Protests that target firms’ socially irresponsible behavior are increasingly organized via digital media. This study uses two methods to investigate the effects that online protests and mitigating firm responses have on shareholders’ and consumers’ evaluation. The first method is a financial analysis that includes an event study which measures the effect of online protests on the target firm’s share price, as well as an investigation of the boundary effects of protest characteristics. The second method is an online experiment that assesses (...) the effect of an online protest campaign on consumers’ perception and purchase intention, as well as any mitigating effects that a firm’s response may have. Contrary to recent studies suggesting that participation in online protests is only token support without any substantive effects, our results show that online protests do hurt. Firms can expect to suffer financial, reputational, and sales damage when an online protest campaign mobilizes consumers successfully. We also show that online protests are more likely to take firms by surprise than offline protests. Firms can exacerbate or reduce the damage by their response. We find that although firms may repair the damage to consumers’ purchase intentions, the negative effects on a brand’s image are harder to rectify. The results have valuable implications for protest organizers and managers faced with the task of responding. (shrink)

Three global developments situate the context of this investigation: the increasing use of social media by organizations and their employees, the burgeoning presence of social media policies, and the heightened focus on corporate social responsibility. In this study the intersection of these trends is examined through a content analysis of 112 publicly available social media policies from the largest corporations in the world. The extent to which social media policies facilitate and/or constrain the communicative sensibilities and values associated with contemporary (...) notions of CSR is considered. Overall, findings indicate that a large majority of policies, regardless of sector or national headquarters, increasingly inhibit communicative tenets of contemporary CSR and thereby diminish employee negotiation and participation in the social responsibilities of corporations. Moreover, policies generally enact organizational communication practices that are contrary to international CSR guidelines. Findings suggest that social media policies represent a relatively unrecognized development in the institutionalization of CSR communicative norms and practices that call into question the promising affordances of social media for the inclusion of various voices in the public negotiation of what constitutes corporate social responsibility. (shrink)

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. (shrink)

We posit a key goal of firms’ corporate social responsibility efforts is to influence reputation through carefully crafted communicative practices. This trend has accelerated with the rise of social media such as Twitter and Facebook, which are essentially public message networks that organizations are leveraging to engage with concerned audiences. Given the large number of messages sent on these sites, only some will be effective and achieve broad public resonance. Building on signaling theory, this paper asks whether and how messages (...) conveying CSR-related topics resonate with the public and, if so, which CSR topics and signal qualities are most effective. We test our hypotheses using data on public reactions to Fortune 500 companies’ CSR-focused Twitter feeds, using the retweeting of firms’ messages as a proxy for public resonance. We find resonance is positively associated with messages that convey CSR topics such as the environment or education, those that make the topic explicit through use of hashtags, and those that tap into existing social movement discussions. (shrink)

Growth in CSR-washing claims in recent decades has been dramatic in numerous academic and activist contexts. The discourse, however, has been fragmented, and still lacks an integrated framework of the conditions necessary for successful CSR-washing. Theorizing successful CSR-washing as the joint occurrence of five conditions, this paper undertakes a literature review of the empirical evidence for and against each condition. The literature review finds that many of the conditions are either highly contingent, rendering CSR-washing as a complex and fragile outcome. (...) This finding runs counter to the dominant perception in the general public, among activists, and among a vocal contingent of academics that successful CSR-washing is rampant. (shrink)

While environmental claims are increasingly used by companies to appeal consumers, they also attract greater scrutiny from independent parties interested in consumer protection. Consumers are now able to compare corporate environmental claims against external, often disconfirming, information to form their brand attitudes and purchase intentions. What remains unclear is how the level of information specificity of both the environmental claims and external disconfirming information interact to influence consumer reactions. Two experiments address this gap in the CSR communication literature. When specific (...) claims are countered by specific external information, consumers report more negative brand attitudes and lower purchase intentions. The effect is serially mediated by skepticism toward the claims and lack of corporate credibility. We conclude by discussing strategies that firms can utilize to avoid information dilution and ensure that external disconfirming information percolates to consumers as specific. (shrink)

