IDEAS home Printed from https://ideas.repec.org/a/pal/crepre/v23y2020i2d10.1057_s41299-019-00081-1.html
   My bibliography  Save this article

Extending the Situational Crisis Communication Theory: The Impact of Linguistic Style and Culture

Author

Listed:
  • A. J. Guerber

    (West Texas A & M University, WTAMU)

  • Vikas Anand

    (University of Arkansas)

  • Alan E. Ellstrand

    (University of Arkansas)

  • Matthew A. Waller

    (University of Arkansas)

  • Iris Reychav

    (Ariel University)

Abstract

Once a firm has been accused of ethical wrongdoing, a key issue lies in regaining the trust of stakeholders. This study extends the application of the Situational Crisis Communication Theory and explores the effectiveness of accounts designed to diminish perceptions of culpability offered by organizations in response to allegations of ethical wrongdoing. Study 1 examines the impact of the linguistic style of the account—consultative versus formal—and the magnitude of harm involved in the allegation on observers in the United States. Results indicate that consultative accounts are more effective than formal accounts and that both styles of account are less effective following an allegation involving greater harm. Study 2 examines the effectiveness of consultative versus formal accounts in India and China using the same scenario and accounts as in Study 1. Results show that India exhibits somewhat similar results to the US, while China does not (the consultative account is not superior to a formal account). Implications of this study suggest that managers seeking to preserve their firm’s reputation following an allegation should consider the linguistic style of their response as well as its content. These findings also suggest numerous avenues for future research.

Suggested Citation

  • A. J. Guerber & Vikas Anand & Alan E. Ellstrand & Matthew A. Waller & Iris Reychav, 2020. "Extending the Situational Crisis Communication Theory: The Impact of Linguistic Style and Culture," Corporate Reputation Review, Palgrave Macmillan, vol. 23(2), pages 106-127, May.
    • Handle: RePEc:pal:crepre:v:23:y:2020:i:2:d:10.1057_s41299-019-00081-1
    DOI: 10.1057/s41299-019-00081-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41299-019-00081-1
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1057/s41299-019-00081-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Diana Ingenhoff & Katharina Sommer, 2010. "Trust in Companies and in CEOs: A Comparative Study of the Main Influences," Journal of Business Ethics, Springer, vol. 95(3), pages 339-355, September.
    2. Hannes Leroy & Michael Palanski & Tony Simons, 2012. "Authentic Leadership and Behavioral Integrity as Drivers of Follower Commitment and Performance," Journal of Business Ethics, Springer, vol. 107(3), pages 255-264, May.
    3. 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.
    4. Scott D. Julian & Joseph C. Ofori‐Dankwa & Robert T. Justis, 2008. "Understanding strategic responses to interest group pressures," Strategic Management Journal, Wiley Blackwell, vol. 29(9), pages 963-984, September.
    5. Murphy, Deborah L. & Shrieves, Ronald E. & Tibbs, Samuel L., 2009. "Understanding the Penalties Associated with Corporate Misconduct: An Empirical Examination of Earnings and Risk," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 44(1), pages 55-83, February.
    6. Yuri Mishina & Emily S. Block & Michael J. Mannor, 2012. "The path dependence of organizational reputation: how social judgment influences assessments of capability and character," Strategic Management Journal, Wiley Blackwell, vol. 33(5), pages 459-477, May.
    7. Jaepil Choi & Heli Wang, 2009. "Stakeholder relations and the persistence of corporate financial performance," Strategic Management Journal, Wiley Blackwell, vol. 30(8), pages 895-907, August.
    8. Abraham Carmeli & Ashler Tishler, 2004. "The relationships between intangible organizational elements and organizational performance," Strategic Management Journal, Wiley Blackwell, vol. 25(13), pages 1257-1278, December.
    9. Joanna Tochman Campbell & Lorraine Eden & Stewart R Miller, 2012. "Multinationals and corporate social responsibility in host countries: Does distance matter?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 43(1), pages 84-106, January.
    10. Yang, Zhilin & Jiang, Ling (Alice), 2015. "Managing corporate crisis in China: Sentiment, reason, and law," Business Horizons, Elsevier, vol. 58(2), pages 193-201.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Breeda Comyns & Pierre‐Xavier Meschi & Anne Norheim‐Hansen, 2023. "Firms' responses to environmental misconduct accusations under the condition of contested practice complexity: Evidence from the palm oil production industry," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5332-5348, December.

