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Does voluntary disclosure matter when organizations violate stakeholder trust?

Jurgen Willems and Lewis Faulk
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Jurgen Willems: University of Hamburg
Lewis Faulk: American University

Journal of Behavioral Public Administration, 2019, vol. 2, issue 1

Abstract: The reputations of nonprofit organizations can be damaged as a result of an organizational scandal, as demonstrated by recent examples of international nonprofit and non-governmental organizations. Common practice and findings from studies using administrative data suggest that nonprofits can reduce the negative effects of scandals by voluntarily disclosing information about the event to stakeholders. This study tests those assumptions in an experimental framework and finds that organizations’ voluntary disclosure of a scandal does not effectively mitigate negative donation intentions following the crisis.

Keywords: Voluntary disclosure; Crisis; Reputation; Nonprofit; Stakeholders (search for similar items in EconPapers)
JEL-codes: D90 D91 Z00 (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:bpd:articl:v:2:y:2019:i:1:jbpa.21.45

DOI: 10.30636/jbpa.21.45

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