The Origin of the Legitimacy of Organizations and Their Determining Factors

Prado‐Román, Camilo; Diéz‐Martín, Francisco; Blanco‐González, Alicia; Prado-Román, Alberto

doi:10.1007/978-3-319-69989-9_4

Cited by 3 publications

(4 citation statements)

References 41 publications

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“…However, the involvement of legal prosecutors and a media framing around the legal capacity of the firm make this case about the (il-)legitimisation of VW (Suddaby et al , 2017). This includes not only the questioning of VW’s ability to legally access markets in the future (Harvey, 2014), but also the evaluation (through social media) of moral legitimacy on the customers’ end (Prado-Román et al , 2018).…”

Section: Discussionmentioning

confidence: 99%

“…We doubt that VW’s gentle attempts to manage their reputation had any significant impact on the perceived legitimacy of the company. Whereas the legal capacity of VW’s legitimacy is in the hands of official prosecutors, moral legitimacy is being evaluated collectively by customers and media outlets (Prado-Román et al , 2018). Aiming to reconstruct predefined moral values with strategies as described in the SCCT could have been an act of slowing down legitimisation.…”

Section: Discussionmentioning

confidence: 99%

“…For example, some customers value factors such as the price-quality relation for their purchasing decisions, others award more importance to ethical factors, i.e. moral legitimacy (Prado-Román et al , 2018). Scholars further suggest that the impact on an organisation’s weal when lacking legitimacy is more severe than a loss of reputation (Deephouse and Carter, 2005).…”

Section: Introductionmentioning

confidence: 99%

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“Silence” as a strategy during a corporate crisis – the case of Volkswagen’s “Dieselgate”

Stieglitz

Mirbabaie

Kroll

et al. 2019

INTR

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Purpose The purpose of this paper is to investigate the communication behaviour on Twitter during the rise of a preventable corporate crisis. It aims to contribute to situational crisis response strategies, and to broaden the authors’ understanding of legitimacy management. In September 2015, Volkswagen’s (VW) emission scandal became public and caused debates also in social media. By applying complementing tools of data analysis to the Twitter communication around the “Dieselgate” crisis, this study unfolds a field of tension between corporate strategy and public perception. Design/methodology/approach The authors collected Twitter data and analysed approximately 2.1m tweets relevant to the VW crisis. The authors approached the data by separating the overall communication in peak and quiet phases; analysing the peaks with social network analysis techniques; studying sentiments and the differences in each phase; and specifically examining tweets from VW’s corporate accounts with regard to the situational crisis communication theory (SCCT) and legitimacy. Findings VW’s very few tweets were not able to reduce the emotionality and sentiment of the ongoing Twitter discussion. Instead, even during quiet phases, the communication remained rather negative. The analysis suggests that VW followed a strategy not covered by SCCT, i.e. keeping silent. Practical implications The discovered strategy of keeping silent extends the SCCT and is linked to legitimacy management. Learnings from this study help decision makers to put social media response strategies into practice to swiftly recover from crises or refrain from certain strategies to avoid further reputational damage. Social implications Examining the underlying communication patterns of a crisis case with societal magnitude such as “Dieselgate” helps sensitising customers and executives to utilise social media channels more comprehensible in future crises. Originality/value The study uncovers the unconventional and yet barely addressed crisis response strategy of a global enterprise while devising unique realisations for practitioners and communication researchers. It contributes to existing knowledge about situational crisis response strategies, and broadens the authors’ understanding of legitimacy management in times of social media ubiquity.

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Section: Discussionmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

“Silence” as a strategy during a corporate crisis – the case of Volkswagen’s “Dieselgate”

Stieglitz

Mirbabaie

Kroll

et al. 2019

INTR

View full text Add to dashboard Cite

show abstract

“…In other words, society's welfare should be considered by every organization to ensure that their presence is acceptable (Farook, 2007). Consequently, the organization can easily access resources, market, and stakeholders' support to ensure its long-term survival and growth (Colleoni, 2013;Cruz-Suarez et al, 2014;Prado-Román et al, 2018) because the organization is viewed as legitimate in the eyes of stakeholders. On the other hand, the absence of legitimacy will lead the organization to fall into trouble.…”

Section: Literature Reviewmentioning

confidence: 99%

CSR and Legitimacy of Indonesian Islamic Banks

et.al¹

2021

TURCOMAT

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Every bank needs to strengthen their society's acceptance to exist and grow in the long term. As a country with the largest Muslim population, Islamic banks’ market share in Indonesia is still relatively small. These banks should obtain legitimacy from stakeholders for business continuity and growth. To ensure legitimacy, the impact of all of the corporation's activities on society's welfare is a significant concern. Several studies showed that CSR activities are needed to increase legitimacy. However, previous studies regarding CSR and legitimacy mostly used the positive paradigm, and mostly conducted in Western societies. Since the discussion on this matter in Islamic banking in Indonesia is not yet found, this study aims to understand how Islamic banks in Indonesia implement CSR to gain legitimacy using an Islamic perspective. This research is based on the ontology that reality is constructed by business actors who implement CSR programs. A qualitative case study is used by interviewing practitioners who are in charge of CSR programs in the two largest Islamic banks in Indonesia and supported by banks’ reports. This study reveals how legitimacy is achieved in the context of an Indonesian Islamic bank.

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