This research aims to explore the relationship between corporate governance and CSR: What are the major factors that play a direct role in the establishment of this relationship? How does context and institutional background impact upon the relationship between CSR and Governance? Using in-depth semi-structured interviews from two types of governance systems in three countries over three years, this study has demonstrated that in practice, within different settings, CSR is being used both as a strategy as well as a reaction (...) to different drivers. We call this adaptive governance where governance can be defined as a flexible system of action incorporating strategic and monitoring activities that determines the way a company enacts its responsibilities to its shareholders and stakeholders and which is determined at any given time by the interrelationship of institutional drivers and behavioural norms. Governance systems and their interrelationships with CSR are demonstrated as fluid according to the national and institutional context, economic situation and industry impact. In the eyes of practitioners corporate governance includes both structural and behavioural factors as well as responsibilities and actions towards shareholders and stakeholders. Contextual factors that this research highlights to be important to the incorporation of CSR into governance include the economic environment, national governance system, regulation and soft law, shareholders, national culture, behavioural norms and industry impacts. Hypotheses on the impact of institutional contexts, industry impacts and economic situations on different types of CSR actions are proposed for further research. (shrink)

Drawing on risk mitigation theory, this article examines whether the improvement of firms’ social performance reduces debt financing costs (CDFs) in China, the world’s largest emerging market. Employing both the ordinary least square (OLS) and the two-stage instrumental variable regression methods, we find that improved corporate social responsibility (CSR) reduces the CDF when firms’ CSR investment is lower than an optimal level; however, this relationship is reversed after the CSR investment exceeds the optimal level. Firms with extremely low or extremely (...) high CSR are subject to a higher CDF. The results also suggest that the optimal CSR level for small firms is higher than that for large firms. This study is the first to document a U-shaped relationship between CSR and CDF and also the first to investigate this relationship within an emerging market context. (shrink)

In a corporate apology, the apologizer can be either a male or a female. How does the gender of the apologizer influence consumer forgiveness? We suggest that the relative effectiveness of corporate apologies made by males versus females depends on the nature of the corporate wrongdoing, namely whether the wrongdoing is related to performance or to value. Three experiments demonstrate that a male apologizer elicits more consumer forgiveness than a female apologizer for performance-related wrongdoings, while a female apologizer garners more (...) forgiveness than a male apologizer for values-related wrongdoings. These effects are driven by consumers’ social perceptions of the different genders. Specifically, a female apologizer is perceived as warmer which offsets the perceived lack of warmth resulting from values-related corporate transgressions, while a male apologizer is perceived as more competent which compensates for the perceived lack of competence resulting from performance-related corporate transgressions. However, this effect is attenuated when consumers are the same gender as the apologizer, and can be reversed when the apologizer is personally responsible for the wrongdoing. These findings offer novel insights on corporate apologies, gender-trait associations, and gender and forgiveness, while suggesting that companies must carefully consider the gender of the spokesperson in the wake of transgressions. (shrink)

Companies disclosing negative aspects in sustainability reports often employ legitimation strategies to present mishaps in a favorable light. In incentivized experiments, we find that nonprofessional investors divest from companies with a negative sustainability-related incident, and that symbolic legitimation (which only evasively explains a negative incident) is not a strong enough signal to counter this divestment behavior. Even substantial legitimation (which reports on measures and behavioral change) mitigates the divestment decisions only if the company reports on concrete remediation actions in morally (...) charged situations, such as social or environmental incidents. We elaborate these results in light of signaling and screening theory, and suggest the conceptual extension of “costly signals” to what we call “valuable signals.” We argue that valuable signals need be not only costly for the sender from an economic perspective but also perceived as appropriate by the receiver from a noneconomic perspective. (shrink)

Our study examines how a company’s engagement in corporate social responsibility influences word of mouth about the company on Twitter, particularly during a service delay. We use the airline industry as the study context. On the popular social medium Twitter, people post tweets about airline services and raise concerns about service delays when flights are delayed, canceled, or diverted. Drawing on the literature on legitimacy and the halo effect, we argue that a company’s CSR engagement enhances its corporate image, which (...) in turn, influences WOM about the company on Twitter. We predict and find that airlines with better CSR engagement receive more positive word of mouth and less negative word of mouth on Twitter. We also find that service delays reduce PWOM and increase NWOM, with the additional finding that the positive relationship between service delays and NWOM is less strong for airlines with better CSR engagement. We conduct additional analyses to investigate the effects of environmental, social, and governance CSR on PWOM and NWOM. Our study has practical implications in informing companies about the benefits of CSR engagement in relation to public opinion during service delays. (shrink)

