Professional Documents
Culture Documents
Carola Hillenbrand
The John Madejski Centre for Reputation, School of Reputation and
Relationships, Henley Management College, Greenlands,
Henley-on-Thames, Oxon, UK
Kevin Money
The John Madejski Centre for Reputation, School of Reputation and
Relationships, Henley Management College, Greenlands,
Henley-on-Thames, Oxon, UK
ABSTRACT INTRODUCTION
The need to investigate the link between rep- In recent years, practitioners and academics
utation and responsibility is well established. have become increasingly interested in rep-
This paper answers calls to conduct this com- utation and how it relates to other concepts
parison from a stakeholder perspective. In so such as responsibility (eg Brammer and
doing a literature review identified models of Pavelin, 2006; Fombrun, 2005; Andriof and
reputation that engage with stakeholders from Waddock, 2002). In part, this is because ele-
their inception to measurement, while no such ments of responsibility have been viewed as
models of corporate responsibility were found. key drivers of reputation. Antecedents of
A qualitative study to conceptualize responsi- a good reputation have been suggested
bility from the perspective of stakeholders was to include embracing CSR standards
then conducted. Following this, a formal com- (Fombrun, 2005), philanthropic giving
parison between this conceptualization and (Brammer and Millington, 2005) and the
that of reputation models is undertaken. The development of trusting relationships with
results suggest that there is considerable simi- stakeholders (MacMillan et al., 2004;
larity between the concepts of responsibility Waddock, 2002; Jones, 1995).
and reputation. Implications may include the On the other hand, some theorists suggest
use of reputation models as potential measures that rather than being an antecedent of rep-
for many of the aspects conceptualized as utation, issues relating to the responsibilities
responsibility. Questions about the causal of a business are key attributes in terms of
relationship between the two concepts are also which an organization’s reputation is judged.
discussed. Schnietz and Epstein (2005), for example,
Corporate Reputation Review (2007) 10, 261–277. identify social responsibility as a key dimen-
doi:10.1057/palgrave.crr.1550057 sion of reputation; Tucker and Melewar
(2005) see social responsibility as a critical Corporate Reputation Review,
KEYWORDS: corporate reputation; corporate element of reputation relevant to crisis man- Vol. 10, No. 4, pp. 261–277
© 2007 Palgrave Macmillan Ltd,
responsibility; stakeholders agement and Lindgreen and Swaen (2005) 1363-3589 $30.00
www.palgrave-journals.com/crr 261
Corporate Responsibility and Corporate Reputation
argue that issues relating to responsibility are (Smidts et al., 2001). There is much evidence
embedded within the functional relation- that reputations with different stakeholder
ships that underpin business activities. They groups interact. In particular, reputation with
suggest, therefore, that there will be a sig- employees is seen to have an impact on
nificant overlap between the reputation for reputation with customers and communities
these activities and the reputation for issues (Carmeli, 2005). When managing their
relating to responsibility. Corporate Reputation, organizations should
It is thus not clear from the current lit- therefore take account of not only their
erature how responsibility and reputation relationships with stakeholders but also
interact. Does responsibility lead to a good monitor how stakeholders influence each
reputation? Or is reputation judged in terms other (Dutton et al., 1994).
of issues relating to responsibility and other A review of existing models of Corporate
characteristics? The key difference between Reputation reveals a relatively small number
these two approaches is the following: The of widely used models, the most prominent
first approach sees responsibility as preceding of which seem to be variations of Fortune’s
reputation, or in other words as bringing Most Admired Companies List (MAC) and
about a good or bad reputation. The second the Reputation Quotient (RQ) (Fombrun
approach sees responsibility as an inherent and Van Riel, 2004; Fombrun, 1996). Also
part of reputation, in other words as a key popular but to a lesser extent are models
element in terms of which reputation is des- such as the Corporate Personality Scale
cribed. At this stage both, one or neither of (Davies et al., 2003) and the Stakeholder
these propositions might be true. This paper, Performance Indicator and Relationship
therefore, sets out to compare these two con- Improvement Tool (SPIRIT) (MacMillan
cepts. To achieve this, the paper follows five et al., 2004).These models differ considerably
