Image Repair Tactics and Information Subsidies During Fraud Crises

Abstract

Recently, leaders of some of the most well-known global companies have been found guilty of fraud and mismanagement. This article examines 17 fraud-related and mismanagement crises through the lens of Gandy's (1982) information subsidy and Benoit's (1995) image repair theories. The findings show that the content of news releases posted on organizational Web sites during a crisis is being integrated into the news coverage of the crisis. Organizations most frequently use the crisis response tactics of corrective action and bolstering. Background statements and direct quotes from the online news releases are being integrated into news stories and thus provide the opportunity for the organization to tell its side of the story. Implications and applications for communication managers are discussed to help organizations manage fraud and mismanagement crises.