This study explores why organizations appear to remain silent in the aftermath of wrongdoing. We propose that psychological ownership, defined as “the possessive state in which individuals feel as though an organization is theirs”, heightens leaders' emotional resistance to engage in restorative communication, stemming from the discomfort of acknowledging organizational flaws and the fear of appearing vulnerable. We argue that this connection motivates leaders to remain silent, even in the face of severe ESG controversies, as the need to protect and defend their emotional bond with the organization intensifies. We find support for these ideas using a sample of US firms from 2007-2018. Overall, our findings advance the understanding of the emotional and individual-level mechanisms driving organizational responsiveness to misconduct, offering novel insights into the dynamics of strategic silence.