The current study examines the micro-linguistic details of Twitter responses to the whistleblower-initiated publication of the Panama Papers. The leaked documents contained the micro-details of tax avoidance, tax evasion, and wealth accumulation schemes used by business elites, politicians, and government bureaucrats. The public release of the documents on April 4, 2016 resulted in a groundswell of Twitter and other social media activity throughout the world, including 161,036 Spanish-language tweets in the subsequent 5-month period. The findings illustrate that the responses were (...) polyvocal, consisting a collection of overlapping speech genres with varied thematic topics and linguistic styles, as well as differing degrees of calls for action and varying amounts of illocutionary force. The analysis also illustrates that, while the illocutionary force of tweets is somewhat associated with the adoption of a prosaic and vernacular ethical stance as well as with demands for action, these types of voicing behaviors were not present in the majority of the tweets. These results suggest that, while social media platforms are a popular site for collective forms of voicing activities, it is less certain that these collective stakeholder voices necessarily result in forceful accountability demands that spill out of the communication medium and thus serve as an impulse for positive social change. (shrink)

This study examines the 3.5 m+ English-language original tweets that occurred during the 2011 Occupy Wall Street protests. Starting from previous research, we analyze how character terms such as “the banker,” “politician,” “the teaparty,” “GOP,” and “the corporation,” as well as concept terms such as “ethics,” “fairness,” “morals,” “justice,” and “democracy” were used by individual participants to respond to the Occupy Wall Street events. These character and concept terms not only allowed individuals to take an ethical stance but also accumulated (...) into a citizen’s narrative about social accountability. The analysis illustrates how the centrality of the different concepts and characters in the conversation changed over time as well as how the concepts ethics, morals, fairness, justice, and democracy participated within the conversation, helping to amplify the ethical attributes of different characters. These findings contribute to our understanding of how demands for social accountability are articulated and change over time. (shrink)

The practice of ‘greenwashing’ may be characterized as the fabrication of green claims by organizations to portray a positive image. Greenwashing has not been examined in the United Arab Emirates, and the fashion sector is considered the second largest consumer of harmful chemicals, excessive water use, and non-compliant waste management practices behind the oil and gas sector. Using in-depth semi-structured interviews with fast fashion consumers in the UAE, an exploratory qualitative inquiry was conducted with a focus on the ‘seven sins (...) of greenwashing’ and ‘competitive altruism’ theories and the consumer perceptions of green claims made by major apparel manufacturing and retail firms in the UAE were investigated. A conceptual framework was developed to better understand the nature of corporate altruistic behavior and perceived advantages of green initiatives. The exploratory qualitative inquiry used for this study provided a great opportunity for gathering detailed information on consumer perceptions of greenwashing practices in the UAE. Future research and statistical representation are needed to cross reference the data and test the framework suggested here. (shrink)

Recent research has damped initial promises for democratic deliberation in social media arenas. Empirical studies find only low degrees of direct reciprocal interaction among participants, a lack of consensus orientation, and accelerated forms of communication that fail to meet traditional ideals of deliberation. In line with recent literature, we argue that traditional deliberative ideals are too narrow to embrace the potential contribution of social media for deliberation about (ir-)responsible business conduct. Instead, we propose to conceptualize social media as arenas for (...) everyday talk, that is, everyday communication practices through which participants informally discuss and express opinions about current issues, thereby contributing to a broader deliberative system. In adopting this lens, we ask: How can everyday talk in social media contribute to deliberation about (ir-)responsible business conduct? Drawing on the latest insights from online deliberation studies, we develop a framework for evaluating everyday talk and propose that its deliberative quality depends on social media appropriate forms of justification, interactivity, equality, and civility. We apply this framework with an analysis of 260,224 tweets about the role of business in climate change. Based on our findings, we critically discuss how everyday talk in social media can contribute to deliberation at the intersection of business and society. (shrink)

The instrumental benefits of firm’s CSR activities are contingent upon the stakeholders’ awareness and favorable attribution. While social media creates an important momentum for firms to cultivate favorable awareness by establishing a powerful framework of stakeholder relationships, the opportunities are not distributed evenly for all firms. In this paper, we investigate the impact of CSR credentials on the effectiveness of social media as a stakeholder-relationship management platform. The analysis of Fortune 500 companies in the Twitter sphere reveals that a higher (...) CSR rating is a strong indicator of an earlier adoption, a faster establishment of online presence, a higher responsiveness to the firm’s identity, and a stronger virality of the messages. Incidentally, the higher CSIR rating is also found to be associated with the stronger virality. Our findings also suggest that socially responsible firms can harvest proactive stakeholders’ participation without investing more resources. As the first study that conceptualizes the social media as a proponent of CSR, this paper contends that “being socially responsible” makes more practical sense for firms with the rise of social media. (shrink)

