Assessing the impact of CSR initiatives can be a complex task for marketers given the variety of methods of communicating about CSR as well as the broad range of stakeholders that CSR initiatives might interest. Social media helps increase the visibility and credibility of CSR communication and provides new ways of reaching and involving stakeholders in CSR initiatives. Using data collected and coded from Facebook pages of the Top 100 Global Brands, the authors introduce a new measure of effectiveness for (...) CSR communication; CSR communication productivity (CCP). The findings indicate that CCP has a positive impact on firm performance (Tobin’s Q). The authors also investigate the impact of External Stakeholder Involvement in CSR initiatives. The results suggest that when external stakeholders are involved in an organization’s CSR initiatives, both CCP and firm performance (Tobin’s Q) improve. In addition, third-party evaluations of CSR performance positively moderate the impact of External Stakeholder Involvement on CCP. These findings offer contributions to CSR communication and social media marketing theories. They also have implications for marketing managers regarding how to measure and benchmark CCP, and how to maximize returns by involving external stakeholders in CSR efforts. (shrink)

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

The traditional understanding of corporate social responsibility (CSR) has largely been focused on its downstream performance implications, particularly its associations with firms’ customer market metrics such as customer loyalty, customer satisfaction and customer co-creation as well as financial ones such as firm value, return on assets etc. However, given the close relationship between CSR and marketing that literature has identified, it is surprising that the relationship between a focal upstream construct, i.e. the marketing function’s power within a firm and the (...) firm’s propensity toward CSR has not been addressed in the literature. Examining the link between marketing’s power (MP) in a firm’s top management team (TMT) and firm CSR levels, we investigate how this fundamental TMT configuration, i.e. the distribution of marketing power in the TMT, motivates the firm’s social endeavors. Further, we formulate this relationship in a contingency-based model that incorporates the moderating effects of firm size, firm age, service intensity, and resource slack across 1569 firms operating in 63 industries. In addition to their effect on CSR, this study shows how MP in TMT may influence corporate social irresponsibility (CSI) as well as CSR capability after controlling for industry type. The inclusion on these additional dimensions of CSR (CSI and CSR capability) complements our analyses of the effect that MP has on CSR. The research contributes to a deeper understanding of CSR’s fundamental corporate determinants as well as identifies the essential role of the marketing function in firms’ CSR strategy. In this process, it yields useful implications for multiple streams of theory as well as for business practices. (shrink)

In the current socioeconomic environment, brands increasingly need to portray societal and ethical commitments at a corporate level, in order to remain competitive and improve their reputation. However, studies that relate business ethics to corporate brands are either purely conceptual or have been empirically conducted in relation to the field of products/goods. This is surprising because corporate brands are even more relevant in the services sector, due to the different nature of services, and the subsequent need to provide a consistent (...) high-quality customer experience across all the brand–customer interactions and touch-points. Thus, the purpose of this article is to study, at a corporate brand level and in the field of services, the effect of customer perceived ethicality of a brand on brand equity. The model is tested by structural equations, using data collected for eight service categories by means of a panel composed of 2179 customers. The test of measurement equivalence between these categories is conducted using generalizability theory. Confirmatory factor analysis marker technique is applied in order to check for common method variance. The results of the hypothesized model indicate that customer perceived ethicality has a positive, indirect impact on brand equity, through the mediators of brand affect and perceived quality. However, there is no empirical evidence for a direct effect of customer perceived ethicality on brand equity. (shrink)

Business Ethics: A European Review, EarlyView.

Although research on the corporate social responsibility (CSR) dimension of corporate image has notably increased in recent years, the definition and measurement of the concept for academic purposes still concern researchers. In this article, literature regarding the measurement of CSR image from a customer viewpoint is revised and areas of improvement are identified. A multistage method is implemented to develop and to validate a reliable scale based on stakeholder theory. Results demonstrate the reliability and validity of this new scale for (...) measuring customer perceptions regarding the CSR performance of their service providers. With regard to this, CSR includes corporate responsibilities towards customers, shareholders, employees and society. The scale is consistent among diverse customer cohorts with different gender, age and level of education. Furthermore, results also confirm the applicability of this new scale to structural equation modelling. (shrink)

This paper examines how industrial buyers’ attributions of their suppliers’ actions of corporate social responsibility are related to both the brand advocacy and brand equity. Using a sample of 173 questionnaires gathered in Taiwan, we find that CSR perceptions of industrial buyers are more strongly and positively related to brand advocacy and brand equity when industrial buyers interpret CSR activities of their suppliers as driven more by intrinsic motives and less by extrinsic motives. Furthermore, brand advocacy mediates the interactive effects (...) of CSR and CSR attribution on industrial brand equity. (shrink)

Prior research has found attributions to mediate the relationship between the elements of corporate social responsibility activities and consumer responses to firms; however, the question of what variables determine consumer attributions of CSR remains partially unaddressed. This article analyzes why consumers make attributions of CSR that are either positive, or negative. The results obtained from two empirical studies indicate that company–cause fit, corporate ability, and interpersonal trust have a positive influence on the motives that consumers attribute to CSR, whereas corporate (...) hypocrisy has a negative effect. This research contributes to our understanding of the psychological mechanisms underlying impactful consumer judgments and provides guidance for organizations in responding to such evaluations. (shrink)

