Affect Corporate Reputation Research Articles

ENVIRONMENTAL REGULATION IN CORPORATE CSR PRACTICES IN INDONESIA

This article explores the influence of environmental legislation on corporate social responsibility in Indonesia. It aims to clarify the regulatory framework surrounding corporate social responsibility, assess how failure to adhere to environmental laws affects corporate reputation and performance, and identify the difficulties companies encounter while implementing corporate social responsibility. The research adopts a normative legal perspective, involving a thorough examination of pertinent laws and regulations, including the 1945 Constitution, Law Number 40 of 2007 concerning Limited Liability Companies, and Government Regulation Number 47 of 2012. Data gathered through desk research and descriptive legal analysis provides a detailed understanding of the relationship between legal frameworks and corporate social responsibility practices in Indonesia. The findings indicate that the corporate social responsibility regulatory framework encourages companies to meet environmental legal requirements, positively impacting corporate reputation. Conversely, non-compliance can damage reputation and public perception, consequently affecting financial outcomes. Companies also face various obstacles in implementing corporate social responsibility, such as insufficient regulatory support and limited resources. Recommendations for companies include enhancing education on corporate social responsibility and fostering collaboration with stakeholders to develop sustainable business practices. These insights are valuable not only for Indonesia but also for other nations examining the link between environmental legislation and corporate social responsibility.

How does corporate hypocrisy undermine corporate reputation? The roles of corporate trust, affective commitment and CSR perception

PurposeCorporate hypocrisy occurs when a discrepancy exists between corporate talk and actions. As companies assume more extensive economic, societal and global roles, they are more likely to encounter situations in which their words and actions are inconsistent. Therefore, a company’s ability to cope with such situations is becoming increasingly important. This study aims to examine the negative effects of corporate hypocrisy on corporate reputation. First, it reveals the underlying mechanisms by presenting corporate trust and affective commitment as parallel mediators. Additionally, it explores how corporate social responsibility (CSR) perceptions mitigate the indirect effects of corporate hypocrisy.Design/methodology/approachData were collected through an online survey conducted at two time points in the context of Korean retail banking companies. A total of 313 respondents participated in a two-wave online survey using a multistage sampling technique to ensure a representative population sample. This study used the Mplus-based Hayes’ PROCESS Macro to test the research hypotheses.FindingsThe results show that corporate hypocrisy negatively affects corporate reputation by impeding customers’ corporate trust and affective commitment. These negative indirect effects are mitigated when customers’ perceptions of CSR are high.Originality/valueBy establishing a parallel moderated mediation model that captures the impact of corporate hypocrisy. To the best of the authors’ knowledge, this study presents important academic and managerial implications that have not been provided in the literature.

SOCIAL MEDIA AND THE PERFORMANCE OF SEVEN UP NIGERIA BOTTLING COMPANY ENUGU

The purpose of this study was to examine the effects of social media on the performance of Seven Up Nigeria Bottling Company Enugu. The specific objectives of the study were to determine the extent to which facebook positively affects customer patronage of Seven Up Nigeria Bottling Company; examine the extent to which facebook positively affects corporate reputation of Seven Up Nigeria Bottling Company Enugu. The survey research design was adopted. A population of 63 staff respondents was used for the study. Questionnaire was used to collect data from the respondents. Both descriptive and inferential statistical tools were employed in the study. The descriptive statistical tools used for data analysis were frequencies, and percentage, while the inferential statistic used was simple linear regression to test the hypotheses formulated for the study. Findings of the study reveal that the key independent variable of social media tools exerts a significant positive effect on the performance of Seven Up Nigeria Bottling Company. The study concludes that social media tools should be embraced by the manufacturing organisations. The study recommended that manufacturing firms should endeavour to make online transactions convenient and ensure they have a wide range of products. Also they need to communicate appropriately with their publics to enable them have good opinion.

