Corporate accountability during crisis in the digitized era

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.

Automated summary

This study investigates the incorporation of social media platforms in a firm's broader communication channels during a crisis, and the demand for accountability during critical times in a digitized era. The case study on Yahoo's data breach reveals that Yahoo manages its communication channels during the crisis by limiting and expanding its front stages, while an ongoing accountability process undermines its accountability. Social media audiences challenge Yahoo's control and demand accountability.