Increased scrutiny of corporate legitimacy has sparked an interest in “historic corporate social responsibility”, or the mechanism through which firms take responsibility for past misdeeds. Extant theory on historic CSR implicitly treats corporate engagement with historical criticism as intentional and dichotomous, with firms choosing either a limited or a high engagement strategy. However, this conceptualization is puzzling because a firm’s engagement with historic claims involves organizational practices that managers don’t necessarily control; hence, it might materialize differently than anticipated. Furthermore, multiple (...) motivations could jointly affect managers’ approach to organizational history, especially when dealing with conflicting stakeholder demands, rendering it difficult to historicize consistently. Examining the relationship between the legitimacy of critical historic claims, corporate engagement with these claims and corporate legitimacy, the present paper performs a historical case study of the Hudson’s Bay Company’s (HBC) long term use of history in stakeholder relations. The data suggest that under conflicting internal and external pressures, the HBC’s engagement with historical criticism became “sedimented” over time, involving both open and stakeholder-inclusive practices of “history-as-sensemaking” and instrumental “history-as-rhetoric”. Enriching understanding of corporate-stakeholder interaction about the past, this finding may stimulate its generation of social value and corporate legitimacy. (shrink)

Research has shown that corporate social responsibility (CSR) can have a positive impact on the firm’s reputation and financial performance. Moreover, CSR activities can have a positive impact on employees’ workplace experience. Consistent with past research, we argue that perceived organizational CSR value can have a positive impact on job satisfaction. We also argue that employees’ moral identity can play an important moderating role on the perceived CSR effect. Specifically, the current study was designed to test the predictive effects of (...) perceived organizational CSR value on job satisfaction. In addition, the study was designed to test the moderating roles of two moral identity dimensions, internalized and symbolic moral identity, on the effect of perceived organizational CSR value on job satisfaction. The study results were generally supportive of the hypotheses. Managerial implications of the study findings were also discussed. (shrink)

This study identifies the roles of consumers’ ethical orientations and CSR motives and the dynamics of these two variables on the subsequent consumers’ attitudinal and behavioral responses to CSR—perceived corporate authenticity and pro-firm behavioral intentions. To examine the impact of individual consumers’ ethical orientations, the authors measured consumers’ ethical orientations such as deontology and consequentialism through a Web-based survey conducted in Korea and in the USA. Further, to investigate the role of perceived CSR motives, the authors measured the perception of (...) a company’s business-oriented motives and society-oriented motives in conducting CSR. Results demonstrate the different role of ethical orientation in impacting consumers’ responses across these countries. Consumers’ consequentialist orientation appears to be positively associated with pro-firm behavioral intention in both the Korean and the US studies. In the Korean study, Consumers’ deontological orientation reduces perceived corporate authenticity when corporate motives seem business-oriented. Theoretical and practical implications are discussed. (shrink)

Cuando enfrentan un escándalo, las empresas deben entablar una comunicación efectiva para intentar aminorar los efectos de la publicidad negativa sobre su imagen corporativa. Uno de los géneros empleados por las empresas como formas de discurso de reparación de la imagen es la declaración pública, que corresponde a un texto escrito corto emitido por una empresa con el propósito de comunicar su versión de la crisis que enfrenta directamente al público general, publicándola en el sitio web de la compañía, o (...) bien pagando una inserción en un periódico. El presente estudio, un estudio de casos múltiples, se propone determinar si la retórica empleada por las empresas chilenas cuando enfrentan un escándalo mediático, es decir, la forma en que argumentan y se defienden de las acusaciones de mala conducta, es ética y lícita desde la perspectiva de la ética empresarial. Para ello, se realizó un análisis crítico del manejo de la carga de la prueba en un corpus de veintiséis declaraciones públicas emitidas por empresas chilenas tras una crisis que empañó su imagen corporativa. Basándonos en la regla de la carga de la prueba propuesta desde la teoría pragma-dialéctica, y en algunos lineamientos para el diseño de códigos de ética corporativos planteados en la literatura se pudo determinar la validez de la argumentación retórica desplegada por las empresas. Los resultados muestran que la mayoría de las empresas evaden la carga de la prueba, lo que sugiere que estas empresas chilenas no se sienten obligadas a dar cuenta de sus acciones. El análisis ético revela que en la vasta mayoría de estas declaraciones no se emplea una retórica que evidencie un respeto hacia los afectados por la actividad de la empresa, especialmente hacia los consumidores, los trabajadores de la empresa y los competidores. Una de las conclusiones del estudio es que las empresas chilenas evidencian una concepción bastante limitada de lo que es la ética empresarial, que no considera los conceptos de transparencia ni responsabilidad pública y de control. (shrink)

