Effects of Repeated Corrections of Misinformation on Organizational Trust: More is Not Always Better

Abstract

ABSTRACT Misinformation is becoming an increasing problem for organizations. Therefore, it is important for organizations to decide how to react to false or inaccurate information and “fake news,” as it can potentially harm the public’s perception of organizations. In deciding how to react, organizations must also consider the frequency of corrections and rectifications. Here we argue that issuing more frequent corrections has both positive and negative effects on the perception of an organization’s trustworthiness. Using an experimental design, we uncover two counteracting effects evoked by repeated corrections. Although a high frequency of corrections directly increases organizational trust, the negative indirect effects of persuasion knowledge and reactance decrease organizational trust. In the case of a single correction of misinformation, these negative indirect effects do not occur and the positive direct effect on organizational trust prevails. This study therefore provides important insights for organizations. First, the findings emphasize the need for organizations to respond to misinformation to maintain the public’s perception of them, and second, corrections of misinformation should not be used to a great extent, but rather in a thoughtful and purposeful manner.