Addressing supplier sustainability misconducts: response strategies to nonmarket stakeholder contentions

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sara Hajmohammad ◽  
Anton Shevchenko ◽  
Stephan Vachon

PurposeFirms are increasingly accountable for their suppliers' social and environmental practices. Nonmarket stakeholders nowadays do not hesitate to confront buying firms for their suppliers' misconducts by mobilizing demonstrations, social media campaigns and boycotts. This paper aims to develop a typology of response strategies by targeted firms when they face such contentions and to empirically investigate why these strategies vary among those firms.Design/methodology/approachDrawing on social movement and stakeholder salience theories, the authors develop a set of hypotheses linking their typology of four response strategies to three key contextual factors – nonmarket stakeholder salience, nonmarket stakeholder ideology and the target firm reputation – and examine them using a vignette-based experiment methodology.FindingsThe results suggest that nonmarket stakeholder salience significantly impacts the nature of response (reject or concede), whereas the nonmarket stakeholder ideology is significantly related to the intensity of response (trivial or vigorous). Interestingly, the firms' reputation was found to have no significant effect on their response strategy when they faced stakeholder contentions.Originality/valueThis paper adds both theoretical and methodological value to the existing literature. Theoretically, the study develops and tests a comprehensive typology of response strategies to nonmarket stakeholder contentions. Methodologically, this study is original in leveraging a vignette-based experiment that allows establishing causal factors of response strategies following a supplier sustainability misconduct.

2019 ◽  
Vol 20 (3) ◽  
pp. 538-552
Author(s):  
Pytrik Schafraad ◽  
Joost W.M. Verhoeven

Purpose The purpose of this paper is to investigate the effects of a crisis situation in a sports team on the credibility of their sponsor and how the sponsor’s use of various crises response strategies may repair the damage done to their credibility. Design/methodology/approach A scenario experiment was conducted with a 2 (pre-/post-crisis) × 4 (sponsor response strategy: denial/distancing/rebuild/no response) mixed factor design. Respondents (n=191) were recruited from a research panel. Findings The results confirmed the existence of a spill-over effect: the sponsor’s credibility dropped as a result of the crisis. More interestingly, the effects of the crisis on sponsor credibility were moderated by the response strategy of the sponsor: the harm that the crisis did to the sponsor credibility was aggravated by a denial strategy, but somewhat weakened by a diminishing strategy. A rebuild response unexpectedly improved the credibility of the sponsor. Practical implications While partnerships in sports can be risky, because crises can be contagious, such partners can also help one another to protect their credibility. Therefore, this study advocates an integral approach of crisis communication. Sponsors may improve their credibility when they frame their contribution to the solution to the problems as an authentic effort to do good. Originality/value Starting from an issue arena perspective, this contribution shows how crises in sports teams also affect sponsors and how sponsors can contribute to the restoration of the damaged credibility with suitable responses to the crisis situation.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jihee Choi ◽  
Soobin Seo

Purpose This paper aims to investigate consumer responses to brand rumors and corporate rumor response strategies in the restaurant industry. Design/methodology/approach A scenario-based experimental design was used to examine changes in consumers’ brand evaluation depending on level of brand equity and corporate choice of response strategy. Findings It was found that the impact of brand rumors on consumer responses is more negative when the restaurant’s brand equity is low compared to when it is high. It was also found that a company's use of active response strategies is more effective in combating brand rumor than a strategy of simple denial. Practical implications The findings have significant implications for both academics and practitioners in terms of developing effective response strategies for counteracting brand rumors. Originality/value Given the frequency of brand rumors in the restaurant industry and their serious negative impacts, this study extends the existing brand crisis communication literature by demonstrating how consumers respond to a rumor and the effectiveness of different corporate rumor response strategies.


2016 ◽  
Vol 31 (2) ◽  
pp. 312-324 ◽  
Author(s):  
Javier González-Benito ◽  
Gustavo Lannelongue ◽  
Luis Miguel Ferreira ◽  
Carmen Gonzalez-Zapatero

Purpose – The purpose of this paper is to analyse the relationship between the environmental management of purchases and firm performance. The authors examine the moderating role played by two variables: the establishment of long-term relationships with suppliers and the strategic integration of the purchasing function. Design/methodology/approach – The authors conduct an empirical study on a sample of 100 Portuguese firms. Findings – Evidence reveals that green purchasing management improves the performance of the purchasing function, although the impact is greater when the organisation forges lasting alliances with its suppliers. Originality/value – This paper contributes to the study of the consequences of introducing environmental practices into the purchasing function, especially with regards to the formation of a panel of sustainable suppliers. Specifically, this research provides evidence to show that the implementation of those practices has positive impacts on the operating performance of the purchasing function and that the said effect is greater when a firm establishes long-term relationships with its suppliers.