We highlight how Corporate Social Responsibility can be strategically used against the negative perception from earnings management. Using international data, we analyse the effect of CSR and EM on the cost of capital and corporate reputation. Results confirm that CSR strategy is positively valued by investors and other stakeholders. Contrary to EM, CSR has a positive effect on corporate reputation and lowers the cost of capital. In addition, we also find that the favourable effect of CSR on cost of capital (...) is consistently more intense in firms that show signs of EM indicating that the market does not identify when CSR practices are used as a strategy to mask EM. We also demonstrate how institutional factors influence the above relationship. (shrink)

It is often assumed that corporate social responsibility is a very promising way for corporations to improve their reputations, and a positive link between practicing CSR and corporate reputation is supported by empirical evidence. However, little is known about the mechanisms that underlie this relationship. In addition, the effects of not practicing CSR on corporate reputation have received little attention thus far. This paper contributes to the literature by analyzing the cause-and-effect relationships between practicing CSR and corporate reputation. To this (...) end, the paper draws on a psychological framework, in particular, on insights from expectancy violations theory and attribution theory. Building on the ideal-type distinction between CSR in terms of voluntary engagement for society and the prevention of irresponsible behavior, the paper develops four propositions that unveil some fundamental cause-and-effect relationships between practicing CSR, irresponsible behavior, and corporate reputation. In doing so, it also addresses the question under which conditions CSR leads to a buffering or backfiring effect on corporate reputation in the event of irresponsible behavior. (shrink)

Green consumers are those who seek to fulfill economic responsibility with their choices of environment-friendly products. Previous research found that it is not easy to identify green consumers by using traditional demographic or psychographic measurements due to the instability of moral attitude and actual behavior. The frontal theta brain waves of 19 right-handed respondents were recorded and analyzed in a choice task between an environment-friendly (green) product and a conventional product. Product information, which was provided to the respondents, included written (...) descriptions as well as the price of each product without visual depiction. Based on the respondents’ choice, they were classified into two groups: green (GR) consumers who chose an environment-friendly product option and non-green (Non-GR) consumers who chose the option of a conventional product. While processing the green product message, we discovered that frontal theta activations were significantly higher among GR consumers than Non-GR consumers. On the contrary, the frontal theta waves of GR consumers were not differentiated from Non-GR consumers while processing the price information. Therefore, theta activations in the frontal area may potentially be a unique neural indicator of GR consumers’ cognitive engagement with environment-friendly product messages. (shrink)

In order to be competitive in an era of ethical consumerism, brands are facing an ever-increasing pressure to integrate ethical values into their identities and to display their ethical commitment at a corporate level. Nevertheless, studies that relate business ethics to corporate brands are either theoretical or have predominantly been developed empirically in goods contexts. This is surprising, because corporate brands are more relevant in services settings, given the nature of services, and the fact that services settings comprise a greater (...) number of customer–brand interactions and touch points than goods contexts. Accordingly, the purpose of this article is to empirically examine the effects of customer perceived ethicality of corporate brands that operate in the services sector. Based on data collected for eight service categories using a panel of 2179 customers, the hypothesized structural model is tested using path analysis. The generalizability theory is applied to test for measurement equivalence between these categories. The results of the hypothesized model show that, in addition to a direct impact, customer perceived ethicality has a positive and indirect impact on brand equity, through the mediators of recognition benefits and brand image. Moreover, brand heritage negatively influences the impact of customer perceived ethicality on brand image. The main implication is that managers need to be aware of the need to reinforce brand image and recognition benefits, as this can facilitate the translation of customer perceived ethicality into brand equity. (shrink)

The purpose of this study is to investigate the relationships among corporate social responsibility (CSR), corporate brand credibility, corporate brand equity, and corporate reputation. Structural equation modeling analysis provided support for the hypotheses from a sample of 867 consumers in South Korea. The results showed that CSR has a direct positive effect on corporate brand credibility and corporate reputation. In addition, the results indicate that corporate brand credibility mediates the relationship between CSR and corporate reputation. Moreover, corporate brand credibility mediates (...) the relationship between CSR and corporate reputation. Finally, the relationship between CSR and corporate brand equity is sequentially and fully mediated by corporate brand credibility and corporate reputation. The theoretical and managerial implications of the results and limitations are discussed, and future research directions are suggested. (shrink)

This study investigates the persuasive advertising and informative advertising effects of CSR initiatives on corporate reputation and brand equity based on the evidence from the life insurance industry in Taiwan. The study finds, first, policyholders’ perceptions concerning the CSR initiatives of life insurance companies have positive effects on customer satisfaction, corporate reputation, and brand equity. Second, the advertising effects of the CSR initiatives on corporate reputation are only informative. Third, the impacts of CSR initiatives on brand equity include informative advertising (...) and persuasive advertising effects. This study contributes the literature by explicit defining the advertising effects of CSR initiatives. Following the first step made by McWilliams et al. (Journal of Management Studies 43(1):1–18, 2006 ), the hypotheses of this study crystallize their conceptual framework. The obtained results in this research first identify the informative advertising effects and persuasive advertising effects of CSR initiatives. (shrink)