related steps: in terms of their underlying approach, the
stakeholder they survey and what they meas-
1. First, literature relating to reputation is ure (Mahon, 2002).
reviewed. For example, the MAC List surveys CEOs
2. Second, literature relating to responsibility and financial analysts about their view of
and its related constructs such as CSR is listed companies in terms of issues such as
reviewed. innovation, financial soundness, use of cor-
3. Third, stakeholder literature is reviewed porate assets and social responsibility. The
with the aim of developing an approach list was developed by the Fortune’s edito-
to bring together literature on reputation rial panel in discussion with business leaders
and responsibility. and financial analysts and sought to identify
4. Fourth, the findings of a qualitative characteristics that executives and financial
research study are presented. experts admire in companies. Subsequent
5. Finally, the conceptualizations of respon- analysis of the data revealed that all compo-
sibility and reputation are compared and nents factored on one underlying dimension,
contrasted with a view to reaching a which can best be described as a financial
better understanding how these concepts dimension (Fryxell and Wang, 1994).
interact. The RQ, on the other hand, can be app-
lied to obtain data on a company’s reputation
CORPORATE REPUTATION from the point of view of the general pub-
Corporate Reputation is a multi-stakeholder lic, customers, employees, suppliers and
concept that is reflected in the perceptions investors. Although, in practice, surveys with
that stakeholders have of an organization the general public and customers have been
262 Corporate Reputation Review Vol. 10, 4, 261–277 © 2007 Palgrave Macmillan Ltd. 1363-3589 $30.00
Hillenbrand and Money
the main focus of research. The model meas- influences such as experience of what the
ures perceptions of an organization in terms media has to say about a business or how a
of social expectations of dimensions such as business treats other stakeholder groups.
products and services, vision and leadership, Feelings refer to the level of trust and posi-
work place environment and social respon- tive emotions that stakeholders feel towards
sibility. The scale was developed through a a business. Intentions of stakeholders meas-
literature review of existing reputation ure the likelihood that stakeholders will sup-
models followed by focus groups conducted port the business in the future, for example
in ten different countries. The focus groups through stakeholder retention, advocacy and
asked members of the general public to ans- cooperation. The scale was developed
wer questions such as ‘What is Corporate through a literature review of reputation,
Reputation? And what aspects make it up?’ marketing and psychology literature and fol-
The statistical analysis found evidence for lowed by focus groups and interviews. The
two distinct factors: those relating to emo- concepts in the model were modified and
tional appeal and those relating collectively refined and questionnaires were developed
to all the other dimensions. to measure aspects in the model. These were
The Corporate Personality Scale surveys distributed to 8,000 stakeholders of different
customers and employees in terms of their kinds across three different continents. Sta-
perceptions of organization’s personality, tistical Techniques, such as factor analysis and
focusing on dimensions such as agreeableness, structural equation modeling, confirmed the
machismo, competence and enterprise. The independence of the measures and the pro-
scale was developed by extending the Aaker posed links between reputation, its causes
branding scale from the level of brands to and consequences.
that of organizations. This was done by ana- These models are now summarized in
lyzing corporate websites for descriptions of Table 1 with reference to their main features.
corporate character, conducting focus groups As described in Table 1, models differ from
in which customers and employees were each other according to their underlying
asked to describe the characteristics of orga- approach, the stakeholders they survey and
nizations ‘as if they had come to life’ and what they measure. The way a model is
searching for terms used to describe person- developed and the underlying assumptions
ality. Items were generated and tested on of theorists have an impact on when it is
thousands of customers and employees. A most appropriate to use different models. For
factor analysis was used to confirm and example, it is important to consider when it
refine the components in the scale. is appropriate to use a personality metaphor
The SPIRIT model can be applied to or a relationship metaphor and to consider
survey Corporate Reputation from the per- what useful data could be obtained from dif-
spective of many stakeholder groups of a ferent stakeholder groups. We have already
business including, for example, customers, stated we will take a stakeholder perspective
employees, suppliers, investors and commu- and this means focussing on models that
nity groups. SPIRIT measures Corporate ely upon stakeholder expectations in their
Reputation in terms of three areas, namely, underlying approach. Since the RQ and
the experience, feelings and intentions of SPIRIT models are developed with stake-
stakeholders towards a business. Experiences holder perceptions and expectations as
of stakeholders include the way a business their fundamental starting points, these
