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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

Article
Publication date: 19 December 2023

Arumega Zarefar, Dian Agustia and Noorlailie Soewarno

This study aims to examine the effect of social reputation on the relationship between boards and foreign ownership on the quality of sustainability disclosure.

Abstract

Purpose

This study aims to examine the effect of social reputation on the relationship between boards and foreign ownership on the quality of sustainability disclosure.

Design/methodology/approach

The sample of this study consists of publicly-traded primary and secondary sector companies in Indonesia for 12 years, from 2009 to 2020. This study uses panel model regression to generate its results. The disclosure data are hand-collected data sourced from annual financial and company sustainability reports.

Findings

Higher foreign board component companies report lower quality of sustainability disclosure, whereas companies that possess foreign ownership components report a higher quality of sustainability disclosure. This result is strengthened by obtaining consistent results tested with economic, social and environmental disclosure components. In addition, if the company has a good social reputation, it will strengthen the relationship of foreign ownership to the quality of sustainability disclosure.

Practical implications

These findings are relevant for policymakers, professional organizations and practitioners in Indonesia and other developing countries.

Originality/value

The moderating effect of social reputation on the relation of the foreign board and foreign ownership-quality of sustainability disclosure as this study does remain rare in developing countries. This study complements various research conducted in developing countries, such as Indonesia, by offering a new dimension. The results indicate that social reputation has a moderating role in determining the impact of foreign ownership on the quality of sustainability disclosure.

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

Article
Publication date: 2 November 2020

Caroline C. Hartmann and Jimmy Carmenate

Board diversity positively impacts corporate social responsibility (CSR); however, there is limited evidence on how board diversity affects the reputation of organizations that…

1591

Abstract

Purpose

Board diversity positively impacts corporate social responsibility (CSR); however, there is limited evidence on how board diversity affects the reputation of organizations that are involved in CSR. The purpose of this paper is to examine the effect board diversity has on socially responsible firms’ corporate social responsibility reputation (CSRR). The authors specifically examine this relationship because an organization’s corporate reputation may be very different to its CSRR gained through engagement in socially responsible activities.

Design/methodology/approach

The authors use the CSR reputation scores for the top 100 most socially responsible global companies provided by the RepTrak Database as a measure of CSRR. Board diversity measures are calculated for gender, ethnicity and education to measure their impact on social reputation. The sample for this study consists of 146 observations for the period 2013–2017.

Findings

The authors find a significant and positive relation between having a combination of women and ethnically diverse members on the board and firms’ CSRR. The authors also find a significant positive effect on CSRR when the board is composed of women and educationally diverse members.

Research limitations/implications

Board diversity characteristics continue to impact organizations’ decision-making processes and their involvement in CSR activities as public stakeholders demand greater representation of females and minorities on the board. Because research on board diversity is in its infancy, the authors urge scholars to continue to investigate the impact board diversity has on an organization’s motivation to be socially responsible as well as how it affects their CSRR.

Practical implications

The findings of this study highlight the importance stakeholders place on an organization’s social responsibility reputation and the positive effects of board diversity in managing their CSRR.

Social implications

The findings provide evidence that the composition of the board can influence a company’s engagement in CSR activities and their CSRR as perceived by its stakeholders.

Originality/value

This study contributes to the CSR literature by introducing the concept of CSRR. To the best of the authors’ knowledge, this study also extends research in the diversity literature by examining the relationship between board diversity variables and an organization’s CSRR. The findings highlight the importance of having a diverse board composed of ethnically and educationally varied individuals and provide evidence of a link between organizations’ involvement in socially responsible activities and their CSRR.

Details

Social Responsibility Journal, vol. 17 no. 8
Type: Research Article
ISSN: 1747-1117

Keywords

Article
Publication date: 9 November 2010

Pekka Aula

This paper aims to discuss the emergence of corporate reputational risk in terms of social media, exploring its threats to and possibilities for organizations' strategic reputation

37135

Abstract

Purpose

This paper aims to discuss the emergence of corporate reputational risk in terms of social media, exploring its threats to and possibilities for organizations' strategic reputation management.

Design/methodology/approach

Reputation risk, the possibility of damaging one's reputation, presents a threat to organizations in many ways. Little is known, however, about the connections between reputation risk management and social media as a mediated business environment. Following the latest conceptualizations of strategic reputation management and social media, the paper identifies several challenges for organizations. To make sense of this issue, the paper proposes a novel context for strategic reputation management, founded on the metaphor of ambient publicity, which involves not only social media, but also organizations and their stakeholders.

Findings

The paper argues that social media expands the spectrum of reputation risks and boosts risk dynamics, and that social media can have notable effects on corporate‐level strategic endeavors, which must be considered in order to be successful in the modern business environment. Nine tenets for corporate leaders involved in strategic reputation management are presented.