Environmental, social, and governance (ESG) investing is synonymous with sustainable investment for socially responsible investors. Unfortunately, the diversity of ESG investing remains unattended amidst the growth in ESG literature, as the academic literature focuses dominantly on measuring performance. An understanding of a wide range of subjects entailing ESG is required before future research on ESG investing is performed. To overcome the challenge, this systematic literature review uses bibliometric mapping to reveal four significant research themes within the ESG investing literature: investor (...) behavior and motivations for ESG investing; cost and risk mitigation in ESG investing; portfolio screening and ESG investing; and ESG performance. The review critically examines each theme and broadens the research agenda for future studies. In addition to the significant themes, this paper also discusses theoretical and recent research trends in the ESG investing literature. The review identifies clashes and crossovers between these themes to appropriately interpret one theme using another and emphasizes the heterogeneity in ESG investing. Lastly, discussion over concerns and criticisms of ESG investing highlights greenwashing as a major cause of concern for investors. (shrink)

Why do consumers who profess to be concerned about the environment choose not to buy greener products more regularly or even at all? This study explores how consumers’ perceptions towards green products, consumers and consumption practices contribute to our understanding of the discrepancy between green attitudes and behaviour. This study identified several barriers to ethical consumption behaviour within a green consumption context. Three key themes emerged from the study, ‘it is too hard to be green’, ‘green stigma’ and ‘green reservations’. (...) There is currently a perception, based on a number of factors, that it is too hard to be green, which creates a barrier to purchasing green products. Furthermore, some consumers were reluctant or resistant to participate in green consumption practices due to their unfavourable perceptions of green consumers and green messages. This article suggests that green perceptions may influence consumers’ intention to purchase green products. Accordingly, it discusses the implications, and suggests avenues for future research. (shrink)

Companies increasingly recognize the importance of communicating corporate social responsibility including their engagement toward employees, the community, the environment and other stakeholder groups to attract applicants. The positive findings on the effect of CSR on applicants’ reactions are commonly based on the assumption that companies send a clear signal about their commitment to CSR. However, communication is always contextualized and has become more ambiguous through the increased availability of information online. External stakeholders including actual and potential applicants are confronted with (...) inconsistencies between the way companies communicate CSR activities and their overall CSR performance. Drawing on signaling theory, this article raises the question of how the interaction between strong CSR communication and low CSR performance influences organizational attractiveness. We propose that low CSR performance dampens the effect of CSR communication on organizational attractiveness. Hence, the inconsistency between CSR communication and CSR performance decreases organizational attractiveness. To test our hypotheses, we scraped 67,189 posts published on corporate Facebook career pages by 58 Fortune 500 companies from the time they began their respective career page until June 2018. Surprisingly, our results show that a low CSR performance strengthens the effect of CSR communication on organizational attractiveness. Thus, inconsistencies between CSR communication and CSR performance seem to lead to positive evaluations among applicants. (shrink)

We investigate the impact of perceived greenwashing on customer satisfaction. Unlike prior research that largely examines customer perceptions associated with irresponsible behavior, we focus on cases where firms overcommit and/or do not deliver on promised socially responsible actions. We theorize that this type of greenwashing is associated with lower customer satisfaction because customers perceive greenwashing through the lens of corporate hypocrisy. Using data from the American Customer Satisfaction Index (ACSI) for U.S. companies during the period 2008–2016, we document a negative (...) link between perceived greenwashing related to green product innovation (GPI) and the ACSI index. We demonstrate that this effect is primarily triggered by corporate policies exceeding the corresponding implementation actions and not by lower levels of implementation. We also show that a firm’s capability reputation mitigates the negative effect of greenwashing on customer satisfaction. Moreover, we conduct an experiment and provide evidence confirming that GPI greenwashing is in fact perceived by customers as corporate hypocrisy. (shrink)

The present research was guided by the important need for a diversion from an economistic to a humanistic management perspective of sustainability. It concentrates on the current importance of digital strategic communication, particularly regarding the concept of corporate sustainability in the context of the conflict arena of the oil industry. The focus is on the comparison of the persuasive effectiveness of the framings of corporate versus activist NGO website communications and their impacts on the perception of the triple pillars of (...) sustainability and, corporate greenwashing with respect to a proposed bituminous oil pipeline in Canada. The results of these pro and con messages were analyzed within the Elaboration Likelihood Model demonstrating a “non expert” peripheral route to a positive persuasion from exposure to the corporate communication versus an “expert” central route to a negative persuasion from the activist NGO communication. Subsequent exposure to the opposite website communication further emphasized the predominance of a negative persuasion based on both groups now being motivated as “expert” viewers of these strategic communications, leading to an important perception of greenwashing by participants resulting from vague claims, visual and linguistic contents of the corporate communication versus the mainly verifiable factual ones in that of the activist NGO. (shrink)

