The ‘Catch 22’ of communicating CSR: Findings from a Danish study

This research explored the apparent ‘Catch 22’ of communicating Corporate Social Responsibility (CSR). Although companies are regularly encouraged to engage in CSR, they are simultaneously discouraged to communicate about this engagement. We contribute with two models that may help to explain how companies can best communicate about their CSR initiatives. Based on a reputation survey and two case studies of Danish corporate CSR frontrunners, first we develop an ‘inside‐out approach’ to suggest how managers can manage their CSR activities to achieve favourable CSR reputation in a ‘Catch 22’ context. Employees appear as a key component in building trustworthiness as CSR communication is shown to evolve when taking an ‘inside‐out approach’. Second, we develop a CSR communication model with two CSR communication processes targeting different stakeholder groups: ‘the expert CSR communication process’ and ‘the endorsed CSR communication process’. Integrating these models and processes may help companies strategically capture reputational advantage from their CSR initiatives.     

Feeling Good by Doing Good: Employee CSR-Induced Attributions, Job Satisfaction, and the Role of Charismatic Leadership

Interest in corporate social responsibility (CSR) is gaining momentum in academic and managerial circles. However, prior work in the area has paid little attention to how CSR initiatives should be implemented inside the organization. Against this backdrop, this study examines the impact of CSR initiatives on an important stakeholder group—employees. We build and test a comprehensive multilevel framework that focuses on whether employees derive job satisfaction from CSR programs. The proposed model predicts that a manager’s charismatic leadership influences employees’ interpretations about the motives underlying their companies’ engagement in CSR initiatives (intrinsic and extrinsic CSR-induced attributions) which, in turn, influence employee job satisfaction. Hierarchical linear modeling of data from 47 organizational units comprising 438 employees from three world-leading manufacturing organizations shows that when employees think that their manager possesses charismatic leadership qualities, they tend to attribute the organization’s motives for engaging in CSR activities to intrinsic values, which, in turn, are positively associated with job satisfaction. Also, the extent to which managers are perceived as charismatic leaders relates positively to job satisfaction. Interestingly, CSR-induced extrinsic attributions are neither explained by charismatic leadership nor do they predict job satisfaction. Implications for both theory and practice are discussed.     

Strengthening Stakeholder–Company Relationships Through Mutually Beneficial Corporate Social Responsibility Initiatives

Corporate social responsibility (CSR) continues to gain attention atop the corporate agenda and is by now an important component of the dialogue between companies and their stakeholders. Nevertheless, there is still little guidance as to how companies can implement CSR activity in order to maximize returns to CSR investment. Theorists have identified many company-favoring outcomes of CSR; yet there is a dearth of research on the psychological mechanisms that drive stakeholder responses to CSR activity. Borrowing from the literatures on means-end chains and relationship marketing, we propose a conceptual model that explains how CSR provides individual stakeholders with numerous benefits (functional, psychosocial, and values) and how the type and extent to which a stakeholder derives these benefits from CSR initiatives influences the quality of the relationship between the stakeholder and the company. The paper discusses the implications of these␣insights and highlights a number of areas for future research.     

CSR Disclosure Items Used as Fairness Heuristics in the Investment Decision

The growth in demand for corporate social responsibility (CSR) information raises the question of how various CSR disclosure items are used by investors, an important stakeholder group driven by instrumental, moral, and relational motives. Prior research examines the instrumental motive to maximize individual shareholder wealth and the moral motive to actualize personal stewardship interests. We contribute to the literature by examining investors’ relational motive to realize positive stakeholder relationships within and between organizations and communities. The relational motive arises when investors look at a company’s treatment of other stakeholder groups as a heuristic to form a perception of how fairly they will also be treated by that company in the future, and thus invest in the company they perceive as fair. Fair treatment in the future matters to the investor who purchases stock from the company or via the capital markets in exchange for becoming a shareholder and thus a residual claimant of the company. As such, the investor expects future cash flows from holding and/or reselling the stock and expects to be treated fairly by the company in the future. We propose that investors, use as a fairness heuristic, CSR disclosure items—CSR investment level or CSR assurance—that represent the company’s commitment to its stakeholders, and that the resulting fairness perception affects the extent to which the CSR disclosure items influence their investment decision. Using responses from 113 investors in an online experiment, we find that fairness perceptions are higher when CSR investment is above (versus below) the industry average, and that fairness perceptions partially mediate the impact of the CSR investment level on investment amount allocations. We do not find that the presence (versus absence) of CSR assurance is used by investors as a fairness heuristic. Our results are robust to controlling for preferences for financial performance and hence investors’ instrumental motive, and to controlling for individual environmental attitudes, and hence investors’ moral motive. Implications for future research and public policy are discussed.     

