The Tobacco Industry’s Great Escape Exploring a controversial industry’s efforts to become legitimate
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2022-07-12
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en
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Abstract
The tobacco industry is one of the most regulated industries in the world and through critical events in its business environment has been subject to high legitimacy loss and a lack of public credibility. This study explores the critical events in the business environment of the tobacco industry and its impact on the management of its legitimacy strategies. This study aims to answer the following research question: “Which strategies do firms in the tobacco industry apply to manage and regain its corporate legitimacy under increasing regulatory pressure”? Document analysis has been used to answer the research question. The analysis shows that the tobacco industry applied decoupling in the first timeframe, after which is changed to substantial influence in the second timeframe. In the third- and fourth timeframe the tobacco industry engaged in moral reasoning regarding government entities and policymakers, whereas its own strategic communication aligned with isomorphic adaptation. So, the following theory was generated in this research project: “Organizations subject to high legitimacy loss and lack of public credibility will be forced to focus on changing organizational practices in accordance with societal expectations, through openness, transparency, and accountability”
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Faculteit der Managementwetenschappen