Corporate Social Responsibility Claims Research Articles

JUSTICE PERSPECTIVES ON BP TANGGUH'S CLAIM TO CORPORATE SOCIAL RESPONSIBILITY IN BINTUNI BAY

Objective: This study is to determine and analyze the accountability of BP Tangguh and the Government concerning the rights of indigenous peoples in areas affected by BP Tangguh's operations. The focus is on evaluating these accountabilities through the lens of John Rawls' Theory of Justice. The study aims to identify any disparities between the proclaimed Corporate Social Responsibility (CSR) initiatives by BP Tangguh in Bintuni Bay and the justice values advocated by Rawls. Theoretical Framework: John Rawls' renowned framework, characterized by its emphasis on principles of justice, fairness, and equity, serves as a powerful tool for evaluating the actions and responsibilities of BP Tangguh and the Government with regard to indigenous communities. This framework offers a comprehensive lens through which one can critically examine the social, economic, and environmental impacts of corporate activities on these communities. Methodology: This research adopts a socio-legal research approach with a qualitative methodology. The data collection process incorporates observation, interviews, and literature study methods. Through these methods, the study aims to gather comprehensive insights into the social conditions of the communities around BP Tangguh's operational area and assess the effectiveness of CSR initiatives in promoting justice values. Results and Conclusion: The results of the study reveal significant disparities between the social conditions of the affected communities and the CSR claims made by BP Tangguh. This suggests a misalignment with the justice values advocated by Rawls. The study concludes that, in practice, the proclaimed Corporate Social Responsibility initiatives by BP Tangguh in Bintuni Bay fall short of reflecting the principles of justice put forward by John Rawls. Originality/Value: The originality and value of this study lie in its application of John Rawls' Theory of Justice to assess the accountability of BP Tangguh and the Government in relation to the rights of indigenous peoples. By employing a socio-legal research approach, the study contributes to the ongoing discourse on corporate accountability and social justice, shedding light on the practical implications of CSR initiatives in affected areas. The findings of this study may inform policy recommendations and contribute to the development of more equitable practices in the interactions between corporations, governments, and indigenous communities.

MNEs’ CSR Decoupling: How Host-Country Stakeholder Pressures Matter

The literature suggests that organizations tend to use corporate social responsibility (CSR) as a means to establish and enhance legitimacy, particularly when they operate internationally. Meanwhile, organizations that adopt voluntary CSR initiatives, such as the United Nations Global Compact (UNGC), may decouple symbolic CSR claims from actual CSR performance. Despite extensive research on organizational decoupling and the legitimation strategies of multinational enterprises (MNEs), we have limited understanding of how host-country conditions affect MNEs’ CSR decoupling. Building on the idea of decoupling in institutional theory and the research on corporate adoption of voluntary codes of conduct, this paper analyzes how host-country stakeholder pressures will discourage CSR decoupling of MNEs that adopt the UNGC. We also identify possible contingencies, host country press freedom, and institutional and normative distances between home and host countries, and investigate how they moderate MNEs’ responses to host-country stakeholder pressures. We test our theory using an international sample of the UNGC signatories during the period 2007-2018. Our main analyses rely on a dataset containing 4,359 observations for 305 listed firms from 36 home countries, with negative CSR events (i.e., corporate violations of the UNGC principles) taking place in 117 host countries. The results support our predictions.

Effects of CSR Messages on Apparel Consumers’ Word-of-Mouth: Perceived Corporate Hypocrisy as a Mediator

This study focused on understanding how (mis)match between a company's corporate social responsibility claims as indicated in their mission and the activities it actually undertakes to meet its CSR goals leads to consumers’ corporate hypocrisy and how consumers’ CSR-CA beliefs moderate the relationship between the two. Using the Moral Responsibility Theory of Corporate Sustainability as a framework, this research analyzed the difference in corporate hypocrisy between consumers with high versus low CSR-CA tradeoff beliefs. In addition, we examined the impact of consumers’ corporate hypocrisy on their negative word-of-mouth intention and how participants’ injunctive norm impacts the relationship between the two. A sample of 538 adult US consumers were recruited for an online experimental study. The study extends the findings of MCRS and also provides implications for apparel businesses.