The merits of securities litigation and corporate reputation

AbstractWe explore how securities litigation affects corporate reputation. Experts remain concerned that nonmeritorious securities class actions—those that will be dismissed or settled for nuisance amounts—cause reputational damage. Although several prior studies show reputational costs for nonmeritorious cases, they generally use indirect measures based on returns or total market losses, which are mechanically associated with securities litigation elements. In contrast, we use a relatively direct reputation measure from Fortune's “Most Admired Companies” list. We find significant reputational damage after meritorious litigation, with the strongest cases having the largest effects. However, we find no evidence of reputational damage after nonmeritorious litigation. We also find that Fortune's reputational damage measure is associated with more negative returns around the litigation filing date. We show possible mechanisms for our results, as initial legal filings contain information allowing market participants to assess case merits. Our results imply that reputational damage is primarily due to fraud, which securities litigation helps reveal to the market, rather than litigation itself. Thus, reputational damage is not an issue in over 70% of securities class actions due to the high frequency of nonmeritorious cases.

When Environmental Claims are Empty Promises: How Greenwashing Affects Corporate Reputation and Credibility

ABSTRACT This article examines mechanisms and effects of greenwashing on corporate reputation and credibility. We define greenwashing as the perception of a discrepancy between what an organization claims to do in terms of protecting the environment and what the organization actually does in this respect. In two experiments, we vary a company’s promises of green engagement. Afterward, participants are confronted with the company’s actual green engagement. The studies show that if a company claims to be green, its reputation and credibility are assessed more positively. However, the experiments also demonstrate that false green promises backfire: If the green promises are not kept, participants assess the company’s reputation and credibility more negatively as opposed to a group that evaluates a company without any false promises. Furthermore, both experiments provide insight into the underlying mechanisms responsible for these effects: Participants’ expectations are violated which leads to a perception of greenwashing and, in turn, worsens the perception of the company’s reputation and credibility.

Corporate reputation and shareholder investment: a study of Egypt's tourism listed companies

PurposeThis study aims to investigate the impact of corporate reputation on investors and whether it influences company investment returns. While previous research has focused on specific components of reputation, neglected risks associated with the analyzed firms, and relied on accounting performance metrics, this study takes into account both return and risk factors to examine how they affect corporate reputation and investment decision-making.Design/methodology/approachData were collected from 300 active investors in the Egyptian exchange stock market, and the seven-paradigm RepTrak model was used to assess reputation structures and expected return and risk. Structural equation modeling was employed to confirm the theories.FindingsThe findings highlight that investors demonstrate a primary focus on the financial performance of organizations when making stock market decisions, while also considering non-financial factors such as products, innovation, citizenship, governance, and emotional appeal. Their prioritization of investment returns and risks takes precedence over evaluating workplace practices.Originality/valueThis study's originality lies in its incorporation of return and risk measurements as crucial investment choice variables, contributing to the financial markets’ research on corporate reputation. By managing their reputation, corporations can enhance investors’ demand for their stocks and optimize their investment opportunities.

Effect of corporate branding, islamic corporate social responsibility (ICSR), ethics programs, on customer loyalty through corporate reputation and spiritual experience

This study was structured as an attempt to test several concepts regarding the variables that affect customer loyalty. Significant support was obtained in testing hypothesis 1 up to 10 which strengthen the concept of corporate brand, Islamic corporate social responsibility, corporate reputation, spiritual experience and customer loyalty. The sample is taken as many as 144 respondents using purposive sampling. Data was collected using a survey method through questionnaires filled out by customers. Then the data obtained were analyzed using sem amos version 26. Hypothesis testing in this study resulted in the company's brand having no significant effect on corporate reputation. Icsr has no significant effect on the company's reputation. Ethics program affects corporate reputation. Corporate branding significantly negative effect on spiritual experience. ICSR has no significant effect on spiritual experience. The company's brand has a negative and significant effect on customer loyalty. Icsr affects customer loyalty. Ethics program affects customer loyalty. Corporate reputation has a significant effect on customer loyalty.
 Keywords: Corporate Branding, ICSR, Ethics Program, Corporate Reputation, Spiritual Experience, Customer Loyalty

