New development: Is the pandemic reinforcing the organizational legitimacy of the municipally-owned companies?

IMPACT The Covid-19 pandemic required rapid intervention from governments. Local governments in Italy made use of municipally-owned companies (MOCs) to provide goods and services. This had advantages in terms of speed of intervention and reduction of transaction costs and has increased the organizational legitimacy of MOCs. Based on early evidence and from the author's past experience as a mayor, this article describes how MOCs are changing and the future role they could play in emergencies.

Corporate Social Responsibility Actions and Organizational Legitimacy at the Peak of COVID-19: a Sentiment Analysis

Purpose: This paper aims to analyse stakeholder sentiment about the corporate social responsibility (CSR) actions implemented by Italian companies between February 20, 2020 and April 20, 2020, which was the first peak in the outbreak of the COVID-19 health emergency in Italy. Design/methodology/approach: Using sentiment analysis, the impact of COVID-19 on CSR actions is analysed through reactions to the news published on Twitter by a sample of Italian news agencies. Findings: The analysis indicates that the actions most appreciated are those that are more radical, e.g. where the company has converted part of its production to make goods that are useful in dealing with the COVID-19 emergency. The study identifies a new category of actions definable as “crisis-shaped CSR.” Practical implications: This is one of the first studies concerning the effects of the pandemic on both CSR actions and organizational legitimacy. Originality/value: This work explains which strategic approach to CSR is the most effective in supporting corporate reputation in times of crisis, this study identified which of the CSR initiatives adopted by companies in Italy were more effective in stimulating positive interactions and sentiment among the general public. © 2021, Emerald Publishing Limited.