What Are the Outcomes of Corporate Social Irresponsibility (CSI)? The Disconnect Between CSI Theory and CSI Practice

Abstract

Corporate social irresponsibility may, indeed, be one of the “grand challenges” of international business and management research. Corporate social irresponsibility (CSI) is broadly assumed to lead to performance decline and reputational damage for those firms involved in acts of wrongdoing. The overview of extant research presented in this chapter illustrates how and why these assumptions are not always supported, therefore explaining, at least in part, the many examples of irresponsible firm behavior observed in business practice. The chapter points to the discrepancies between CSI theory and CSI practice, followed by a discussion concerning the opportunities and challenges associated with acts of irresponsible firm behavior, particularly during times of crises and disruptions. The discussion captures key managerial and policy implications around curtailing corporate social irresponsibility.KeywordsCorporate social irresponsibility (CSI)Performance outcomesOrganizational reputationStakeholder expectationsESG (Environmental, Social, and Corporate Governance)Crises and disruptions