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1 – 10 of over 4000Abosede Ijabadeniyi and Jeevarathnam Parthasarathy Govender
The appraisal of corporate reputation based on third-party corporate social responsibility (CSR) indices appears to have been institutionalized. The endorsement of such an…
Abstract
Purpose
The appraisal of corporate reputation based on third-party corporate social responsibility (CSR) indices appears to have been institutionalized. The endorsement of such an approach by sustainability custodians and influencers undermines the uptake of the morality and legitimacy of CSR. This study takes a social realist perspective, which suggests that social phenomena such as CSR and corporate reputation are shaped by social structures and power relations. This study aims to contribute to a deeper understanding of the complex relationship between CSR and corporate reputation and understand ways in which the constructs are influenced by cognitive factors.
Design/methodology/approach
This study surveyed 411 respondents across five shopping malls and analyzed the data using path analysis of the structural equation modeling (SEM) technique. The mall-intercept survey sought to critically assess expectations of CSR vis-à-vis evaluation of corporate reputation. Based on a case study of three Johannesburg Stock Exchange listed companies, CSR expectations were measured along the philanthropic, economic, ethical and legal dimensions, while evaluation of corporate reputation was based on product quality, financial performance and social responsibility. SEM path analysis was used to extrapolate the predictive outcomes of CSR on corporate reputation.
Findings
Reputation for product quality and social responsibility is underpinned by the fulfillment of ethical CSR expectations, while philanthropic gestures enhance the evaluation of financial performance. Legal CSR significantly influences the reputation for social responsibility and product quality. Fulfillment of economic CSR expectations influences the reputation for product quality. However, no relationship was established between economic performance and social responsibility. Involvement in economic, philanthropic and particularly, legal CSR, are not indicative of the reputation for financial performance. Conversely, companies’ involvement in economic CSR does not suggest a higher propensity for social responsibility.
Research limitations/implications
The predictive outcomes of CSR expectations on corporate reputation can reveal situated understanding of actual perceptions of corporate behavior.
Practical implications
Ethical business conduct is synonymously associated with social responsibility while espoused corporate philanthropy signals strong financial performance. The awareness of consumers’ cognitive evaluation of corporate reputation can offer a pathway to corporate communication professionals, policy makers and agencies to rethink and reposition CSR efforts.
Social implications
Insensitivity to taken-for-granted cultural prescriptions and reliance on market-based reputational rankings undermine mutually beneficial stakeholder relationships and the social license to operate.
Originality/value
This study brings to the fore, cognitively dominated indicators of consumers’ perceptions of the reputation for CSR, to foster nuanced and halo-removed approaches to social responsibility. The authors show for the first time how companies’ skewed focus on corporate philanthropic giving paradoxically signals a capitalistic notion of social responsibility and unethical business conduct. This study offers a halo-removed orientation to the appraisal of CSR and corporate reputation.
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Loopamudra Baruah and Nagari Mohan Panda
Corporate reputation (CR), the new buzz word has created many waves in the business world and thereby has become a topic of interest of many researchers. CR is often addressed as…
Abstract
Purpose
Corporate reputation (CR), the new buzz word has created many waves in the business world and thereby has become a topic of interest of many researchers. CR is often addressed as an intangible asset that brings with itself lots of advantages and benefits that may build the company and push it forward or may bring a company completely down. CR is a multidisciplinary concept generating parallel interpretations, and as a consequence, disagreements arise regarding its definition and its measurement techniques.
Design/methodology/approach
This paper attempted to address this issue by bringing in more clarity to the concept and objectivity in its measurement. To address this issue a new comprehensive definition of CR is developed by reviewing the semi-centennial evolution of the construct. By bringing a critical analysis of the currently followed methods of measurement the paper has classified them into the five broad categories on the basis of the guiding definition, methodology and data sources, multiple stakeholders emphasised and the extent of objectivity inherent in the methodology. Establishing linkage between different concepts a model is developed for better understanding of the process of corporate reputation building.
Findings
Based on the renewed understanding, a new method has been suggested for measuring corporate reputation from the perspective of multiple stakeholders.
Originality/value
This method is claimed to be superior as it is founded on a comprehensive meaning of the concept and designed to use easily available and accessible objective data.
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Rosamaria Moura-Leite and Robert Padgett
The paper analysed how the strengths and weaknesses of a firm's social actions with its different types of primary stakeholders impact on its reputation. The paper aims to discuss…
Abstract
Purpose
The paper analysed how the strengths and weaknesses of a firm's social actions with its different types of primary stakeholders impact on its reputation. The paper aims to discuss these issues.
Design/methodology/approach
This research adopts Mattingly and Berman's typology to measure corporate social performance data, which differentiates primary stakeholder between institutional and technical. The first provides intangible support and the second tangible support to the firm. The hypotheses compare the effect that different social actions measures can have on corporate reputation (CR). The authors test the hypotheses empirically using two samples composed of US firms and two CR measures.
