Commentary—A Dimon in the Rough: Apologetic Crisis Management at JPMorgan Chase

Abstract

When companies are caught in a crisis, the need to deliver a defense in order to salvage their damaged reputation is an ongoing challenge. Drawing from actional legitimacy and apologia theory, this article examines corporate use of crisis communication through a case study surrounding Jamie Dimon, CEO at JPMorgan Chase. Dimon found himself in a crisis from 2012 to 2013 when a so-called “London Whale” made a series of trades that cost the company $6 billion U. S. Dollars, and raised serious questions over Dimon’s judgment and ability to lead JPMorgan Chase. In particular, we argue that the restoration of actional legitimacy centers around strategies of mortification, (corrective) action, justification, and authorization.