Understanding Event Stigma: A Configurational Approach

Abstract

Stigma is not fair. While some firms get permanently stigmatized, others emerge untarnished by the same or a similar event. However, such unfairness may not necessarily be a bad thing for firms. This study claims that repeated media coverage of a negative event over time is symptomatic of organizational stigma, and pathways exist to encourage the development or avoidance of this stigma. Using a fuzzy set qualitative comparative analysis, I navigate the configurations of stigma for an event of corporate social irresponsibility in the global supply chain. The findings of the study suggest the confluence of multiple factors around a stigmatizing event, the media and the firm on stigmatization of a negative event. Most importantly, to effectively avoid stigma, the firm’s immediate response to a negative incident should be strategically directed based on the understanding of the other factors. The main purpose of this study is to address a gap in the event stigma literature where there is a paucity of research on what contributes to its development. This study has important implications for practitioners as it offers concrete suggestions on how to avert event stigma.