Findings
The authors found that institutional stakeholders are deemed to hold normative expectations of a firm's behavior, impacting strongly on CR, unlike technical stakeholders, that have an economic exchange relationship with the firm. In addition to corporate social actions toward technical stakeholders are viewed as self-serving actions and are therefore less likely to impact on CR.
Practical implications
The research can be very useful for business managers since it provides theoretical discussion and empirical proof about the effect of social actions on CR, which can assist them in designing or modifying social responsibility strategies used by the firm in order to build a positive CR.
Originality/value
The paper develops a framework on CR, highlighting the valuable roles that different types of social actions play in reputation building, and proposes a new model that identifies the impact of different types of social actions on organizational reputation.
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Michela Matarazzo, Giulia Lanzilli and Riccardo Resciniti
The purpose of this paper is to investigate whether, in the context of a cross-border acquisition, the acquirer’s country image (CI) could moderate the relationship between the…
Abstract
Purpose
The purpose of this paper is to investigate whether, in the context of a cross-border acquisition, the acquirer’s country image (CI) could moderate the relationship between the acquirer’s corporate reputation (CR) and consumers’ repurchase intentions towards the products of the post-acquisition target.
Design/methodology/approach
The authors examined the roles played by the acquirer’s CR and the acquirer’s CI on consumer behaviour by considering an Italian target firm with a high reputation and comparing four foreign acquiring firms with different combinations of CR (poor/good) and CI (high/low).
Findings
It was found that both CR and CI have a significant impact on Italian consumers’ intention to repurchase the products of the post-acquisition target. Furthermore, the results show a greater increase in consumers’ repurchase intentions when a good reputation of the acquirer is paired with a high CI for the acquirer, but a high CI cannot compensate for a poor CR.
Originality/value
The research investigates, in the context of cross-border acquisitions (CBAs), the impact of the acquirer’s CR and the acquirer’s CI on the host country consumers’ repurchase intentions after the CBA, which has not previously been thoroughly examined. It can help managers to understand the conditions under which CBAs will be favourably evaluated.
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Muhammad Nurul Houqe, Habib Zaman Khan, Olayinka Moses and Arun Elias
The purpose of the study is to examine the impact of corporate reputation (hereafter CR) and the degree of economic development on firms’ cost of capital remains unresolved. This…
Abstract
Purpose
The purpose of the study is to examine the impact of corporate reputation (hereafter CR) and the degree of economic development on firms’ cost of capital remains unresolved. This study addresses these issues.
Design/methodology/approach
Using a global sample across 20 countries, the study investigates the discrete and joint effects of CR and jurisdictional economic development on the cost of equity (COE) and cost of debt (COD) capital. The analysis encompasses a dual data set, comprising 1,308 observations for COE and 1,223 observations for COD, allowing for a comprehensive exploration of these dynamics.
Findings
The findings indicate that CR leads to a reduction in the cost of capital for reputable firms. Nevertheless, the extent of this decrease varies per type of capital and firm’s reputation level and is contingent upon the economic development level within the firm’s jurisdiction. Particularly noteworthy is the moderating effect of economic development on CR, which shows that COE capital tends to be lower for reputable firms operating in economically developed jurisdictions. Albeit, this is not the case for COD capital for reputable firms in similarly developed jurisdictions.
Practical implications
This study illustrates that effective CR management, aimed at reducing the cost of capital, necessitates a combination of the firm’s unique competitive advantage and the economic development context of its jurisdiction to truly achieve its intended goal.
Originality/value
To the best of the authors’ knowledge, this is the first global study to explore the impact of CR on both COE and COD capital. Furthermore, this study is primarily towards understanding the moderating role of economic development in the relationship between CR and cost of capital.
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María Dolores Odriozola, Antonio Martín and Ladislao Luna
– The purpose of this paper is to analyse whether labour social responsibility (LSR) practices influence on corporate reputation (CR) and on labour reputation (LR).
Abstract
Purpose
The purpose of this paper is to analyse whether labour social responsibility (LSR) practices influence on corporate reputation (CR) and on labour reputation (LR).
Design/methodology/approach
LSR is defined as all those labour practices made by a company for the benefit of employees voluntarily and not imposed by labour legislation. An index developed by content analysis was created to measure LRS. CR and LR scores were obtained from the Business Monitor of Corporate Reputation (MERCO) for the period of 2006-2010. Furthermore, based on the previous literature, the study considers other generic variables that influence the process of creating reputation, such as visibility and environmental impact, as well as intrinsic characteristics of each company (size, financial performance and debt). The model was estimated by the generalised method of moments (GMM) on a data panel for the 100 most reputable firms in Spain in each year during the period 2006-2010.
