of this 49th volume of the Research in the Sociology of Organizations series. It closes by looking into the questions of where interdisciplinary OT/IB research on MNCs is now and where it is likely to go in the future.