informs and listens to stakeholders, the two models will be used as a basis for the
material and non-material benefits a business comparison with a conceptualization of
provides to stakeholders and outside responsibility developed from a similar
© 2007 Palgrave Macmillan Ltd. 1363-3589 $30.00 Vol. 10, 4, 261–277 Corporate Reputation Review 263
Corporate Responsibility and Corporate Reputation
MAC list Reputation described in terms CEOs and Eight characteristics of reputation (innovation,
(Fortune of characteristics that are financial analysts financial soundness, employee talent, use of
Magazine) admired by financial analysts, corporate assets, long-term investment value,
CEO and journalists social responsibility, quality of management,
quality of products and services)
Statistical analysis suggest that all eight
characteristics factor on one dimension
Reputation Reputation described in Many stakeholder Six pillars of reputation (emotional appeal,
quotient (RQ) terms of stakeholder groups of a business products and services, vision and leadership,
(Fombrun, 1996) expectations of organizations including the general workplace environment, financial
public, customers, performance, social responsibility) Statistical
employees, suppliers, analysis suggests that the six pillars group
investors, etc into two dimensions of reputation:
emotional appeal as one dimension and the
remaining pillars as second dimension
methodology. While others, such as Davies Society literature (Andriof and Waddock,
et al. (2003) also incorporated customers and 2002). In this arena it is used as a broad term
employees in the refinement of their scales, to describe the issues relating to the respon-
their conceptualization does not begin with sibilities of business. CR is closely linked to
stakeholder expectations, but rather with the other concepts in the Business and Society
application of a personality metaphor. literature, most importantly the concept of
Corporate Social Responsibility (CSR) (eg
CORPORATE RESPONSIBILITY Lockett et al., 2006; Windsor, 2006; Moir,
Corporate Responsibility (CR) is a concept 2001), but has been differentiated from
in business research with roots in Business and CSR as being broader and encompassing
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day-to-day operating practices and strategies the Global Reporting Initiative (GRI)
of business as well as impacts on society and that includes reports on employees, custo-
the environment (Ahmad et al., 2003; An- mers, community, supply chain and business
driof and Waddock, 2002). The term CR partners among other aspects. While these
drops the word social from previous concep- conceptualizations often survey stakeholder
tualizations ‘to signal an emerging sense that opinion, few actually involve stakeholders
responsibilities are fundamental to all actions, in a rigorous and systematic way from the
decisions, behaviours and impacts of business’ definition of the concept through to meas-
(Waddock, 2003: 15). CSR, on the other urement. This leaves an opportunity for
hand, can thus usefully be seen as relating stakeholders to be involved in defining
to the specific social, philanthropic and responsibility and identifying issues that are
community focussed responsibilities of relevant to them. It is clear from our review
business. above that researchers in the Corporate
CR rather than any of its related concepts Reputation domain have already developed
is investigated in this paper for two reasons: conceptualizations and models of Corporate
First, there is a growing use and acceptance Reputation by engaging stakeholders in
within both the practitioner (eg Eco concept development and through the map-
Conference, 2006; EABIS Conference, 2006; ping of their perceptions (eg MacMillan
Zadek, 2004) and academic (eg Andriof and et al., 2004; Fombrun, 1996). It is also now
Waddock, 2002; Waddock, 2003) communi- clear that researchers in the area of Business
ties for the term CR. Second, CR being a and Society have yet to carry out similar
broad concept, allows for the investigation of conceptual development for CR and its
both the social and other aspects of respon- related constructs (Windsor, 2006; Neville
sibility within the same study (MacMillan et al., 2005). Before we can understand how
et al. 2004; Waddock, 2003). A discussion responsibility and reputation interact, it
about the link between reputation and the follows that we first have to have conceptu-
different aspects of responsibility should alizations of both concepts that are derived
therefore ensue. from a similar approach. This will allow us
Despite this distinction, a fundamental to compare and contrast the concepts more
problem in Business and Society literature is easily and rigorously.
that there is no universally agreed definition A number of scholars have thus called for
of CR or CSR (Windsor, 2006; Garriga and a conceptualization of CR to be developed
Mele, 2004; Waddock, 2003). The lack of from a stakeholder perspective (Wood et al.,
agreement in terms and definitions has not 2006; Waddock, 2002). Taking account of
stopped academics and practitioners from how stakeholders make sense of CR would
conceptualizing and measuring CR and its also add to the legitimacy of any models and
related constructs in many different ways. measures developed. This is because the
Academic examples include categorizing opinions of key groups such as customers,
corporate social performance in terms of employees or suppliers would be acknowl-
people and products (Johnson and Greening, edged in an explicit way (Wood et al., 2006).
