Corporate Legitimacy and COVID-19 - Spanish citizens' perceptions during confinement - Fundación Camilo Prado

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Corporate Legitimacy and COVID-19 - Spanish citizens' perceptions during confinement - Fundación Camilo Prado
Corporate Legitimacy and COVID-19
Spanish citizens' perceptions during confinement

Results from the survey developed by Management & Business Economics Research Group (Rey Juan
Carlos University), in collaboration with Fundación Camilo Prado
Corporate Legitimacy and COVID-19 - Spanish citizens' perceptions during confinement - Fundación Camilo Prado
Index
   Objective
   Situation in Spain
   Companies and Actions during COVID-19
   Companies and Country Brand
   Companies and Politics
   Companies and Consumers
   Consumers and the Media
   Companies and Legitimacy
   Data Sheet
   Research Team

                                           mberesearch.com   1
Corporate Legitimacy and COVID-19 - Spanish citizens' perceptions during confinement - Fundación Camilo Prado
Objective
The health emergency caused by COVID-19 has created a complex context from the health point of view, but also from a social,
economic and political perspective, which has led to an uncertain situation regarding the future

Before COVID-19 companies were focused on the United Nations Sustainable Development Goals. During this situation we have
seen how some of these goals improve (environmental) while others worsen in societies where many of them were already
surpassed. It is disturbing to see the increase in the economic, salary and gender gap, the entrepreneurship problems, the loss of
rights and liberties as well as the lack of respect to the elderly.

This situation made us think whether the institutions and companies were being responsible given the circumstances or not, if
they were behaving in an ethical manner, and if their behavior during confinement was going to generate changes in the citizens'
habits. Therefore, we asked ourselves, are companies doing what they should? Are they legitimate? Are they adapting to this
reality and helping the population?

In this study, we present the responses to the questions regarding the relationship between companies and Covid-19,
responsible behavior, impact on our future consumption habits, our government and the legitimacy of companies during the
confinement in Spain.

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Spain: COVID-19 evolution
Growth rate                                                   Instant basic reproductive number (RT)

                    Spain                                            Spain
daily cases

                            days                       days

                                                                                              Date
                                                Date

              Source: Health Ministry, Spain (2020)
                                                                                                       mberesearch.com   3
Companies and Actions
               during COVID-19

Are the actions developed by companies during
                                                     7%         12%             32%                      35%               14%
                           this crisis adequate?

     Do these actions represent any benefit for
                                                      11%         13%            27%                   32%                17%
                                      citizens?

     Do you think that they are adapting to the
     social demands arising from this situation?
                                                      11%             21%              26%                   30%              13%

    And, considering the health emergency. Are
                         they fulfilling the law?    7%         13%             27%                28%                  24%

                                                      1     2     3   4     5
                                                    Evaluate from 1 to 5, considering that 1 is completely disagree and 5 completely
                                                                                         agree
                                                                                                               mberesearch.com         4
Companies and Actions
                  during COVID-19

Are they helping their employees to fulfill the law?     9%        15%               31%                   26%               18%

        Are they fulfilling the health requirements?     11%       15%               29%                    31%               14%

In general terms, do you think that companies are
                                                         12%           18%                 32%                    28%            9%
        being managed correctly in this situation?

                                                         1     2   3     4   5
                                                       Evaluate from 1 to 5, considering that 1 is completely disagree and 5 completely
                                                                                            agree

                                                                                                                 mberesearch.com          5
Companies and Actions
         during COVID-19

52%                       33%                         44%
                                                      believe that companies
perceive that companies   perceive that companies
are fulfilling the Law    are adapting successfully   are helping their
                          to this crisis              employees adapt to
                                                      these circumstances

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Companies and
             Country Brand

Are they an example of how companies should
      be behaving in other countries under this
                                                        17%           19%               27%                  26%           11%
                                     situation?

Are they contributing to improve our country´s
                                                        17%           18%               30%                  22%           12%
                                       image?

37%
consider that they are a good or
                                                    1    2    3   4   5
                                                  Evaluate from 1 to 5, considering that 1 is completely disagree and 5 completely
                                                                                       agree

very good example for other
countries
                                                                                                           mberesearch.com           7
Companies and
              Politics

 Are they approaching this crisis better that our
                                                      10%        7%         17%           24%                   42%
                                     politicians?

        Should they become available for the
 government to help them overcome this crisis?         13%         9%         18%               27%                34%

 What do you think about the European Union?
                                                                 28%                19%               28%           16%       9%
Are they managing the situation better than our
                                   companies?
                                                      1      2     3    4     5
                                                    Evaluate from 1 to 5, considering that 1 is completely disagree and 5 completely
                                                                                         agree

                                                                                                            mberesearch.com        8
Companies and
          Politics

66%                          47%                          61%
                                                          believe that companies
believe that companies are   believe that companies are
doing things better or       doing things better or       should become available
much better than our         much better than the         for the government to
politicians                  European Union               help them overcome this
                                                          crisis

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Companies and
               Consumers
 When we return to our normal lives…will your
   perceptions have changed regarding some                14%        10%          26%                   29%                   21%
                                  companies?
 Will the origin of products affect your purchase
decisions? For example, made in China, made in             21%             8%    15%           23%                     34%
                     Bangladesh, made in Spain?
Are you worried about how COVID-19 will affect        9%        8%     10%        19%                          53%
             your profession and income level?

