When corporations are accused of unethical behaviour by external actors, executives from those organizations are usually compelled to offer communicative responses to defend their corporate image. To demonstrate the effect that corporate executives'' communicative responses have on third parties'' perception of corporate image, we present the Corporate Communicative Response Model in this paper. Of the five potential communicative responses contained in this model (no response, denial, excuse, justification, and concession), results from our empirical test demonstrate that a concession is the (...) most effective and robust communicative option. (shrink)

This article explores the issue of rebuilding an organization’s reputation following an ethical scandal. We divide our discussion into four parts. First, we discuss the concept of reputation. We note its relevance to today’s organizations, offer several contemporary definitions along with highlighting its benefits and downsides. In the second section, we offer the work of anthropologist, Victor Turner, on social drama along with other views on organizational efforts to rebuild their reputation to include reputation management routines. In the third section, (...) Turner’s redressive actions are integrated with Edgar Schein’s leadership mechanisms for building or changing culture to provide further understanding of organizational efforts to rebuild reputation following ethical scandals. Finally, in the fourth section of the article, we extend the integration of the Turner and Schein work with single- and double-loop redressive actions for rebuilding reputation. (shrink)

This paper presents a holistic, contextualised case study of reintegration and trust repair at a UK utilities firm in the wake of its fraud and data manipulation scandal. Drawing upon conceptual frameworks of reintegration and organizational trust repair, we analyze the decisions and actions taken by the company in its efforts to restore trust with its stakeholders. The analysis reveals seven themes on the merits of proposed approaches for reintegration after an integrity violation , and novel insights on the role (...) of organizational identity, “changing of the guard” and cultural reforms alongside procedural modifications. The case further supports the dynamic nature of stakeholder salience across the reintegration process. The study both supports propositions from existing frameworks and suggests novel theoretical extensions for future research. (shrink)

The objective of this article is to clarify the conceptual domains of organizational identity, image, and reputation. To initiate this theory development process, we present a “social actor” conception of organizational identity. Identity-congruent definitions of image and reputation are then specified and an integrated model proposed. With the aid of this model, a structural flawin the organizational reputation literature is identified and suitable remedies proposed. In addition, the authors explore the implications of invoking identity and identification in explanations and justifications (...) of organizational reputation. (shrink)

This paper addresses the criticism recently directed at Internet companies who have chosen to do business in China. Currently, in order to conduct business in China, companies must agree to the Chinese government's rule of self-censoring any information the government deems inappropriate. We start by explaining how some of these companies have violated the human rights of Chinese citizens to freely trade information. We then analyze whether the justifications and excuses offered by these companies are sufficient to absolve them of (...) moral responsibility. We argue that both justifications and excuses offered are insufficient. Wilfully abiding by unjust laws, albeit necessary to do business in China, should not trump moral actions that protect rights. (shrink)

I propose an ethnographic study on the incremental transformation of identity. Through an analysis of managerial perceptions of stakeholder influence, I suggest that identity is adaptive rather than enduring and that, to explain adaptive identity, group identity is more appropriate than an organizational identity perspective. The case study uses qualitative data collected in organizations manufacturing flavors and fragrances for the large consumer goods industries. The analysis reveals that attributes shared with clannish stakeholders gradually replace attributes of a claimed identity, and (...) that, when confronting hostile stakeholders, organizations act in solidarity with clannish stakeholders. The discussion elaborates on the porosity of identity boundaries and the mobility of attributes, two important mechanisms that have emotional, behavioral, and strategic consequences. (shrink)

This paper is designed to do three things while discussing the challenge of ethical behavior in organization. First, it discusses some reasons why unethical behavior occurs in organization. Secondly, the paper highlights the importance of organizational culture in establishing an ethical climate within an organization. Finally, the paper presents some suggestions for creating and maintaining an ethically-oriented culture.