Near-shoring versus far-shoring: effects on customer perceived quality and purchase intention

PurposeDriven by the disruptive effects of the Covid-19 pandemic, the ongoing debate about the international location of firms' manufacturing activities has increasingly highlighted the specific benefits and costs of near-shoring versus far-shoring. However, the effects of near-shoring versus far-shoring on customer perceived quality and purchase intention have not been examined. Thus, this study aims to develop a conceptual model and provide new evidence to fill this gap. In particular, the study explores the roles of brand familiarity and corporate social responsibility (CSR) to explain the different levels of perceived quality and purchase intention in relation to near-shoring versus far-shoring.Design/methodology/approachThis study includes two analyses of data collected from a sample of Italian customers. The first analysis consists of a 2 (high/low brand familiarity) × 3 (domestic insourcing, near-shoring, far-shoring) factorial design, and data are assessed via analyses of variance (ANOVA). The second analysis evaluates the suggested model in the two scenarios (near-shoring and far-shoring) via partial least squares–structural equation modelling (PLS-SEM) multigroup analysis.FindingsResults showed that customer perceived quality and purchase intention were significantly higher for near-shoring than for far-shoring, but only when brand familiarity was low. No significant difference was found for participants with a high level of brand familiarity. In addition, the level of a brand's pre-offshoring perceived CSR was negatively related to perceived quality, and this was conceptually justified by the CSR-washing effect. Again, this effect was found only when brand familiarity was low.Research limitations/implicationsThe findings contribute to advancing the current understanding of the multiple effects of the offshoring decision and clarify that near-shoring and far-shoring have different effects for customers with low brand familiarity. The findings also emphasise that the far-shoring decision can elicit the perception of decoupling between the firm's CSR claims and CSR actions, thus decreasing perceived quality.Practical implicationsThis study provides managers with additional inputs to make more informed decisions regarding offshoring. While the post-pandemic scenario seems to favour near-reshoring over far-shoring due to agility considerations, this study also provides additional evidence of the superiority of near-reshoring from the customer's perspective.Originality/valueThis is the first study to examine and prove the differential effects of near-shoring versus far-shoring on the customer's perceptions and behaviours.

Responsible Sourcing: The First Step Is the Hardest

Responsible sourcing is a priority for companies and consumers concerned with corporate social responsibility (CSR) in global supply chains. Most brands' product lines contain just a few products certified by third parties- which suggests that brands limit their efforts at ensuring that suppliers behave responsibly. In this paper, we examine a previously under-appreciated role of certifications: that certifications enable brands to learn about how to source responsibly. By successfully certifying even a single product, the certifying brand may enjoy positive, knowledge-based spillovers encouraging responsible sourcing throughout its product line. Using data on the responsible sourcing decisions of coffee brands in the $48B US consumer market, we find that certifying brands' rates of CSR violations (adjusted for disparities in production volume and detection) are similarly low regardless of whether the brand's portfolio is 3% certified or 100% certified- consistent with learning-based spillover effects. Certifying brands' violation rates are an estimated 61-78% lower than for comparable brands that make no CSR claims. While we find that brands making their own uncertified, on-packaging CSR claims also exhibit low CSR violation rates, their low violation rates are nearly entirely explained by the countries from which they source. In contrast, certifying brands appear uniquely able to source responsibly even from within countries. Our work novelly suggests that prevalent dual-sourcing may surprisingly amplify, rather than limit, responsible sourcing in supply chains, and that certified sourcing valuably develops the pool of responsible suppliers in high-risk countries.

