This study explores how an about-to-bankrupt company, Vicentin, in Argentina, used organized hypocrisy and façade techniques to create dichotomized understanding among salient stakeholders about its financial condition.
We applied a qualitative interpretive approach (content analysis) and used the organized hypocrisy and façade theoretical framework to analyze the company’s stakeholder management style during this crisis period.
Our study revealed that Vicentin used organized hypocrisy to present a very different reality (dichotomized understanding) to its salient stakeholders, such as creditors and employees. Although mainstream accounting and critical accounting explored organized hypocrisy and façades as tactics for organizational management purposes, this study sheds light on these tactics for creating contrasting understandings employed by an about-to-bankrupt company during its court proceedings to manage salient stakeholders.
The findings of this study can guide regulators, management, and auditors in understanding the stakeholder management schema of an about-to-bankrupt company. The findings emphasize the significance of fostering a more comprehensive dialogue and interaction within the stakeholder group, particularly when their interests diverge.
This study represents one of the early attempts to apply the concepts of organized hypocrisy and façade to gain a more nuanced understanding of stakeholder management strategies that reflect the differing realities (dichotomized knowledge) among the most pressing stakeholder groups.
