Organizations in the Media
Lecture Notes & Literature: Study Questions
Semester 1
Block 1
Exam: 23/10/2023
, Theme 1: Organizations and Corporate Reputation
Study questions
Jonkman et al. (2019)
What is ‘corporate reputation’?
Corporate reputation = the way in which members of the public, or specific organizational
stakeholders, evaluate a firm.
How are media visibility and reputation related, according to the findings of this article?
Mere exposure to corporations negatively affects reputation
Media coverage can affect corporate reputation both positively and negatively, depending on
the salience of corporate actors (visibility) and valence of the coverage. Though, much
remains unknown about the conditions under which media visibility and tone influence
reputation
High levels of media attention may simply lead to the impression that something could be
wrong with an organization, but it also allows a corporation to inform the audience about its
successes.
Result: corporate visibility in the news can have a negative effect on reputation. The effect of
negative news is significantly stronger than that of positive news.
How are the tone of news coverage and reputation related, according to the findings of
this article?
Tone has a positive effect on reputation
The effect of negative news is three times larger than the effect of positive news
Bandwagon effect = positive news leads to a more positive reputation
Underdog effect = the notion that negative news could also lead to a more positive reputation
People are more likely to focus on preventing loss than obtaining potential gains → negative
news will evoke a stronger attitudinal response than positive news
Result: tone has a significant effect on reputation → as people are exposed to relatively more
positive than negative news about a corporation, their opinions about the corporation become
more positive.
The average effect of single news items might be limited, but cumulative negative reporting
can have substantial consequences
How does pre-existing reputation affect the effect of the tone of news coverage on
corporate reputation?
2
,Negative news is less influential for people holding more positive existing reputational
attitudes
A good prior reputation was found to backfire in crises where a corporation’s morality was
being challenged and under normal conditions, reputation functioned as a buffer → people
who held positive opinions about corporations were less likely to be negatively influenced by
information about a crisis
Boomerang effect = negative information that contradicts one’s existing opinions may
eventually strengthen one’s initial position
Buffering effect = those who hold more positive opinions of a company are less likely to take
negative news as a cue for negative development to protect their prior beliefs.
Results: a buffering effect exists here → a positive prior reputation lessens (and even
dampens) the negative effect of negative news. In other words, prior reputation serves as a
buffer for corporate reputation.
Negative news, generally, results in a more negative reputation, except for the people who
already held a positive attitude towards the specific corporation.
Etter, Ravasi & Colleoni (2019)
Explain figure 1 in your own words.
Figure 1 visually represents a clear division between a primary source of evaluations, which is
the news media, and the audience that receives and processes this information, which is the
general public. This figure depicts the traditional news media's substantial influence on
shaping collective judgments in a one-way process where individuals tend to accept and
internalize the images presented by these media sources, assuming them to be neutral, factual,
and trustworthy.
Explain figure 2 in your own words.
3
, Figure 2 presents a new framework to understand how social media influences changes in
media reputation dynamics. It emphasizes the role of technology and social interactions in
how evaluations are shared through social media in today's media landscape. It underscores
the importance of social media in shaping organizational reputation, challenging existing
assumptions about the relationships between news media, organizations, and the influence of
media reputation on collective judgments. It simplifies the depiction by excluding some
interactions, such as how corporate communication and social media content impact news
media coverage.
How does the rise of social media challenge current assumptions about media
reputation?
‘Old’ assumption Assumption with social media
Dissemination New media disseminate Social media allow evaluations
evaluation through one-way to be produced and disseminated
communication. Audience is by any member of a social
passive. network. Active audience.
Source and content of Homogeneity: professional Heterogeneity: social media
evaluations norms and procedures shape allows for multiple evaluations
the news content to exist in the public domain
Basis of credibility Credibility depends on the Credibility depends on firsthand
status of the source experience, independence, and
shared traits
Reach of evaluations Potential audience reached Potential audience reached
depends on established depends on content and style,
distribution channels and forwarding and sharing
4
Lecture Notes & Literature: Study Questions
Semester 1
Block 1
Exam: 23/10/2023
, Theme 1: Organizations and Corporate Reputation
Study questions
Jonkman et al. (2019)
What is ‘corporate reputation’?
