The Impact of CEO Reputation: Negative News and Economic Decisions

Youngju Sohn · Ruthann Weaver Lariscy · Spencer F. Tinkham

35 citations0/0 files storedInternational Journal of Strategic Communication

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Corporate Identity and Reputation Corporate Social Responsibility Reporting Public Relations and Crisis Communication

Abstract

In this true experiment the impact of a negative news story about a CEO is measured on the purchasing decisions and potential employment decisions of a college-age demographic. The age group tested is the #1 purchaser of the stimulus product, an MP3 player; additionally, these primarily juniors and seniors are interested in future employment and job searching issues. Findings support that CEO reputation is of critical importance to economic decisions among the age cohort. Negative news has profoundly adverse effect, while positive news, while pleasant to read, has a negligible impact. Public relations implications for managing a CEO's reputation are discussed.

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References

1980Understanding Attitudes and Predicting Social Behavior 1997The Psychology of Attitudes 1990WHAT'S IN A NAME? REPUTATION BUILDING AND CORPORATE STRATEGY.1981Attitudes and Persuasion: Classic and Contemporary Approaches 2003Consumer–Company Identification: A Framework for Understanding Consumers’ Relationships with Companies 1983Advances in Consumer Research 1996Reputation: Realizing Value from the Corporate Image 1991Mass Media Research: An Introduction

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