Originality/value

The paper offers new insights on social media's relation to reputation risk and its management. The ambient publicity, for example, has value to leaders involved in strategic reputation management when trying to identify factors characterizing the changing business environment. Understanding ambient publicity as an environment of meaning indicates that organizations, their stakeholders, and the public create a “complex narrative web” surrounding reputation. The more unified this web is, the stronger the organization is in terms of reputation risk.

Details

Strategy & Leadership, vol. 38 no. 6
Type: Research Article
ISSN: 1087-8572

Keywords

Book part
Publication date: 28 August 2007

Robert Zinko, Gerald R. Ferris, Fred R. Blass and Mary Dana Laird

In everyday life, as well as in work organizations, we engage in frequent and quite comfortable discourse about the nature of reputations, and wealso see personal reputation used…

Abstract

In everyday life, as well as in work organizations, we engage in frequent and quite comfortable discourse about the nature of reputations, and wealso see personal reputation used as a basis for important human resources decisions (e.g., promotions, terminations, etc.). Unfortunately, despite its recognized importance, there has been very little theory and research on personal reputation in organizations published in the organizational sciences. The present paper attempts to address this need by proposing a conceptualization of personal reputation in organizations. In this conceptualization, reputation is presented as an agreed upon, collective perception by others, and involves behavior calibration derived from social comparisons with referent others that results in a deviation from the behavioral norms in one's environment, as observed and evaluated by others. Implications of this conceptualization are discussed, as are directions for future research.

Details

Research in Personnel and Human Resources Management
Type: Book
ISBN: 978-0-7623-1432-4

Article
Publication date: 20 August 2020

Arne Westermann and Jörg Forthmann

The purpose of this paper is to investigate to what extend an automated, algorithm-based analysis of online conversations of stakeholders in social media and other Internet media…

1939

Abstract

Purpose

The purpose of this paper is to investigate to what extend an automated, algorithm-based analysis of online conversations of stakeholders in social media and other Internet media can be used for reputation management.

Design/methodology/approach

Examination of the reputation of the 5,000 companies with the largest number of employees in Germany based on communication with these companies in 350m online sources on the German-speaking Internet within one year. The method is grounded on an adapted reputation model based on Fombrun.

Findings

The central result of the study is the identification of the ideal balance between the different dimensions leading to the best overall reputation. The resulting correlation matrix with the respective correlation coefficients (according to Pearson) thus forms the basis for the optimal reputation architecture.

Research limitations/implications

The discovered “optimal reputation architecture” refers to a German context. Future studies should investigate in how far the adapted model and the “optimal reputation architecture” also work for other cultures. It can be assumed that there may be differences as different dimensions, for example, sustainability, may have a different importance in other cultural contexts. Apart from the question if the “optimal reputation architecture” is also valid for other cultural contexts, the concept has to be validated for German companies as well as it is just based on the two described studies.

Practical implications

The method used shows that social listening can deliver valuable results for research in the field of reputation management as it expands the possibilities to investigate reputation on a large scale. The approach shows in how far scientific research can be expanded beyond classic content analysis as the number of items which can be analysed exceeds that of classic analytical approaches by far. Explicit and implicit experiences, which are the drivers of reputation, can be systematically recorded and analysed using social listening, thus delivering valuable insights in how stakeholders perceive the performance of a company in different dimensions.

Social implications

Measuring the reputation on the basis of social listening is very important for practical applications in companies, because the data is available digitally and can deliver up-to-date reputation values almost in real time – so that the communication can be aligned very quickly with current events. This makes it easier to implement and control the interaction between companies and their environment in the digital space.

Originality/value

The classic approach in reputation management is traditional market research. It is relatively expensive and takes a relatively long time to produce results. Reputation management based on social listening digitises reputation measurement, lowers costs and delivers results in a very timely manner. It might be the future of reputation measurement. This is relevant not only for practical purposes but also for scientific approaches.

Details

Corporate Communications: An International Journal, vol. 26 no. 1
Type: Research Article
ISSN: 1356-3289

Keywords

Article
Publication date: 2 February 2015

Yingjun Lu, Indra Abeysekera and Corinne Cortese

This paper aims to examine the influence of corporate social responsibility (CSR) reporting quality and board characteristics on corporate social reputation of Chinese listed…

5064

Abstract

Purpose

This paper aims to examine the influence of corporate social responsibility (CSR) reporting quality and board characteristics on corporate social reputation of Chinese listed firms.

Design/methodology/approach

Firms chosen for this study are drawn from a social responsibility ranking list of Chinese listed firms. The social responsibility rating scores identified by this ranking list are used to measure the social reputation of firms studied. The model-testing method is used to examine hypothesised relationships between CSR reporting quality, board characteristics and corporate social reputation.

Findings

The results indicate that CSR reporting quality positively influences corporate social reputation but chief executive officer/chairman duality as a measure of board characteristics has a negative impact on corporate social reputation. Firm’s financial performance and firm size also positively influence corporate social reputation.