This study investigates the connection between corporate social responsibility (CSR) and corporate reputation among the public using fuzzy set qualitative comparative analysis (fsQCA). To examine complex processes underlying the reactions of this influential stakeholder group, hypotheses are drawn from the category diagnosticity approach. Thereby, a psychological model of perceived (im)morality is transferred to the CSR context. In line with these hypotheses, positive/negative CSR activities influence reputation in the expected directions (H1a, b), while the effects of specific configurations of CSR activities (...) reveal an asymmetry suggesting a negativity bias (H2). Further analyses confirm that positive effects require a consistent positive performance regarding prior reputations (H3a) and the aggregated CSR activities of several previous years (H3b, c). Moreover, the relevant patterns vary between industries (H4). The present study thus contributes to CSR research by investigating a powerful but hitherto understudied stakeholder group through a category diagnosticity lens combined with a configurational approach to analysis. (shrink)

Corporate social responsibility research has focused often on the business returns of corporate social initiatives but less on their possible social returns. We study an actual company–consumer partnership CSR initiative promoting ecologically correct and conscious consumption of bottled mineral water. We conduct a survey on adult consumers to test the hypotheses that consumer skepticism toward the company–consumer partnership CSR initiative and the moral emotion of elevation mediate the relationship between company CSR motives perceived by consumers and consumer behavioral responses following (...) this CSR initiative. Favorable consumer behavioral responses, in turn, relate positively to consumer support of other green products. The results provide scholars and managers with means of improving their understanding and handling of company–consumer partnership CSR initiatives. (shrink)

Growth in CSR-washing claims in recent decades has been dramatic in numerous academic and activist contexts. The discourse, however, has been fragmented, and still lacks an integrated framework of the conditions necessary for successful CSR-washing. Theorizing successful CSR-washing as the joint occurrence of five conditions, this paper undertakes a literature review of the empirical evidence for and against each condition. The literature review finds that many of the conditions are either highly contingent, rendering CSR-washing as a complex and fragile outcome. (...) This finding runs counter to the dominant perception in the general public, among activists, and among a vocal contingent of academics that successful CSR-washing is rampant. (shrink)

An emerging body of research recognizes the importance of the past and history for corporate social responsibility scholarship and practice. However, the meanings that scholars and practitioners can ascribe to the past and history differ fundamentally, posing challenges to the integration of history and CSR thinking. This essay reviews diverse approaches and proposes a broad conceptualization of the relationship between the past, history, and CSR. We suggest historical CSR as an umbrella term that comprises three distinct theoretical perspectives. The “past-of-CSR” (...) perspective is concerned with the history of CSR and business ethics as a set of concepts and practices. The “past-in-CSR” perspective involves employing empirical historical research to substantiate and elaborate CSR concepts and theories. Finally, the “past-as-CSR” perspective seeks to understand the past as a living, yet contested, facet of current organizations, influencing contemporary perceptions of corporate and managerial responsibility. We then elaborate on conceptual issues and paths that may prove useful for future research. In all, this essay and the thematic symposium it precedes strive to deepen and broaden the salience of the past and history for thinking about business ethics and business responsibilities. (shrink)

Of the many ethical corporate marketing practices, many firms use corporate social responsibility (CSR) communication to enhance their corporate image. Yet, consumers, overwhelmed by these more or less well-founded CSR claims, often have trouble identifying truly responsible firms. This confusion encourages ‘greenwashing’ and may make CSR initiatives less effective. On the basis of attribution theory, this study investigates the role of independent sustainability ratings on consumers’ responses to companies’ CSR communication. Experimental results indicate the negative effect of a poor sustainability (...) rating for corporate brand evaluations in the case of CSR communication, because consumers infer less intrinsic motives by the brand. Sustainability ratings thus could act to deter ‘greenwashing’ and encourage virtuous firms to persevere in their CSR practices. (shrink)