Media Depictions of CEO Ethics and Stakeholder Support of CSR Initiatives: The Mediating Roles of CSR Motive Attributions and Cynicism

Corporate social responsibility (CSR) 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 (morally questionable, ethical, and ethics-unknown). Our findings demonstrate that stakeholders consider CEO ethics an important signal of CSR motives, and will shun the CSR initiatives of morally questionable CEOs.     

New Moralities for New Media? Assessing the Role of Social Media in Acts of Terror and Providing Points of Deliberation for Business Ethics

Social media offers a platform for diffused stakeholders to interact with firms—alternatively praising, questioning, and chastising businesses for their CSR performance and seeking to engage in two-way dialogue. In 2014, 163,402 public messages were sent to Fortune 200 firms’ CSR-focused Twitter accounts, each of which was either shared, replied to, “liked,” or ignored by the targeted firm. This paper examines firm reactions to these messages, building a model of firm response to stakeholders that combines the notions of CSR communication and stakeholder salience. Our findings show that firm response to a stakeholder on social media is positively and most significantly associated with what we refer to as the stakeholder’s connective power but negatively associated with the firm’s own connective power. To a lesser extent, firm response is positively associated with the stakeholder’s normative power but negatively associated with the firm’s own normative power. Firm response is also shown to be positively associated with stakeholder urgency in terms of both the originality of a stakeholder message and the expression of positive sentiment.

     

The Limits of Corporate Social Responsibility: Techniques of Neutralization, Stakeholder Management and Political CSR

Since scholarly interest in corporate social responsibility (CSR) has primarily focused on the synergies between social and economic performance, our understanding of how (and the conditions under which) companies use CSR to produce policy outcomes that work against public welfare has remained comparatively underdeveloped. In particular, little is known about how corporate decision-makers privately reconcile the conflicts between public and private interests, even though this is likely to be relevant to understanding the limitations of CSR as a means of aligning business activity with the broader public interest. This study addresses this issue using internal tobacco industry documents to explore British-American Tobacco’s (BAT) thinking on CSR and its effects on the company’s CSR Programme. The article presents a three-stage model of CSR development, based on Sykes and Matza’s theory of techniques of neutralization, which links together: how BAT managers made sense of the company’s declining political authority in the mid-1990s; how they subsequently justified the use of CSR as a tool of stakeholder management aimed at diffusing the political impact of public health advocates by breaking up political constituencies working towards evidence-based tobacco regulation; and how CSR works ideologically to shape stakeholders’ perceptions of the relative merits of competing approaches to tobacco control. Our analysis has three implications for research and practice. First, it underlines the importance of approaching corporate managers’ public comments on CSR critically and situating them in their economic, political and historical contexts. Second, it illustrates the importance of focusing on the political aims and effects of CSR. Third, by showing how CSR practices are used to stymie evidence-based government regulation, the article underlines the importance of highlighting and developing matrices to assess the negative social impacts of CSR.     