1999) and in terms of social issues, such as For these reasons, this paper sets out to
employee relations, diversity issues, product develop a conceptualization of CR that is
issues, community relations and environ- built through an engagement with stake-
mental issues (Hillman and Keim, 2001). holders from the inception stage. Before
Practitioner examples include the triple this is done, the next section reviews key
bottom line of financial, social and environ- elements of stakeholder theory relevant to
mental performance (Elkington, 1997) and this approach.
© 2007 Palgrave Macmillan Ltd. 1363-3589 $30.00 Vol. 10, 4, 261–277 Corporate Reputation Review 265
Corporate Responsibility and Corporate Reputation
266 Corporate Reputation Review Vol. 10, 4, 261–277 © 2007 Palgrave Macmillan Ltd. 1363-3589 $30.00
Hillenbrand and Money
stakeholders (Barone et al., 2000; Mohr et al., Strauss, 1967; Easterby-Smith et al., 2002). In
2001). There is, however, a consensus among a similar way to Fombrun (1996), who asked
practitioners and academics alike that it is general questions such as ‘What is Corporate
important to understand and address Reputation’ and ‘What does it entail’, the
stakeholder expectations of CR (Wood et al., current research study also used general
2006; MacMillan et al., 2004; Waddock, questions, such as ‘What is Corporate
2002). It is our aim to import the approaches Responsibility’ and ‘What does it entail’.
and rigor around which reputation measures While Fombrun asked stakeholders to think
were developed to the field of CR. In of business in general and good and bad
particular to apply similar techniques used companies, this research study is carried out
by Fombrun and Van Riel (2004) and in the context of a relationship between
MacMillan et al. (2004). stakeholders and a target business. This is
This paper continues by describing a re- done to take account of stakeholder theorists
search project that sets out to define respon- and social psychologists who suggest that
sibility from the perspective of stakeholders issues are more richly understood when
and fills this gap. Customers and employees they are embedded into experience.
of a financial institution are the participants It should be noted that the aim of the
and sources of data in this study. As such research is to investigate mental conceptu-
the study provides a first step to conceptua- alizations of CR among customers and
lize responsibility from a stakeholder per- employees. Therefore, the design did not
spective. A formal comparison with the employ existing conceptualizations of CR,
reputation models, as outlined in the intro- or aspects thereof, as practical research
duction, is then given. guidelines. In the same way, no organiza-
tional value propositions such as mission
METHODOLOGY AND RESEARCH DESIGN and vision statements of the participating
The research was conducted with a financial research organization were employed as
service company in the UK and was part of guidelines.
a larger project investigating responsibility
and its impact in the financial service sector. DATA ANALYSIS AND RESULTS
Data gathering for the research reported in The field notes and transcripts were analyzed
this paper included 15 in-depth interviews in an inductive way based on Miles and
with employees of three different branches. Huberman (1994) who suggest a systematic
Furthermore, data gathering included four process for making sense of and displaying
focus groups with 8–12 customers each in data, including the following stages that are
three different areas of the UK. The views now outlined:
of a total of 56 customers and employees
were used as data in the qualitative analysis. 1. Preparation of written-up field notes.
The design of the interviews was informed 2. Qualitative clustering to identify trends
by Kvale (1996). The design of the customer in the data.
focus groups was informed by Marshall and 3. Further analysis to identify high-level
Rossman (1995). themes and links between clusters.
The study was based upon an inductive
research design. Following key qualitative Field Notes
research techniques, the discovery of emp- The focus groups with customers were
loyee and customer construction of reality audio- and videotaped and subsequently
as a basis for conceptual understanding builds transcribed. Interviews with employees
on elements of grounded theory (Glaser and could not be taped due to reasons of
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Corporate Responsibility and Corporate Reputation
confidentiality. Therefore, a second research- ment, (7) how business behaves towards
er who took notes during the interviews other exchange stakeholders and (8) being
accompanied the facilitator. a financially stable and successful business
in the long term.