This research investigates the influence that consumers’ perceptions of retail business ethics have on their responses when retailers either create social discount spaces or do not. Using scenarios to imply these social practices and structural equation modeling to test the hypotheses among a sample of 689 respondents, the authors find that consumers’ perceptions of retail business ethics have positive effects on consumer loyalty, both directly and through consumer trust, as well as positive, strong influences on the retailer’s corporate social responsibility (...) and corporate reputation. Furthermore, consumers’ perceptions of retail business ethics exert a stronger effect on consumer trust in integrated social discount spaces, though social discount practices do not affect the link between such perceptions and loyalty. Compared with when the retailer does not offer discount space, collaborative and integrated social discount spaces have weaker effects on trust and loyalty to the retailer. These findings have several notable theoretical and practical implications. (shrink)

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

In this paper, we consider the relationships among corporate accountability, reputation, and tax behavior as a corporate social responsibility issue. As part of our investigation, we provide empirical examples of corporate reputation and corporate tax behaviors using a sample of large, U.S.-based multinational companies. In addition, we utilize corporate tax controversies to illustrate possibilities for aggressive corporate tax behaviors of high-profile multinationals to become a reputation threat. Finally, we consider whether reputation serves as an accountability mechanism for corporate tax behaviors (...) among other mechanisms for holding firms accountable for corporate tax behaviors. Our conceptual work points to a complicated relationship among shareholder, stakeholder, and civic responsibilities in the development and execution of firm’s corporate tax strategies. Building on those insights, our empirical illustration considers corporate reputation data alongside data which reflects corporate tax behavior. Based on this work, we find no clear trend or pattern indicating that reputation is associated with or affected by certain types of corporate tax behaviors. That is, our exploratory empirical illustration suggests that corporate tax behavior does not produce broad reputational consequences that would motivate a change in firm behavior. Drawing from celebrity and strategic silence research, we then suggest that reputation may not be a well-functioning mechanism for holding corporations to account for contributing their fair share of the resources used by government for the benefit of society and offer-related theoretical insights. (shrink)

The marketplace has seen significant growth in the demand for ‘ethical’ behavior, and banks are seeking to leverage customers’ perception in order to build a sustainable competitive advantage. In consequence, the concepts of corporate social responsibility and corporate reputation are of vital concern for academics and managers in terms of their potential impact on customers. This study seeks to contribute to the literature by examining the mediating role of corporate reputation on the relationship between perceived corporate social responsibility and customer (...) loyalty. The study also takes into consideration the role played by bank type in the mediation effect. To achieve this aim, a study was performed comprising 572 personal surveys in the Basque Country. The results showed that corporate reputation partially mediated the relation between corporate social responsibility and customer loyalty. On the other hand, bank type is shown not to moderate the mediation effect. The results have important implications for practitioners wishing to manage their relations with customers. (shrink)

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

During the last decade corporate reputation as one of the central efforts of corporate citizenship behavior has gained increasing attention in scholarly research, as has the way that reputation can serve as an instrument for business purposes. This poses the question of how such reputation will be achieved. To answer these questions this article examines Cicero’s considerations concerning the interrelation of honorableness and beneficialness made in his work ‘On Duties’. Based on Cicero’s understanding of universal natural law and his idea (...) that reputation derives solely from honorable behavior and the orientation in the common good, we show that also corporate reputation is achieved only if it is based primarily on ‘honorableness’, and that reputation is lost if financial interests override the intentions of honesty of a company. (shrink)

Management scholars have paid close attention to the construct of organizational or corporate reputation, particularly in the applied business ethics and corporate social responsibility fields. Extant research demonstrates that CR is one of the key mediators between CSR and important organizational outcomes, which ultimately improve organizational performance. Yet, hitherto the research focused on CR construct has been plagued by multiple definitions, conflicting conceptualizations, and unclear operationalizations. The purpose of this article is to provide theoretical ground for positioning of CR as (...) an assessment construct that is modeled as a second-order factor affecting individual first-order dimensions, and to provide methodological and empirical support toward such conceptualization. We assert that intangible, socially complex, and causally ambiguous CR can be accurately estimated through its individual measurable dimensions. Using survey data from Peru, we empirically test the hypothesized second-order reflective model within a hierarchy of nested and non-nested models, and compare its model fit and predictive power with alternative conceptualizations. Modeling CR as a second-order reflective construct relies on a set of theoretical propositions and yields several methodological advantages, including strong conceptual interpretability and parsimony when tested within a nomological context. We explicitly demonstrate positive organizational outcomes of CR: customer trust, corporate identification, in-role behavior, and extra-role behavior. Then, we demonstrate that the shorter scales of CR can be used as a good proxy for the full construct measure. The paper concludes by highlighting theoretical insights, and methodological and managerial implications of the findings. (shrink)