                    Are you concerned about it?        12%       10%            21%             24%                     33%

                                                      1     2    3    4     5
                                                    Evaluate from 1 to 5, considering that 1 is completely disagree and 5 completely
                                                                                         agree

                                                                                                              mberesearch.com          10
Companies and
            Consumers
     The concern and anxiety that citizens are perceiving during the Covid-19 crisis will
   influence the perceptions about companies and on a higher propensity for consuming
                     products and services from charitable companies.

60%                     57%
                        consider that the origin
                                                   72% 57%
consider that their                                believe that this       feel concerned
perceptions about       of the product will        situation will affect
companies will          affect their purchase      their income
change                  decisions

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Consumers and
             the Media
Are you tired of watching the news and see that
                            nothing is changing?     6% 3% 12%               21%                           57%

     Do you consider that the media affect your
                     opinion about companies?          13%         9%       14%          24%                      40%

                                                      1   2    3    4   5

    78%
    are tired or very tired of watching
                                                   Evaluate from 1 to 5, considering that 1 is completely disagree and 5 completely
                                                                                        agree

    the news and seeing that nothing
    is changing
                                                                                                             mberesearch.com          12
Companies and Legitimacy
               Ranking. Legitimacy by Sector
70%
                                                                                                                                                         62,61%
60%
50%
40%
30%                                                                                                                                            24,52%
20%
                                                                                                                                   10,43%
10%                                                             3,48%            5,04%            5,22%            6,43%

 0%
-10%         -5,04%
                             -12,52%          -13,91%
-20%       Restaurant     Public Admin.*   Communication       Tourism          Banking          Health         Commerce          Automotive    Food     Textile
            Services

* To the questions, “Could you specify three examples of companies/sectors that are contributing to overcome this crisis?” Some
respondents answered the public sector, government, or politicians. Considering the research relevance of the responses, the
information was gathered in pages 15 to 20.
                                                                                                                                                mberesearch.com    13
Companies and Legitimacy
      Ranking. Companies that gain Legitimacy

70%

60%    58,26%

50%

40%

30%

20%               16,35%
                             9,91%
10%                                   7,30%         7,13%
                                                                  4,00%      3,13%   2,61%      2,09%       1,91%
0%
       Inditex   Mercadona   Seat      Banco   El Corte Inglés   Iberdrola   Mango   Naturgy   Telefónica   Iberia
                                     Santander

                                                                                                     mberesearch.com   14
Companies and Legitimacy
 Ranking. Companies that loose Legitimacy

 0%

-2%    -1,04%   -1,04%   -1,04%   -1,22%   -1,22%   -1,39%   -1,39%   -1,57%
                                                                               -2,78%   -3,13%
-4%
                                                                                                 -4,17%
-6%

-8%

-10%

-12%
                                                                                                          -12,87%
-14%

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The actions developed by companies during the confinement have
affected their legitimacy level. Companies which have behaved correctly,
    adapting to social requirements, have reinforced their legitimacy.

                      Textile and Food                 Government,
62%
increase in the
                      Industry are the sectors that
                      gain more legitimacy
                                                       Atresmedia
                                                       and Mediaset
legitimacy of the                                      the ones that loose
Textile sector        Inditex, Mercadona               more legitimacy
                      and Seat the companies
                      that gain more legitimacy

                                                                mberesearch.com   16
Companies and Legitimacy
        Ranking. Legitimacy impacts performance by Sector

100%
           82%       78%
 80%
                                61%      61%       59%
 60%
 40%
 20%                                                                                                           Public
                                                             Insurance   Delivery   Restaurant.   Commun.      Admin.
  0%
         Industry   Textile   Tourism   Water   Automotive
-20%                                                            -12%
                                                                           -20%
                                                                                      -28%
-40%
-60%
                                                                                                   -61%
-80%
                                                                                                               -82%
-100%

                                                                                                          mberesearch.com   17
Companies and Legitimacy
        Ranking. Legitimacy impacts performance by Companies

100%      95%
                  85%
 80%                        74%       72%
                                                64%       59%
 60%
 40%
 20%                                                                        FC                  Burger
                                                                  RTVE   Barcelona Atresmedia    King    Gobierno   Mediaset
  0%
          Seat   Inditex    Real     Atlético Mercadona   Mango
-20%                       Madrid   de Madrid

-40%
                                                                  -48%
-60%
-80%                                                                       -72%
                                                                                     -80%       -84%
-100%                                                                                                     -96%      -100%

                                                                                                           mberesearch.com     18
Some companies achieve very high legitimacy performance per each
                       generated impact

    Industry and Textile are the sectors

                                                   95%
    which obtain a higher legitimacy performance
               per generated impact

                                                   legitimacy
    Public Administration and                      performance of
                                                   SEAT per each
  Communication are the sectors with less          generated impact
    legitimacy performance per generated impact