Qualitative Clustering to Identify Trends
in the Data
The written up field-notes and transcripts HIGH-LEVEL THEMES AND LINKS BET-
were then analyzed by identifying dominant WEEN CLUSTERS OF RESPONSIBILITY
trends that were repeatedly mentioned by These eight clusters were then categorized
customers and employees. The method of in three high-level themes that reflect who
identifying trends was based on a qualitative these responsibilities are addressed to in the
clustering technique described by Miles and minds of stakeholders. So, in the minds of
Huberman (1994). Qualitative clustering stakeholders a business is responsible for how
helps to understand data by grouping and it relates to (1) ‘me’, (2) ‘others’ and (3) ‘it-
then conceptualizing units that have similar self ’.These three themes with corresponding
patterns or characteristics. Based on this clusters are shown in Table 2.
technique, eight distinct clusters of respon- Table 3 gives some specific examples of
sibility were identified from the data that how these themes and clusters are expressed
represent customer and employee thoughts in the customer and employee data from the
on what a business is responsible for. These financial service organization studied.
eight clusters are responsibility for: (1) com- It should be noted that there is a high
munication with them, (2) the kind of ben- degree of overlap between the themes and
efits a business offers them, (3) behaving with the clusters that underpin customer and em-
integrity, transparency and accountability ployee understanding of CR. Expression of
towards them, (4) how a business makes these clusters seems to be more similar when
them feel, (5) how a business relates to local referring to issues removed from their own
communities, (6) how a business relates to relationship, such as how business relates to
the wider society, including the environ- others and to itself. While this is the case,
268 Corporate Reputation Review Vol. 10, 4, 261–277 © 2007 Palgrave Macmillan Ltd. 1363-3589 $30.00
Table 3: More Detailed Conceptualization of Responsibility from a Stakeholder Perspective
A business is responsible for… …that means from a customer perspective, for example …that means from an employee perspective, for example
…how it relates to through • Proactive communication of relevant • Appropriate communication between management,
ME communication information staff and customers
• Being listened to, being able to get through • Communicating company procedures
to a member of staff
through the kind of benefits Products and services: Remuneration package, training and development
it offers to me • Offering competitive prices and • Providing a good salary
products overtime • Providing career opportunities
• Offering friendly and polite service, knowing • Training and development
customers by name
and how that makes me feel • Being proud of being a customer • Feeling respected
• Being part or something inspiring • Being enthusiastic about the company
…how it relates to The local • A business that are aware of problems in local • Getting involved in local projects and community
OTHERS (that includes community communities and participates in providing solutions activities
stakeholders and society • Keeping local branches open
in large)
The wider society • Supporting national and international charities and • Supporting national and international charities and
Towards other direct In particular, employees were identified In particular, customers were identified as a key group, that the business
exchange stakeholders as a key group, that the business should: should provide with
(ie employees , • Retain local employment • Good service (eg treating customers well, and a friendly manner)
customers , suppliers and • Provide stable long-term employment • Accessible service(eg offering face-to-face service to customers and
shareholders ) • Treat staff fairly a direct phone line)
• Good products (eg competitive products, prices and quality)
269
Corporate Responsibility and Corporate Reputation
the specific expression of concepts is often ness runs its operations and treats customers
different, particularly when relating to how and staff and whether it is profitable or not.
a business relates to them as a focal stake- Indeed of the eight clusters identified, only
holder group. two (How a business relates to the local com-
munity and How it relates to wider society) did
not relate to the core activities of business.
DISCUSSION OF THE RESULTS The other six clusters refer to how a business
The most noticeable finding from the re- relates to stakeholders in terms of their
search is how comprehensive and extensive daily business activities and whether or
customers’ and employees’ conceptualization not a business makes money.
of CR is. The analysis reveals a wide spread The message to businesses here is clear.
of business behaviors and characteristics as- If they want to be seen as responsible by
sociated with the notion of CR such as the customers and employees, they need to
way a business behaves towards people in its get the relationship right with these groups
daily activities, the way a business makes as well as meeting wider social obligations.
people feel, aspects of profitability and com- The findings should also come as a relief
munication. This is particularly interesting to managers who often wrestle with the
when one considers how the term CR is ‘conflict’ between being responsible and
sometimes used in a very narrow sense to providing good service and profitability.
represent charitable donations, community The message is again clear: businesses
involvement and employee voluntarism, that deliver value and service to customers
which are all extra-curricular activities and and are honest and fair to employees
not core aspects of how a business makes its should be perceived as being responsible.