Sustainability Reporting and Corporate Reputation: The Moderating Effect of CEO Opportunistic Behavior

The present study’s main objective is to assess the impact of non-financial sustainability reporting (NFSR) on corporate reputation and the role of the CEO in the opportunistic behavior of companies listed on the Tehran Stock Exchange. In total, 178 firms were assessed for this paper during 2013–2020. In this study for calculating the NFSR, environmental sustainability reporting (ESR), social sustainability reporting (SSR), governance sustainability reporting (GSR) and ethical sustainability reporting (ETSR), Arianpoor and Salehi’s comprehensive and conceptual model has been used. In addition, the literature states that a CEO’s power can be classified as an opportunity for discretion and opportunistic behavior in CEOs that is in contrast with stakeholder demands. To this end, in this study, CEOs’ power has been used as an indicator for the CEO’s opportunistic behavior, and the CEO pay slice (CPS) index was used to calculate the CEO’s level of power. The results revealed that NFSR affects corporate reputation positively. In addition, ESR, SSR, ETSR and GSR positively affect corporate reputation. Moreover, the CEO’s power affects the relationship between NFSR/ESR/SSR/ETSR and corporate reputation. Because managers desire to engage in social and ethical activities, they try to hide the company’s errors and increase its reputation. The results revealed that the CEO’s power did not affect the relationship between GSR and corporate reputation. Since companies in the Tehran Stock Exchange are under intensive supervision, such as in governance, the impact of a CEO’s power and the interaction of a CEO’s power and GSR on company reputation in this study might, thus, not apply to these companies. It is crucial to investigate NFSR, corporate reputation and CEO power within Iran-specific conditions because of differences in emerging markets and developing countries such as Iran, which have diverse ownership structures, economic status, legal systems, government policies, and culture.

An Assessment On The Relationship Of Corporate Communication And Corporate Reputation

Today, it is a fact that effectively managing communication resources and corporate communication process makes institutions different from each other and adds value to institutions. With this value, institutions stand out among their peers and gradually gain reputation. In this context, with the intense competition environment brought by globalization, how institutions reflect themselves to their stakeholders is becoming increasingly important. In addition, the communication and interaction that institutions establish with their stakeholders also affect their reputation levels independently of the production of goods/services. Corporate reputation is one of the main determinants of corporate sustainability in the long run. Developing corporate reputation only by establishing high interaction with internal and external stakeholders; brings with it the necessity of good communication. In this context, for institutions; a consistent, balanced and uninterrupted communication performance has become inevitable. Corporate communication can only function properly as long as reciprocity and interaction are observed. In addition, information acquisition/exchange, which enables institutions to achieve their goals in interaction with their stakeholders and requires the redefinition of the corporate vision, is possible with the effective use and diversification of communication resources. The only way to effectively use the communication resources available in most institutions is to adopt a systematic and strategic management approach. The communication process carried out within the framework of a strategic management approach is one of the most important elements that make institutions superior to each other in the eyes of stakeholders. This strategic communication management also positively affects corporate reputation. Corporate Communication conceptualized in this context; it is extremely important to determine the scope that meets the requirements of interaction with the stakeholders, to establish/develop/protect corporate reputation and ultimately to ensure corporate sustainability. In this context, the aim of the study is to examine the role of corporate communication management in the process of reputation building, which is based on the creation and strategic use of communication resources. In the study, first of all, the conceptual framework of corporate communication management was mentioned, and then it was associated with corporate reputation.