This study investigates corporate social responsibility of sinful firms, which refer to ones that are operating in controversial industries, including the production and distribution of alcohol, tobacco, gambling, adult entertainment, firearm, military, and nuclear power. We attempt to answer two questions in this study: Do these sinful firms actively advertise their CSR engagements compared to non-sinful firms? And do their advertising efforts really yield increased financial performance? Positing that advertising not only can make sinful firms’ good deeds visible, but also (...) can highlight the contradiction between these firms’ stigma and their prosocial activities, we claim that sinful firms are likely to advertise their CSR engagement to overcome their stigmatized firm image, but these advertising activities will make the firms’ performance vulnerable by inducing skepticism from stakeholders. Using KLD database in conjunction with COMPUSTAT and Center for Research in Security Prices from 1991 to 2010, where 337 firms are involved in the controversial sinful industries, namely tobacco, alcohol, gaming, firearms, military, and nuclear power, we examine the effect of advertising spending of sinful firms’ CSR engagement on performance vulnerability, which is instantiated with idiosyncratic risk. The empirical results indicate that sinful firms increase their advertising expenditure when they engage in CSR programs, but these efforts for advertising CSR tend to increase idiosyncratic risk. This finding indicates that even though sinful firms can benefit from engaging in socially responsible initiatives, advertising their CSR efforts may backfire. (shrink)

Corporate social responsibility functions as a positive signal to stakeholders that a firm is a responsible corporate citizen. However, CSR is increasingly becoming an ambiguous signal of organizational goodwill because many companies engage in CSR purely out of self-interest, rather than genuine altruism. In this paper, we integrate attribution theory with signaling theory to explore how stakeholders react when they receive additional signals that contradict the company’s intended positive CSR signal. Specifically, we argue that morally questionable CEO ethics in the (...) media negatively influences stakeholders’ CSR motive attributions, which in turn results in increased cynicism that ultimately impacts CSR support intentions and behaviors. We find support for our hypotheses in a quasi-experimental study of stakeholder media exposure to different types of CEOs. Our findings demonstrate that stakeholders consider CEO ethics an important signal of CSR motives, and will shun the CSR initiatives of morally questionable CEOs. (shrink)

The current study investigates the effects of green advertising and a corporation’s environmental performance on brand attitudes and purchase intentions. A 3 × 3 (firm’s environmental performance and its advertising efforts as independent variables) experiment using n = 302 subjects was conducted. Results indicate that the negative effect of a firm’s low performance on brand attitudes becomes stronger in the presence of green advertising compared to general corporate advertising and no advertising. Further, when the firm’s environmental performance is high, both (...) green and general corporate advertising result in more unfavorable brand attitudes than no advertising. The study’s counter-intuitive findings are explained by attribution theory. (shrink)

The corporate social responsibility literature recognizes that firms’ existing CSR reputation can serve as a safeguard from the impact of reputation-damaging events on a firm’s social legitimacy. However, the literature has yet to focus on the extent to which CSR activities can help mitigate such damage, post-event. This article examines how a firm’s social actions following a product recall facilitate the recovery of its diminished social legitimacy. We test our predictions using a sample of 197 product recalls involving 168 publicly (...) traded corporations from 1999 to 2009 and demonstrate that the speed of the CSR response, the frequency of CSR activities, and the intensity of CSR activities have a significant effect on firm recovery following crisis. The effects were most pronounced in instances where the magnitude of the recall was most severe. The visibility of the recall has a limited impact on post-event recovery. We discuss our contributions to research on strategic CSR and recovery. (shrink)

This research investigates how two different types of nongovernmental organization (NGO)–business collaboration for green innovation impact consumers’ purchase intentions. The authors carried out three studies, whose findings show that consumers prefer collaborations in which NGOs are integrated into the product development process (NGO co-development) over those that involve corporate giving to NGOs (sales-contingent donations). They show that green credibility works as a mediator, which explains why these two types of collaboration influence consumers’ purchase intentions differently. They also identify aspirational talk (...) about a company’s future ambitions as an important boundary condition. These findings are important for literature on corporate social responsibility (CSR) communication, co-development, and co-branding and contribute to the discussion of the role of business in society. (shrink)

