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Reputation and ethical behaviour in a crisis: predicting survival

Reputation and ethical behaviour in a crisis: predicting survival Purpose – The purpose of this paper is to explore the interrelation of reputation with corporate performance in a crisis and consider the factors that make up the balance between strong recovery, bare survival and failure. The emphasis is on corporate communication and corporate governance. Design/methodology/approach – The current debate on reputation and the validity of the term reputation management is reviewed and cases studies from Australia and the UK are examined. Findings – The paper finds that, in the case studies, poor management, unethical practices, a lack of engagement with customers and other stakeholders, indifferent or aggressive performances by CEOs and lack of preparedness for crisis communication severely or terminally affected the organisations. It identifies a new reputational factor of predictability and considers why some organisations survive a crisis that has strong negative ethical dimensions while others fail. Originality/value – This paper scrutinises existing concepts of reputation and reputation management and finds that they are not able to predict recovery, survival or failure of organisations. A new definition of reputation is put forward and the factor of predictability is emphasised in proposals for new applied theory. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Communication Management Emerald Publishing

Reputation and ethical behaviour in a crisis: predicting survival

Tom Watson
Journal of Communication Management , Volume 11 (4): 14 – Nov 20, 2007
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References (41)

Publisher
Emerald Publishing
Copyright
Copyright © 2007 Emerald Group Publishing Limited. All rights reserved.
ISSN
1363-254X
DOI
10.1108/13632540710843959
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper is to explore the interrelation of reputation with corporate performance in a crisis and consider the factors that make up the balance between strong recovery, bare survival and failure. The emphasis is on corporate communication and corporate governance. Design/methodology/approach – The current debate on reputation and the validity of the term reputation management is reviewed and cases studies from Australia and the UK are examined. Findings – The paper finds that, in the case studies, poor management, unethical practices, a lack of engagement with customers and other stakeholders, indifferent or aggressive performances by CEOs and lack of preparedness for crisis communication severely or terminally affected the organisations. It identifies a new reputational factor of predictability and considers why some organisations survive a crisis that has strong negative ethical dimensions while others fail. Originality/value – This paper scrutinises existing concepts of reputation and reputation management and finds that they are not able to predict recovery, survival or failure of organisations. A new definition of reputation is put forward and the factor of predictability is emphasised in proposals for new applied theory.

Journal

Journal of Communication Management – Emerald Publishing

Published: Nov 20, 2007

Keywords: Ethics; Behaviour; Business performance; Australia; United Kingdom

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