Anglo-American University introduced new series of RESEARCH & CREATIVE COFFEES which are aimed to be a platform for discussions about publications, projects and working papers of AAU Faculty as well as AAU students.

In the 2018 Fall semester we have planned 4 events, always on Friday starting 9.30am in room 1.33 on the following dates: September 14, October 19, November 23 and December 7. Last event this semester is planned for December 7, starting 9.30am in room 1.33 and will be devoted to two research papers of AAU MA Fellow Mihaela Stratulat:

  • IMPRESSION MANAGEMENT DURING A CRISIS EVENT: CASE STUDY OF VOLKSWAGEN
  • REPORTING GOOD AND BAD NEWS: CASE OF THE PHARMACEUTICAL INDUSTRY

Discussants: Doc. Irena Jindřichovská and Peter Bolcha, Ph.D.

Registration is needed at this link. Please register!!! Registered participants will get the full papers.

Contact person: Pelin Musil Ayan 

IMPRESSION MANAGEMENT DURING A CRISIS EVENT: CASE STUDY OF VOLKSWAGEN

Mihaela STRATULAT

Anglo-American University, Prague, Czech Republic

Abstract: With annual and integrated reporting becoming a standard practice, companies are disclosing more of their non-financial information to the public. As these corporate narratives are not regulated, they can become quite lengthy, thus, leaving room for impression management. Companies tend to present their performance in an overly positive way, resorting to various impression management strategies, especially pertaining to negative aspects. Such strategies are expected to be even more prevalent in companies faced with serious crisis events that can significantly tarnish their reputation. Thus, the purpose of this research is to analyse impression management techniques undertaken by companies in distress, specifically Volkswagen during the recent emissions scandal. Building on existing research, a content analysis of the company’s pre-scandal and post-scandal reports was conducted. The main impression management strategies discovered were competence enhancement, ingratiation, exemplification, apology, and redefinition of the event. Potential avenues for future research could be extending the analysed corporate narratives, including press releases and other communication of the company, as well as evaluating the media’s response and the public’s reaction to the impression management strategies.

Keywords: corporate narrative, crisis management, disclosure strategies, impression management

 

REPORTING GOOD AND BAD NEWS: CASE OF THE PHARMACEUTICAL INDUSTRY

Mihaela STRATULAT

Abstract: Corporate narratives are a good source of information for shareholders, but, since these are not regulated, they are often an opportunity for companies to employ impression management techniques. The purpose of this research is to answer the question – “What impression management tactics, if any, are companies using when reporting good vs bad news?”. The subject of the research is the pharmaceutical industry, due to it being often scrutinized by the public, and specifically three European companies. Drawing on previous research, a content analysis was conducted of each company’s two latest Chairmen’s and CEOs’ statements from the annual reports. Statements of good and bad news were coded and analyzed for potential impression management techniques. As expected, the narratives have more positive news, one CEO statement, in fact, omitting bad news altogether. Overall, surprisingly, some statements were quite transparent regarding the bad aspects of the company, and were not quick to blame external factors for their poor performance. A common strategy observed was juxtaposing the bad news against the company’s success to overcome those, in an attempt to showcase their competence. The narratives were also sometimes personalized and emotional, which could be a potential explanation to the sudden transparency. Perhaps, managers see more benefit in being more transparent about the negative aspects, while bringing more emotion to their statements in an attempt to ingratiate themselves with the shareholders and achieve more likeability from the audience.

Keywords: chairman statement, corporate narrative, disclosure strategies, impression management