Stakeholders’ perceptions of an ethical crisis caused by employees and its impact on corporate image and reputation

Abstract
Purpose – The objective of this study is to understand and analyze the consequences of an ethical crisis caused by the unethical behavior of employees at a banking company, which demonstrates a lack of commitment and poor alignment with the organization’s values. The research examines the perceptions of employees, clients and non-clients regarding the media crisis and the communication response provided by the company to its stakeholders. Finally, the research offers recommendations on how to effectively manage a media crisis.
Design/methodology/approach – The study analyzed, through 1,182 questionnaires, the perceptions of
employees, clients and non-clients regarding the ethical crisis caused by the employees of a bank in Peru
regarding the pre-sale of tickets for the Peru vs. Colombia match in the Russia 2018 qualifiers. The study was complemented by in-depth interviews with two key executives of the company.
Findings – The results showed that stakeholders react differently to the company’s response to the crisis caused by employee misconduct. The study reflected that those who felt most affected by the incidents and perceived the crisis to be more serious were employees, as opposed to clients and non-clients. In addition, the results revealed significant differences in stakeholders’ perceptions of how the company handled the crisis, with non-clients being the most critical.
Research limitations/implications – Although the case concerned a single company in Latin America, due to the media nature of the facts, there was diverse and important information that allowed us to analyze the internal part of the company and evaluate the impact of the crisis on the company’s image and reputation outside the company, specifically with customers and non-customers. Likewise, the study proposed recommendations and communication strategies to respond to a crisis.
Practical implications – The research offered a series of recommendations consisting of a set of strategies for companies and their leaders to deal with business crises caused by negative employee behavior.
Social implications – The study analyzed how an ethical crisis situation can lead to a media crisis, which can damage the brand and the company’s reputation. It can also have a social impact, since the marketing strategy with good intentions on the part of the banking company became a negative action at a social level, generating disorder, disbelief and discomfort in a matter of national interest, such as the match between the Peruvian and Colombian national football teams in qualifying for the 2018 World Cup in Russia.
Originality/value – The research analyzed the relationship between corporate culture and the creation of
commitment in employees as a key tool to prevent possible business crises due to lack of trust and integrity of employees; which can prevent a possible crisis in the image and reputation of the company.