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Article
Publication date: 19 January 2024

Thomas Koch, Benno Viererbl, Johannes Beckert and Juliane Keilmann

When a crisis occurs, do corporate social responsibility (CSR) activities protect organizational reputation by buffering negative effects or do CSR activities intensify negative…

Abstract

Purpose

When a crisis occurs, do corporate social responsibility (CSR) activities protect organizational reputation by buffering negative effects or do CSR activities intensify negative effects, potentially leading to a worse reputation compared to if the organization had no prior CSR engagement? The authors hypothesize that if a crisis emerges in a domain aligned with an organization’s CSR initiatives (crisis-congruent CSR) backfire effects would arise, adversely affecting the organization’s reputation. Conversely, in cases of incongruence, where the crisis emerges in a domain not aligned with an organization’s previous CSR involvement, a buffering effect would manifest, protecting the organization’s reputation.

Design/methodology/approach

The authors conducted an experiment with a 3 (crisis-congruent, crisis-incongruent, and no CSR activities) × 2 (repeated measures) mixed factorial design. In the first scenario, no information was provided concerning a company’s social commitment. Alternatively, participants were exposed to an article illustrating the company’s dedication either to healthcare (crisis-incongruent commitment) or to combating sexism (crisis-congruent commitment). Afterward, participants were presented with a newspaper article addressing allegations of sexism against the company’s CEO.

Findings

The findings demonstrate that prior CSR activities have the potential both to serve as a buffer and to cause backfire effects in times of crisis. Domain congruence is the decisive moderator of these effects: Crisis-incongruent CSR activities acted as a buffer, crisis-congruent CSR activities “backfired” and led to more negative perceptions of the company’s reputation.

Originality/value

The study directly contributes to the understanding of CSR effects in crisis communication, while also addressing the often paradoxical and contradictory findings of prior studies.

Details

Journal of Communication Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1363-254X

Keywords

Article
Publication date: 14 August 2023

Kaitlyn DeGhetto, Zachary A Russell and Charn P McAllister

This study aims to investigate how employee perspectives on the role of business, specifically capitalist beliefs, affect the corporate social responsibility…

Abstract

Purpose

This study aims to investigate how employee perspectives on the role of business, specifically capitalist beliefs, affect the corporate social responsibility (CSR)–reputation–employee behavior relationship.

Design/methodology/approach

A conceptual model was developed, and to test the model empirically, survey data were collected over two phases from 192 working professionals. Data were analyzed in SAS using Hayes’s PROCESS approach.

Findings

Results of this study reveal that the positive employee outcomes (i.e. affective commitment and reduced turnover intentions), resulting from CSR, through perceived employer reputation (i.e. an employee’s perception of how others view their firm), are diminished when employees have strong capitalist beliefs.

Research limitations/implications

Building on the signaling and person–organization fit literatures, this study highlights the theoretical and managerial importance of recognizing employees’ ideological differences as well as the value of considering employee perceptions of reputation. Although many stakeholders value social responsibility, not all do, and a firm’s intended outcomes will vary depending on employees’ beliefs.

Originality/value

This study demonstrates that CSR not only affects institutional-level corporate reputation, as previously studied, but also affects employees’ behaviors through “perceived employer reputation”, or employee beliefs about how other stakeholders perceive the firm. Moreover, this study highlights the importance of understanding employee differences, including ideological differences, prior to engaging in certain types of CSR.

Details

Society and Business Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-5680

Keywords

Open Access
Article
Publication date: 19 September 2023

Sharmina Afrin and Md. Mominur Rahman

The purpose of the paper is to investigate the association between corporate social responsibility (CSR) and investment efficiency (INE) in Bangladeshi pharmaceutical companies…

Abstract

Purpose

The purpose of the paper is to investigate the association between corporate social responsibility (CSR) and investment efficiency (INE) in Bangladeshi pharmaceutical companies and to explore the moderating role of corporate reputation in this relationship.

Design/methodology/approach

The paper employs a two-step method, with stage 1 involving the development of a theoretical model using the literature's strategic framework and stage 2 using structural equation modelling (SEM) to investigate the relationships between variables. The data set used in the analysis includes 296 responses from senior executives/managers and subordinates at Bangladeshi pharmaceutical firms.

