We saw a lot of unethical behavior in the business for the last ten years. But surprisingly, the bad behavior does not always lead to reputational consequences. The authors propose a model of reputational loss, which explains why, Arthur Anderson and using PayPal as prime examples. Main levers involved, in their view, perceived control of the situation of the company, assuming certain that this event actually occurred, the level of perceived threat to the stakeholders, and perceived deviation from established practice. In addition, they show that the motivation of stakeholders and the media also play a key role in whether or not the organization's reputation severely damaged bad behavior. "Hide
by Rebecca Reuber, Eileen Fisher Source: Rotman School of Management, 4 pages. Publication Date: 01 May 2011. Prod. #: ROT142-PDF-ENG
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