                                                                mberesearch.com   19
Data Sheet
Survey developed by Management & Business Economics Research Group from Rey Juan Carlos University,
in collaboration with Fundación Camilo Prado

Universe: Resident population in Spain with more than 18 years old

Sample: 575 Anonymous effective responses

Sampling: Non-probabilistic through standardized snowball by population and regional structure

Contact method: Auto – administered online surveys

Field-work: From the 17th of April to the 8th of May 2020

                                                                                         mberesearch.com   20
Research Team
The research is being developed simultaneously in the following countries:

               SPAIN                                    MEXICO

               ITALY                                    COLOMBIA

               PORTUGAL                                 CHILE

               UNITED STATES                            PERU

                                                                             mberesearch.com   21
Research Team
                                                                                       RESEARCH TEAM MEMBERS

              Dr. Alicia Blanco-González                       Dr. Gabriel Cachón Rodríguez                   D. Adrián López Balboa
            Universidad Rey Juan Carlos                         Universidad Rey Juan Carlos                 Universidad Rey Juan Carlos
                 Project Coordinator                            Dr. Jorge Luís Casas Novas                       Dr. Giorgia Miotto
                                                                  Universidade de Évora                       Universidad Ramón Llull
                                                               Dr. Cristina del Castillo-Feito                 Mrs. Macarena Urenda
            Dr. Alfredo Delgado Guzmán                          Universidad Rey Juan Carlos                           Duoc Uc
     Universidad Nacional Autónoma de México                   Dr. Elsa Esther Choy Zevallos                  Dr. Paola Plaza Casado
             Project Coordinator Latam                   Universidad Nacional Mayor de San Marcos           Universidad Rey Juan Carlos
                                                               Dr. Luis Tomás Díez de Castro                  Dr. Camilo Prado Román
                                                                 Fundación Camilo Prado                    Universidad Rey Juan Carlos
                  Dr. Gregory Payne                              Dr. Francisco Díez-Martín                   Dr. María Luisa Saavedra
                  Emerson College                               Universidad Rey Juan Carlos         Universidad Nacional Autónoma de México
          Project Coordinator United States                         D. Fernando Flores                        Dr. Elías Ramírez Plazas
                                                                  Foro Ecuménico Social                     Universidad Surcolombiana
                                                                   Dr. Jaime Gil Lafuente                    Dr. Berta Silva Palavecinos
                Dr. Domenico Marino                              Universidad de Barcelona           Pontificia Universidad Católica de Valparaíso
Università degli Studi Mediterranea di Reggio Calabria           Dr. Raúl Gómez Martínez                        D. Pablo Suasnavas
              Project Coordinator Italy                         Universidad Rey Juan Carlos            Universidad Internacional Sek Ecuador

                                                                                                                       mberesearch.com              22
MBRESEARCH

        http://www.mberesearch.com/                  info@mberesearch.com                     @mbe_research

It is a recognized research group by Rey Juan Carlos University

One of its main lines is research about legitimacy

Publicactions in international impact journals: Review of Managerial Science, Journal Business Research, American
Behavioral Scientist, European Research on Management and Business Econonomics, European Journal of Management and
Business Economics, Journal of Management and Business Education, Management Decision, Psychology and Marketing,
International Entrepreneurship and Management Journal, European Journal of International Management, among others

Paper presentations in national and international congresses (U.S.A., Mexico, Japan, Italy, France, United Kingdom, Germany,
Romania, Latvia, Russia, Argentina, Hungary, Montenegro, Ecuador or Chile)

Awards: AEDEM, BME, ESIC, Reina María Cristina, IAMB, FESIDE, Cesgar, AJICEDE, CIBECEM, Reale, among others

                                                                                                         mberesearch.com       23
Corporate Legitimacy and COVID-19
Spanish citizens' perceptions during confinement
Results from the survey developed by Management & Business Economics Research Group (Rey Juan Carlos University), in
collaboration with Fundación Camilo Prado

ISBN: 978-84-09-21100-5

Editor: Alicia Blanco-González

Authors / researchers: Alicia Blanco-González, Gabriel Cachón Rodríguez; Ana Cruz Suárez, Jorge Luís Casas Novas, Cristina
del Castillo-Feito, Elsa Esther Choy Zevallos, Alfredo Delgado Guzmán, Susana Díaz Iglesias, Luis Tomás Díez de Castro,
Francisco Díez-Martín, Sandra Escamilla Solano, Fernando Flores, Jaime Gil Lafuente, Raúl Gómez Martínez, Adrián López
Balboa, Domenico Marino, Juan Gabriel Martínez-Navalón, Giorgia Miotto, Mª del Carmen de la Orden de la Cruz, Laura
Pascual Nebreda, Gregory Payne, Jessica Paule Vianez, Iria Paz Gil, Paola Plaza Casado, Camilo Prado Román, Alberto
Prado Román, Miguel Prado Román, María Luisa Saavedra, Elías Ramírez Plazas, Berta Silva Palavecinos, Pablo Suasnavas,
Macarena Urenda

© 2020: Authors
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