Findings

The study finds that CSR activities that focus on customers, employees and the community significantly affect INE, as well as the extended stakeholders, and that company reputation moderates this relationship. The effect of CSR on INE differs between well-established companies and business firms with favourable reputations.

Practical implications

The paper contributes to understanding the relationship between CSR and INE in a developing country context and highlights the importance of corporate reputation in this relationship. The findings suggest that companies can enhance their INE through CSR initiatives and that a positive reputation can strengthen this relationship further.

Originality/value

The study adds to the limited literature on CSR and INE in developing countries and provides new insights into the moderating role of corporate reputation in this relationship.

Details

PSU Research Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2399-1747

Keywords

Article
Publication date: 15 December 2023

Cemil Kuzey, Ali Uyar, Nejla Ould Daoud Ellili and Abdullah S. Karaman

This study aims to examine the potential threshold effect in the association between corporate social responsibility (CSR) performance and social reputation.

Abstract

Purpose

This study aims to examine the potential threshold effect in the association between corporate social responsibility (CSR) performance and social reputation.

Design/methodology/approach

This study includes an international and cross-sector sample covering 41 countries, nine sectors and 45,395 firm-year observations. It applies a parabolic relationship, rather than linear regressions, between CSR engagement and social reputation via CSR awarding. This implies that CSR performance should increase until a certain point to gain a social reputation but then should decrease after reaching that threshold point considering limited financial resources.

Findings

The findings of country-industry-year fixed-effects logistic regressions confirm the threshold effect with an inverted U-shaped relationship between CSR and CSR awarding. More specifically, firms increase their environmental and social engagement until a certain point, and then they reduce it after reaching a social reputation. This finding is confirmed by three dimensions of the environmental pillar (i.e. resource use, emissions and eco-innovation) as well as four dimensions of the social pillar (i.e. workforce, human rights, community and product responsibility). The findings are robust to alternative samples, alternative methodology and endogeneity concerns.

Practical implications

The findings of this study have implications for firms about the better allocation of available funds between CSR and operations. The findings could be particularly useful for CSR teams/committees of the firms who formulate CSR policies and how to mobilize firm resources for better social enhancement via environmental and social reputation.

Originality/value

This study examines deeper the nature of the association between CSR engagement and social reputation and considers the possibility of an inverted U-shaped relationship between them. The determination of a threshold effect suggests that CSR engagement increases social reputation, but once it reaches a certain point, social reputation will decrease owing to financial resource constraints.

Details

Corporate Governance: The International Journal of Business in Society, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1472-0701

Keywords

Open Access
Article
Publication date: 26 April 2022

Makhmoor Bashir

The research on corporate social responsibility (CSR) and firm performance (FP) has seen a surge over the years. However, the role of corporate reputation (CR), advertising…

4901

Abstract

Purpose

The research on corporate social responsibility (CSR) and firm performance (FP) has seen a surge over the years. However, the role of corporate reputation (CR), advertising strategy and market competition is still unclear. The purpose of this study is to consider this gap and test an integrative model of CSR-FP, in the context of India.

Design/methodology/approach

The data for CSR expenditure were collected from the annual reports of the selected companies. CR was captured using the ranks of Fortune India 500, Business Standard 1,000 and Economic Times 500. The financial data were collected from CMIE (Prowess) database.

Findings

Results of structural equation modeling (SEM) revealed a significant relationship between CSR expenditure of the firm and its reputation; but no relationship between CR and performance. When CR increases, the performance of a firm may not improve. Competitive intensity (CI) had no statistically significant role in the CR-FP relationship for performance. Results suggest that reputed firms perform well despite high competition within an industry. High reputation is effective in improving performance irrespective of competition. CI has a positive impact in the reputation–performance linkage. Advertising intensity (AI) played a significant moderating role in the CSR intensity and CR relationship.

Originality/value

This research represents an added value for the literature on CSR by highlighting the importance of CR, advertising strategy and market competition in the relationship between CSR and FP. The findings have several implications for theory and practice, which have been discussed in the study.

