The dynamic of employees’ trust in their organisation in a corporate brand crisis: the bounce-back effect of organisational identification

Abstract

ABSTRACTGiven their increasing number, corporate brand crises are a subject of growing academic interest. Today’s managers face a hostile and often uncontrollable external information environment. Maintaining employee trust during turmoil is key to crisis resolution. However, it is during crises that employee trust can be most threatened. Our study draws on social identity theory to understand the conditions under which trust is destroyed and possibly repaired after a corporate brand crisis. The results from two experimental studies suggest that corporate brand crises decrease employee trust due to the threat to their social image. However, appropriate mitigation strategies that restore employees’ social status can effectively repair their trust. This decline and repair dynamic is amplified among highly identified employees, suggesting that organisational identification has a bounce-back effect on this mechanism.KEYWORDS: Corporate brand crisiscorporate reputationorganisational trustorganisational identificationcrisis mitigation strategies Disclosure statementNo potential conflict of interest was reported by the author(s).Notes1. https://www.nytimes.com/2015/08/16/technology/inside-amazon-wrestling-big-ideas-in-a-bruising-workplace.html2. www.challenges.fr/entreprise/sante-et-pharmacie/coronavirus-la-verite-sur-la-vague-de-deces-dans-les-ehpad-korian_7131863. www.campaignlive.co.uk/article/volkswagen-seeks-rebuild-trust-new-brand-campaign/1382301Additional informationNotes on contributorsSophie de VillartaySophie de Villartay is an Associate Professor in the Department of Management at Evry Paris-Saclay University and a Senior Lecturer in Management Sciences. She teaches marketing, crisis management and communication at postgraduate levels. Her research focuses on employee behaviour, reputation crisis and corporate social irresponsibility.Marie-Aude Abid-DupontMarie-Aude Abid-Dupont is an Associate Professor at Paris Nanterre University and a Senior Lecturer in Human Resources Management and Research Methodology. She co-leads the organisation and processes research group of CEROS and is a member of the scientific committee of the “Employer Branding” research group. Her research focuses on trust dynamics and employees’ reactions to corporate social (ir)responsibility.Fabienne Berger-RemyFabienne Berger-Remy is an Associate Professor at University Paris Dauphine – PSL. She teaches marketing and brand management in master’s programmes. Her research focuses on branding, brand management, employer brand, and the evolution of marketing organisations.