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Responsible Leadership and Reputation Management During a Crisis: The Cases of Delta and United Airlines

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  • Tulika M. Varma

    (University of North Florida)

Abstract

This study argues that actions taken during a crisis within the responsibility compass impacts reputation. The lens of responsible leadership was chosen from among the different foci of leadership scholarship because of its emphasis on relational and ethical dimensions. The focus of this study was the actions undertaken by the CEOs of United and Delta Airlines after the forceful removal of the passengers and its influence on the reputation capital as measured by the changes in the respective share prices of the airlines. The overarching question was whether there was clear statistical evidence that linked the actions undertaken as part of the crisis management efforts and the reputation of the airlines. Findings from this study suggest that actions taken as part of responsible leadership compass explained the variations in the share prices. In the case of United Airlines almost 70% of the variations in the share prices could be explained by responsible leadership, whereas in the case Delta airlines only 50.6% of the variations in the share value could be predicted based on the role of leadership in crisis management.

Suggested Citation

  • Tulika M. Varma, 2021. "Responsible Leadership and Reputation Management During a Crisis: The Cases of Delta and United Airlines," Journal of Business Ethics, Springer, vol. 173(1), pages 29-45, September.
    • Handle: RePEc:kap:jbuset:v:173:y:2021:i:1:d:10.1007_s10551-020-04554-w
    DOI: 10.1007/s10551-020-04554-w
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    References listed on IDEAS

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    3. Mehmet Yildiz & Nicola Pless & Semih Ceyhan & Rob Hallak, 2023. "Responsible Leadership and Innovation during COVID-19: Evidence from the Australian Tourism and Hospitality Sector," Sustainability, MDPI, vol. 15(6), pages 1-21, March.
    4. Yadav, Hitesha & Kumar Kar, Arpan & Kashiramka, Smita & Rana, Nripendra P., 2024. "How does change in CEOs' strategic orientations in their social media communication impact firm performance during crisis? A longitudinal study," Technological Forecasting and Social Change, Elsevier, vol. 208(C).
    5. Tomasz Gigol & Katarzyna Kreczmanska-Gigol & Renata Pajewska-Kwasny, 2021. "Socially Responsible Leadership’s Impact on Stakeholder Management, Staff Job Satisfaction and Work Engagement," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 775-805.

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