Abstract

The paper proposes a structured, stepwise approach to the management of reputational risks in order to assist in defining strategies for crisis management. A series of case studies of selected South African firms’ responses to specific crises in comparison to an ideal type stepwise model were analyzed and the effects on specific share price values explored. The effect of reputation capital on share price values, six months after the crises each of the selected companies sustained was also investigated. Correlation analyses tentatively indicated that the number of steps taken by management in the companies concerned in conformance with the model, and the speed with which they were implemented, affected post-crisis average share price values. Corporate capital as measured by perceptions of reputation and brand strength, were also found to be associated with greater company post–crisis share price resolution.

Key words: Crisis management, ideal type model, case study analysis, share price, reputation capital.