Corporate reputation = the way in which members of the public, or specific organizational
stakeholders, evaluate a firm.
How are media visibility and reputation related, according to the findings of this article?
Mere exposure to corporations negatively affects reputation
Media coverage can affect corporate reputation both positively and negatively, depending on
the salience of corporate actors (visibility) and valence of the coverage. Though, much
remains unknown about the conditions under which media visibility and tone influence
reputation
High levels of media attention may simply lead to the impression that something could be
wrong with an organization, but it also allows a corporation to inform the audience about its
successes.
Result: corporate visibility in the news can have a negative effect on reputation. The effect of
negative news is significantly stronger than that of positive news.
How are the tone of news coverage and reputation related, according to the findings of
this article?
Tone has a positive effect on reputation
The effect of negative news is three times larger than the effect of positive news
Bandwagon effect = positive news leads to a more positive reputation
Underdog effect = the notion that negative news could also lead to a more positive reputation
People are more likely to focus on preventing loss than obtaining potential gains → negative
news will evoke a stronger attitudinal response than positive news
Result: tone has a significant effect on reputation → as people are exposed to relatively more
positive than negative news about a corporation, their opinions about the corporation become
more positive.
The average effect of single news items might be limited, but cumulative negative reporting
can have substantial consequences
How does pre-existing reputation affect the effect of the tone of news coverage on
corporate reputation?
2
,Negative news is less influential for people holding more positive existing reputational
attitudes
A good prior reputation was found to backfire in crises where a corporation’s morality was
being challenged and under normal conditions, reputation functioned as a buffer → people
who held positive opinions about corporations were less likely to be negatively influenced by
information about a crisis
Boomerang effect = negative information that contradicts one’s existing opinions may
eventually strengthen one’s initial position
Buffering effect = those who hold more positive opinions of a company are less likely to take
negative news as a cue for negative development to protect their prior beliefs.
Results: a buffering effect exists here → a positive prior reputation lessens (and even
dampens) the negative effect of negative news. In other words, prior reputation serves as a
buffer for corporate reputation.
Negative news, generally, results in a more negative reputation, except for the people who
already held a positive attitude towards the specific corporation.
Etter, Ravasi & Colleoni (2019)
Explain figure 1 in your own words.
Figure 1 visually represents a clear division between a primary source of evaluations, which is
the news media, and the audience that receives and processes this information, which is the
general public. This figure depicts the traditional news media's substantial influence on
shaping collective judgments in a one-way process where individuals tend to accept and
internalize the images presented by these media sources, assuming them to be neutral, factual,
and trustworthy.
Explain figure 2 in your own words.
3
, Figure 2 presents a new framework to understand how social media influences changes in
media reputation dynamics. It emphasizes the role of technology and social interactions in
how evaluations are shared through social media in today's media landscape. It underscores
the importance of social media in shaping organizational reputation, challenging existing
assumptions about the relationships between news media, organizations, and the influence of
media reputation on collective judgments. It simplifies the depiction by excluding some
interactions, such as how corporate communication and social media content impact news
media coverage.
How does the rise of social media challenge current assumptions about media
reputation?
‘Old’ assumption Assumption with social media
Dissemination New media disseminate Social media allow evaluations
evaluation through one-way to be produced and disseminated
communication. Audience is by any member of a social
passive. network. Active audience.
Source and content of Homogeneity: professional Heterogeneity: social media
evaluations norms and procedures shape allows for multiple evaluations
the news content to exist in the public domain
Basis of credibility Credibility depends on the Credibility depends on firsthand
status of the source experience, independence, and
shared traits
Reach of evaluations Potential audience reached Potential audience reached
depends on established depends on content and style,
distribution channels and forwarding and sharing
4
