Mired in deception: escalating an environmental disaster in Colombia

Abstract

Purpose This paper aims to analyze concealment and deception in self-defeating organizational crisis response strategies and the possible consequences of their adoption on a company’s reputation. It represents an example of where every guideline to address stakeholders after a crisis was dismissed. Design/methodology/approach This paper investigates a major environmental incident that took place in Colombia in 2013 and studies how the responsible company responded to the incident through the examination of company reports, media statements and national and international newspaper articles. Findings The analysis shows that in addition to environmental damage, the company’s reputation was affected by the way the company responded during this crisis. Research limitations/implications The outcomes highlight the importance of the manner in which a crisis response is managed, as these types of mistakes often aggravate reputational damage. Practical implications This paper is an invitation for companies to be quick, consistent and transparent with their responses when facing their stakeholders in moments of crisis. Not doing so may aggravate not only social but also economic and environmental impacts. Originality/value Contrary to other contributions on the subject, this study implies that a misleading crisis response, including concealment and deception, can be an even greater challenge to a company’s reputation than the crisis itself.

Transgressing CSR on the organizational value chain: How natural resource companiesgreenwash their processes

“…However, by many perspectives, stakeholders are becoming more aware of this organizational behavior, which could lead to a reduction of organizational credibility. For instance, recent corporate deceptions in developing countries reflect the interest of ordinary people, as well as institutions, in what companies claim and do [29]. Mainly, what this work suggests is the presence of a considerable risk of greenwashing practices proliferation throughout the other productive sectors, especially in countries like Colombia, which can bring self-defeating consequences for their development.…”

Sostenibilidad, stakeholders y crisis de empresa: un análisis estructurado de percepciones

“…Es claro que las crisis son hechos que implican incertidumbres y despiertan sentimientos encontrados, pero también es cierto que los gerentes deben entender que para llegar a un verdadero escenario de sostenibilidad, las empresas deben ser merecedoras de un reconocimiento genuino de justicia e imparcialidad en sus decisiones. En ese orden de ideas, es claramente demostrado que aquellas decisiones enmarcadas en lo "normativo" son las más adecuadas y, por tanto, las más efectivas (Contreras-Pacheco & Claasen, 2018;Coombs, 2019).…”

“…En el 2013 ocurrió una contingencia ambiental en la costa norte colombiana en la cual se vio involucrada una importante compañía minera (Contreras-Pacheco & Claasen, 2018). Dicho incidente tuvo una gran resonancia institucional y mediática en ese país suramericano.…”

Understanding decoupling: Untruthful company crisis communication in Latin America

“…1678). Contreras-Pacheco and Claasen (2018), for example, highlight the potential development of a compounding effect when offending companies failed to manage their crises appropriately. From an optimistic perspective, after being adequately managed, crises can also be considered sources of constructive effects, like motivation, resilience, and even corporate learning (Rerup & Zbaracki, 2021).…”