Organizational members are likely to harbor different allegiances, values, and identifications that can affect how they respond to their organization’s stigmatization. Drawing on the empirical case of a public broadcaster in South Korea initially stigmatized for its association with an authoritarian government, we focus on the responses of different intra-organizational groups to stigma and their interactions with each other and with external audiences. We find that faced with stigma, groups in the organization were divided about how to respond, with those (...) defying the stigma and advocating a close relationship with the government competing with those who shared the values of stigmatizing audiences. Both groups sought control over journalism work, the organizational attribute for which the broadcaster was stigmatized, allying with external audiences that shared their respective visions. The dominance of the group that defied the stigma led to increased stigmatization of the organization by existing audiences and additionally prompted the participation of initially passive audiences in its denigration, eventually leading to organizational decline. We contribute to the literature on stigma by promoting an understanding of heterogeneity among members in stigmatized organizations and its implications for the consequences of stigma. We also contribute to theorizing stigmatization as a relational process by demonstrating how the heterogeneity of organizational members’ experience of stigma interacted with audience heterogeneity and highlighting the relative roles played by active and passive audiences in bringing about the decline of a stigmatized organization. (shrink)