Abstract:This field survey focused on two constructs that have been developed to represent the ethical context in organizations: ethical climate and ethical culture. We first examined issues of convergence and divergence between these constructs through factor analysis and correlational analysis. Results suggested that the two constructs are measuring somewhat different, but strongly related dimensions of the ethical context. We then investigated the relationships between the emergent ethical context factors and an ethics-related attitude (organizational commitment) and behavior (observed unethical conduct) for (...) respondents who work in organizations with and without ethics codes. Regression results indicated that an ethical culture-based dimension was more strongly associated with observed unethical conduct in code organizations while climate-based dimensions were more strongly associated with observed unethical conduct in non-code organizations. Ethical culture and ethical climate-based factors influenced organizational commitment similarly in both types of organizations. Normative implications of the study are discussed, as are implications for future theorizing, research and management practice. (shrink)

Abstract:Organizational justice and injustice are widely noted influences on employees’ ethical behavior. Corporate ethics programs also raise issues of justice; organizations that fail to “follow-through” on their ethics policies may be perceived as violating employees’ expectations of procedural and retributive justice. In this empirical study of four large corporations, we considered employees’ perceptions of general organizational justice, and their perceptions of ethics program follow-through, in relation to unethical behavior that harms the organization, and to employees’ willingness to help the organization (...) by reporting ethical problems and issues to management. Results show that when employees perceive general organizational justice and ethics program follow-through, there is less unethical behavior and greater willingness to report problems. General justice and ethics program follow-through also interact with each other, showing that the impact of ethics initiatives is influenced by the organizational context. (shrink)

The authors offer a framework based on the stakeholder, organizational identity, and strategic response literatures to specify how organizational identity influences an organization’s responses to negative evaluation in the public domain by external stakeholders. The framework proposes how the number of organizational identities possessed by an organization and the level of perceived organizational identity threat affect which type of response an organization will adopt. Directions for future research are developed and implications for practicing managers are proposed.

The authors offer a framework based on the stakeholder, organizational identity, and strategic response literatures to specify how organizational identity influences an organization’s responses to negative evaluation in the public domain by external stakeholders. The framework proposes how the number of organizational identities possessed by an organization and the level of perceived organizational identity threat affect which type of response an organization will adopt. Directions for future research are developed and implications for practicing managers are proposed.

Organizational misconduct (white collar, corporate and occupational crime, unethical behavior, rule violations, etc.) is an increasingly important social concern. This paper proposes that a necessary step toward preventing and treating such misconduct is the understanding of the explanations, called accounts, given by the actor. We argue that the theorizing and findings in the literature on accounts can be organized into a 2×2 matrix framework. The first dimension centers on whether or not the actor admits that some net harm is done (...) by the act, and the second consists of whether or not the actor admits responsibility. When both are admitted (cell 1), the account is a concession, while denial of both constitutes a refusal (cell 4). Admitting responsibility but not harm equates to a justification (cell 2), and the opposite condition is an excuse (cell 3). Building on this matrix, we specify a typology of explanations within each cell which will highlight inter-cell differences. Finally, we explore the implications of this analysis for managers, regulators, and the public. (shrink)

A normative criterion identifying the conditions for a desirable corporate reputation, “reputational optimality,” or “reputational bliss,” is described, and a case developed for its utility and reasonableness as a criterion to apply to real world phenomena. The paper discusses some behavioral patterns under alternative moral positions taken by observers and the firm, critiques some alternative moral principles, and considers some dynamics of moving toward, defending and maintaining, and breaching or breaking reputational bliss.

The study of reputation has often focused on the creation of good reputations rather than on the varied means by which reputations are modified, or shifted, and the factors affecting such shifts. This paper develops a theory of reputation shifting and identifies five basic reputational actions, the types of strategic responses that can be taken to manage reputations.

The purpose of this article is to extend from the business and society research focus on corporate political strategy and to factor this emphasis into business strategy thinking. The approach taken is to incorporate business and society concepts into a model that parallels Michael Porter's well-known Five Forces Model of business strategy. The applicability of the parallel model for practitioners and academics is then illustrated by using the model to analyze the television violence issue.