The Impact of the CSR-Embedded Crisis Response: The Role of Values Congruence between Leadership Styles and CSR Motives

Abstract

Grounded in the values congruence proposition, this study examined the interplay between leadership styles and corporate social responsibility (CSR) motives in different crisis contexts. The results of a 2 (crisis type) × 2 (leadership style) × 2 (CSR motives) between-subjects experiment showed that the congruent combination of leadership styles and CSR motives maximized the insulating effect of CSR practice but only when the crisis type was victim. In a victim crisis, utilizing intrinsic CSR motives gained greater word-of-mouth intention and purchase intention when combined with transformational leadership than with transactional leadership. In a preventable crisis, the positive effect of values congruence disappeared and even backfired. More specifically, the congruence between transactional leadership and extrinsic CSR motives amplified the negative impact of a crisis. Theoretical and practical implications are discussed.