So Close, Yet So Far? Effects of Privatisation and Communicative Strategy on the Perceptions of Stakeholders in Corporate Crises

Abstract

Personalised statements from CEOs can be used as a tool to protect reputation in corporate crises. However, it needs to be considered that CEOs have different personalities. The present chapter, therefore, examines the effects of social distance of a CEO in combination with crisis communication strategies in corporate crises. This is illustrated by means of an experimental study with a 2 × 2 between-subjects design (factor 1: close vs. far social distance of the CEO; factor 2: deny vs. rebuild crisis communication strategy). The results indicate that in preventable crises, a close social distance of the CEO is beneficial for the CEO’s image as well as the image of the organisation because it promotes empathy and motivated assessment. Empathy towards the CEO remains unaffected by the communication strategy. The effect of the social distance on the motivated assessment occurs, however, only with a deny strategy. If an apology is pronounced, there is no difference whether an approachable or a distant CEO is speaking. The study discussed in this chapter is among the first to take empathy and motivated reasoning into account when analysing the effects of privatisation on CEO image and organisational image.

Citation

Viererbl, B., Denner, N. and Holzer, S. (2024), "So Close, Yet So Far? Effects of Privatisation and Communicative Strategy on the Perceptions of Stakeholders in Corporate Crises", Einwiller, S., Seiffert-Brockmann, J., Romenti, S. and Valentini, C. (Ed.) Communication in Uncertain Times (Advances in Public Relations and Communication Management, Vol. 7), Emerald Publishing Limited, Leeds, pp. 127-144. https://doi.org/10.1108/S2398-391420240000007009