The effects of crisis type and CSR fit on organizational outcomes: The moderating role of authentic leadership in shaping organizational reputation, word-of-mouth, and purchase intentions

Abstract

This study investigates how crisis type (moral-harm vs. product-harm) and the alignment between an organization's goals and its corporate social responsibility (CSR) values (CSR fit) influence crisis outcomes like organizational reputation, the spread of negative word-of-mouth, and purchase intentions. Additionally, the research examines whether authentic leadership (AL) moderates the relationship between crisis type, CSR fit, and crisis outcomes. Using a 2 (crisis type: moral-harm vs. product-harm) x 2 (CSR fit: high fit vs. low fit) between-subjects design (N = 427) recruited through CloudResearch, the results suggest that product-harm crises have more damaging effects on organizations than moral-harm crises. Also, organizations that align their CSR activities with their business goals receive favorable ratings during a crisis than those with low CSR fit. Lastly, AL moderates the relationship between crisis type and negative word-of-mouth as well as organizational reputation. Theoretical and practical implications of the current study are discussed.