Tracking the aftermath of a corporate scandal from a network perspective: The case of roche in Turkey

Abstract

This chapter, against studies on success history, puts its attention on the firm's behaviour facing a critical socio-political problem. The specific question is how the relationship between business and socio-political actors in an emerging market under a scandal develops and how these actors manage such a situation. To reach this aim the study concerns with the Roche Scandal in Turkey and discusses the reactions of business and socio-political actors before and after the scandal, and further, how Roche subsequently managed these relationships. The theoretical framework for analysis of the Roche Turkey Scandal is constructed on relationship elements of trust, legitimacy and learning. The analysis provides some answers to the question of how Roche Turkey in the face of reactions given by the network actors managed the aftermath of the scandal and how the legitimacy loss was recovered by learning and adaptation. Conclusions enhance our knowledge on the behaviour of firms under critical condition. Copyright © 2012 by Emerald Group Publishing Limited.