A company’s product-harm crises often lead to negative publicity which substantially affects purchase intention. This study attempts to examine the purchase intention and its antecedents (e.g., perceived negative publicity) during product-harm crises by simultaneously including perceived corporate ability (CA) and corporate social responsibility (CSR) as moderators. In the study’s proposed model, purchase intention is indirectly affected by perceived CA, negative publicity, and CSR via the mediation of trust and affective identification. At the same time, the influences of perceived negative publicity (...) on trust and affective identification are moderated by perceived CA and CSR, respectively. Empirical testing using a survey of car users from 477 working professionals confirms most of our hypothesized effects except the insignificant moderating effects of perceived CA. Finally, managerial implications and limitations of our findings are discussed. (shrink)

Consumer skepticism of corporate environmental activities is on the rise. Yet research on this timely, intriguing, and important topic is scarce for both academics and practitioners. Building on attribution theory, we develop and test a theoretically anchored model that explains the sources and consequences of green skepticism. The study findings reveal that consumers’ perceptions of industry norms, corporate social responsibility, and corporate history are important factors that explain why consumers assign different motives to corporate environmental actions. In addition, the results (...) show that while intrinsic motives exert a strong negative effect on green skepticism, extrinsic motives have no discernible effect. Furthermore, the findings indicate that green skepticism prompts consumers to seek more information about the products, sparks negative word of mouth to friends and acquaintances, and forestalls purchase intentions. The study offers several implications for corporate and public policy makers and presents fruitful research directions. (shrink)

Public figures’ transgressions attract considerable media attention and public interest. However, little is understood about the impact of celebrity endorsers’ transgressions on associated brands. Drawing on research on moral reasoning, we posit that consumers are not always motivated to separate judgments of performance from judgments of morality or simply excuse a wrongdoer. We propose that consumers also engage in moral coupling, a distinct moral reasoning process which allows consumers to integrate judgments of performance and judgments of morality. In three studies, (...) we demonstrate that moral coupling is prevalent and has unique predictive utilities in explaining consumers’ evaluation of the transgressor. We also show that transgression type has a significant impact on consumers’ choice of moral reasoning strategy. Finally, we demonstrate that consumers’ support for a brand endorsed by a transgressor is a direct function of moral reasoning choice. Findings suggest that public figure’s immoral behavior and its spillover to an extended brand is contingent on consumers’ moral reasoning choices. (shrink)

Despite widespread discussion of the impact of corporate social responsibility activities on consumer perceptions, little research has examined how consumers cope with CSR-based crisis response messages as a bolstering strategy. To fill this gap, we propose a framework integrating situational crisis communication theory with the persuasion knowledge model, applying the model to an experiment with a 2 × 2 × 2 between-subjects factorial design. In Study 1, we found interaction effects between CSR motives and crisis type on word-of-mouth intention and (...) purchase intention. In addition, inferences about CSR motives interacted with perceptions about CSR history on purchase intention. In Study 2, we replicated study 1 and found that crisis responsibility mediated the main effect of crisis type on behavioral intentions, but neither the main effect of CSR motives and CSR history nor the interactions effects among those variables were mediated by crisis responsibility. Our results indicate that consumer inferences from a company’s CSR-based crisis communications play a significant role in increasing consumer behavioral intentions in two situations: when a crisis is accidental and when a CSR history is short. Ethical and theoretical implications are discussed. (shrink)

Corporate social responsibility (CSR) has emerged as an effective way for firms to create favorable attitudes among consumers. Although prior research has addressed the direct influence of proactive and reactive CSR on consumer responses, this research hypothesized that consumers’ perceived organizational motives (i.e., attributions) will mediate this relationship. It was also hypothesized that the source of information and location of CSR initiative will affect the motives consumers assign to a firms’ engagement in the initiative. Two experiments were conducted to test (...) these hypotheses. The results of Study 1 indicate that the nature of a CSR initiative influences consumer attribution effects and that these attributions act as mediators in helping to explain consumers’ responses to CSR. Study 2 suggests that the source of the CSR message moderates the effect of CSR on consumer attributions. The mediating influence of the attributions as well as the importance of information source suggests that proper communication of CSR can be a viable way to inculcate positive corporate associations and purchase intentions. (shrink)

This paper examines the impact on firm value created by investor reaction to same day news of corporate social responsibility and corporate social irresponsibility activities. First, using trading volume, the authors establish that the perceived value of moral capital generated by news involving institutional stakeholders is less clear to investors than that of the news involving technical stakeholders. Subsequently, the authors analyze abnormal returns from 565 unique firm events—each comprising at least one positive and one negative stakeholder news item. Using (...) signaling theory, the authors demonstrate that news of the number of CSR activities involving institutional groups counteracts the effects of same day CSiR news in an inverted U-shaped fashion. In contrast, they find that news of the number of CSR activities involving technical groups mitigates the effects of same day CSiR news in a U-shaped fashion. (shrink)