    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. Annika Veh & Markus Göbel & Rick Vogel, 2019. "Corporate reputation in management research: a review of the literature and assessment of the concept," Business Research, Springer;German Academic Association for Business Research, vol. 12(2), pages 315-353, December.
    2. Jo, Hoje & Song, Moon H. & Tsang, Albert, 2016. "Corporate social responsibility and stakeholder governance around the world," Global Finance Journal, Elsevier, vol. 29(C), pages 42-69.
    3. Kevin Money & Anastasiya Saraeva & Irene Garnelo-Gomez & Stephen Pain & Carola Hillenbrand, 2017. "Corporate Reputation Past and Future: A Review and Integration of Existing Literature and a Framework for Future Research," Corporate Reputation Review, Palgrave Macmillan, vol. 20(3), pages 193-211, November.
    4. José-Luis Godos-Díez & Laura Cabeza-García & Cristina Fernández-González, 2018. "Relationship between Corporate Social Responsibility (CSR) and Internationalisation Strategies: A Descriptive Study in the Spanish Context," Administrative Sciences, MDPI, vol. 8(4), pages 1-20, October.
    5. Vijay S. Sampath & Naomi A. Gardberg & Noushi Rahman, 2018. "Corporate Reputation’s Invisible Hand: Bribery, Rational Choice, and Market Penalties," Journal of Business Ethics, Springer, vol. 151(3), pages 743-760, September.
    6. Murad A Mithani, 2017. "Liability of foreignness, natural disasters, and corporate philanthropy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(8), pages 941-963, October.
    7. Changhyun Kim & Yoonseok Zang & Heli Wang & Kate Niu, 2024. "When Do Corporate Good Deeds Become a Burden? The Role of Corporate Social Responsibility Following Negative Events," Journal of Business Ethics, Springer, vol. 192(2), pages 285-306, June.
    8. Ji Li & Ying Zhang & Yanghong Hu & Xiaolong Tao & Wanxing Jiang & Lei Qi, 2018. "Developed market or developing market?: A perspective of institutional theory on multinational enterprises’ diversification and sustainable development with environmental protection," Business Strategy and the Environment, Wiley Blackwell, vol. 27(7), pages 858-871, November.
    9. Jo, Hoje & Song, Moon H. & Tsang, Albert, 2015. "Corporate social responsibility and stakeholder governance around the world," Global Finance Journal, Elsevier, vol. 27(C), pages 18-45.
    10. Ilhan-Nas, Tulay & Okan, Tarhan & Tatoglu, Ekrem & Demirbag, Mehmet & Wood, Geoffrey & Glaister, Keith W., 2018. "Board composition, family ownership, institutional distance and the foreign equity ownership strategies of Turkish MNEs," Journal of World Business, Elsevier, vol. 53(6), pages 862-879.
    11. Leon Zolotoy & Don O’Sullivan & Keke Song, 2021. "The Role of Ethical Standards in the Relationship Between Religious Social Norms and M&A Announcement Returns," Journal of Business Ethics, Springer, vol. 170(4), pages 721-742, May.
    12. Franck Brulhart & Sandrine Gherra & Bertrand V. Quelin, 2019. "Do Stakeholder Orientation and Environmental Proactivity Impact Firm Profitability?," Journal of Business Ethics, Springer, vol. 158(1), pages 25-46, August.
    13. Wu, Fang & Cao, June & Zhang, Xiaosan, 2023. "Do non-executive employees matter in curbing corporate financial fraud?," Journal of Business Research, Elsevier, vol. 163(C).
    14. Feng, Jingwen & Goodell, John W. & Shen, Dehua, 2022. "ESG rating and stock price crash risk: Evidence from China," Finance Research Letters, Elsevier, vol. 46(PB).
    15. Curtis Nicholls, 2016. "The impact of SEC investigations and accounting and auditing enforcement releases on firms’ cost of equity capital," Review of Quantitative Finance and Accounting, Springer, vol. 47(1), pages 57-82, July.
    16. Ani V. Ter-Mkrtchyan & Aimee L. Franklin, 2023. "Stakeholder Analysis in the Context of Natural Disaster Mitigation: The Case of Flooding in Three U.S. Cities," Sustainability, MDPI, vol. 15(20), pages 1-13, October.
    17. Lee, Gilsoo & Cho, Sam Yul & Arthurs, Jonathan & Lee, Eun Kyung, 2020. "Celebrity CEO, identity threat, and impression management: Impact of celebrity status on corporate social responsibility," Journal of Business Research, Elsevier, vol. 111(C), pages 69-84.
    18. Mariconda, Simone & Lurati, Francesco, 2015. "Does familiarity breed stability? The role of familiarity in moderating the effects of new information on reputation judgments," Journal of Business Research, Elsevier, vol. 68(5), pages 957-964.
    19. Dolores Gallardo-Vázquez & Luis Enrique Valdez-Juárez & José Luis Lizcano-Álvarez, 2019. "Corporate Social Responsibility and Intellectual Capital: Sources of Competitiveness and Legitimacy in Organizations’ Management Practices," Sustainability, MDPI, vol. 11(20), pages 1-29, October.
    20. Surendranath R. Jory & Thanh N. Ngo & Daphne Wang & Amrita Saha, 2015. "The market response to corporate scandals involving CEOs," Applied Economics, Taylor & Francis Journals, vol. 47(17), pages 1723-1738, April.

    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:pal:crepre:v:23:y:2020:i:2:d:10.1057_s41299-019-00081-1. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    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.