2Structure Group presentation Individual assignment during tutorial sessions on 01/12/14 & 02/12/14 and on 08/12/14 & 09/12/145%Individual assignmentto be submitted on 05/01/1520%
3Presentation 5-6 slides 5-10 minutes All group members or nominate one or two group members to present
4Individual assignment Deadline: Monday, 5th January 2015Word limit: 1,500 words (+/- 10%)Weighting: 20%
5Case studyIdentify an organisation facing a crisis or involved in a public controversy (e.g., an accident, a product safety/health hazard, a scandal, an environmental disaster, or a major structural re-organisation, such as privatisation or demutualisation) and investigate how the organisation reacted to it by means of information releases (e.g., press releases, annual report, corporate social responsibility report, etc.).Use a variety of accounting theories to explain the organisation’s response to the event.
6Aspects to think about What is a crisis? Define ‘crisis’ using relevant literatureWhat kind of crisis is the organisation facing?Breitsohl (2010):Scandals (e.g., fraud, bribery, insider trading price fixing)Accidents (e.g., plane crash, industrial accident)Product safety and health incidents (e.g., product defects and associated recalls, and production-related pollution)Who is effected by the crisis?Customers, shareholders, general public, etc.
7An example: Louis Vuitton crisis https://www.youtube.com/watch?v=pHGqqjQFAjA
8Aspects to think aboutHow does the organisation respond to the crisis?Which communication vehicles do they use? (e.g., press releases, annual reports, CEO speech, etc.)What strategies do they use?E.g., apology, excuse, blame and fire CEO?
9Identifying a case – How to find it? Google search with key words‘scandal’, ‘accident’, ‘incident’
10Assignment requirements You need to demonstrate the ability to identify a good caseYou need to demonstrate your understanding of the accounting theory(ies) you choose to explain the corporate responses made following the accident/incident/scandalYou need to demonstrate the ability to analyse the corporate responses using an appropriate way of analysing the corporate texts
11Assignment requirements You need to follow the structure outlined in the assignment documentYou are expected to read around the subject and will be rewarded, if you refer to journal articles or other authoritative sources of information (journal articles, books and book chapters, NOT websites) to support your argumentReferences in the references section should be mentioned in the text and vice versa
12Presentation - Content 2. The caseContextBackground information about the caseWhat company? When? What happened? Who was affected? How did the media report the case?3. DataCSR report, annual report, number of press releases?4. MethodologyWhat verbal strategies are you focusing on in your analysis?
13Group presentation & individual assignment Collecting your dataAnalyse organisation’s reaction to the incident crisis communication→ search for corporate documentsAnnual ReportsInterim ReportsPress ReleasesCSR Reports...Download them from company websiteNOT financial statementsNOT newspaper articles or media websites (e.g., BBC)
14Collecting your data - Example: Horse meat scandal Group presentation & individual assignmentCollecting your data - Example: Horse meat scandalTesco website:Check date of disastere.g., Horse meat scandal 15 January 2013Press releases 15 January 2013-presentLess recent scandals also check Annual Report & CSR report
15Make a list of all data analysed - Example: Horse meat scandal Group presentation & individual assignmentMake a list of all data analysed - Example: Horse meat scandal
16Methodology – How to analyse the corporate documents Group presentation & individual assignmentMethodology – How to analyse the corporate documentsContent analysis of corporate narrative documentsFocus on verbal strategies used to refer to the accident/incident/scandalE.g. apologies, excuses, etc.The Co-operative Bank crisis which involved the exposure of a £1.5bn capital hole by an independent review.The Co-operative Bank's (CEO’s) response to the reviewhttps://www.youtube.com/watch?v=YdTCayDLhHU
18Group presentation & individual assignment Cornelissen (2014)In a crisis verbal strategies depend on whether the organisation views itself as having:A low level of responsibility for the crisisE.g., denial, excuse, downplay, etc.A high level of responsibility for the crisisApology, compensation, repentance (asking for forgiveness)See table with full list of strategies on blackboard
20Applying the methodology to the data Individual assignment onlyApplying the methodology to the data
21Findings Are your findings in line with theoretical predictions? Individual assignment onlyFindingsReport on what you find in your the application of your methodologyE.g., Tesco uses press releases and advertisements in major UK newspapers to apologise to customersCompare your findings to those of prior studiesE.g., Tesco’s strategy of apologising to customers is similar to that of other consumer firms facing product safety issuesAre your findings in line with theoretical predictions?Stakeholder theory predicts that firms respond mainly to their primary stakeholders, i.e., for Tesco these are its customers
22What theories do I use to explain the company response to the crisis? Individual assignmentWhat theories do I use to explain the company response to the crisis?Systems-oriented oriented theories (Deegan & Unerman, Chapter, Chapter 8; Rankin et al., Chapter 5, ppStakeholder theory (also Mitchell et al., 1997)Legitimacy theoryInstitutional theoryPositive Accounting Theory (political cost hypothesis)Also:Benoit’s (1997) image restoration theory
23Examples of case studies Beelitz, A. and Merkl-Davies, D.M. (2012), ‘Using discourse to restore organisational legitimacy: ‘CEO-speak’ after an incident in a German nuclear power plant’, Journal of Business Ethics, 108 (1):Breitsohl, H. (2009), ‘Organizational Crises and Reactions from a Legitimacy Perspective – Results from Two Multiple-case Studies’, Schumpeter Discussion Paper Wuppertal.Cho, C.H. (2007), ‘Legitimation Strategies Used in Response to Environmental Disaster: a French Case Study of Total S.A.’s Erika and AZF Incidents’, Working paper.Linsley, P., and Kajüter, P.M. (2008), ‘Restoring reputation and repairing legitimacy. A case study of impression management in response to a major risk event at Allied Irish Banks plc’, International Journal of Financial Services Management, 3(1):