Details

PSU Research Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2399-1747

Keywords

Article
Publication date: 3 October 2023

Ruwan Adikaram and Alex Holcomb

In this study, the authors investigate if analysts, as knowledgeable information intermediaries, can correctly identify bank corporate social responsibility (CSR) activities and…

Abstract

Purpose

In this study, the authors investigate if analysts, as knowledgeable information intermediaries, can correctly identify bank corporate social responsibility (CSR) activities and can reliably transmit that information to investors. Hence, the authors specifically explore if analysts perceive and behave differentially in the presence of genuine bank CSR activities (strengths). The authors also analyze if financial markets differentially assess bank CSR strengths. The authors further explore the viability of focusing on analyst and financial markets to validate genuine bank CSR strengths.

Design/methodology/approach

The authors use COMPUSTAT and CRSP for firm and financial data, I/B/E/S for analyst reporting data and MCSI Research KLD for CSR data. The sample consists of 329 distinct banks and 2,525 bank-year observations from 2003 to 2016. The primary CSR score is the total number of CSR strengths less the total number of CSR concerns, across six of the seven dimensions for each firm in each year of the sample (Adjusted CSR Score). In addition, the authors estimate all the analyses with dis-aggregated measures of total CSR strengths and total CSR concerns (Adjusted Total Strength Score).

Findings

The authors find that analysts correctly distinguish and construe bank CSR strengths from CSR concerns. Specifically, bank CSR strengths increase analyst following and forecast accuracy, while decreasing analyst forecast dispersion. The authors further find that bank CSR strengths increase bank market returns. These results are reversed for bank CSR concerns. Additionally, the authors demonstrate that this method using knowledgeable intermediaries can help validate bank CSR strengths.

Research limitations/implications

The sample is limited to US banks and financial markets. The regulatory and information environment is likely to be different from global or emerging markets. However, since banks in many countries aspire to emulate the US banks, these results would be a precursor of banking sectors conditions in emerging markets. Additionally, the availability of data limits the sample to a period that ends in 2016. To the extent that the importance of ESG and CSR concerns has increased in the intervening time, the results may not accurately reflect the current state of the market.

Practical implications

This investigation benefits researchers, customers, banking executives, regulators and activist groups. First, the authors show that in addition to customers, analysts and the financial markets appreciate bank CSR strengths. Second, despite sophisticated financial reporting by banks, analysts correctly distinguish and construe bank CSR strengths. Third, the authors demonstrate a method for bank marketing researchers to validate genuine bank CSR activity, as well as provide additional support for customer related bank CSR outcomes. Fourth, the findings highlight the importance for banks to have high-quality CSR reporting. This might be especially helpful to a bank rebuilding its reputation after a CSR failure. Finally, this investigation using US banks could serve as a precursor for future bank CSR research and help develop CSR reporting guidelines for banks in emerging economies.

Social implications

This investigation benefits researchers, customers, banking executives, regulators and activist groups.

Originality/value

This investigation benefits researchers, customers, banking executives, regulators and activist groups. First, the authors show that in addition to customers, analysts and the financial market appreciates bank CSR strengths. Second, despite sophisticated financial reporting by banks, analysts correctly distinguish and construe bank CSR strengths. Third, the authors demonstrate a method for bank marketing researchers to validate genuine bank CSR activity, as well as provide additional support for customer related bank CSR outcomes. Fourth, the findings highlight the importance for banks to have high-quality CSR reporting. This might be especially helpful to a bank rebuilding its reputation after a CSR failure. Finally, this investigation using US banks could serve as a precursor for future bank CSR research and help develop CSR reporting guidelines for banks in emerging economies.

Article
Publication date: 25 May 2023

Muhammad Ishfaq Ahmad, Martin Cepel, Enrico Battisti and Ramiz Ur Rehman

This study aims to investigate the perspective of corporate philanthropy during the coronavirus disease 2019 (COVID-19) in China for firms with various levels of corporate social…

Abstract

Purpose

This study aims to investigate the perspective of corporate philanthropy during the coronavirus disease 2019 (COVID-19) in China for firms with various levels of corporate social responsibility (CSR). Specifically, the study appraises the impact of the COVID-19 pandemic on the stock returns and sustainable development of Chinese-listed companies and determines the likelihood of paying donations vis-à-vis firm reputation.

Design/methodology/approach

The study used data from 117 Chinese-listed firms engaged in philanthropy during the COVID-19 pandemic. The authors also utilized the stock returns and cash donation data, and owing to the cross-sectional data and continuous nature of dependent variables, they employed the ordinary least squares regression to test the research hypotheses.

