CSR, credibility, employees' rights and legitimacy during a crisis: a critical analysis of British Airways, WizAir and EasyJet cases

Purpose: Using legitimacy and impression management theories, this study examines whether there is evidence of Corporate Social Responsibility (CSR) decoupling by critically analysing the cases of three Financial Times Stock Exchange (FTSE) 350 airline companies (British Airways, WizAir, and Easyjet). The study focusses on three CSR aspects: community, customer, and employee support. Design/methodology/approach: Using the case study method, the authors critically analysed the content of the three companies' websites and verified Twitter accounts between March 2020 and August 2020. The authors also reviewed news media sources tied explicitly to COVID-19 and the airline industry. Findings: The study finds evidence of CSR decoupling due to inconsistencies between the three airline companies' communication about the companies' commitment to customers' health and safety and their actions. The study also uncovers that the three airline companies have violated employee rights by imposing unjustifiable and excessive redundancies and pay cuts, freezing planned pay rises, forcing unpaid leaves, and in some cases, suspending free meals during the crew shifts and exploiting the financial pressure and lack of jobs resulting from the pandemic by offering employees inferior contracts. Research limitations/implications: This paper responds to He and Harris's (2020) call for research to explore the impact of the global pandemic on CSR practices and Crane and Matten's (2020) call for research investigating how specific stakeholders get unvalued during the pandemic. The authors' study argues that the social responsibility of organisations, especially during crises, should not only focus on voluntary and charitable deeds but also on supporting employees, putting employees' well-being at the forefront of employees' operations, and maintaining credibility and sincerity in employees' communication and actions. Practical implications: The findings in this paper provide insights and policy implications for managers, stakeholders, and regulators. The paper sheds light on violations of employee rights, indicating that employees in the airline sector are amongst the under-appreciated stakeholders during the pandemic. Such knowledge is essential for practitioners and policymakers who are charting paths forward to address the needs of vulnerable categories of employees. The paper also elucidates the impact of CSR decoupling on an organisation's legitimacy and the significance of maintaining credibility in CSR communications and actions, especially during a crisis. Originality/value: Although exploring and analysing CSR practices in organisations has already attracted considerable interest in recent years, there is minimal knowledge about organisations' genuine commitment to CSR during the pandemic, and there is a dearth of relevant studies in the aviation industry during the COVID-19 pandemic. This study addresses this gap by exploring the CSR practices of three airline companies and the companies' genuine commitment to CSR during the pandemic. © 2022, Emerald Publishing Limited.

Corporate donation behavior during the covid-19 pandemic. A case-study approach in the multinational inditex.

The situation created by the COVID-19 pandemic, especially the confinement in many countries, has led to a global crisis, not only in health but also in economy and social issues. But it has also provoked a wave of solidarity and unprecedented donation behavior by many companies worldwide. Inditex, one of the main fashion multinationals, has become a referent for its reaction speed and has been ranked number one among the most significant companies for its Corporate Social Responsibility during the lockdown. Drawing from Stakeholder, Legitimacy, and Ethics of Care Theories, the aim of this paper is to analyze Inditex as a case study and reflect on the impact of its donation behavior on its corporate reputation. A desk research approach by using secondary data about the corporation, and a content analysis of press releases with ATLASti software during this time, let conclude that effective corporate donation impacts and improves the reputation of the corporation among its stakeholders.

CSR, credibility, employees' rights and legitimacy during a crisis: a critical analysis of British Airways, WizAir and EasyJet cases

Purpose Using legitimacy and impression management theories, this study examines whether there is evidence of Corporate Social Responsibility (CSR) decoupling by critically analysing the cases of three Financial Times Stock Exchange (FTSE) 350 airline companies (British Airways, WizAir, and Easyjet). The study focusses on three CSR aspects: community, customer, and employee support. Design/methodology/approach Using the case study method, the authors critically analysed the content of the three companies' websites and verified Twitter accounts between March 2020 and August 2020. The authors also reviewed news media sources tied explicitly to COVID-19 and the airline industry. Findings The study finds evidence of CSR decoupling due to inconsistencies between the three airline companies' communication about the companies' commitment to customers' health and safety and their actions. The study also uncovers that the three airline companies have violated employee rights by imposing unjustifiable and excessive redundancies and pay cuts, freezing planned pay rises, forcing unpaid leaves, and in some cases, suspending free meals during the crew shifts and exploiting the financial pressure and lack of jobs resulting from the pandemic by offering employees inferior contracts. Research limitations/implications This paper responds to He and Harris's (2020) call for research to explore the impact of the global pandemic on CSR practices and Crane and Matten's (2020) call for research investigating how specific stakeholders get unvalued during the pandemic. The authors' study argues that the social responsibility of organisations, especially during crises, should not only focus on voluntary and charitable deeds but also on supporting employees, putting employees' well-being at the forefront of employees' operations, and maintaining credibility and sincerity in employees' communication and actions. Practical implications The findings in this paper provide insights and policy implications for managers, stakeholders, and regulators. The paper sheds light on violations of employee rights, indicating that employees in the airline sector are amongst the under-appreciated stakeholders during the pandemic. Such knowledge is essential for practitioners and policymakers who are charting paths forward to address the needs of vulnerable categories of employees. The paper also elucidates the impact of CSR decoupling on an organisation's legitimacy and the significance of maintaining credibility in CSR communications and actions, especially during a crisis. Originality/value Although exploring and analysing CSR practices in organisations has already attracted considerable interest in recent years, there is minimal knowledge about organisations' genuine commitment to CSR during the pandemic, and there is a dearth of relevant studies in the aviation industry during the COVID-19 pandemic. This study addresses this gap by exploring the CSR practices of three airline companies and the companies' genuine commitment to CSR during the pandemic.