2016 ◽  
Vol 21 (3) ◽  
pp. 289-308 ◽  
Author(s):  
Britt Foget Johansen ◽  
Winni Johansen ◽  
Nina M. Weckesser

Purpose – The purpose of this paper is to examine the Telenor customer complaints crisis triggered on the company Facebook site in August 2012. More specifically, the paper focusses on how friends and enemies of a company interact, and how faith-holders serve as crisis communicators in a rhetorical sub-arena that opens up on Facebook. Design/methodology/approach – The study is based on a textual analysis of 4,368 posts from the Telenor Facebook site, and an interview with the senior digital manager of Telenor. Findings – Not only current and previous customers but also those from rival telephone companies were active in the Facebook sub-arena. The customers complaining about the company services were met not only with the response of Telenor, but also with counter-attacks from faith-holders acting in defense of Telenor. However, these faith-holders were using defensive response strategies, while Telenor used accommodative strategies. Research limitations/implications – Organizational crises need to be seen as a complex set of communication processes, including the many voices that start communicating from different positions, and taking into account not only the response strategies of the organization but also the response strategies applied by supportive emotional stakeholders. In practice, faith-holders need to be monitored, as they may prove useful as “crisis communicators.” Originality/value – The paper provides insights into an under-investigated area of crisis communication: the strategies of faith-holders acting as “crisis communicators” defending a company and themselves against attacks from negative voices on social media.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tae Hyun Baek ◽  
Seeun Kim ◽  
Sukki Yoon ◽  
Yung Kyun Choi ◽  
Dongwon Choi ◽  
...  

PurposeThe authors aim to examine how emojis interact with assertiveness in social media posts to encourage social media engagement and cooperation in environmental campaigns.Design/methodology/approachTwo experiments were used to test three hypotheses.FindingsStudy 1 shows that when assertive Twitter messages include the smiley-face emoji, study participants indicate stronger social media engagement and behavioral intentions to recycle used jeans. In Study 2, participants indicate stronger social media engagement and behavioral intentions to sign a petition for reducing plastic pollution when (non) assertive Facebook messages (do not) include emojis.Originality/valueThe current research advances our understanding about how emojis interact with assertive and nonassertive message tonality in environmental social media campaigns. This research also provides new insights showing that positive emotion is the psychological mechanism underlying matching effects of emoji and message assertiveness.


2019 ◽  
Vol 36 (1) ◽  
pp. 136-145 ◽  
Author(s):  
Nora Moran

Purpose This paper examines whether decisions to improve pay for low-level employees lead to more positive attitudes toward firms, depending on firm’s service reputation. Design/methodology Four experiments examine whether information on compensation decisions for employees affects consumer attitudes toward firms. Findings Results show attitudes toward firms providing raises are more positive when firms are known for high quality (vs average) service. This occurs because individuals use information about firm reputation as a cue to make inferences about employees, and fairness of firm pay procedures. Moderators are introduced to show how these effects can be altered. Research limitations/implications Drawing from research on the representativeness bias, this work extends theories on justice and equity and contributes to the literature on corporate social responsibility. Practical implications This research provides firms with insight on how to promote their efforts to improve employees’ financial welfare. Social implications Findings provide guidance on how to increase public support of initiatives to improve financial well-being for low-wage workers. Originality/value This research is the first to examine how specific firm factors affect reception of initiatives to improve employee financial welfare and to delineate the process.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ach Maulidi ◽  
Jake Ansell

Purpose This paper aims to challenge some of the underlying concepts about causation of fraud and in doing so enriches knowledge and insight into the management of fraud. Design/methodology/approach This study is a part of fieldwork carried out in Indonesia. Findings Organisational fraud is an exceptional type of crime. Hence, the underlying antecedents and consequences of fraud in organisation are distinct from other crimes, especially violent crimes. The underlying logic in criminological and sociological theories and literature cannot fully explain the causal factors of fraud in the organisation. This leads to a theoretical discussion about the reconstruction of the fraud theory. Implications and suggestions for further studies are discussed in this study. Originality/value This study provides a new understanding of fraud and its antecedents and consequences. In doing so, it examines the long-standing debate in criminology and sociology about the theories concerning crime causation, as these areas provide the underlying logic of fraud theory.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yazeed Mohammad R. Alhezzani

