IDEAS home Printed from https://ideas.repec.org/a/aml/intbrm/v12y2021i3p116-138.html
   My bibliography  Save this article

Repair of Trust Through Apology at a Reputable Company: The Case of PostBus In Switzerland

Author

Listed:
  • Jörn S. Basel

    (Institute of Tourism and Mobility, Lucerne University of Applied Sciences, Lucerne, 6002, Switzerland)

  • Katja Rubin

    (Baloise Group, Basel, 4002, Switzerland)

Abstract

In 2018, an inquiry revealed that the Swiss-based PostBus company had illegally received several excessive compensatory payments. Consequently, trust in this once-reputable company declined. The subsequent crisis communication was studied from two perspectives: study 1 examined the case by means of a content analysis of the framing strategies used by both Swiss newspapers and PostBus. The analysis revealed that the newspapers framed the affair as an integrity-based trust violation and attributed the crisis responsibility internally. PostBus took the opposite stance, framing the breach of trust as a question of competence and assigning the blame externally. In study 2, we experimentally tested the effectiveness of the apology accounts. Our results showed that external attribution was more effective in repairing trust when the scandal was framed as a competence-based trust violation; however, regarding the framing of the scandal as an integrity-based trust violation, no difference was found between the two different apology strategies.

Suggested Citation

  • Jörn S. Basel & Katja Rubin, 2021. "Repair of Trust Through Apology at a Reputable Company: The Case of PostBus In Switzerland," International Journal of Business Research and Management (IJBRM), Computer Science Journals (CSC Journals), vol. 12(3), pages 116-138, June.
  • Handle: RePEc:aml:intbrm:v:12:y:2021:i:3:p:116-138
    as

    Download full text from publisher

    File URL: https://www.cscjournals.org/manuscript/Journals/IJBRM/Volume12/Issue3/IJBRM-316.pdf
    Download Restriction: no

