Showing papers in "Corporate Reputation Review in 2007"
TL;DR: Situational crisis communication theory (SCCT) as discussed by the authors offers a framework for understanding the dynamic dynamics of crisis communication and how people will react to the crisis response strategies used to manage the crisis.
Abstract: Crisis managers benefit from understanding how crisis communication can be used to protect reputational assets during a crisis. Situational Crisis Communication Theory (SCCT) offers a framework for understanding this dynamic. SCCT provides a mechanism for anticipating how stakeholders will react to a crisis in terms of the reputational threat posed by the crisis. Moreover, SCCT projects how people will react to the crisis response strategies used to manage the crisis. From its empirical research emerges a set of evidence-based crisis communication guidelines. The development of SCCT is discussed along with the presentation of its guidelines for crisis communication.
1,771 citations
TL;DR: The authors explored the relationship among service quality, facilities, student satisfaction, image of the university college, and image of study program, with student loyalty as the ultimate dependent variable, and found that student satisfaction has the highest degree of association with loyalty, representing a total effect about three times the effect of the image of university college.
Abstract: Even if images and allied constructs, especially identity and reputation, have received considerable attention in recent years, research efforts have mainly focused on those allied constructs and not on their interplay with related constructs. This study examines two models to explore the relationships among service quality, facilities, student satisfaction, image of the university college, and image of the study program, with student loyalty as the ultimate dependent variable. The students perceive the image of the university college and the image of the study program as two distinct concepts. The study's preferred model only indirectly relates the image of the study program to student loyalty (via the image of the university college) while student satisfaction and the image of the university college are directly related to student loyalty. Student satisfaction has the highest degree of association with student loyalty, representing a total effect about three times the effect of the image of the university college. Service quality only loads on student satisfaction, while the variable representing facilities loads on student satisfaction, the image of the university college and the image of the study program. The predictor variables included can explain a considerable amount of the variance of student loyalty.
301 citations
TL;DR: In this paper, the authors discuss findings of a study among German investors of a publicly traded company that put into perspective the aforementioned detrimental choice-effect, the impact of reputation on individual investor behavior and reveals a diversity of loyalty effects of corporate reputation.
Abstract: Prior research suggests that corporate reputation is a determinant of initial investment decisions, possibly leading to detrimental stock choices. Its effect on established investor relationships, namely investor satisfaction and loyalty, are novel research areas. The present paper discusses findings of a study among German investors of a publicly traded company that put into perspective the aforementioned detrimental choice-effect, the impact of reputation on individual investor behavior and reveals a diversity of loyalty effects of corporate reputation.
240 citations
TL;DR: The authors introduced a conceptual model of business school reputation that applies recent advances in reputation theory and research to the specifics of the business school setting, and discussed the model's practical implications, an analysis of limitations and suggestions for future research.
Abstract: Despite the global explosion of the business school rankings industry, the validity of current ranking systems and league tables as credible measures of business school reputation has been questioned by scholars, accreditation agencies and consumers worldwide. Critics have begun calling for more substantive assessments of educational quality and more meaningful, theory-driven strategies for studying reputation in the business school context. This paper responds to these critiques, introducing a conceptual model of business school reputation that applies recent advances in reputation theory and research to the specifics of the business school setting. The literature anchoring the model is reviewed, the variables in the model are introduced and theoretical propositions suggested. The paper concludes with discussion of the model's practical implications, an analysis of limitations and suggestions for future research.
182 citations
TL;DR: In this paper, a qualitative study to conceptualize responsibility from the perspective of stakeholders is conducted, and a formal comparison between this conceptualization and that of reputation models is undertaken, concluding that there is considerable similarity between the concepts of responsibility and reputation.