The Mediating Role of CSR in the Relationship between ERM systems and corporate reputation

A wide range of risks can lead companies into a crisis, where certain stakeholders fail to receive value or may even experience a negative impact. An enterprise risk management (ERM) system can minimise the likelihood that risks jeopardise corporate social responsibility (CSR) performance. ERM systems help companies to behave more responsibly and sustainably with each and every stakeholder. They also increase the likelihood of meeting stakeholder expectations, thereby enhancing corporate reputation. This paper analyses the relationship between ERM systems, CSR performance and corporate reputation. The analysis is based on a sample of Spanish companies over the period 2008 to 2015. The results confirm that ERM system quality is conducive to CSR performance. The results also reveal that ERM systems affect corporate reputation through their effect on CSR performance. Managers can link their risk management policies to CSR to achieve and maintain a sustainable distribution of value amongst stakeholders and thereby strengthen their firm’s corporate reputation.

How do corporate environmental policy and corporate reputation affect risk‐adjusted financial performance?

AbstractThe current study aims to answer dual, related questions: Does corporate environmental policy affect corporate reputation, and does this link also influence risk‐adjusted profitability and company's risk? With a comprehensive framework involving analyses of each question, among a sample of firms traced by the Reputation Institute, this study reveals several notable results, after correcting for endogeneity biases. First, environmental engagement and green product innovation are both antecedents of corporate reputation. Second, corporate reputation has a positive impact on risk‐adjusted profitability and Z score indicator of financial distress risk. Thus, corporate environmental responsibility and green practices represent cospecialized assets that enhances an intangible asset, namely, corporate reputation. The latter influence constitutes a missing link between sustainable development and the firm's financial performance. Overall, environmental engagement and corporate reputation act as insurance‐like protections of firm competitiveness.

The Nonlinear Impact of Corporate Social Responsibility on Stock Returns

“Can companies benefit from corporate social responsibility?” is still unsolved. This study investigates how corporate social responsibility impacts stock returns with Hexun’s CSR rating for first time. The sample is based on Chinese A-share listed companies for the period 2010-2017. We adopt threshold regression and multiple regression and find that: first, there is a U-shaped relationship between CSR and stock returns. This finding suggests that the relationship between CSR and stock return is affected by cut-off point, which is negative before cut-off point, and positive after cut-off point. In addition, this relationship has nothing to do with the nature of enterprise property rights. Second, fulfilling CSR affects corporate reputation and relieves information asymmetry, corporate reputation and institutional investors are the channels through which CSR influences stock returns. Fourth, we demonstrate the moderating effect of external legal environment between CSR and stock return. This paper provides new evidence for understanding the impact of CSR on enterprise value.

Reporting as a booster of the corporate social performance effect on corporate reputation

AbstractCorporate social performance (CSP) is one of the main drivers of corporate reputation. The main aim of this study is to analyze the moderating effect of corporate social responsibility (CSR) reporting quality on the relation of CSP and corporate reputation through two effects. First, it may enhance the firm's credibility because CSR reporting favors CSP consistency by reducing managers' CSR discretion and easing CSP comparability along the time. Second, it may increase the visibility of CSR actions beyond direct stakeholders involved in them. Analyzing an international sample of 132 companies from nine countries for the period 2011–2016, we show that all of the CSP dimensions (social, environmental, and economic) positively affect corporate reputation. We also find that good CSR reporting quality increases the intensity of the environmental and social performance effects on corporate reputation. Results provide a new perspective of the role CSR reporting quality that managers have to deal to get better impacts of CSP on corporate reputation.

The Effect of Negative Product Publicity on Corporate Reputation Depending on the Degree of Crisis Responsibility, the Type of Consumer’s Self-construal and Product-involvement Level

This study examines how seriously negative publicity about products affects corporate reputation in terms of the degree of direct corporate responsibility, product involvement level, and the type of consumer’s self-construal. The results show that negative media news coverage significantly harmed the corporate image. In particular, the corporate reputation was damaged more seriously when the corporate responsibility for public scandals were perceived to be high. However, corporate reputation was irrelevant to the product involvement. The people of interdependent construal or allocentric consumers responded more critically to the negative publicity and gave significantly lower grades to the companies that had a higher reputation for social responsibility. This study implements a two-by-two factorial design consisting of two different types of corporate responsibility and two types of product involvement. News articles with pictorial account depicting corporate behaviors were presented to on-line surveyees randomly. Theoretical and practical implications are suggested in the concluding section.