Findings

The results show that irresponsible actions have a positive relationship with donations. The study particularly reveals that irresponsible firms have significant negative abnormal returns during the first wave of the COVID-19 pandemic.

Originality/value

To the best of our knowledge, this is the first empirical study to explore the perspective of corporate philanthropy during the COVID-19 pandemic for companies with different CSR levels. This study contributes to the empirical research on CSR and provides insights for managerial-cum-financial decisions to encourage managers of irresponsible firms to pursue philanthropic behaviors after crisis events.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 31 January 2023

Meng Du and Yang Li

The purpose of this study is to analyse the recently highly debated topics of the Tax avoidance–Corporate social responsibility (CSR) performance nexus and to further investigate…

Abstract

Purpose

The purpose of this study is to analyse the recently highly debated topics of the Tax avoidance–Corporate social responsibility (CSR) performance nexus and to further investigate the impacts of engaging in socially responsible activities on financial performance and bank debt financing constraints, at a disaggregate level (firm level).

Design/methodology/approach

The sample for this study includes all publicly listed companies headquartered in BRICS countries from 2014 to 2020. The study employs detailed financial accounting information and the Environmental, Social and Governance scores released by Thomas Reuters EIKON database, which is regarded as the most authoritative indicator of CSR performance. Both pooled and panel data regression models are employed, and robustness tests that use a wide range of model specifications, measures and estimators are performed.

Findings

The study finds robust evidence that corporate tax avoidance is negatively associated with CSR performance. The authors also find that firms with better CSR performance have healthier financial performance and lower costs of bank debt. Overall, the research findings are supportive of the corporate culture theory, which suggests that firms behave ethically consistent in both CSR practices and tax payment.

Originality/value

CSR performance and the engagement of tax avoidance activities have been documented in the literature to be vital elements investors care about. This study focuses specifically on the association between them and further elaborates their impacts in the financial markets. To the best of the authors' knowledge, this is the first study which investigates the nexus in a sample that includes the most powerful emerging markets in the world. The results of this study are generalisable in terms of the implications of CSR management to many other emerging markets.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 29 August 2023

Arpita Agnihotri and Saurabh Bhattacharya

This study aims to explore how CEO narcissism drives investment in corporate social responsibility (CSR) and its mediating mechanism.

Abstract

Purpose

This study aims to explore how CEO narcissism drives investment in corporate social responsibility (CSR) and its mediating mechanism.

Design/methodology/approach

This study includes panel regression based on archival data.

Findings

CEO narcissism leads to signaling of organizational virtuous orientation that results in increase in CSR investment.

Originality/value

Relevance of CEO traits on CSR remains unexplored in emerging markets context, especially the underlying mechanism. This study uncovers these mechanisms.

Details

Society and Business Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-5680

Keywords

Article
Publication date: 28 February 2024

Rosella Carè, Rabia Fatima and Nathalie Lèvy

The concept of banking reputation has gained significant attention due to its relevance in the banking industry. A strong reputation has become crucial for a bank’s success, as it…

Abstract

Purpose

The concept of banking reputation has gained significant attention due to its relevance in the banking industry. A strong reputation has become crucial for a bank’s success, as it affects trust, credibility and stakeholders' perceptions. However, understanding and managing reputation in the banking sector involves several challenges. This study aims to analyze the field of banking reputation research through bibliometric analysis.

Design/methodology/approach

It explores the evolution of research in this area, identifies key journals, articles and authors, examines the main research streams, and identifies research fronts and opportunities for future advancement.

Findings

The findings reveal that banking reputation research has evolved over time, with multiple perspectives and viewpoints. Key journals and authors in the field are identified, and leading research streams are highlighted. The study also uncovers the conceptual and intellectual structure of the research domain, providing insights into the complex and multidimensional nature of banking reputation. Furthermore, the study emphasizes the importance of corporate social responsibility, sustainability practices and gender diversity in shaping a bank’s reputation. These factors play a significant role in attracting and retaining customers, accessing financial markets and securing funding.

Research limitations/implications

The results contribute to the existing body of knowledge and provide researchers and practitioners with valuable insights for further exploration.

Originality/value

The paper concludes by outlining potential avenues for future research in the field of banking reputation.

Details

International Journal of Bank Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0265-2323

Keywords

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