Corporate Social Responsibility Motives Research Articles

Consumer Skepticism about Quick Service Restaurants’ Corporate Social Responsibility Activities

ABSTRACT The goal of this study is to investigate a developmental process of consumer skepticism about quick service restaurants (QSRs, also known as fast food or limited service restaurants)’ corporate social responsibility (CSR) activities and consequences of CSR skepticism. People who are aware of QSRs’ CSR activities participated in an online survey. A conditional process analysis was used to test mediating roles of CSR motives and CSR skepticism and a moderating role of perceived restaurant healthfulness in the path from CSR timing to restaurant evaluation. When people perceive QSRs’ CSR actions as responses to public criticism (that is, being reactive), they are less likely to attribute sincere (e.g., values-driven) motives; this leads to skepticism about CSR actions, and ultimately, less favorable evaluation. However, if they perceive QSRs as very healthful, evaluation becomes favorable despite skepticism. QSRs should engage proactively in CSR actions before consumers raise concerns about their businesses. If QSRs have already faced CSR skepticism, they should attempt to mitigate consumer distrust regarding the genuineness of their CSR initiatives. Also, provision of healthful menu items needs to be considered to reduce the negative effects of CSR skepticism.

Effects of the Type of CSR Discourse for Utilitarian and Hedonic Services

In a context of corporate social responsibility (CSR) communication, we explore whether the use of expositive versus narrative discourses interacts with the type of service commercialized by the company (utilitarian vs. hedonic) to determine consumer perceptions and responses to corporate communication. Our main proposal is that, as representative examples of utilitarian services, banking companies would benefit significantly from communicating their CSR efforts with expositive discourses, whereas narrative discourses would be more adequate for hedonic services (e.g., catering). To test the research hypotheses, we use a 2 (expositive/narrative discourse) x 2 (utilitarian/hedonic service) between-subjects experimental design where we expose 302 consumers to different combinations of CSR messages and we evaluate changes in their message attributions and internal and external responses to them. The findings show that the interaction effect is significant and it works in the expected direction for issue importance, CSR fit, and CSR attributions. However, for CSR impact, attitude, trust, purchase, and advocacy intentions, the findings suggest that narrative discourses work better than expositive discourses both for utilitarian and hedonic services. No significant differences between types of discourses are observed for CSR motives, CSR commitment, and C-C identification and the interaction effect is also not significant for these variables.

Corporate Social (Ir)responsibility and Corporate Hypocrisy: Warmth, Motive and the Protective Value of Corporate Social Responsibility

ABSTRACTThis article examines how a firm’s prior record on corporate social responsibility (CSR) influences individual stakeholders’ perceptions of corporate hypocrisy in the wake of a corporate social irresponsibility (CSI) event. Our research extends extant corporate hypocrisy literature by highlighting the role of individual stakeholders’ inferences about a genuine CSR motive in their judgments of corporate hypocrisy. This can serve to differentiate perceived corporate hypocrisy from inconsistency that arises because of a lack of ability and/or resources. Our research further identifies a source for such perceptions: individual stakeholders’ perceptions of firm warmth generated by a firm’s prior record of CSR. In addition, we find that when CSR and CSI are in the same (vs. different) domains, it can strengthen perceptions of hypocrisy. This provides direct evidence to explain why markets react differently when CSR and CSI events occur in the same domain (vs. different ones).

Perception of Corporate Hypocrisy in China: The Roles of Corporate Social Responsibility Implementation and Communication.

In the past two decades, corporate hypocrisy has become a phenomenon that cannot be ignored in Corporate Social Responsibility (CSR) practice (Wagner et al., 2009) and has thus become a concern for management scholars (Cho and Lee, 2019). Using smartPLS, based on attribution theory, this paper takes 28 Chinese listed enterprises as examples to explore the influence of CSR motivation on its communication and implementation, as well as the impact of CSR implementation and promotion on consumers’ perception of corporate hypocrisy. The research finds a negative correlation between value-driven motivation and corporate hypocrisy and a positive correlation of performance-driven motivation and stakeholder-driven motivation with corporate hypocrisy. The theoretical contribution of this paper is mainly reflected in the following four aspects. (1) It describes the scale of CSR implementation research and enriches the measurement tools of CSR implementation. (2) It enriches and expands research results in the field of CSR motivation perception. From the perspective of CSR and attribution theory, this study explores the influence of consumers’ perception of CSR motivation on CSR communication and CSR implementation. (3) It supplements research results in the field of corporate hypocrisy. The influence of CSR communication and CSR implementation on corporate hypocrisy is clarified. (4) It clarifies the impact of CSR communication on CSR implementation so as to help enterprises better match CSR communication strategy and CSR implementation in practice and reduce consumers’ perception of corporate hypocrisy. It is suggested that enterprises find their own positioning on CSR motivation, which provides a reference with which enterprises can make better decisions on CSR communication strategy after implementing CSR behavior and provides empirical evidence for the research on CSR motivation perception and corporate hypocrisy in China.