The Importance of Community Perspectives on Hotel Community-Related CSR: A Position Paper

The purpose of this position paper is to present an opinion on the importance of understanding host community perspectives in any community-based corporate social responsibility initiative. A host community is essentially the consumer of any community-based CSR, yet they each have unique cultures, features, needs, and expectations, which may or may not fit a business’s CSR initiative, unless the community perspectives are accounted for prior to the implementation of the CSR project. Focusing on the hotel sector context, the paper develops its position by reviewing supporting literature and highlighting the outcomes of a qualitative case study that involved face-to face semistructured interviews with 15 local opinion leaders who represented several local communities. The paper concludes with a firmer opinion on its position, and it offers some of the implications of its findings.

Impact of COVID-19 pandemic on financial reporting and disclosure practices: empirical evidence from Bangladesh

Purpose>To investigate the consequence of COVID-19 pandemic on the financial reporting and disclosure (FRD) practices, the study has been conducted. Moreover, this paper highlights the significance of FRD practices in any emergency period and its relevance with legitimacy theory in Bangladesh Perspective.Design/methodology/approach>The COVID-19 pandemic has adverse impact on business. Hence, all the business activities have been categorized into five major aspects which are financial factors, business operations, business contracts, business value and stakeholders. These five major activities have been considered as independent variable. By analyzing various policy recommendations and guidelines of global and local accounting bodies, a structured questionnaire was developed in association with related IAS and IFRSs. Then, it was distributed among the accounting professionals of Bangladesh who are currently engaged in financial statement preparation and auditing services. Finally, data was analyzed through structural equation modeling (SEM) to test the hypothetical relationship between dependent variable and independent variable.Findings>This study finds that financial factors, business contracts and stakeholders have significant relationship with the financial reporting and disclosure practices during the COVID-19 pandemic period. However, business operation and business value have no significant relationship with financial reporting and disclosure practices.Research limitations/implications>This study tries to analyze why and how firms should disclose essential information (both financial and non-financial) to the financial statement users during the COVID-19 pandemic. This study can be used as benchmark to issue a separate policy or standard for reporting any kind of adverse event in the financial reporting and disclosure practices.Originality/value>To our best knowledge, we believe that this is first kind of study undertaken to investigate the consequence of COVID-19 pandemic on the FRD practices in the context of Bangladesh. This study is kind of exploratory in nature. Hence, future studies can explore industry-based financial reporting and disclosure practice in any pandemic period.

How to communicate and use accounting to ensure buy-in from stakeholders: lessons for organizations from governments' COVID-19 strategies

PurposeThe purpose of this paper is to understand how communication strategies and the use of numbers can ensure the buy-in and cooperation of stakeholders.Design/methodology/approachDrawing on legitimacy theory, this study analysis documents regarding the communication strategies of New Zealand (NZ)'s Prime Minster, Jacinda Ardern, during the COVID-19 pandemic, in order to extract lessons for organizations. The authors contrast Ardern's communications with those of Donald Trump, the President of the United States (US), as evidence that leaders do not necessarily follow these strategies.FindingsThe findings show that clear, consistent and credible communications, backed up by open access to the numerical data that underlie the decisions, ensure that these decisions are seen as legitimate, ensure that citizens/stakeholders feel leaders are accountable and believe in the necessity of measures taken and that they conform to the guidelines and rules. By contrast, the strategy of attempting to withhold information, blaming others, refusing to acknowledge that there are problems and refusing to address problems lead to non-conformance by citizens/stakeholders. Business leaders could apply these lessons to the management of crises in their organizations to ensure buy-in from employees and other stakeholders. Leaders and organizations that follow these communication strategies can emerge in a stronger position than before the crisis.Research limitations/implicationsThis paper develops a theoretical framework of strategies aimed at maintaining and disrupting legitimacy among key audiences, which can be used in future research.Practical implicationsThis paper highlighting how organizations and organizational leaders can best communicate with stakeholders using accounting, thus coming across as being accountable during crisis times.Social implicationsThe legitimacy maintenance strategies outlined in this paper ensures that stakeholders feel leaders and the organizations they represent hold themselves accountable.Originality/valueThis paper outlines the lessons that an organization can learn from communication strategies adopted by governments during the COVID-19 crisis. The paper extends legitimacy theory by explicitly acknowledging the ability to disrupt the legitimacy of others and including this in the authors’ theoretical framework.