The present research was guided by the important need for a diversion from an economistic to a humanistic management perspective of sustainability. It concentrates on the current importance of digital strategic communication, particularly regarding the concept of corporate sustainability in the context of the conflict arena of the oil industry. The focus is on the comparison of the persuasive effectiveness of the framings of corporate versus activist NGO website communications and their impacts on the perception of the triple pillars of (...) sustainability and, corporate greenwashing with respect to a proposed bituminous oil pipeline in Canada. The results of these pro and con messages were analyzed within the Elaboration Likelihood Model demonstrating a “non expert” peripheral route to a positive persuasion from exposure to the corporate communication versus an “expert” central route to a negative persuasion from the activist NGO communication. Subsequent exposure to the opposite website communication further emphasized the predominance of a negative persuasion based on both groups now being motivated as “expert” viewers of these strategic communications, leading to an important perception of greenwashing by participants resulting from vague claims, visual and linguistic contents of the corporate communication versus the mainly verifiable factual ones in that of the activist NGO. (shrink)

In China, many firms advertise that they follow environmentally friendly practices to cover their true activities, a practice called greenwashing, which can cause the public to doubt the sincerity of greenization messages. In this study, I investigate how the market values greenwashing and further examine whether corporate environmental performance can explain different and asymmetric market reactions to environmentally friendly and unfriendly firms. Using a sample from the Chinese stock market, I provide strong evidence to show that greenwashing is significantly negatively (...) associated with cumulative abnormal returns around the exposure of greenwashing. In addition, corporate environmental performance is significantly positively associated with CAR around the exposure of greenwashing. Furthermore, my findings suggest that corporate environmental performance has two distinct effects on CAR around the exposure of greenwashing: the competitive effect for environmentally friendly firms and the contagious effect for potential environmental wrongdoers, respectively. The results are robust to various sensitivity tests. (shrink)

Means–ends decoupling, the institutionally induced implementation of ineffective practices, has become increasingly common. Extant theory suggests that means–ends decoupling has real consequences, which makes it unstable and difficult for organizations to sustain. Yet little is known of how, and with what outcomes, firms organize such means–ends decoupling. We examine organizing via multiple qualitative and longitudinal case studies of how Swedish fast fashion retailers implement and manage the collection of used garments. We find that firms combine two organizational arrangements: structural and (...) temporal core–compartment separations, which mitigate consequences of means–ends decoupling by obscuring and justifying efficiency gaps. Thereby we provide a theoretical explanation for how means–ends decoupling can persist over time. (shrink)

A predominant assumption in studies of deliberative democracy is that stakeholder engagements will lead to rational consensus and to a common discourse on corporate social and environmental responsibilities. Challenging this assumption, we show that conflict is ineradicable and important and that affects constitute the dynamics of change of the discourses of responsibilities. On the basis of an analysis of social media engagements in the context of the grand challenge of plastic pollution, we argue that civil society actors use mobilization strategies (...) with their peers and inclusive-dissensus strategies with corporations to convert them to a new discourse. These strategies use moral affects to blame and shame corporations and solidarity affects to create feelings of identification with the group and to avoid disengagement and polarization. Our research contributes to the literature on deliberative democracy and stakeholder engagement in social media in the collective constructions of discourses on grand challenges. (shrink)

We investigate the role of social-media-triggered public pressure on corporate social responsibility that includes expectations of transparency and accountability on the firm’s part, and participative/evaluative inputs on the public’s part. Using the date when S&P 500 firms established corporate Twitter accounts, we investigate the impact of corporate social media exposure on CSR outcomes. Results from baseline regressions indicate that firms with Twitter accounts significantly outperform industry peers in CSR rating, after controlling for firm and industry characteristics. To test potential reverse (...) causality, we use a dynamic treatment effect model to explore within firm changes of CSR, and find that firms’ CSR rating improves in year one- and year two after establishing a Twitter account, while no difference emerged in similar comparisons with peers prior to the Twitter account establishment. Additionally, Granger causality tests results show that corporate Twitter presence improves CSR performance; it is also shown that CSR outcomes do not motivate corporations to establish a social media presence on Twitter. Finally, firms with more experience on Twitter, and those with more followers, tweets or Twitter accounts are associated with improved CSR outcomes. We draw on two theories and qualitative interviews with senior CSR executives to explain why social media influences CSR firm behaviors. (shrink)