Findings
The results obtained show that LSR carried out by the company has a direct and positive relationship with the reputation. Thus, corporate and labour reputation and their evolution depend on ability of the LSR strategy of the company to satisfy to future expectations of stakeholders.
Originality/value
Previous literature considered the impact of different dimensions of corporate social responsibility on CR, e.g., environmental, communication, quality of products, but did not consider labour practices.
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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…
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.
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Russell Abratt and Nicola Kleyn
The main purpose of this paper is to explore, define, reconcile and depict corporate identity (CI), corporate brand (CB) and corporate reputation (CR) in a framework that reflects…
Abstract
Purpose
The main purpose of this paper is to explore, define, reconcile and depict corporate identity (CI), corporate brand (CB) and corporate reputation (CR) in a framework that reflects the dimensions of these constructs, discriminates between them and represents their inter‐relatedness.
Design/methodology/approach
The paper draws on key literature relating to CI, CB and CR.
Findings
The paper develops a framework that explains and aligns the drivers of CB and CR.
Practical implications
Managers will be able to use the framework to help them align and optimise brand and reputation building efforts of their organisation. Academics will be able to use the framework as a basis for empirical research.
Originality/value
The article reconciles disparate views from a number of theoretical streams that have investigated CI, CB and CR and develops a comprehensive framework that shows that although the management and measurement of the constructs may overlap, the constructs themselves are not interchangeable.
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Sridhar Manohar, Amit Mittal and Sanjiv Marwah
The purpose of this paper is to establish the link between three constructs, namely, service innovation, corporate reputation (CR), and word-of-mouth (hereinafter WOM). Primarily…
Abstract
Purpose
The purpose of this paper is to establish the link between three constructs, namely, service innovation, corporate reputation (CR), and word-of-mouth (hereinafter WOM). Primarily, the aim is to understand whether innovation in a service firm drives its reputation, thereby resulting in positive WOM where the direct effect of service innovation of a firm on WOM is mediated by reputation. Furthermore, the study also seeks to understand whether the type of service firm has an effect on determining the level of the mediation effect.
Design/methodology/approach
This study adopts an integrated approach where the measure for the construct service innovation is explored through a qualitative approach, and the conceptual model is estimated through path analysis. The service industry taken for this study is banking, and the through non-probability criterion sampling technique, 252 customers responded to their level of agreement. The PLS-SEM technique was used to estimate the path coefficient by following the two-stage approach. The multigroup moderation analysis is performed to determine whether the type of the bank plays a major role in determining the direct effects and the mediation effect of CR between service innovation and WOM.
Findings
The result of this study indicates that there is a strong positive association between the three constructs. Further, the direct relationship between service innovation and WOM is partially mediated by reputation. The result of the multigroup moderation indicates that the type of the bank plays a major role in determining the mediation effect of reputation.
Practical implications
The study helps the decision makers and the managers of the bank to understand that frequent innovation within the firm would help to gain reputation, and thereby customers would tend to give a positive WOM. Further, non-reputable firms can still gain a positive WOM if they continuously innovate new services. In the Indian context, it is noted that there is a difference between private and public banks in determining the mediation effect of reputation between service innovation and WOM.
Originality/value
The originality of the study is based on the following: development of a unique scale to measure service innovation in the banking industry overcoming the existing scales which are based on goods-dominant logic; estimating empirically the combined effect of service innovation and CR on WOM; the process of evaluating the moderated mediation effect; how the mediating effect of CR varies from private sector banks to public sector banks.
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Casimiro Almeida M Graca and Coelho Arnaldo
Corporate reputation (CR) is an important intangible asset of a company. The purpose of this paper is to investigate the role of CR on co-operants behavior and on organizational…
Abstract
Purpose
Corporate reputation (CR) is an important intangible asset of a company. The purpose of this paper is to investigate the role of CR on co-operants behavior and on organizational performance in co-operative organizations.
Design/methodology/approach
This investigation proposes an investigation model and tests the framework using structural equation modeling. For this purpose, 263 valid questionnaires were collected from a research sample comprised of co-operants of the biggest dairy union of co-operatives in Iberia.
Findings
CR has a significant impact on co-operatives members’ loyalty and on co-operatives’ performance. The model provides a wider comprehension of the CR concept and introduces both the drivers and consequences.
Research limitation
This investigation is based on a sample of members of one union of co-operatives in the specific dairy milk industry.
Practical implication
The results give new guidelines to redress the co-operatives traditional management, namely the management of intangible assets like reputation. Internal culture, satisfaction with management, image and communication can boost reputation and thus organizational performance and members’ loyalty.
Social implication
This paper aims to contribute to the competitiveness of a type of organization closed to the social structure of the rural population.
Originality value
The results bring the management challenges of the twenty-first century to the traditional principles underlying co-operatives management helping them to reinforce competitiveness.
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