Corporate Ability or Virtue? Relative Effectiveness of Prior Corporate Associations in Times of Crisis

Abstract

This experimental study employing both victim and preventable crises supports strong transferring effects of corporate ability (CA) and corporate social responsibility (CSR) associations on the public's responses in corporate crises. In addition, CSR associations are found to be more effective than CA associations in offsetting detrimental damage created by corporate crises. The study argues that the reason for more enduring and salient transferring effects of prior CSR associations in crisis situations is because CSR associations are positioned on a company's virtue-related dimensions, whereas CA associations are positioned on its skill-focused dimensions.