Managing legitimacy crisis for state-owned non-profit organization: A case study of the Red Cross Society of China

Abstract

This study examined legitimacy crisis management of stated-owned organizations by analyzing Red Cross Society of China (RCSC)’s reactions to its legitimacy crisis ignited by an online wealth flaunting incident. Analysis revealed that RCSC’s inadequate implementation of image repair strategies and their lack of attendance to actional legitimacy escalated the crisis and ultimately shattered RCSC’s organizational legitimacy. This study argued that state-owned non-profit organizations need to actively engage in everyday maintenance of their legitimacy in the age of social media to build organizational transparency and accountability.