Corporate Reputation and Crisis Management: The Threat and Manageability of Anti-corporatism

Abstract

Advances in technology and communication have rendered corporate reputations more vulnerable than ever to criticism and attack from anti-corporate pressure groups, which now have the capacity to reach a global audience and mobilize their protests at a multinational level. This paper will discuss the increasing value of corporate reputation as a source of differential advantage in the global marketplace, and the threats that exist to even the most reputable organizations. Based on this analysis, the paper will investigate the role of reputation in crisis management, and the extent to which the actions of the increasingly influential anti-corporate movement can be managed successfully.

Corporate Responsibility and Corporate Reputation: Two Separate Concepts or Two Sides of the Same Coin?

“…Schnietz and Epstein (2005) , for example, identify social responsibility as a key dimension of reputation; Tucker and Melewar (2005) see social responsibility as a critical element of reputation relevant to crisis management and Lindgreen and Swaen (2005) argue that issues relating to responsibility are embedded within the functional relationships that underpin business activities. They suggest, therefore, that there will be a signifi cant overlap between the reputation for these activities and the reputation for issues relating to responsibility.…”

Impacts of Reputation for Quality on Perceptions of Company Responsibility and Product-related Dangers in times of Product-recall and Public Complaints Crises: Results from an Empirical Investigation

“…Grunwald, 2008: 74 ff. ;Standop 2006 ;Tucker and Melewar, 2005 ;De Matos and Veiga, 2004: 3 ;Dean, 2004 ;Cameron, 2004, 1998 ;Gutteling, 2001 ;Dawar and Pillutla, 2000 ;Tadelis, 1999 ;Coombs, 1998: 181 ;Dawar, 1998 ;Al-Najjar, 1995 ;Siomkos and Kurzbard, 1994 ;Siomkos and Shrivastava, 1993 ;Mowen, 1980 ). However, the determinants mentioned above have not yet been addressed in the framework of the underlying crises situations and with regard to reputation for quality.…”

Caffeine Catastrophe: Energy Drinks, Products Liability and Market Strategy

“…Although injuries caused by product defects can severely damage consumer confidence, notable recalls involving products from Coca-Cola and Mercedes Benz have demonstrated that consumer opinions on firm responsibility play a fundamental role in effective crisis management (Tucker and Melewar, 2005). Customers that believe suitable elimination processes were implemented are more likely to perceive a company as dependable and cooperative (Mishra, Heide, and Cort, 1998).…”

“…However, studies have shown that while product demand may slightly weaken in reaction to negative product information (Govindaraj et. al 2004;Andrews, 2006), the extent of the associated fallback depends on consumer perceptions of candor, transparency, and problem severity (Dean, 2004;Tucker and Melewar, 2005;Standop, 2006;Grunwald, 2008;Polinksy and Shavell, 2010). Therefore, companies that take greater strides to provide consumers with comprehensive product information will stand in a better position to build consumer trust, leading to increased market share and profits.…”