Purpose For change initiatives to succeed, change managers are required to address recipients’ needs. Although strategies to deal with change recipients and their resistance are widely explored, there is a dearth of studies that consider the different salience of change recipients. This paper aims to propose a framework on the effects of participation and coercion as strategies to deal with change recipients and their impact on change derailment. Design/methodology/approach Conceptual based upon that change recipients are classified into three levels according to their salience in relation to change. Based upon the recipients’ power and legitimacy in relation to change, stakeholder salience theory constitutes a theoretical provision used in this research to categorize the salience of change recipients. Findings The framework integrates change recipients’ salience levels (i.e. definitive, expectant and latent) and the effects of participation and coercion strategies on change derailment in times of organizational re-creation. The paper develops six hypotheses, which yield insights that advance the understanding of dealing with change recipients in the context of organizational re-creation. Research limitations/implications The paper is conceptual and not yet tested empirically. To empirically test the framework, research adopting survey methodology to gather data from organizations that experience a re-creation change as defined in this paper. The unit of analysis for future research is described in this paper and it is how organizational re-creation is defined in this paper. Originality/value Stakeholder salience theory is used to develop a framework that combines three classes of change recipients’ salience, as well as the effects of two strategies to deal with them and their resistance (i.e. lack of involvement and coercion) to examine their influence on change derailment. The potential contribution will expand the current literature discussed in this paper about dealing with change recipients’ resistance to change.


2016 ◽  
Vol 20 (4) ◽  
pp. 381-395 ◽  
Author(s):  
W. Timothy Coombs ◽  
Sherry Jean Holladay ◽  
An-Sofie Claeys

Purpose The purpose of this paper is to address the under-researched issue of how formal determinations of organizational responsibility for a crisis affect the effectiveness of the denial strategy in protecting organizational reputation. Because studies that omit later determinations of responsibility produce misleading representations of the value of denial, a pilot study and primary study investigated how later determinations of organizational culpability in a management misconduct crisis interact with crisis response strategies to affect reputation and anger. Design/methodology/approach Two studies used experimental designs to assess how denial interacted with determinations of crisis responsibility to influence reputation and anger. Findings The pilot study demonstrated reputational damage and stakeholder anger increased when an organization initially denied responsibility and then was found to be responsible for the crisis. The second study replicated the pilot study findings and also demonstrated that later determinations of guilt decreased reputation scores. When found guilty, the organization’s reputation was significantly more favorable when the positive action strategy was used. Comparison of three response strategies (no response, denial, and positive action) revealed the denial and no response conditions were significantly less effective than the positive response strategy when the organization was found guilty. Research limitations/implications Paper demonstrates the need for research on the denial strategy to consider later determinations of crisis responsibility (guilt) when assessing denial’s impact on organizational reputation. Practical implications When selecting response strategies in situations where crisis responsibility is unclear, practitioners should consider how later determinations of responsibility could affect reputation. Originality/value This paper questions past research on the value of the denial strategy, integrates findings from the trust violations research, and demonstrates the importance of considering formal judgments of organizational responsibility when selecting crisis response strategies.


2019 ◽  
Vol 122 (2) ◽  
pp. 655-677
Author(s):  
Riccardo Resciniti ◽  
Michela Matarazzo ◽  
Gabriele Baima

Purpose The purpose of this paper is to focus on consumers’ reactions to cross-border acquisitions (CBA) by exploring the role of consumer perceptions of the psychic distance between the country of the acquirer and that of the target firm when the acquiring corporation has a good or poor reputation. Design/methodology/approach A 2×2 experimental design which manipulated psychic distance and acquirer’s corporate reputation was conducted in Italy. The study considers an Italian food target firm and compares four foreign acquiring firms with different combinations of corporate reputation (good/poor) and psychic distance to Italy (small/large). Findings The authors found that the degree of psychic distance between the countries of the acquiring and targeted firms was inversely related to Italian consumers’ intentions to repurchase the products of the post-acquisition target, and unrelated to the acquirer’s corporate reputation. Originality/value This is the first study focusing on psychic distance in the context of CBA, especially from the perspective of consumer behavior, which can help to better understand certain negative reactions toward the acquisition of a business.


Sign in / Sign up

Export Citation Format

Share Document