Mitigating the Stigma Associated with Divestment - a Legitimation Perspective

Abstract

While divestment activities have been a popular business strategy, there is still the stigma of “Failure” attached to it which can have negative effects on a company’ reputation. In this paper, we take a communication perspective and argue that divestment decisions have an impact on a company’s corporate reputation and this be moderated by the frame companies use when announcing divestment decisions. This paper analyzes the interplay of companies press release and their divestment decision to better understand how companies use framing techniques to mitigate the stigma of “failure” associated with divestment. By means of critical discursive analysis of press release by MNC, we examine the framing techniques used by companies when announcing their divestment decision. This study sheds light on the communication strategy through press release usage by closely analyzing the frames and structures used.