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Corporate accountability during crisis in the digitized era

  • Maryam Firoozi
  • , Chih Hao Ku
  • Sprott School of Business

Research output: Contribution to journalArticlepeer-review

8 Scopus citations

Abstract

Purpose: Despite an increasing trend in adoption of social media by for-profit organizations and their chief executive officers (CEOs), there is little understanding of how these new channels of communication are incorporated into the broader communication domain of a firm to discharge accountability during a crisis, when accountability is of critical importance. More importantly, research on how people perceive a crisis and voice their opinions to firms and CEOs on social media in reaction to that crisis is rather limited. Therefore, in this study the authors investigate these questions. Design/methodology/approach: This study is based on a case. The authors focus on the biggest data breach in Internet history in a pioneer technology firm, the Yahoo data breach. The authors conduct descriptive and dramaturgical analyses informed by Goffman to investigate how Yahoo manages its several front stages (communication channels), including social media during and after the Yahoo data breach announcements, and how people respond to the Yahoo's front stage management. Findings: The results show that, during this crisis, Yahoo engages in management of its front stages by first limiting them to a few, then by redrawing the line between its back and front stages, and finally by expanding its front stages to include two-way communication channels, including social media. An ongoing accountability process back stage guides Yahoo's management of its front stages and undermines Yahoo's accountability in front stages. However, social media audiences challenge Yahoo's control of its front stages by using various frames to make sense of the crisis, and to demand accountability. Originality/value: This study furthers the understanding of how social media platforms are positioned in a firm's broader communication channels during a crisis. It also enhances understanding of accountability demand, especially during critical times in a digitized era.
Original languageEnglish
Pages (from-to)933-964
Number of pages32
JournalAccounting, Auditing and Accountability Journal
Volume36
Issue number3
DOIs
StatePublished - Apr 4 2023

Keywords

  • Accountability
  • CEO
  • Crisis management
  • Data breach
  • Social media
  • Twitter

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