Who Should Apologize When an Employee Transgresses? Source Effects on Apology Effectiveness

Abstract

This paper examines the interactive effects of apology source (i.e., whether an apology is given by a chief executive officer or employee) and apology components (i.e., acknowledgment, remorse, and compensation) on forgiveness. Results revealed a significant source by component interaction. A remorseful employee apology was more successful than a remorseful CEO apology because consumers felt more empathy for the employee. Furthermore, a compensatory CEO apology was more effective than a compensatory employee apology because CEOs could significantly affect consumer perceptions of justice. No significant differences were found between apology source and the apology component of acknowledging violated rules and norms.