CSR representation in the public discourse and corporate environmental disclosure strategies in the context of Brexit. A cross-country study of France, Germany, and the United Kingdom

Abstract

The strategic management literature has recognized the role of social and environmental activities in supporting a firm's economic well-being. Although some research has explored the role of social and environmental practices during uncertain periods, studies are still scarce. This paper contributes to this issue by studying corporate social responsibility (CSR) representation during environmental jolts. Through a multi-level analysis, we investigate the conceptualization of CSR in the context of Brexit. From a macro-level perspective, we explore CSR representation in the public discourse by looking at the output of economic journalists. Additionally, based on a micro-level analysis, we examine the CSR disclosure policies of firms and evaluate them in the context of an uncertain environment.Based on a sample of more than 1500 press release data from major UK-based business publications and more than 1000 shareholder letters from companies listed on three major European indices, the DAX 30, CAC 40, and FTSE 100, the text analysis techniques of topic modeling and ‘bags of words' are used.The findings show that an unprecedented exogenous shock such as Brexit increases CSR representation in the public discourse and corporate communication strategies, suggesting the greater importance of CSR disclosure during uncertain periods. In addition evidence is shown that organizations target and adapt shareholder communication on CSR in accordance with market uncertainty.