Authentic or cosmetic: stakeholders’ attribution of firms’ corporate social responsibility claims

PurposeTo date, many firms tend to use corporate social responsibility (CSR) communication and marketing as a means to offset their irresponsible behaviors and unscrupulous business practices. Often time, they can easily get away with this in the context where the institutional settings are weak, and corporate social irresponsibility (CSIR) and corruption are widespread. The purpose of this study is to explore stakeholders’ attribution concerning CSR claims of four beverage manufacturing companies operating in America’s poorest country (Haiti) where CSIR and corruption remain widespread. This study also explores whether there are differences in demographic characteristics (e.g. gender, corporate affiliation and education) regarding stakeholders’ attribution of CSR claims of these companies.Design/methodology/approachGiven the exploratory nature of this study, an inductive research approach (qualitative plus quantitative) and supported by an interpretive approach were used.FindingsThe overall results of this study show that internal (employees) and external stakeholders alike consider the CSR claims of these companies as “cosmetic,” with no significant difference in their affiliation. The results also show no significant differences in the age groups but significant differences in gender and level of education regarding stakeholders’ attribution of firms’ CSR claims.Originality/valueBy addressing firms’ CSR claims from the perspectives of internal and external stakeholders through means of a mixed methods approach, this study adds an important contribution to the relevant literature.

Greenwashing and environmental communication: Effects on stakeholders' perceptions

AbstractSince the first Earth Day in the 1970s, corporate environmental performance has increased dramatically, and cases of greenwashing have increased sharply. The term greenwash refers to a variety of different misleading communications that aim to form overly positive beliefs among stakeholders about a company's environmental practices. The growing number of corporate social responsibility claims, whether founded or not, creates difficulties for stakeholders in distinguishing between truly positive business performance and companies that only appear to embrace a model of sustainable development. In this context, through the lens of legitimacy and signalling theory, we intend to understand and assess the different influences that various types of misleading communications about environmental issues have on stakeholders' perceptions of corporate environmental responsibility and greenwashing. Stakeholder responses to an environmental scandal will also be assessed. The hypotheses tested through a four‐for‐two design experiment reveal that different levels of greenwashing have a significantly different influence on stakeholders' perceptions of corporate environmental responsibility and stakeholders' reactions to environmental scandals.

Reducing skepticism about corporate social responsibility: roles of gender and agentic-communal orientations

PurposeCompanies are increasingly emphasizing corporate social responsibility (CSR). However, consumers are often skeptical of the sincerity of companies’ CSR claims, particularly when the claim comes directly from the company. This paper aims to demonstrate how to reduce consumer CSR skepticism by examining the role of a company spokesperson’s gender and gender-related characteristics.Design/methodology/approachTwo between-subjects experiments with a combined total of 329 participants examined how consumers’ levels of CSR skepticism are affected depending on the gender of the consumer and the gender and gender-related characteristics of the company’s CSR spokesperson.FindingsStudy 1 finds that a female (vs male) spokesperson generally elicits less CSR skepticism. However, Study 2 expands on this to demonstrate that consumers are less skeptical of a company’s CSR efforts when they are promoted by a spokesperson who exhibits gender-related characteristics that match, or are typically associated with, the individual consumer’s gender.Practical implicationsBrands often face difficulties in successfully promoting their own CSR efforts to skeptical consumers. These findings should guide companies and their brands in choosing ideal spokespeople for making effective, sincere CSR claims, depending on the target market.Originality/valueThis research is the first to identify the important role of gender in consumers’ perceptions of CSR sincerity. Thus, it provides practically-oriented strategies that may mitigate a growing consumer CSR skepticism that exists in today’s marketplace.

Greenwashing and Environmental Communication: Effects on Stakeholders’ Perceptions

Since the first Earth Day in the 1970s, corporate environmental performance has increased dramatically, and cases of green-washing have increased sharply. The term green-wash refers to a variety of different misleading communications that aim to form overly positive beliefs among stakeholders about a company's environmental practices. The growing number of corporate social responsibility claims, whether founded or not, creates difficulties for stakeholders in distinguishing between truly positive business performance and companies that only appear to embrace a model of sustainable development. In this context, through the lens of legitimacy and signalling theory, we intend to understand and assess the different influences that various types of misleading communications about environmental issues have on stakeholders' perceptions of corporate environmental responsibility and green-washing. Stakeholder responses to an environmental scandal will also be assessed. The hypotheses tested through a four-for-two design experiment reveal that different levels of green-washing have a significantly different influence on stakeholders' perceptions of corporate environmental responsibility and stakeholders' reactions to environmental scandals.

