Search results for "legitimacy maintenance"
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Corporate Social Irresponsibility and Legitimacy Maintenance: Lessons from the Parmalat Scandal
2014
Audience decisions regarding whether to continue to support a corporation after it has been perceived as culpable for socially irresponsible behaviour is “coin of the realm” in selecting which firms (or which parts of a firm) will be able to survive a CSI-scandal. Our empirical setting is an embedded polar case of audience support, the Parmalat case, following a severe CSI scandal. Whilst the adaptive strategies taken to maintain the harmed moral legitimacy were a necessary procedural phase to consent the firms’ survival, they could not be considered sufficient to reintegrate the firm with its main constituent audiences. Essential to the maintaining process was the presence of rational effe…
Legitimacy Maintenance After a Corporate Social Irresponsibility Scandal: Lessons From The Parmalat Case
2014
From the organizations’ perspective, maintaining legitimacy in such contexts has been considered relatively unproblematic (Patriotta, 2011; Scherer et al., 2013) as it entails following adaptive strategies and conforming substantially (or even merely symbolically) to the dominant institutional logics (Suchman, 1995; Elsbach, 1994; Scherer et al., 2013). 3 Nonetheless, whilst the implementation of a adaptive strategy to maintain the corporation with its main audiences is a necessary phase, it cannot be considered sufficient to assure the maintenance of audience support. Audiences evaluate competitive advantage and other sources of reassurance that supporting the company is worthwhile from a …