In the Twilight Zone Between Veracity and Lying: A Survey on the Perceived Legitimacy of Corporate Deception in Reaction to Ethical Dilemmas

In their effort to attain legitimacy, corporations are tempted to resolve ethical dilemmas that arise from conflicting stakeholder expectations by ambiguous and misleading communication. Such processes of organizational decoupling may in turn threaten corporate legitimacy. Therefore this article explores public acceptance of deceptive corporate practices that range between the poles of veracity and lying: They involve half-truths and concealment but no blatant lies and they neglect veracity only to conform to conflicting ethical values. The analysis builds on the assumption that specific types of corporate deception fulfill protective functions, such as privacy protection, self-defense, and social cohesion, and are therefore socially accepted. Results from an experimental online survey (n = 1,417) indicate that protective functions are ascribed to corporate deception, yet participants show only moderate levels of acceptance and advocacy on behalf of the corporation. Corporate deception is most likely to be perceived as legitimate when it serves privacy protection and when it involves altruistic intentions. These findings point out limits of organizational decoupling and emphasize the need for pluralistic ethics in strategic communication that provide a framework for the resolution of ethical dilemmas under consideration of situational conditions.