Bad practice versus good intentions: the interdependencies of perceived governance practice and the success of corporate social responsibility activities

Abstract

ABSTRACT Rationale The dual, complementary relationship between organisational governance and corporate social responsibility (CSR) has been widely neglected in both academia and the field. This research aims to empirically test how the congruence (vs. incongruence) of CSR activities and perceived organisational governance practice affects consumer attitudes towards organisations. Methodology For this purpose, an experimental study with a one factor between-subjects design was employed using the factor of congruence vs. incongruence between perceived organisational governance practice and CSR. Respondents (N = 264) were randomly assigned to one of the two stimuli. Findings The results indicate that perceived (in)congruence between an organisation’s governance practices and CSR has a significant direct impact on the brand attitude towards the organisation. The findings also reveal that the higher the incongruence is, the greater is the perceived hypocrisy and the more negative is the brand attitude towards the organisation. Practical implications Organisations should first review and potentially optimise their governance practices before initiating CSR programmes; otherwise, they risk a negative backlash in terms of brand damage. Research contribution This study extends existing knowledge by introducing the organisational governance-CSR (in)congruence dimension and by providing empirical evidence that perceived governance practices influence CSR outcomes.