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Abstract
Purpose - Crisis managers believe in the value of a favorable, pre-crisis reputation. The prior reputation can create a halo effect that protects an organization during a crisis. The prior reputation/halo might work as a shield that deflects the potential reputational damage from a crisis. Or the prior reputation/halo might encourage stakeholders to give the organization the benefit of the doubt in the crisis (reduce attributions of crisis responsibility). Oddly, researchers have had little luck in producing a halo effect for prior reputation in crisis situations. The purpose of this paper is to present two studies designed to test if the halo effect could occur and which of the two dynamics of the prior reputation halo best serve to explain the benefits of a favorable, pre-crisis reputation.
Design/methodology/approach - The research focuses on a set of studies conducted to illustrate the halo effect and to explore how it serves to protect an organization during a crisis. The implications of the findings for post-crisis communication are discussed.
Findings - The halo effect for prior reputation in crisis was created. The halo operated in a limited range for organizations with very favorable prior reputations. The data also supported the halo as shield dynamic rather than the halo as benefit of the doubt.
Originality/value - The paper provides insight into the area of reputation and crisis management.
Keywords Public relations, Corporate image, Organizational behaviour, Accidents
Paper type Research paper
Experts in crisis management and reputation management agree that, among other hazards, a crisis poses a threat to an organization's reputation (Barton, 2001; Davies et al., 2003). Moreover, experts argue that a favorable prior reputation is an important resource during a crisis (Alsop, 2004; Davies et al., 2003; Dowling, 2002; Fombrun and van Riel, 2003). On a basic level, a favorable prior reputation functions as a bank account containing reputation capital. An organization with bountiful reputational capital can afford to spend or lose some capital in a crisis and still maintain a strong, favorable post-crisis reputation (Alsop, 2004; Dowling, 2002; Fombrun and van Riel, 2003). On another level, a favorable reputation (strong bank account) may act as a halo that protects an organization's reputation during a crisis (Ulmer, 2001). Although the idea of a halo effect seems...