Research limitations/implications

The relatively small sample of firms for a cross-sectional study, and the proxies constructed for various concepts to empirically test hypotheses can limit generalising findings to firms outside the social responsibility ranking list. Future studies can undertake longitudinal analysis and compare socially responsible firms with others to expand empirical findings about corporate social reputation.

Originality/value

This paper investigates the influences of CSR reporting quality and board characteristics on corporate social reputation in the context of a developing country, China.

Details

Pacific Accounting Review, vol. 27 no. 1
Type: Research Article
ISSN: 0114-0582

Keywords

Article
Publication date: 3 May 2016

Grahame Dowling

The purpose of this paper is to outline a theory-based approach to defining the corporate reputation construct.

1522

Abstract

Purpose

The purpose of this paper is to outline a theory-based approach to defining the corporate reputation construct.

Design/methodology/approach

The approach taken is to describe how to create a well-formed nominal definition of a construct and then show how this definition is translated into an operational definition that guides the selection of an appropriate measure. New definitions of corporate social reputation and appropriate measures of this construct are provided to illustrate this framework.

Findings

The definitional framework used suggests that many measures of corporate social responsibility and reputation are under specified. Thus, the measures derived from these definitions are poorly constructed. The strengths and weaknesses of three new types of measure of corporate social reputation are reviewed.

Practical implications

For scholars the advantages of creating a well-formed definition are that it will lead to a valid measure of the construct under investigation. This will then help to better interpret what are significant findings and non-findings of empirical research.

Originality/value

This paper is an extension of the author’s previous work on defining the corporate reputation construct. Because what is meant by corporate social responsibility is contested amongst scholars this and related constructs need more precise definition and measurement. This paper offers a theory-based approach to achieve this aim.

Details

Annals in Social Responsibility, vol. 2 no. 1
Type: Research Article
ISSN: 2056-3515

Keywords

Book part
Publication date: 16 July 2019

Ruth Yeoman and Milena Mueller Santos

Organizations are increasingly required to take up extended responsibilities for social and environmental outcomes, including in global value chains. To address these challenges…

Abstract

Organizations are increasingly required to take up extended responsibilities for social and environmental outcomes, including in global value chains. To address these challenges, the organization must call upon stakeholders to engage, contribute, and innovate, and in turn, this requires the organization to have a stronger social basis for its relationships. An integrative model of global value chain management based on social cooperation shifts the focus from corporate reputation to value chain reputation, from a firm-centric view of corporate reputation to a multistakeholder conception of value chain reputation. This approach conceptualizes reputation as a dynamic and potentially vulnerable organizational feature which cannot always be managed by public relations but requires a more stable notion grounded in something more permanent in the organization’s character, history, and the quality of its relationships with stakeholders. We consider the prospects for attending to organizational integrity as a stabilizing force for its public reputation. Integrity may be adopted as a hypernorm for motivating stakeholders who share a concern for the organization’s reputation. Co-creating reputation depends upon a social bond of cooperation developed by stakeholders caring about the organization and in turn, the organization caring about its stakeholders. This socialized understanding of reputation-building is grounded in an ethic of care and manifested through joint purposes, boundary-crossing processes, collaboration practices, and a division of labor into which value chain members are integrated and brought into relation with one another. We propose a model of global value chain management that discusses organizational capabilities required for such an approach.

Details

Global Aspects of Reputation and Strategic Management
Type: Book
ISBN: 978-1-78754-314-0

Keywords

Article
Publication date: 15 August 2023

Caleb Kwong, Charan Raj Bhattarai, Min Prasad Bhandari and Cherry W. M. Cheung

Literature on the relationship between social performance and economic performance of social enterprises has long been inconclusive. This paper aims to investigate whether and, if…

Abstract

Purpose

Literature on the relationship between social performance and economic performance of social enterprises has long been inconclusive. This paper aims to investigate whether and, if so, how social performance contributes to economic performance of social enterprises. Specifically, drawing from the resource-based view and signalling theory, the study examines how the development of reputation, which enables social enterprises to signal the enterprises' stakeholders' commitment towards social causes, mediates the relationship between the two.

Design/methodology/approach

Employing a quantitative research design, data were collected from a sample of 164 social enterprises in the UK and analysed using structural equation modelling (SEM).

Findings

The results illustrate that whilst the direct relationship between social and economic performance is inconclusive, social performance contributes indirectly to improve economic performance through improving social enterprise reputation.

Originality/value

To the best of the authors' knowledge, this study is the first of this kind in the context of social enterprises which sheds light on the long-standing conflicting literature on the relationship between the dual objectives (i.e. social and economic) by providing reputation as the mediating variable.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 29 no. 8
Type: Research Article
ISSN: 1355-2554

Keywords

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