From Voids to Sophistication: Institutional Environment and MNC CSR Crisis in Emerging Markets

Why do multinational corporations (MNCs) frequently encounter corporate social responsibility (CSR) crises in leading emerging markets in the new century? Existing research about institutional impacts on MNC CSR has developed a void-based account about how the flawed institutional system allows misdeeds to happen. But the fact that such misdeeds have turned into increasing CSR crises in the new century along with institutional change is rarely taken into account. This paper combines studies of institutional voids, institutional entrepreneurship, and stakeholder theory to develop a concept of institutional sophistication, which refers to both the top-down maturation of the regulatory system that standardizes firm behavior and the bottom-up diversification and intensification of grassroots initiatives that redefine stakeholder membership. Based on this concept, we developed a framework to comprehensively demonstrate how both institutional voids and sophistication drive the MNC CSR crisis in leading emerging markets. Empirically, we established an original database that includes 309 publicized CSR crises encountered by major foreign MNCs in China, India, and Russia, 2000–2011. Through a content analysis, the paper reveals six common sophistication processes that drive the MNC crisis across contexts and also specifies stakeholder strategies that make these processes happen and vary by social problems and national contexts. We also discussed the value of studying corporate social irresponsible behavior in understanding the institution–MNC relationship.     

Actor and Institutional Dynamics in the Development of Multi-stakeholder Initiatives

As forms of private self-regulation, multi-stakeholder initiatives (MSIs) have emerged as an important empirical phenomenon in global governance processes. At the same time, MSIs are also theoretically intriguing because of their inherent double nature. On the one hand, MSIs spell out CSR standards that define norms for corporate behavior. On the other hand, MSIs are also the resultof corporate and stakeholder behavior. We combine the perspectives of institutional theory and club theory to conceptualize this double nature of MSIs. Based on a stage model that looks at the interplay of actor and institutional dynamics, we generate insights into why actors join a voluntary MSI, how the various motivations and intentions of the actors influence the standard development, and how these as well as the MSI design are subsequently influenced by both external (institutional) and internal (club) dynamics.     

Board Attributes,Corporate Social Responsibility Strategy,and Corporate Environmental and Social Performance

In this paper, we draw on insights from theories in the management and corporate governance literature to develop a theoretical model that makes explicit the links between a firm’s corporate social responsibility (CSR) related board attributes, its board CSR strategy, and its environmental and social performance. We then test the model using structural equation modeling approach. We find that the greater the CSR orientation of the board (as measured by the board’s independence, gender diversity, and financial expertise on audit committee), the more proactive and comprehensive the firm’s CSR strategy, and the higher its environmental and social performance. Moreover, we find this link to be endogenous and self-reinforcing, with superior CSR performers tending to further strengthen their board CSR orientation. This result while positive is also suggestive of the widening of the gap between the leads and laggards in CSR. Therefore, the question arises as to how ‘leaders’ are using their superior CSR competencies seen by many scholars as a source of corporate (at times unfair) competitive advantage. Stakeholders of corporations therefore need to be cognizant of this aspect of CSR when evaluating a firm’s CSR activities. Policy makers also need to be cognizant of these concerns when designing regulation in this field.     

Managing Impressions in the Face of Rising Stakeholder Pressures: Examining Oil Companies’ Shifting Stances in the Climate Change Debate

In this paper, we examine how organizations’ impression management (IM) evolves in response to rising stakeholder pressures regarding organizations’ corporate responsibility initiatives. We conducted a comparative case study analysis over a period of 13 years (1997–2009) for two organizations—Exxon and BP—that took extreme (but different) initial stances on climate change. We found that as stakeholder pressures rose, their IM tactics unfolded in four phases: (i) advocating the initial stance, (ii) sensegiving to clarify the initial stance, (iii) image repairing, and (iv) adjusting the stance. Taken together, our analysis of IM over these four phases provides three key insights about the evolution of IM in the face of rising pressures. First, when faced with stakeholder pressures, it seems that organizations do not immediately resort to conforming but tend to give in gradually when pressures increase and start to come from relatively powerful stakeholders. Second, evolution of IM seems to be characterized by path dependence, i.e., even as organizations’ positions evolve, they continue to show their conviction in their initial positions and try to convey that their subsequent positions flow logically from the previous ones. Finally, IM involves navigation between symbolism and substance, and companies tend to strive toward harmonizing their symbolic and substantive actions as stakeholder pressure increases.     