Communicative institutionalization of CSR: a content analysis of firms’ motivations in social reports from three market economies

ABSTRACT Drawing on institutional theory, this content analysis explored firms' social reports for a ten-year period in three market economies. Specifically, this study analyzed firms' motivations for corporate social responsibility (CSR) through a proxy of the salience of stakeholder groups in social reports. First, firms' competitive motivations for CSR were significantly higher in the stated-led market economies (SLMEs: France, South Korea) than in the liberal market economies (LMEs: US, UK), which showed the lowest level of firms' competitive motivations for CSR during all investigated periods. Secondly, firms' socially cohesive motivations for CSR significantly decreased over time in SLMEs only, while increasing in LMEs and the coordinated market economies (CMEs: Germany, Japan). Theoretical and practical implications are discussed in terms of the constitutive role of communication in the institutionalization of CSR.

SMEs motivations for CSR: an exploratory study

PurposeThe paper aims to investigate the relationship between firms’ motivation for corporate social responsibility (CSR) and the moderating role of internationalisation.Design/methodology/approachThe authors developed and tested a conceptual model based on a survey of 65 respondents from the Møre and Romsdal (M&R) maritime cluster. The M&R maritime cluster despite being national has strong interconnections to the global maritime industry and as such, presents a suitable context for testing our research model.FindingsThe findings show that firms’ intrinsic motivation drives CSR more than extrinsic motivation. Intrinsic motivation is understood as a firm engaging in CSR because it is the right thing to do and done out of one’s free will without compulsion or coercion. Extrinsic motivation relates to an action that is performed to achieve a separate outcome. Intrinsic and extrinsic motivations are found to be related and not mutually exclusive. The impact of intrinsic motivation on CSR was found to be contingent on the extent of the internationalisation of small and medium-sized enterprises (SMEs).Originality/valueThe key contribution of the study is the modelling of firms’ motivation for CSR activities and the contingent effect of internationalisation. In as much as companies perceive CSR activities as the right thing to do, the motive to do so also depends on the business case/profit motive. The study shows that SMEs’ intrinsic motivation is the driving force in CSR implementation and suggests that the urge by firms to give back to society is strengthened under conditions of high economic incentives and the firms’ degree of internationalisation.

Translating Corporate Social Responsibility into Action: A Social Learning Perspective

Interest in the microfoundations of corporate social responsibility (CSR) has grown over the past decade. In this study, we draw on social learning theory to examine the effects of prosocial leaders on followers’ motivation to engage in CSR practices, and consequently on their CSR performance. Further drawing from social learning theory, we propose that followers’ trait compliance and leader-member exchange moderate the above relationships by affecting the conceptual mechanisms of social rewards and role-modeling motives. We tested our hypotheses with data from a sample of 138 employees (i.e., followers) who were responsible for implementing an organization-initiated CSR practice. Our results showed that among followers who were high in trait compliance, leaders’ prosocial motivation was positively associated with followers' CSR motivation. In addition, followers’ CSR motivation was positively related to their objective CSR performance when they had a high-quality relationship with their leaders. Our findings advance our understanding of the conditions under which leaders will be more versus less influential on followers’ motivation and engagement in CSR activities. We discuss the theoretical and practical implications of our results.

The Effect of Corporate Social Performance on Audit Hours: Moderating Role of the Emphasis of Matter Paragraphs in Audit Report

This study investigated the effect of corporate social performance (CSP) on audit hours and whether the emphasis of matter (EOM) paragraphs in audit report moderates the association between CSP and audit hours. Auditors input audit hours based on the judgement of audit risk related to firm and managerial characteristics. They increase audit hours when they perceive that client companies are riskier; thus, audit hours reflect auditors’ perceptions of the firm. Prior studies have shown that high CSP is associated with ethical managers, leading to fewer audit hours. However, auditors’ perceptions of CSP can be different depending on their knowledge about firms’ potential risks. EOM paragraphs consists of risk-related factors, such as going-concern opinions or litigation and they should be considered when auditors determine that users need to check this information acquired in the auditing process. Therefore, EOM is likely to affect auditors’ perceptions of CSP. This study investigates this possibility by examining whether the associations between CSP and audit hours are different in firms with and without EOM paragraphs in audit reports. Using Korean listed companies from 2011 to 2016, we found that CSP has a negative association with audit hours, suggesting that better CSP is related to ethical corporate social responsibility (CSR) in Korea, consistently with the literature. However, CSP is not related to audit hours for firms with EOM paragraphs, possibly indicating that auditors differently interpret CSP based on their knowledge gained in the auditing process. Our findings contribute to the literature by suggesting that EOM paragraphs can be used in distinguishing firms’ CSR motivations and that information users should be careful in interpreting CSP.

