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Shame on who? The effects of corporate irresponsibility and social performance on organizational reputation
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Nardella, Giulio, Brammer, Stephen and Surdu, Irina (2020) Shame on who? The effects of corporate irresponsibility and social performance on organizational reputation. British Journal of Management, 31 (1). pp. 5-23. doi:10.1111/1467-8551.12365 ISSN 1045-3172.
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Official URL: http://dx.doi.org/10.1111/1467-8551.12365
Abstract
This study examines the relationship between corporate irresponsibility (CI) and social evaluations of the firm. Utilising a large and unique corporate irresponsibility dataset, we explore how, when, and for whom corporate irresponsibility alters stakeholder perceptions of organisational reputation. By combining attribution theory and expectancy violations theory, our study elucidates the conditions under which organisational assessors attribute hypocrisy. Results generally indicate that organisational reputation, derived from the assessments of managers and market analysts, is infrequently influenced by acts of corporate irresponsibility alone. Contrary to previous studies, we find that stakeholder impressions of the firm are largely path dependent. In turn, our findings reveal that firms previously believed to be most socially responsible are perceived as hypocritical and sanctioned when causality for acts of CI can be externally validated. Conversely, our study reveals risks associated with firms believed to be least socially responsible, in that stakeholders may expect firms with reduced social performance to be culpable for corporate irresponsibility when accused of highly egregious behaviour.
Item Type: | Journal Article | ||||||||
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Subjects: | H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HF Commerce |
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Divisions: | Faculty of Social Sciences > Warwick Business School > Strategy & International Business Faculty of Social Sciences > Warwick Business School |
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Library of Congress Subject Headings (LCSH): | Social responsibility of business , Business ethics, Corporations -- Corrupt practices, Corporate governance, Corporations -- Ratings and rankings | ||||||||
Journal or Publication Title: | British Journal of Management | ||||||||
Publisher: | Wiley-Blackwell Publishing Ltd. | ||||||||
ISSN: | 1045-3172 | ||||||||
Official Date: | January 2020 | ||||||||
Dates: |
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Volume: | 31 | ||||||||
Number: | 1 | ||||||||
Page Range: | pp. 5-23 | ||||||||
DOI: | 10.1111/1467-8551.12365 | ||||||||
Status: | Peer Reviewed | ||||||||
Publication Status: | Published | ||||||||
Reuse Statement (publisher, data, author rights): | This is the peer reviewed version of the following article: Nardella, G., Brammer, S. and Surdu, I. (2020), Shame on Who? The Effects of Corporate Irresponsibility and Social Performance on Organizational Reputation. Brit J Manage. doi:10.1111/1467-8551.12365, which has been published in final form at http://dx.doi.org/10.1111/1467-8551.12365. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. | ||||||||
Access rights to Published version: | Restricted or Subscription Access | ||||||||
Date of first compliant deposit: | 13 January 2020 | ||||||||
Date of first compliant Open Access: | 20 May 2021 |
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