Do Environmental CSR Initiatives Serve Organizations’ Legitimacy in the Oil Industry? Exploring Employees’ Reactions Through Organizational Identification Theory

Little is known about employees’ responses to their organizations’ initiatives in corporate social responsibility (CSR). Academics have already identified a few outcomes regarding CSR’s impact on employees’ attitudes and behaviours; however, studies explaining the underlying mechanisms that drive employees’ favourable responses to CSR remain largely unexplored. Based on organizational identification (OI) theory, this study surveyed 155 employees of a petrochemical organization to better elucidate why, how and under which circumstances employees might positively respond to organizations’ CSR initiatives in the controversial oil industry sector. Findings first support that perceived CSR (i.e. environmental CSR) positively relates to employees’ OI which is known as an important antecedent of employees’ outcomes (Riketta, J Vocat Behavior, 66(2):358, 2005). Furthermore, results highlighted that the relationship between perceived CSR and employees’ OI is mediated by organizational trust. Finally, this study also revealed that some contingency factors such as employees’ attributions of self-centred motives to their organization’s investment in environmental issues can moderate the relationship between perceived CSR and organizational trust. Based on these findings, it is argued that CSR initiatives can support organizations’ efforts to maintain a strong relationship with their employees, and gain their support even in a controversial industry sector.     

Developing CSR in retail–supplier relationships: a stakeholder interaction approach

The purpose of this research is to explore how a stakeholder interaction perspective can add to the understanding of the dynamics of the process of corporate social responsibility (CSR) development in retail buyer–supplier relationships. Firstly, we find that interaction with suppliers and other stakeholders seems to have a pivotal role in the development towards sustainable retail supply chains. Secondly, and by addressing the phases of initiation, implementation and maturation of CSR development, we find that the role and intensity of interaction in stakeholder interaction changes over time and that the salience of particular stakeholders can be pivotal in the phases of the process of CSR development. Thirdly, we find that there is not necessarily one active and one passive party in the stakeholder interaction. Although suppliers in developing countries are typically asked to follow codes of conducts of retailers, suppliers are also acting and taking initiatives, and organizing themselves to better meet the demands on CSR.     

Dialogism in Corporate Social Responsibility Communications: Conceptualising Verbal Interaction Between Organisations and Their Audiences

We conceptualise CSR communication as a process of reciprocal influence between organisations and their audiences. We use an illustrative case study in the form of a conflict between firms and a powerful stakeholder which is played out in a series of 20 press releases over a 2-month period to develop a framework of analysis based on insights from linguistics. It focuses on three aspects of dialogism, namely (i) turn-taking (co-operating in a conversation by responding to the other party), (ii) inter-party moves (the nature and type of interaction characterising a turn, i.e. denial, apology or excuse) and (iii) intertextuality (the intensity and quality of verbal interaction between the parties). We address the question: What is the nature and type of verbal interactions between the parties? First we examine (a) whether the parties verbally interact and then (b) whether the parties listen to each other. We find evidence of dialogism suggesting that CSR communication is an interactive process which has to be understood as a function of the power relations between a firm and a specific stakeholder. Also, we find evidence of intertextuality in press releases by six firms which engage in verbal interaction with the stakeholder. We interpret this as linguistic evidence of isomorphic processes relating to CSR practices resulting from the pressure exerted by a powerful stakeholder. The lack of response by ten firms that fail to issue press releases suggests a strategy of ‘watch-and-wait’ with respect to the outcome of the conflict.     

Corporate communication,sustainability, and social media: It's not easy (really) being green

This empirical research explores how 16 global corporations from four different industry sectors—retail, technology equipment, food/beverage/tobacco, and consumer goods—use social media platforms and corporate social responsibility (CSR) reports to communicate about sustainability. Facebook, Twitter, CEO letters from annual reports and CSR/sustainability reports, and other company documentation are examined to compare the content and scope of these firms’ corporate communication. The sample is divided into two subsamples (Green and Not Green firms) using Newsweek's Greenest Company 2012 rankings, and compared for differential use of social media and corporate reports. Results show that communication varies across firm and industry regarding types of sustainability initiatives reported, metrics employed, and communication media utilized, and that Green firms are more active than Not Green firms both in addressing sustainability and in general social media activity. Implications are discussed herein and recommendations are presented for companies seeking to better understand the effective use of social media and sustainability communication.     

