Reputation and ethical behaviour in a crisis: predicting survival

Purpose – The purpose of this paper is to explore the interrelation of reputation with corporate performance in a crisis and consider the factors that make up the balance between strong recovery, bare survival and failure. The emphasis is on corporate communication and corporate governance. Design/methodology/approach – The current debate on reputation and the validity of the term reputation management is reviewed and cases studies from Australia and the UK are examined. Findings – The paper finds that, in the case studies, poor management, unethical practices, a lack of engagement with customers and other stakeholders, indifferent or aggressive performances by CEOs and lack of preparedness for crisis communication severely or terminally affected the organisations. It identifies a new reputational factor of predictability and considers why some organisations survive a crisis that has strong negative ethical dimensions while others fail. Originality/value – This paper scrutinises existing concepts of reputation and reputation management and finds that they are not able to predict recovery, survival or failure of organisations. A new definition of reputation is put forward and the factor of predictability is emphasised in proposals for new applied theory.