Given the important role that business media play in corporate life, scarce attention has been paid to the role of media in the construction and popularization of corporate social responsibility (CSR). In this article, we understand media as a key infomediary and examine how the business press has framed and presented CSR over the last 10 years. Based on a content analysis of how CSR is presented in two English-language business newspapers with an international readership, we develop a framework for (...) understanding the role of business media setting the corporate CSR agenda. The results show that business media contribute to the construction of what CSR means in corporate practice by creating links between CSR and certain corporate activities, between CSR and arguments that strengthen the view of CSR as a business case, and between CSR and certain spokespersons. These links contribute to create a notion of what CSR stands for, what it means in practice, and why it is important that one should pay attention to. (shrink)

Although most consumers are positive about socially responsible companies, in order to benefit from CSR efforts, effective and clear CSR communication is important. However, due to the constantly rising profusion of eco-labels, based on either own claims from the organization or claims made by an external third party, consumers may encounter difficulties in identifying truly responsible firms, which could result in less effective CSR initiatives, even for those responsible firms. Therefore, building on attribution theory, this study seeks to identify how (...) uncertified internal CSR claims and external third-party CSR labels should be used in order to deter greenwashing and increase positive consumer evaluations. Within a 3 × 2 design, respondents are exposed to different coffee product packages measuring their attitude toward the brand, corporate credibility, purchase intention, and scent perception, as well as perceived attributional CSR motives. Overall, findings indicate that especially an external CSR label affects consumer responses toward the firm. Moreover, perceived CSR motives serve as a mediator between an external CSR label and corporate credibility and brand attitude, respectively. These findings warrant further consideration of introducing an external multilevel rating systems by governmental law. (shrink)

This study examines whether penalties issued to Chinese listed companies by securities regulators for violations of corporate law affect the cost of debt, and the moderating role of corporate social responsibility fulfillment on this relationship. Our sample consists of firms listed on Shanghai and Shenzhen stock exchanges from 2011 to 2017 and the data are collected from the announcements of China Securities Regulatory Commission. The findings are as follows: punishment announcements by regulatory authorities increase the cost of debt; and the (...) effect of punishment announcements on the cost of debt is partially offset by prior CSR performance. These findings are shown to be robust. The reputation insurance effect of CSR is more pronounced in state-owned enterprises and in an institutional environment with low marketization, a weak legal environment, and low information transparency. The findings support the reputation insurance hypothesis of CSR and employ the cost of debt as a governance mechanism. (shrink)

Although corporate social responsibility appears to be mutually beneficial for companies and consumers, the modern marketplace has left both parties in vulnerable positions. Consumers are increasingly subjected to incongruent CSR messages such as greenwashing, while companies are trapped in a strategic positioning dilemma with regard to how to most effectively and ethically approach CSR communication. This has led some companies to instead adopt a strategically silent approach, such as greenhushing. To capture this CSR positioning dilemma and test the positioning effects (...) on consumers’ attributions, this study applies attribution theory to conceptualize four distinct CSR positions which reflect varying combinations of congruence or incongruence between a company’s external CSR communication and its actual internal CSR actions. Using an online experiment, the effects of the CSR positions on consumer attributions for intrinsic and extrinsic CSR motivations and purchase intentions were tested across three CSR domains: environmental; labor; and lesbian, gay, bisexual, and transgender inclusion. Overall, the findings attest to the significant effect of internal–external congruence-based CSR positioning on how consumers respond to CSR communication. Importantly, the results indicate that discreet positioning is perceived similarly to uniform positioning, while misleading and unethical tactics such as CSR-washing are sure to backfire. Theoretical and managerial implications are discussed. (shrink)

Recently, calls have grown louder for more stakeholder democracy that is, letting stakeholders participate in the process of organizing, decision‐making, and governance in corporations, especially in the area of Corporate Social Responsibility (CSR) activities. Despite the relevance of the subject, the impact of customer involvement in CSR on their company‐related attitudes and behaviors still represents a major research void. The paper at hand develops a conceptual framework of consumer involvement in CSR based on the existing literature, theories of stakeholder democracy, (...) and organizational boundaries as well as drawing from the qualitative focus group interviews (N = 24). The framework is tested on a large scale, two‐time point field‐experimental study (N = 3,397). More specifically, consumer reactions to three degrees of customer involvement (i.e., information, feedback, and dialogue) are tested in two different CSR domains (i.e., company‐internal business process vs. company‐external philanthropic CSR). Results indicate that the customer involvement in CSR has a more beneficial effect in terms of strengthening customer outcomes in CSR domains that directly affect external stakeholders of the company (i.e., philanthropic CSR) than in domains that mainly concern company‐internal stakeholders (i.e., business process CSR). (shrink)