Consumer inferences of corporate social responsibility (CSR) claims on packaged foods

Food packages have emerged as an important Corporate Social Responsibility (CSR) communication tool. This study examined the effect of on-package CSR claims on consumers' health benefits perceptions, taste perception, attitude and behavioral intentions toward the food company. A 4 (CSR claims: none, food manufacturing, employee welfare, and eco-friendly packaging) by 2 (type of food: essential vs. indulgent) factorial experimental study was conducted to test the hypotheses. The findings demonstrate that consumer-oriented CSR claim (food manufacturing) is most strongly associated with consumers' health benefits perception, whereas employee-oriented CSR claim (employee welfare) is most strongly linked to taste perception and attitude toward the company. All CSR claims were found to positively influence consumers' intentions to purchase and willingness to pay premium. Additional content analysis of the textual data indicated that the employee welfare CSR was most positively perceived. Theoretical and practical implications are discussed.

In the eye of the beholder: Communicating CSR through color in packaging design

ABSTRACTConsumers have become much more attentive and demanding about corporate social responsibility (CSR), and companies are now gradually becoming aware that receiving consumer favor could depend on conducting business in a sustainable manner. Moreover, in order to gain returns from their CSR investments, such as company reputation, customer loyalty and customer–company identification, firms must also provide effective communication of their CSR efforts to the consumers. This study explores the potential of packaging color for conveying CSR to consumers, focusing in particular on consumer packaged goods. For this purpose, a quantitative study was conducted on a representative sample of consumers (n = 2000) in the form of a structured questionnaire, administered using face-to-face interviews. Three different stimuli were created through fictitious images of a non-existent brand product. Only the color of the packaging varied, while all the other graphic elements were left unchanged. The results show that, despite the prevailing association of green with the concepts of sustainability and CSR, it is not the most suitable color to clearly and credibly convey a CSR message to consumers. Thus, it is important to examine whether different colors could serve better to improve the clarity and credibility of CSR claims.

Signaling strategies for ISO 26000: a firm-level approach

Purpose The purpose of this article is to shed light on some important limitations of the ISO 26000 standard for corporate social responsibility (CSR) for the credible communication of corporate CSR claims. The article aims to identify and explore firm-level strategies to signal adherence to the standard effectively and their legitimacy consequences for the standard. Design/methodology/approach The identification of firm-level signaling strategies is mainly derived from an institutional description of the ISO 26000 standard and based on anecdotal evidence from current business practice, initiatives that have been taken worldwide by organizations such as national standards institutes, the ISO 26000 text and adjacent ISO documents, including ISO post-publication surveys. The article is grounded in signalling theory. Findings Five signaling strategies for firms are derived and explored which may reduce information asymmetries and engage in efficacious signaling of their underlying CSR quality and thus guide the communication of firms’ adherence to the ISO 26000 standard. Research limitations/implications The findings urge to empirically investigate the use of ISO 26000 signaling strategies including their legitimacy consequences for firms. Practical implications The findings of this article have implications for decisions firms make when considering working with ISO 26000 and communicating their adherence, notably regarding the enhancement of the credibility of their CSR claims. Also, it offers suggestions for certification organizations, national standards bodies and policy makers that want to encourage the adoption of CSR standards, ISO 26000 in particular. Originality/value This article is the first one to address inherent signaling problems of ISO 26000 and to identify signaling strategies to counter these problems in a structured way.

Does engagement in corporate social responsibility provide strategic insurance‐like effects?