profits. While customers and employees see If we believe past research, these activities
support of good causes and the environment should also bring profit (eg MacMillan et al.,
as part of the picture, it does not seem to 2004).
be their main priority. The results do
suggest however, that CR is a concept that
embraces both the social aspects normally LINKING CR AND CORPORATE
associated with CSR and wider elements as- REPUTATION
sociated with more mainstream business A comparison of the conceptualization of
practice. responsibility provided by the data analyzed
The results also suggest that customers in this paper and current measures and mod-
and employees see CR as being reflected in els of reputation provides the framework for
similar issues. This has implications for the a discussion about links between responsibil-
management of multiple stakeholder rela- ity and reputation. As a starting point,
tionships in that it suggests that organizations similarities between elements of CR, as rep-
can manage and demonstrate their responsi- resented by the findings of the current study,
bility using a similar set of issues. Theorists and elements of Corporate Reputation, as
such as (Carmeli, 2005; Dutton et al., 1994; represented by the SPIRIT-Model of Repu-
Smidts et al., 2001) could build on this in tation (MacMillan et al., 2004) and the RQ
their work linking internal and external Model (Fombrun and Van Riel, 2004) are
reputations. summarized in Table 4.
The most important business responsi- For ease of reference similarities and dif-
bilities in customer and employee under- ferences are now discussed in terms of the
standing are core aspects of business three themes of CR developed from the
behavior and strategy such as the way a busi- empirical research in this paper.
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Hillenbrand and Money
Table 4: Comparison between Findings of the Current Study and Reputation Models
Through the kind of Experience of business behavior (Material Products and services
benefits it offers to me and non-material benefits)
Through the way it behaves Experience of business behavior (Keeping Vision and leadership
with integrity, transparency commitments,
and accountability fairness and a lack of
coercion)
And how that makes me Stakeholder feelings towards a business Emotional appeal
feel (eg trust and positive emotions)
…how it relates to Long-term business success Stakeholder Intentions towards a business Financial performance
ITSELF including behavioral support such as
retention, extension, advocacy,
cooperation and a lack of subversion
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Corporate Responsibility and Corporate Reputation
Theme 1: Stakeholder Expectation about holders. Ideally, data regarding this dimen-
‘How a Business Relates to Me’ sion of responsibility should be obtained by
It seems that the theme of ‘how an organi- conducting research directly with different
zation relates to me as a stakeholder’ is par- stakeholder groups regarding their individu-
ticularly similar to the part of SPIRIT that al relationships with the organization.
measures ‘stakeholder experiences of an or- Research with one stakeholder group
ganization’. Both the above-mentioned does, however, offer an opportunity to gath-
themes in the CR and SPIRIT models, er information that is relevant to this theme
for example, include a measure of how of responsibility because reputation models
an organization communicates with stake- often require stakeholders to give their opin-
holders, the benefits stakeholders receive ion about how organizations relate to stake-
from organizations, the integrity with which holder groups other than their own. An RQ
stakeholders are treated and how stakehold- with customers of an organization, for ex-
ers feel towards the business. ample, will provide an indication of how
The RQ also seems to overlap with the customers perceive an organization to be
CR model in terms of this theme of ‘how performing in terms of ‘social responsibility’.
an organization relates to me as a stakehold- This could, for example, relate to the dimen-
er’. In particular, the pillar of ‘products sion of responsibility relating to ‘how an
and services’ seem to relate very strongly to organization is seen to impact the wider so-
‘benefits offered to me (as a customer)’ ciety’. An RQ with customers would also,
and the pillar of ‘emotional appeal’ seem to for example, provide an indication of how
link very strongly to ‘how an organization customers perceive the ‘workplace environ-
makes me feel’. The other two clusters of ment’ of an organization. This may provide
this theme of responsibility, in terms of some indication of the dimension of respon-
the communication and integrity seem to sibility that relates to ‘how an organization
be less closely linked to the RQ. However, relates to its employees’.
