Purpose: This study aims to investigate how stakeholders perceive the company's nonfinancial disclosure after a scandal has occurred. More specifically, the authors examine whether and how sustainability reporting practices in the aftermath of a scandal can influence the perceptions of stakeholders in terms of hypocrisy and legitimacy. Design/methodology/approach: The present research represents a companion paper to another study in this issue that investigates the adaptation of companies' reporting behaviors after a scandal. The results of the initial qualitative study informed the subsequent quantitative study developed in this article. The authors build on the evidence of the main paper and perform a 2 × 2 between-subjects experiment to examine how stakeholders perceive the actions of companies that aim to restore their eroded legitimacy through social, environmental and sustainability (SES) reporting. Findings: The results suggest that when companies take responsibility and develop remedial, socially responsible corporate activities are perceived as less hypocritical and more legitimate. Moreover, we show an interaction effect between taking responsibility and developing remedial socially responsible actions on hypocrisy and legitimacy perception. Originality/value: The present research takes advantage of an experimental design to investigate the effects of the adaptation of SES reporting from the perspective of stakeholders. The study provides insightful theoretical and practical implications for managers regarding how to handle a reputational loss and avoid perceptions of hypocrisy.

Hypocrisy and legitimacy in the aftermath of a scandal: an experimental study of stakeholder perceptions of nonfinancial disclosure / Bellucci M.; Acuti D.; Simoni L.; Manetti G.. - In: ACCOUNTING, AUDITING & ACCOUNTABILITY JOURNAL. - ISSN 1368-0668. - STAMPA. - 34:(2021), pp. 151-163. [10.1108/AAAJ-01-2021-5113]

Hypocrisy and legitimacy in the aftermath of a scandal: an experimental study of stakeholder perceptions of nonfinancial disclosure

Bellucci M.;Manetti G.
2021

Abstract

Purpose: This study aims to investigate how stakeholders perceive the company's nonfinancial disclosure after a scandal has occurred. More specifically, the authors examine whether and how sustainability reporting practices in the aftermath of a scandal can influence the perceptions of stakeholders in terms of hypocrisy and legitimacy. Design/methodology/approach: The present research represents a companion paper to another study in this issue that investigates the adaptation of companies' reporting behaviors after a scandal. The results of the initial qualitative study informed the subsequent quantitative study developed in this article. The authors build on the evidence of the main paper and perform a 2 × 2 between-subjects experiment to examine how stakeholders perceive the actions of companies that aim to restore their eroded legitimacy through social, environmental and sustainability (SES) reporting. Findings: The results suggest that when companies take responsibility and develop remedial, socially responsible corporate activities are perceived as less hypocritical and more legitimate. Moreover, we show an interaction effect between taking responsibility and developing remedial socially responsible actions on hypocrisy and legitimacy perception. Originality/value: The present research takes advantage of an experimental design to investigate the effects of the adaptation of SES reporting from the perspective of stakeholders. The study provides insightful theoretical and practical implications for managers regarding how to handle a reputational loss and avoid perceptions of hypocrisy.
2021
34
151
163
Goal 8: Decent work and economic growth
Goal 9: Industry, Innovation, and Infrastructure
Goal 11: Sustainable cities and communities
Goal 12: Responsible consumption and production
Bellucci M.; Acuti D.; Simoni L.; Manetti G.
File in questo prodotto:
File Dimensione Formato  
10-1108_AAAJ-01-2021-5113.pdf

accesso aperto

Tipologia: Pdf editoriale (Version of record)
Licenza: Open Access
Dimensione 352.93 kB
Formato Adobe PDF
352.93 kB Adobe PDF

I documenti in FLORE sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificatore per citare o creare un link a questa risorsa: https://hdl.handle.net/2158/1238725
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 10
  • ???jsp.display-item.citation.isi??? 9
social impact