Abstract: The need to investigate the link between reputation and responsibility is well established. This paper answers calls to conduct this comparison from a stakeholder perspective. In so doing a literature review identified models of reputation that engage with stakeholders from their inception to measurement, while no such models of corporate responsibility were found. A qualitative study to conceptualize responsibility from the perspective of stakeholders was then conducted. Following this, a formal comparison between this conceptualization and that of reputation models is undertaken. The results suggest that there is considerable similarity between the concepts of responsibility and reputation. Implications may include the use of reputation models as potential measures for many of the aspects conceptualized as responsibility. Questions about the causal relationship between the two concepts are also discussed.
176 citations
TL;DR: The authors examines the internal communication and training functions at Singapore Airlines and how it is used strategically to enable cabin crew and ground staff to live its corporate values and consistently deliver on its brand promise of being "a great way to fly".
Abstract: Most studies on corporate branding and image have focused on the influence of external communication such as advertising and public relations. Less attention has been paid to the strategic role that internal communication and training can play. This study examines the internal communication and training functions at Singapore Airlines – one of the world's best international airlines – and how it is used strategically to enable cabin crew and ground staff to live its corporate values and consistently deliver on its brand promise of being ‘a great way to fly’. It shows that internal communication and training should be treated as the ‘first frontier’ in the battle for the customer: when it is founded on strong corporate values, internal communication and training can help transform key employees such as cabin crew into ‘walking embodiments’ of the core values, and key touch points into opportunities for fulfilling the brand promise.
146 citations
TL;DR: The Reputation Institute identified and examined some 183 public lists that provide summary ratings and rankings of companies in 38 countries and found that the majority of the lists were based on either a measure of overall reputation or of the workplace as discussed by the authors.
Abstract: Companies are constantly being rated by one group or another. A companys relative standing across lists opens a partial window on the reputation landscape in which companies operate. Reputation Institute identified and examined some 183 public lists that provide summary ratings and rankings of companies in 38 countries. This note provides readers with an overview of this list of lists. The majority of the lists we found were based on either a measure of overall reputation or of the workplace ( good company to work for). The remaining public lists rated or ranked companies on the basis of citizenship, perfor mance, innovation, gover nance or products.
133 citations
122 citations
TL;DR: In this paper, a survey of 75 analysts operating on the Milan Stock Exchange indicated that securities analysts tend to judge companies mainly on their financial performance, the configuration of their governance structures, the quality of their financial disclosure, and the qualities of their leadership and their prospects for the future.
Abstract: Corporate reputation can be broadly defined as a set of collectively held beliefs about a company's ability to satisfy the interests of its various stakeholders. In this paper, we report findings from an empirical study of drivers affecting the judgment of a specific group of stakeholders, that is, securities analysts. Results from a survey of 75 analysts operating on the Milan Stock Exchange indicate that securities analysts tend to judge companies mainly on their financial performance, the configuration of their governance structures, the quality of their financial disclosure and the quality of their leadership and of their prospects for the future.
101 citations
TL;DR: In this paper, the authors investigate consumers' willingness to pay for organizational attributes that have historically predicted corporate reputation, in this case, for airlines, and find that consumers are willing to pay more for a better corporate reputation.
Abstract: Prior studies of corporate reputation have looked broadly at the relationship between corporate reputation and corporate performance. In this paper, we take a more fine-grained approach. In particular, we investigate consumers' willingness to pay for organizational attributes that have historically predicted corporate reputation, in this case, for airlines. Using a policy-capturing or scenario-based design, we determine how airline customers choose between a series of ticket options. The findings provide two important insights into corporate reputation. First, they demonstrate that consumers are willing to pay more for a better corporate reputation. Secondly, they demonstrate that consumers base their willingness to pay on organizational attributes, but that they do so primarily through corporate reputation. These findings suggest that corporate reputation research has an important place within our understanding of corporate strategy.
99 citations
TL;DR: In this article, the conceptual closeness between corporate social performance (CSP) and corporate reputation (CR) and their convergence toward a common stakeholder framework has resulted in a concurrence of empirical analysis that has muddled the two lines of research.
