Negative Publicity Effect of the Business Founder's Unethical Behavior on Corporate Image: Evidence from China [Book Review]
David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
Jack Alan Reynolds
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Journal of Business Ethics 117 (1):111-121 (2013)
The unethical behavior of a business founder often leads to negative publicity which substantially affects positive corporate image. The amount of negative publicity relating to business founders’ unethical behavior is on the rise in the age of online social media in China. Based on the stimulus–response theory and balance theory, this paper developed a theoretical model to examine how negative publicity about a business founder’s unethical behavior affects corporate image. The proposed model was tested by the partial least squares technique. Results show that perceived severity, publicity intensity and recovery performance are predictors of corporate image: perceived severity has a negative impact on positive corporate image; publicity intensity and recovery performance have positive impacts on positive corporate image; and founder image mediates the relationships between the three predictors and corporate image. Moreover, initial consumer impression of business founders has a positive impact on positive corporate image
|Keywords||Business founder Corporate image Entrepreneurs Entrepreneurship and ethics Negative publicity Unethical behavior|
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References found in this work BETA
R. E. Reidenbach & D. P. Robin (1990). Toward the Development of a Multidimensional Scale for Improving Evaluations of Business Ethics. Journal of Business Ethics 9 (8):639 - 653.
Yuan-Shuh Lii & Monle Lee (2012). Doing Right Leads to Doing Well: When the Type of CSR and Reputation Interact to Affect Consumer Evaluations of the Firm. [REVIEW] Journal of Business Ethics 105 (1):69-81.
Francis T. Hannafey (2003). Entrepreneurship and Ethics: A Literature Review. [REVIEW] Journal of Business Ethics 46 (2):99 - 110.
Yves Fassin, Annick Van Rossem & Marc Buelens (2011). Small-Business Owner-Managers' Perceptions of Business Ethics and CSR-Related Concepts. Journal of Business Ethics 98 (3):425-453.
Rogene A. Buchholz & Sandra B. Rosenthal (2005). The Spirit of Entrepreneurship and the Qualities of Moral Decision Making: Toward a Unifying Framework. [REVIEW] Journal of Business Ethics 60 (3):307 - 315.
Citations of this work BETA
Michael Firth, Sonia Wong, Qingquan Xin & Ho Yin Yick (forthcoming). Regulatory Sanctions on Independent Directors and Their Consequences to the Director Labor Market: Evidence From China. Journal of Business Ethics.
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