it could be argued that elements of vision When SPIRIT is applied to one stake-
and leadership should correlate with notions holder group, it provides much more infor-
of integrity. mation about the details of the focal
relationship than the RQ, but less informa-
tion about how this focal group perceive an
Theme 2: Stakeholder Expectations organization to relate to others. It does,
about ‘How a Business Relates to Others’ however, provides an indication of how
In terms of the second theme of responsibil- other groups may influence the reputation
ity, ‘how an organization is seen to relate to of an organization in the minds of one focal
others’, the themes and dimensions from stakeholder group. This could include, for
reputation models fit well, but not with the example, customer perceptions of how an
same degree of synergy as the previous organization relates to the local community
theme of CR. This is because reputation re- and wider society and an indication of how
search often provides data from the perspec- these perceptions influence the reputation of
tive of one stakeholder group only in terms the organization in their minds. It does not,
of how the organization relates to them. RQ however, overtly ask stakeholders how other
and SPIRIT surveys are, for example, often groups are treated by the organization.
conducted with customers or employees of This example highlights the differences
an organization, while it is less common for between the SPIRIT model and the RQ
surveys to be conducted simultaneously with and also highlights the importance of
both these groups, let alone multiple stake- carrying out further multi-stakeholder
272 Corporate Reputation Review Vol. 10, 4, 261–277 © 2007 Palgrave Macmillan Ltd. 1363-3589 $30.00
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© 2007 Palgrave Macmillan Ltd. 1363-3589 $30.00 Vol. 10, 4, 261–277 Corporate Reputation Review 273
Corporate Responsibility and Corporate Reputation
concepts, they may more usefully be thought should not be taken to be generalizable to
of as two sides of the same coin. other concepts such as CSR. While the
This has a number of implications, but results suggest that social elements are key
critically it may mean that reputation models components of CR, richer and more
could be used to provide a starting point for in-depth views of CSR may be obtained
the provision of proxy-measures of responsi- by taking a similar inductive approach and
bility. In addition, the conceptualization of researching this concept in more detail.
responsibility provided in this paper suggests Researchers are thus encouraged to conduct
that organizations can use measures provided this type of research with different type of
by reputation models to communicate and corporate entity and concepts that embrace
report on the responsibility of their busi- different elements of those identified in this
nesses in terms of issues that are relevant to study or in the literature.
stakeholders. In this way data could be col- The current study has been conducted
lected for a number of purposes. Also, these with customers and employees of a financial
measures could be incorporated into strategic service company in the UK and it is not
decision-making that is aimed at growing clear in how far the findings can be gener-
the value of the business as well as ensuring alized to other industries, stakeholders or
responsible behavior. It might also provide an countries. Future research could extend
opportunity for reputation and responsibility exploratory research into stakeholder expec-
practitioners and academics to join forces and tations of CR including other stakeholder
move both concepts forward. groups such as suppliers, investors, commu-
Another interesting finding is that despite nities and NGOs. It would also be interest-
differences in the interpretation of aspects of ing to conduct similar research with different
the clusters, on a conceptual level, employees businesses and in different industries and
and customers construct CR in a very simi- countries to compare how far expectations
lar way. From a theoretical point it suggests of CR can be compared and separated into
that a generic conceptualization of CR and specific business responsibilities, specific
Corporate Reputation could be developed industry responsibilities, cultural responsi-
that is applicable to different stakeholder bilities and general responsibilities. Since a
groups. This could then be operationalized in key tenant of stakeholder theory is that con-
different ways with different organizations ceptualizations are multifaceted and depend-
and stakeholders as our research suggests dif- ent upon different stakeholder needs, the
ferent stakeholders express the same underly- overlap between reputation models and con-
ing themes in different ways. From a practical ceptualizations of CR could be further in-
point it suggests that a business can simultane- vestigated in different situations.
ously enhance its reputation and demonstrate
its responsibility by meeting stakeholder ex-
pectations. However, the expression of spe- CONCLUSION
cific relationship issues still highlights
importance of understanding the specifics in Implications for Academics
the expectations of different stakeholder The study has a number of implications for
groups before operationalizing responsibility the academic world. First, the findings of this
or reputation in organizations. study suggest that customers and employees
conceptualize CR in three ways: as business
LIMITATIONS AND FUTURE RESEARCH behavior towards them, as business behavior
The research focuses on the concepts of CR towards other stakeholder groups and as
and Corporate Reputation. The results business behavior that ensures a business’
274 Corporate Reputation Review Vol. 10, 4, 261–277 © 2007 Palgrave Macmillan Ltd. 1363-3589 $30.00
Hillenbrand and Money
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