Abstract: The conceptual closeness between corporate social performance (CSP) and corporate reputation (CR) and their convergence toward a common stakeholder framework has resulted in a concurrence of empirical analysis that has muddled the two lines of research. This paper tries to clear up the interrelation between CSP and CR. These concepts are linked by firm legitimation, a process that translates past performance into an expectation for the future. Legitimation transforms CSP, an objective flow variable, into CR, a perceptual stock variable.
TL;DR: In this article, the authors proposed that for public sector organizations a neutral rather than excellent reputation is ideal, as neutrality enables a critical operating distance, and the resources for maintaining an excellent reputation are scarce.
Abstract: Despite the strides taken in reputation research during recent decades, the reputation of public sector organizations has remained rather neglected. Public sector organizations often measure intangibles with instruments designed for corporations, although their raison d’etre differs fundamentally from that of the latter. This paper attempts to fill the gap in reputation research on public sector organizations by developing the proposition that for public sector organizations a neutral rather than excellent reputation is ideal, as neutrality enables a critical operating distance, and the resources for maintaining an excellent reputation are scarce. To test the idea of neutral reputation in practice, a study measuring the reputation of 12 Finnish public sector organizations among their stakeholders was conducted. The results of the study found that the Finnish public sector organizations generally had a neutral reputation, though more research across countries and cultures is needed. The implications of the findings for theory and practice are also discussed.
TL;DR: In this paper, the authors identify two important approaches to corporation reputation building: symbolic management and behavioral management and conclude that the behavioral management approach is more effective for reputation building and for contributing to profitability.
Abstract: In this paper, we identify two important approaches to corporation reputation building: symbolic management and behavioral management. Within the first approach, corporate communications are intended to generate positive impressions among ‘media audiences’. Within the second approach, corporate actions are changed to more closely align with the message being conveyed by corporation communications. Many corporate managers assume that the symbolic alignment between what is wanted by media audiences and what is said enhances corporate reputation and this, in turn, improves corporate profitability. In this paper, we tested the relative efficacy of the symbolic and behavioral management approaches to corporate reputation and profitability. We found that symbolic management had a positive effect on symbolic reputation, whereas behavioral management had a positive effect on performance reputation. We also found that a positive reputation in the media did not contribute to corporate profitability, whereas a positive performance reputation had a significant effect on profitability. We conclude that the behavioral management approach is more effective for reputation building and for contributing to profitability. We also discuss implications of our findings for reputation management and corporate performance.
TL;DR: In this article, a preliminary framework outlining external and intra-organizational factors that contribute to the construction of organizational identity is proposed, which is a critical organizational perception that guides organizational members' interpretation of the issues facing the organization.
Abstract: This paper proposes a preliminary framework outlining external and intra-organizational factors that contribute to the construction of organizational identity. Organizational identity is a critical organizational perception that guides organizational members' interpretation of the issues facing the organization. Although much is written about organizational identity and its effects on organizations and organizational members, little is known about how organizational identity is formed. Previous literature suggests that organizational identity, while being durable, is also dynamic and flexible, which indicates the opportunity for organizations to construct a strong organizational identity, which will likely lead to competitive advantage.
TL;DR: In this article, the authors analyze if customers, employees, shareholders and journalists are truly distinguishable target groups for corporate branding and stakeholder management, and conclude that some stakeholder attributes are more appropriate for generic, nonspecific branding and marketing approaches while several other attributes are better suited to stakeholder-specific targeting or positioning strategies.
Abstract: In many cases, research in corporate branding, stakeholder management and also corporate reputation management takes on a role concept without testing or probing it. This paper seeks to analyze if customers, employees, shareholders and journalists – as important corporate stakeholders – are truly distinguishable target groups for corporate branding and stakeholder management. Using discriminant and factor analyses, this study found strong support for the role concept, in particular, concluding that some stakeholder attributes are more appropriate for generic, nonspecific branding and marketing approaches while several other attributes are better suited to stakeholder-specific targeting or positioning strategies.
