Understanding the Role of Social Media in Corporate Identity Scandals

Abstract This study investigates how a financial institution uses social media to communicate with its external stakeholders in the aftermath of a major financial scandal involving multibillion-euro money laundering. Drawing on data from a Swedish bank operating in the Nordic and Baltic countries, we conducted a qualitative content analysis of the bank’s social media posts on Instagram and Facebook (n = 7), as well as all associated user comments and the bank’s responses (n = 1,848). By applying a crisis communication theory framework, the study identifies key strategies used to manage reputational damage and engage with public discourse. The study contributes to literature on crisis communication by introducing a focused analysis of money laundering scandals and by highlighting the role of two-way interaction on social media as a critical mechanism for restoring legitimacy and trust during financial crises.