Research summary: This study examines whether the stock and bond prices of firms engaging in corporate social responsibility (CSR) can benefit from insurance‐like effects during occurrences of negative events. Our results suggest that in the face of negative events, engagement in CSR on a continuous, long‐term basis provides insurance‐like effects on both the stock and bond prices of firms. Nevertheless, the effects are found to quickly disappear following the occurrence of a second, or subsequent, negative event. Although our results clearly indicate that firms need to allocate some of their available resources to long‐term strategic CSR activities, managers must also realize that in a crisis communication, they will probably be able to use their CSR claims on one occasion only.Managerial summary: The purpose of this article is to examine whether firms engaging in corporate social responsibility (CSR) can benefit from insurance‐like effects during occurrences of negative events. We find that on the occurrence of a negative event, long‐term CSR engagement does have insurance‐like effects. We also find that these insurance‐like effects may quickly disappear following the occurrence of a second negative event. Managers of firms with a long history of CSR activities need to realize that in a crisis communication, they can probably use their claims of adherence to CSR only once. Copyright © 2015 John Wiley & Sons, Ltd.

The credibility of corporate CSR claims: a taxonomy based on ISO 26000 and a research agenda

Today, many companies are eager to claim their commitment to corporate social responsibility (CSR). Such claims may positively influence public perception, increase market share, improve stakeholder relations and protect corporate reputation. Not being able to substantiate these claims in a credible way may involve risks with regard to reputation and trustworthiness and may result in scepticism and a lack of credibility. Although the topic of credibility becomes increasingly important in order to both substantiate and assess CSR claims, it has so far attracted relatively little scholarly attention. The use of CSR-related management standards, several of which are based on quality management frameworks, can contribute to enhancing the credibility of corporate CSR claims. This article focuses on potential ways of enhancing the credibility of CSR claims by exploring what strategies are available for organisations, based on the most recent global initiative in CSR standardisation, ISO 26000. ISO 26000 can be viewed as an approach to CSR that is rooted in a quality management framework. While CSR standards themselves may contribute to enhancing CSR credibility, ISO 26000 contains several other suggestions for this purpose as well. The article explains the key contents and tenets of ISO 26000 and develops a taxonomy of, and elaborates on, several credibility-enhancing strategies that can be used by organisations. It concludes with several suggestions for further researching CSR credibility strategies on the interface of CSR and quality management.

CSR as crisis risk: expanding how we conceptualize the relationship

Purpose – The purpose of this paper is to explore the role of corporate social responsibility (CSR) as a crisis risk. The bulk of the current research on CSR and crisis examined the role of CSR as an asset in a crisis. CSR as crisis risk is a direct function of CSR’s increasingly important role in reputation management. CSR has become an important aspect of corporate reputations – it is one of the dimensions used to assess a corporation’s crisis. The value of CSR to reputations is illustrated in the RepTrak reputation measure from the Reputation Institute and the value it places upon CSR. If stakeholders can challenge CSR claims by arguing a corporation is acting irresponsibly, the stakeholders can erode the corporation’s reputational assets by creating a challenge crisis. A CSR-based challenge occurs when stakeholders redefine a corporation’s current practices as irresponsible. The CSR-based challenge can be risk because it can damage reputational assets and potentially escalate into a crisis. CSR become...

For logistical reasons only? A case study of tax planning and corporate social responsibility reporting

Abstract The relationship between corporate taxation and corporate social responsibility (CSR) has become a much discussed topic in recent times. We offer insights into this debate by presenting a qualitative case study of the tax planning arrangements of one multinational company that uses transfer pricing to achieve significant tax savings. We contrast this arrangement with an analysis of how the company discussed taxation in its disclosures over a 10-year period, and set its arrangements against the CSR claims made by the company during this time. Despite its claimed commitment to accurate and transparent communication, the company has made only limited disclosures on taxation, and issues such as tax planning, tax risks and tax compliance have been omitted completely. By juxtaposing the legal tax planning arrangements of the company being studied with its lack of tax disclosures and apparent neglect of its own CSR commitments, we highlight how corporate taxation needs to be considered to be a CSR issue. Moreover, given that the disclosures of powerful social actors affect how issues such as corporate tax avoidance and responsible taxation are understood and subsequently acted upon in society, we consider it essential to analyse in detail what corporations actually say in their disclosures.