TL;DR: In this article, the authors compared the corporate brand images (CBI) of two book retailers: one that sells exclusively online and the other that operates exclusively offline, and found that consumers appeared to view online CBI as more Informal and Innovative than offline CBI (which appeared to be expressed more in terms of Agreeableness and Competence).
Abstract: This study compares the corporate brand images (CBI) of two book retailers: one that sells exclusively online and the other that sells exclusively offline. The study has adopted measurements developed by Davies et al. (2004) known as the ‘Corporate Character Scale’ in order to measure the two bookstores' CBI. The study is informed by 511 responses from experienced customers of these two bookstores. To identify the difference between offline and online CBI, confirmatory factor analysis was used. Previous literature stresses that Agreeableness and Enterprise were the two most significant variables in predicting online and offline CBI. This study, however, found that consumers appeared to view online CBI as more Informal and Innovative than offline CBI (which appeared to be expressed more in terms of Agreeableness and Competence). In general, the present study adds to the existing literature in branding and reputation in two main ways. First, it puts the concept of emotional brand attributes (the CBI) in a unique context (the internet), and compares it with the bricks-and-mortar context. The present study provides empirical evidence in the context of internet and retail bookstores to enhance the understanding of branding and reputation. Secondly, the practical contribution of the study and its managerial implications can be seen in the context of defining strategy and positioning the corporate brand in the online and offline contexts.
TL;DR: In this paper, the authors present a longitudinal empirical study of the influence of a major accident by a single firm on the volatility of the stock prices of other chemical firms, and their influence on the industry's intensive collective efforts to recover from this major accident on the stock price volatility of these same firms.
Abstract: When a firm suffers a major accident, its stock price is likely to become more volatile, but does this accident also increase the volatility of the stocks of rivals? Following a major accident, rivals sometimes unite through their trade association to implement an industry self-regulatory program. Do such collective efforts help to stabilize the stocks of firms in these threatened industries? This paper presents a longitudinal empirical study of the influence of a major accident by a single firm – Union Carbide's deadly poison gas leak in Bhopal, India – on the volatility of the stock prices of other chemical firms, and the influence of this industry's intensive collective efforts to recover from this major accident – the American Chemistry Council's Responsible Care Program – on the stock price volatility of these same firms. Results indicate that the volatility of the stocks of chemical firms increased after Union Carbide's tragic accident and that this volatility decreased for Responsible Care members but not for non-members. These findings suggest that a firm's stock price may be destabilized by the actions of a rival and that through cooperation with rivals, a firm may restabilize its stock price. Thus, this study provides empirical insight about the nature of the interdependent relationship among rivals and the benefits that trade associations and industry self-regulation may provide for participating, and non-participating, firms
TL;DR: In this paper, the authors used the case of Chiquita to emphasize the distinction between rule-based Corporate Social Responsibility (CSR) and principle-based CSR and demonstrate the importance of continuous communication during a transformation of identity and provide pointers to avoid the so-called authenticity gap.
Abstract: Starting with a questionable reputation, Chiquita has succeeded to embark on an impressive improvement process that was rewarded with certification of their banana plantations by the Rainforest Alliance. Unfortunately, when Chiquita proudly made their achievements public in Switzerland in the fall of 2005, the public was incredulous and NGOs wrote a joint letter of complaint. What went wrong? This article uses the case of Chiquita to emphasize the distinction between rule-based Corporate Social Responsibility (CSR) and principle-based CSR. Additionally, it demonstrates the importance of continuous communication during a transformation of identity and provides pointers to avoid the so-called authenticity gap.
TL;DR: Pfizer created a strategic, integrated community investment program at its site in Sandwich, UK as mentioned in this paper, which not only enhances a company's external reputation, but also has the potential to boost workforce engagement and help employees develop key skills.
Abstract: Investment in the local community not only enhances a company's external reputation, it also has the potential to boost workforce engagement and help employees develop key skills. Here, Pam Baker and Christine Jenkins describe how Pfizer created a strategic, integrated community investment program at its site in Sandwich, UK.