EconPapers    
Economics at your fingertips  
 

Reputation as insurance: how reputation moderates public backlash following a company's decision to profiteer

Danae Arroyos-Calvera and Nattavudh Powdthavee

Papers from arXiv.org

Abstract: We examine whether a company's corporate reputation gained from their CSR activities and a company leader's reputation, one that is unrelated to his or her business acumen, can impact economic action fairness appraisals. We provide experimental evidence that good corporate reputation causally buffers individuals' negative fairness judgment following the firm's decision to profiteer from an increase in the demand. Bad corporate reputation does not make the decision to profiteer as any less acceptable. However, there is evidence that individuals judge as more unfair an ill-reputed firm's decision to raise their product's price to protect against losses. Thus, our results highlight the importance of a good reputation in protecting a firm against severe negative judgments from making an economic decision that the public deems unfair.

Date: 2022-04
New Economics Papers: this item is included in nep-bec and nep-exp
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://arxiv.org/pdf/2204.03450 Latest version (application/pdf)

Related works:
Working Paper: Reputation as Insurance: How Reputation Moderates Public Backlash Following a Company's Decision to Profiteer (2022) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:2204.03450

Access Statistics for this paper

More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators ().

 
Page updated 2023-10-27
Handle: RePEc:arx:papers:2204.03450