Using CSR to CYA: How Corporate Social Responsibility Influences Stakeholder Perceptions of Organizational Errors
Abstract
In this paper, I seek to build a theoretical framework that explains how effectively different firms can use different types of corporate social responsibility to influence stakeholders perceptions of and reactions to different types of errors. CSR affects the errors stakeholders notice, how they frame them, how they respond to them, and how quickly any punishment wanes. Ex ante and ex post CSR decrease the likelihood that stakeholders will notice some errors, improve the framing of those errors that are noticed, and decrease the magnitude and duration of stakeholder attacks sparked by those errors