The Downside of Organizational Identification: Collective Shame and Turnover During Organizational Mistakes

Abstract

This study examined the extent to which employees experience collective shame and guilt for the wrongful acts by their companies, and the potential effects of these emotions on turnover intention and organizational citizenship behaviors. The study context was a real industry-wide PR crisis in Taiwan's fast food industry in 2009. Our data found that employees who made internal attributions for the company's bad actions were more likely to feel collective shame and collective guilt. For those with a high organizational identification, the relationship between internal attribution and collective shame was especially strong. Furthermore, collective shame led to higher turnover intentions, especially for those with a high interdependent self. Thus, organizational identification may have negative effects for organizations during times of organizational wrong-doing.