As past research has identified frontline employees as the primary communicators of a company’s CSR, this paper reports on a large-scale quasi-field experiment aimed at gaining a deeper understanding of the levers of successful in-store, point-of-sale, CSR communication. In cooperation with a large international retailer, the authors analyzed the effects of varying in-store CSR communication strategies in 48 unique stores, combining data from a customer survey, company records of customers’ real visits and purchases, and interviews with store managers. Taking into (...) account the nested structure of the data, the authors reveal that CSR-related training of frontline employees bestows its favorable effect on customers and customer behavior only if it is accompanied by the store managers’ personal support for CSR. (shrink)

This study starts from the observation that there are relatively few controversial issues in corporate social responsibility (CSR). Given its strong normative background, CSR is rather an atypical discipline, especially in comparison with moral philosophy or applied ethics. Exploring the mainstream CSR agenda, this situation was echoed by widespread consensus on what was considered to be "good practice": reducing pollution, shutting down sweatshops, discouraging tax evasion, and so on. However, interpretation of these issues through the lens of moral pluralism unveils (...) latent controversies. The moral appraisal of good practices within CSR depends on key moral concepts (such as harm, responsibility, intention, and consequences), which have various—and often incompatible—interpretations. In a nutshell, this article argues that from a moral pluralist standpoint, all CSR topics are potentially controversial. (shrink)

This paper enquires into the possibility of establishing a causal link between social performance (SP) and financial performance (FP) in corporate social responsibility (CSR). It shows that this endeavour is limited by several biasing factors (such as time horizons, sample choices and the tools chosen to measure SP and FP) and faces the logical fallacy post hoc ergo propter hoc (after this, therefore because of this), which indicates that a sequence of events does not necessarily establish a causal link. The (...) paper contributes to the methodological literature in CSR currently focused on empirical tests aiming to discern the linkages between SP and FP, both by emphasising the interest in interpreting and justifying SP and by suggesting a redirection of empirical efforts towards the understanding of entrepreneurial preference for a specific type of SP. (shrink)

El artículo busca revelar como resultado el papel de la comunicación de la innovación social en el comportamiento del usuario, si este modifica su intención de consumir un producto o servicio, cuando conoce que la empresa que oferta el bien o servicio tiene una práctica de innovación social implementada. Para responder al objetivo se formularon dos hipótesis que fueron testeadas mediante la aplicación de una encuesta basada en una muestra de conveniencia, que recolectó 300 respuestas en toda América Latina. Los (...) resultados obtenidos permiten suponer que el consumidor en Latinoamérica, en general, no solo quiere tener más información disponible y accesible (tanto en términos de accesibilidad de medios como de lenguaje), sino que quiere involucrarse, ser escuchado y poder intervenir en la comunidad; ya sea por iniciativa propia o alentado por las marcas y empresas en general. (shrink)

As more and more instances of corporate hypocrisy become public, consumers have developed an inherent general skepticism towards firms’ corporate social responsibility claims. As CSR skepticism bears heavily on consumers’ attitudes and behavior, this paper draws from Construal Level Theory to identify how it can be pre-emptively abated. We posit that this general skepticism towards CSR leads people to adopt a low-level construal mindset when processing CSR information. Across four studies, we show that matching this low-level mindset with concrete CSR (...) messaging works to effectively mitigate the negative effects of inherent CSR skepticism on consumers’ attitudes, purchase intentions, and word of mouth. The resulting construal-mindset congruency strengthens the favorability of consumer responses through increased positive elaboration and perceptions of CSR message credibility. Furthermore, this congruency effect is shown to persist over time in skeptical domains but to dissipate in less skeptical domains. (shrink)