In Search of Individual Responsibility: The Dark Side of Organizations in the Light of Jansenist Ethics

This article tracks Corporate Social Responsibility (CSR) as an emergent organizational process that places the employee at its center. Predominantly, research on CSR tends to focus on external pressures and outcomes leading to a neglect of CSR as a dynamic and developing process that relies on the involvement of the employee as a major stakeholder in its co-creation and implementation. Utilizing case study data drawn from a study of a large multinational energy company, we explore how management relies on employees’ interaction with CSR as the process of initiation → implementation → maturation develops. Employee involvement grows from a minor element in the CSR initiation stage to a vital contributory factor in CSR’s success in the later stages of the process. The article offers new insights into a processual and interactional approach to CSR that accounts for the actions of different actors involved at each stage. Most unusually, it also recognizes the dual impact this has on broader issues concerning the management and involvement of employees through CSR actions, and gaining legitimacy in the eyes of not only external stakeholders but internal too.     

Longitudinal Effects of Corporate Social Responsibility on Customer Relationships

Despite the emergence of corporate social responsibility, the impact of CSR efforts on customer relationships remains decidedly unclear. Moreover, previous studies have examined CSR in cross-sectional, experimental, and/or artificial settings. Through field survey data collected at both the beginning (n = 750) and conclusion (n = 469) of the 2007–2008 NBA season, the authors investigate linkages between customers’ perceptions of the CSR performance of an NBA team and the strength of their relationship with this same organization. With all respondents of the latter survey participating in both samples, the authors assess how CSR performance impacts customer relationships over time. The findings show how a firm that engages in CSR initiatives may reap rewards by building trusting and committed customer relationships which, in turn, help forge desirable customer behaviors. The results also demonstrate how CSR’s influence strengthens over the course of the tested business cycle, thus yielding revealing insights to academics and practitioners when it comes to understanding the real-world impact of CSR performance for strengthening customer relationships.     

The effects of power on consumers’ evaluation of a luxury brand's corporate social responsibility

This paper examines how power affects consumers’ responses to corporate social responsibility (CSR) initiatives of luxury brands. The results of three studies show that high‐power individuals evaluated a luxury brand's CSR campaign more positively than low‐power individuals. High‐power individuals viewed CSR activities as being more fluent than low‐power individuals. This study further demonstrates that power influences consumers’ responses to nonluxury brand's CSR activities. Low‐power individuals, who are more receptive to warmth, evaluated nonluxury brand's CSR more favorably rather than high‐power individuals.     

Corporate social responsibility as cultural meaning management: a critique of the marketing of ‘ethical’ bottled water

To date, the primary focus of research in the field of corporate social responsibility (CSR) has been on the strategic implications of CSR for corporations and less on an evaluation of CSR from a wider political, economic and social perspective. In this paper, we aim to address this gap by critically engaging with marketing campaigns of so-called ‘ethical’ bottled water. We especially focus on a major CSR strategy of a range of different companies that promise to provide drinking water for (what they name as) ‘poor African people’ by way of Western consumers purchasing bottled water. Following Fairclough's approach, we unfold a three-step critical discourse analysis of the marketing campaigns of 10 such ‘ethical’ brands. Our results show that bottled water companies try to influence consumers' tastes through the management of the cultural meaning of bottled water, producing a more ‘ethical’ and ‘socially responsible’ perception of their products/brands. Theoretically, we base our analysis on McCracken's model of the cultural meaning of consumer goods, which, we argue, offers a critical perspective of the recent emergence of CSR and business ethics initiatives. We discuss how these marketing campaigns can be framed as historical struggles associated with neo-liberal ideology and hegemony. Our analysis demonstrates how such CSR strategies are part of a general process of the reproduction of capitalist modes of accumulation and legitimation through the usage of cultural categories.