IT Signal Generation and Management Capabilities’ Effect on Corporate Reputation: A Typological Approach to Strategic Positioning in a Digital World

In this paper, we explore how signal generation capabilities (SGCs) and signal management capabilities (SMCs) affect corporate reputation management strategies, with respect to modern technologies of the digital world. Expanding upon signaling theory, and the notion of informational asymmetries, we draw attention to the complementary roles of current IT in creating and managing signals of productive and qualitative efficiency that may be converted into corporate reputation. We introduce a new typological classification for firms’ strategic positioning that highlights how technologies lead firms to be signal amplifiers, signal squanderers, signal mollifiers, and signal diminishers with respect to reputation management. We discuss the theoretical contributions and practical implications of our research, alongside ethical and methodological considerations that could spawn interesting avenues of future research.

Effects of Service Quality, Corporate Image, and Customer Trust on the Corporate Reputation of Airlines

With the continuously increasing demand for air travel, competition among airlines has increased as well. The purpose of this study is to examine empirically the causal relationships among the perceived service quality, corporate image, customer trust, and corporate reputation of Asiana Airline in South Korea using SERVQUAL measures. An onsite survey of Korean passengers was conducted. The results of this study reveal that responsiveness and reliability of service quality significantly affect corporate image and customer trust, whereas tangibles, empathy, and assurance of service quality are not significant antecedents of corporate image and customer trust. It is also found that corporate image and customer trust significantly affect corporate reputation. Based on these findings, theoretical importance and practical implications are discussed in this paper.

Reputation aspects in investment decision making: contribution to corporate security

The article deals with a substantial threat for corporate security - decline in corporate reputation. Corporate reputation is regarded as the most important intangible asset of corporations. Investment project implementation may greatly affect corporate reputation, both positively and negatively. Therefore, investment decision-making requires consideration of how project implementation affects corporate reputation and application of ethics and social responsibility. We suggest an index to consider the impact of investment project implementation on corporate reputation at the pre-investment phase – reputation improvement index. To evaluate weight numbers, which are part of reputation improvement index, the analytic hierarchy process is recommended. Also, we propose a model to evaluate weight numbers, based on solution of a respective matrix game, and give a case study. We conclude that reputation improvement index, along with traditional methods of investment decision making and risk consideration, lowers corporate threats at present and in the long-term.

How Corporate Social Responsibility Affects Corporate Reputation: Evidence from an Emerging Market

JEEMS Journal of East European Management Studies , Seite 10 - 29

Downsizing and the fragility of corporate reputation: An analysis of the impact of contextual factors

This study extends prior research on the impact of downsizing on corporate reputation by investigating how specific aspects of downsizing measures influence this relationship. Using panel data on the S&P 100 companies for the period 1990–2000, we find that downsizing affects corporate reputation negatively and that the size of the effect depends on the content and the context of the downsizing announcement. More specifically, we find that the motive for downsizing, the time period in which it is announced as well as the extent of previous layoffs significantly influence the reputational penalties that are associated with corporate downsizing. Our results thus elucidate how contextual factors of a downsizing decision can influence the extent of the reputational damage of this measure.

Building Corporate Reputation through Sustainable Entrepreneurship: The Mediating Effect of Ethical Behavior

This article investigates how a management approach based on sustainable entrepreneurship can positively affect corporate reputation. The analysis showed that this effect is enhanced by the mediating effect of good governance based on ethical behavior. The empirical study was conducted using data for 104 large Spanish firms defined as sustainable by the Corporate Reputation Business Monitor (MERCO) ranking.