    File URL: https://www.cscjournals.org/library/manuscriptinfo.php?mc=IJBRM-316
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jörn Sebastian Basel & Rolf Brühl, 2016. "Choice reversal in management decisions: the seductive force of new information," Journal of Business Economics, Springer, vol. 86(4), pages 343-359, May.
    2. Nicholas DiFonzo & Anthony Alongi & Paul Wiele, 2020. "Apology, Restitution, and Forgiveness After Psychological Contract Breach," Journal of Business Ethics, Springer, vol. 161(1), pages 53-69, January.
    3. Coombs, W. Timothy, 2015. "The value of communication during a crisis: Insights from strategic communication research," Business Horizons, Elsevier, vol. 58(2), pages 141-148.
    4. Dag Detter & Stefan Fölster, 2015. "How poorly governed state-run businesses can ruin the economy and politics," Palgrave Macmillan Books, in: The Public Wealth of Nations, chapter 0, pages 30-42, Palgrave Macmillan.
    5. Brühl, Rolf & Basel, Jörn S. & Kury, Max F., 2018. "Communication after an integrity-based trust violation: How organizational account giving affects trust," European Management Journal, Elsevier, vol. 36(2), pages 161-170.
    6. Niamh Brennan & Encarna Guillamon-Saorin & Aileen Pierce, 2009. "Impression management : developing and illustrating a scheme of analysis for narrative disclosures – a methodological note," Open Access publications 10197/2905, Research Repository, University College Dublin.
    7. Brian L. Connelly & David J. Ketchen Jr, & K. Ashley Gangloff & Christopher L. Shook, 2016. "Investor perceptions of CEO successor selection in the wake of integrity and competence failures: A policy capturing study," Strategic Management Journal, Wiley Blackwell, vol. 37(10), pages 2135-2151, October.
    8. Kim, Peter H. & Dirks, Kurt T. & Cooper, Cecily D. & Ferrin, Donald L., 2006. "When more blame is better than less: The implications of internal vs. external attributions for the repair of trust after a competence- vs. integrity-based trust violation," Organizational Behavior and Human Decision Processes, Elsevier, vol. 99(1), pages 49-65, January.
    9. Nakayachi, Kazuya & Watabe, Motoki, 2005. "Restoring trustworthiness after adverse events: The signaling effects of voluntary "Hostage Posting" on trust," Organizational Behavior and Human Decision Processes, Elsevier, vol. 97(1), pages 1-17, May.
    10. Donald L. Ferrin & Cecily D. Cooper & Kurt T. Dirks & Peter H. Kim, 2018. "Heads will roll! Routes to effective trust repair in the aftermath of a CEO transgression," Journal of Trust Research, Taylor & Francis Journals, vol. 8(1), pages 7-30, January.
    11. Young Kim & Hyojung Park, 2017. "Is there Still a PR Problem Online? Exploring the Effects of Different Sources and Crisis Response Strategies in Online Crisis Communication Via Social Media," Corporate Reputation Review, Palgrave Macmillan, vol. 20(1), pages 76-104, February.
    12. Niamh M. Brennan & Encarna Guillamon‐Saorin & Aileen Pierce, 2009. "Methodological Insights," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 22(5), pages 789-832, June.
    13. Mooweon Rhee & Pamela R. Haunschild, 2006. "The Liability of Good Reputation: A Study of Product Recalls in the U.S. Automobile Industry," Organization Science, INFORMS, vol. 17(1), pages 101-117, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Anne Norheim-Hansen & Pierre-Xavier Meschi, 2021. "De-Escalate Commitment? Firm Responses to the Threat of Negative Reputation Spillovers from Alliance Partners’ Environmental Misconduct," Journal of Business Ethics, Springer, vol. 173(3), pages 599-616, October.
    2. Drago, Carlo & Ginesti, Gianluca & Pongelli, Claudia & Sciascia, Salvatore, 2018. "Reporting strategies: What makes family firms beat around the bush? Family-related antecedents of annual report readability," Journal of Family Business Strategy, Elsevier, vol. 9(2), pages 142-150.
    3. Maria-Silvia Sandulescu, 2017. "Impression management – an international perspective," The Audit Financiar journal, Chamber of Financial Auditors of Romania, vol. 15(148), pages 605-605.
    4. Habersam, Michael & Piber, Martin & Skoog, Matti, 2013. "Knowledge balance sheets in Austrian universities: The implementation, use, and re-shaping of measurement and management practices," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 24(4), pages 319-337.
    5. Shrives, Philip J. & Brennan, Niamh M., 2015. "A typology for exploring the quality of explanations for non-compliance with UK corporate governance regulations," The British Accounting Review, Elsevier, vol. 47(1), pages 85-99.
    6. Kathleen Cleeren & Marnik G. Dekimpe & Harald J. Heerde, 2017. "Marketing research on product-harm crises: a review, managerial implications, and an agenda for future research," Journal of the Academy of Marketing Science, Springer, vol. 45(5), pages 593-615, September.
    7. Li, Yi-Na & Li, Yan & Chen, Haipeng (Allan) & Wei, Jiuchang, 2023. "How verbal and non-verbal cues in a CEO apology for a corporate crisis affect a firm’s social disapproval," Journal of Business Research, Elsevier, vol. 167(C).
    8. Leung, Sidney & Parker, Lee & Courtis, John, 2015. "Impression management through minimal narrative disclosure in annual reports," The British Accounting Review, Elsevier, vol. 47(3), pages 275-289.
    9. Enis Yakut & Ayse Gul Bayraktaroglu, 2021. "Consumer reactions to product recalls: the effects of intentionality, reputation, and public apology on purchase intentions," Journal of Business Economics, Springer, vol. 91(4), pages 527-564, May.
    10. Bob Fennis & Wolfgang Stroebe, 2014. "Softening the Blow: Company Self-Disclosure of Negative Information Lessens Damaging Effects on Consumer Judgment and Decision Making," Journal of Business Ethics, Springer, vol. 120(1), pages 109-120, March.
    11. Lili Wan, 2016. "Tactics to Restore Damaged Customer Relationship after Negative Events," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 6(6), pages 132-137, June.
    12. Tiffany Cheng-Han Leung & Robin Stanley Snell, 2021. "Strategies for Social and Environmental Disclosure: The Case of Multinational Gambling Companies," Journal of Business Ethics, Springer, vol. 168(3), pages 447-467, January.
    13. Lorenzo Gelmini & Valentina Minutiello & Patrizia Tettamanzi & Maurizio Comoli, 2021. "Rhetoric, Accounting and Accountability: COVID-19 and the Case of Italy," Sustainability, MDPI, vol. 13(8), pages 1-21, April.
    14. Dunne, Neil J. & Brennan, Niamh M. & Kirwan, Collette E., 2021. "Impression management and Big Four auditors: Scrutiny at a public inquiry," Accounting, Organizations and Society, Elsevier, vol. 88(C).
    15. Ingrid E. Fisher & Margaret R. Garnsey & Mark E. Hughes, 2016. "Natural Language Processing in Accounting, Auditing and Finance: A Synthesis of the Literature with a Roadmap for Future Research," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 23(3), pages 157-214, July.
    16. Bozic, Branko & Kuppelwieser, Volker G., 2019. "Customer trust recovery: An alternative explanation," Journal of Retailing and Consumer Services, Elsevier, vol. 49(C), pages 208-218.
    17. Palmeira, Mauricio & Hartmann, Nathaniel N. & Chan, Eugene & Sekar, Samuel B., 2023. "Don’t blame the powerless: The impact of hierarchy on reactions to responses to ethical scandals," Journal of Business Research, Elsevier, vol. 165(C).
    18. Božič, Branko & Siebert, Sabina & Martin, Graeme, 2020. "A grounded theory study of factors and conditions associated with customer trust recovery in a retailer," Journal of Business Research, Elsevier, vol. 109(C), pages 440-448.
    19. Saverio Bozzolan & Giovanna Michelon & Marco Mattei & Andrea Giornetti, 2019. "Signing the letter to shareholders: Does the Signatory?s role relate to impression management?," FINANCIAL REPORTING, FrancoAngeli Editore, vol. 2019(1), pages 37-82.
    20. Anna M. Cianci & Shana M. Clor-Proell & Steven E. Kaplan, 2019. "How Do Investors Respond to Restatements? Repairing Trust Through Managerial Reputation and the Announcement of Corrective Actions," Journal of Business Ethics, Springer, vol. 158(2), pages 297-312, August.

    More about this item

    Keywords

    Trust Repair; Crisis Communication; Apology; Accounts; Reputation.;
    All these keywords.

    JEL classification:

    • M0 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aml:intbrm:v:12:y:2021:i:3:p:116-138. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Nabeel Tahir (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.