Corporate Social Responsibility & Concession Theory

This Essay examines three related propositions: (1) Voluntary corporate social responsibility (CSR) fails to effectively advance the agenda of a meaningful segment of CSR proponents; (2) None of the three dominant corporate governance theories – director primacy, shareholder primacy, or team production theory – support mandatory CSR as a normative matter; and, (3) Corporate personality theory, specifically concession theory, can be a meaningful source of leverage in advancing mandatory CSR in the face of opposition from the three primary corporate governance theories. In examining these propositions, this Essay makes the additional claims that Citizens United: (A) supports the proposition that corporate personality theory matters; (B) undermines one of the key supports of the shareholder wealth maximization norm; and (C) highlights the political nature of this debate. Finally, I note that the Supreme Court’s recent Hobby Lobby decision does not undermine my CSR claims, contrary to the suggestions of some commentators.

When consumers doubt, Watch out! The role of CSR skepticism

Corporate social responsibility (CSR) is a hot topic in management today. More than ever before, companies engage in CSR initiatives to make a positive contribution to society or support their strategic goals. Yet, in the face of a plethora of CSR claims and numerous reported incidents of corporate misconduct, many people doubt the extent to which companies live up to their professed standards, and consumer skepticism toward corporate social involvement is on the rise. Drawing on attribution theory, this study proposes and tests a model that explains both how consumer skepticism toward the CSR of grocery retailers develops and its influence on important consumer-related outcomes. The findings reveal that attributions of egoistic- and stakeholder-driven motives elicit consumer skepticism toward CSR, while values-driven attributions inhibit skepticism. The results also indicate that CSR skepticism hurts retailer equity, decreases resistance to negative information about the retailer, and stimulates unfavorable word of mouth.

Impact of corporate social responsibility claims on consumer food choice

PurposeThe study seeks to assess the impact of two different corporate social responsibility (CSR) claims, relating to social and environmental dimensions, on consumers' wine choice across international markets. It analyses how point of purchase CSR claims compete with other food claims and their awareness, penetration and consumers' trust are examined.Design/methodology/approachA discrete choice experiment with a visual shelf simulation was used to elicit consumer preferences and to estimate marginal willingness to pay for CSR and other food claims across the UK, France, Germany, the US East Coast, the US Midwest, and Anglophone and Francophone Canada.FindingsCSR claims relating to social and environmental responsibility have a similar awareness, penetration and consumer trust, but differ in their impact on consumer choice, where environmental corporate responsibility claims benefit from a higher marginal willingness to pay. Consumer valuation of CSR claims significantly differs across international markets, but is consistently lower than for organic claims.Originality/valueThis is the first cross‐national study that analyses the impact of CSR claims on consumer food choice relative to other food claims using large representative consumer samples. The strength of the paper also pertains to the utilisation of innovative choice experiments covering a large range of choice relevant product attributes.

Corporate social responsibility: The disclosure–performance gap

As increased stakeholder pressure requires companies to be transparent about their CSR practices, it is essential to know how reliable corporate disclosure mechanisms are, testing the gap between corporate social responsibility claims and actual practice. This study benchmarks corporate social responsibility policies and practices of ten international hotel groups of particular importance to the European leisure market. We found that corporate systems are not necessarily reflective of actual operations, environmental performance is eco-savings driven, labour policies aim to comply with local legislation, socio-economic policies are inward looking with little acceptance of impacts on the destination, and customer engagement is limited. Generally larger hotel groups have more comprehensive policies but also greater gaps in implementation, while the smaller hotel groups focus only on environmental management and deliver what they promised. As the first survey of its kind in tourism, both the methodology and the findings have implications for further research.