In this paper, we draw upon the emerging view of strategic cognition and issue salience and show that CSR giving has evolved into more than an altruistic response to being asked for support, to one which is embedded in the strategic frames of management and which supports organizational identity. The managerial action as a result of such strategic cognition suggests that modern organizations are seeking to develop CSR giving processes that provide them with a competitive advantage. We draw on the (...) resource-based view of organizations and the VRIO framework to provide the theoretical foundations for our argument that CSR implementation in the form of corporate giving to charities can be developed as a dynamic capability. This can provide a competitive advantage by allowing organizations to manage key stakeholder relationships more effectively with benefits which could lead to increased organizational productivity and the ability to execute strategy more effectively. We interview CSR implementation managers from large organizations in Australia and find that the CSR giving process in many firms is evolving into a more sophisticated and strategically motivated process with expectations of a return. Central to this evolution is the appointment of a CSR implementation manager who acts as a boundary spanner between the organization and its key stakeholders. We posit that this corporate investment in their role and supporting structures can lead to the better management of stakeholders by organizations through the dynamic capability of the CSR giving process. We develop a table of best practise to help guide managers entering this sphere. (shrink)

This study integrates theories of diffusion and social identity to conceptualize the diffusion of Sustainability Report as a result of a firm’s identification with its reference groups. Specifically, we first hypothesize four different sources of external stakeholder pressures driving the diffusion. Next, we argue that the source of external stakeholder pressures has a differential effect on the adoption of SR for firms that claim their identity on sustainability management. For firms with organizational identity claims, in-group stakeholder pressure will amplify whereas (...) out-group stakeholder pressure will dampen the adoption. We test our theory using an event-history analysis of 675 publicly traded firms in Korea during the period of 2003–2010. The results show that all four sources of external pressure serve as mechanisms through which SR spread in Korea. More importantly, we find support for the moderating role of organizational identity claims in the effect of external pressures. We discuss how organizational identity matters in the diffusion of corporate social initiatives along with implications for policy makers. (shrink)

This article explores how the diversity of board resources and the number of women on boards affect firms' corporate social responsibility (CSR) ratings, and how, in turn, CSR influences corporate reputation. In addition, this article examines whether CSR ratings mediate the relationships among board resource diversity, gender composition, and corporate reputation. The OLS regression results using lagged data for independent and control variables were statistically significant for the gender composition hypotheses, but not for the resource diversitybased hypotheses. CSR ratings had (...) a positive impact on reputation and mediated the relationship between the number of women on the board and corporate reputation. (shrink)

Even though the link between perceived corporate social responsibility fit and corporate reputation has received much attention from scholars, this tradition has ignored that the underpinnings of this association vary depending on the particular characteristics of each industry under study. To delve into this matter, we investigate in the increasingly relevant context of controversial industries how PCSR-fit could enhance corporate reputation and which are the mediating mechanisms of this association. Our academic contribution is twofold. First, we find that controversial sectors (...) indeed can increase corporate reputation through CSR activities. However, we find that to achieve this goal, the nature of PCSR-fit should be different than what extant literature indicates, because companies in these settings should directly focus on avoiding or reducing their inherent controversial harm or impact. Second, we evidence that “CSR initiatives' legitimacy” and “situational skepticism” mediate the PCSR-fit and corporate reputation relationship in CIs. Therefore, we further unravel the underpinnings of this association to advance what we know on the matter and aid practitioners in this particular context. (shrink)

The aim of this paper is to investigate the relationship between environmental, social, and governance controversies and firm market value. We use a unique dataset of more than 4000 firms from 58 countries during 2002–2011. Primary analysis surprisingly shows that ESG controversies are associated with greater firm value. However, when interacted with the corporate social performance score, ESG controversies are found to have no direct effect on firm value while the interaction appears to be highly and significantly positive. Building on (...) this evidence, we attempt to explore the channels through which CSP may enhance market value. Conducting sample split analysis indicates that higher CSP score has an impact on market value only for high-attention firms, those firms which are larger, perform better, located in countries with greater press freedom, more searched on the Internet, more followed by analysts, and have an improved corporate social reputation. Thus, our findings provide new insights on the role of firm visibility through which firms can profit from their CSP. (shrink)

Rather than re-examine the question of whether doing good generally helps a company to do well, this study draws on contingency theory to empirically examine when doing good helps a company do as well as possible. Using panel data, we examine the effects of industry life cycle, munificence, and instability on the relationship between corporate social responsibility (CSR) and corporate financial performance (CFP). Our findings indicate that life cycle has a significant impact on the CSR-CFP relationship, as does industry instability. (...) These findings suggest that CSR helps the bottom line considerably – if it is applied at the right time. (shrink)