Is a Picture Worth a Thousand Words? Image Usage in CSR Reports

Prior research identifies images as a tool for corporate impression management. We collect a novel dataset on widescale image usage in Corporate Social Responsibility (CSR) reports using automated methods. We examine (1) associations between CSR report image usage and motivations for impression management, (2) changes in CSR report image usage after controversial events, and (3) market valuation of firms using excessive images. We hypothesize and find that socially problematic industries exhibit higher image usage than others. Firms who voluntarily commit to higher disclosure standards tend to use fewer images, while firms with less extensive textual disclosures in their CSR reports tend to use more images. Tellingly, firms with poorer ratings of CSR performance use more images in CSR reports, and firms increase image usage (albeit weakly) after controversial events. We find no evidence that investors overvalue firms with excessive image usage. Overall, the evidence is consistent with companies using images in CSR reports strategically to enhance stakeholder perception of CSR engagement and performance; such strategic usage does not impact equity valuation.

Culture, Motivational Attributes and Employees’ Perception towards CSR Practices: Evidence from Pakistan

The purpose of this paper is to analyze the employees–corporate social responsibility (CSR) relationship by studying the influence of two cultural values – collectivism and masculinity – on the formation of CSR perceptions. We adopted the theoretical framework proposed by Hur and Kim (2017), in which Hofstede’s cultural framework was proposed to explain the effect of the cultural values on employees’ perceptions of CSR practices with the mediatory role of motivational attributions. To establish this framework empirically on Pakistan, a survey questionnaire was used to collect data from 190 employees in Pakistan. Data analysis was performed using SEM and CFA. The results indicate that collectivistic (masculine) values were positively (negatively) related to perceptions of CSR. Furthermore, intrinsic attributions of CSR initiatives mediate the positive relationship between collectivism and CSR perceptions and the negative relationship between masculinity and CSR perceptions. These findings suggest that managers must seek to understand employees’ cultural characteristics and the attributions of CSR motivations in order to engage them in driving CSR practices effectively and displaying a positive image of an organization.

Culture, Motivational Attributes and Employees’ Perception towards CSR Practices: Evidence From Pakistan

The purpose of this paper is to analyze the employees–corporate social responsibility (CSR) relationship by studying the influence of two cultural values – collectivism and masculinity –on the formation of CSR perceptions. We adopted theoretical framework proposed by Hur and Kim (2017), in which Hofstede’s cultural framework was proposed to explain the effect of the cultural values on employees’ perceptions of CSR practices with the mediatory role of motivational attributions. To establish this framework empirically on Pakistan, a survey questionnaire was used to collect data from 190 employees’ in Pakistan. Data analysis was performed using SEM and CFA. The results indicate that collectivistic (masculine) values were positively (negatively) related to perceptions of CSR. Furthermore, intrinsic attributions of CSR initiatives mediate the positive relationship between collectivism and CSR perceptions and the negative relationship between masculinity and CSR perceptions. These findings suggest that managers must seek to understand employees’ cultural characteristics and the attributions of CSR motivations in order to engage them in driving CSR practices effectively and displaying a positive image of organization.

Consumers’ ethical orientation and pro-firm behavioral response to CSR

This study identifies the roles of consumers’ ethical orientations and CSR (perceived corporate social responsibility) motives and the dynamics of these two variables on the subsequent consumers’ attitudinal and behavioral responses to CSR—perceived corporate authenticity and pro-firm behavioral intentions. To examine the impact of individual consumers’ ethical orientations, the authors measured consumers’ ethical orientations such as deontology and consequentialism through a Web-based survey conducted in Korea and in the USA. Further, to investigate the role of perceived CSR motives, the authors measured the perception of a company’s business-oriented motives and society-oriented motives in conducting CSR. Results demonstrate the different role of ethical orientation in impacting consumers’ responses across these countries. Consumers’ consequentialist orientation appears to be positively associated with pro-firm behavioral intention in both the Korean and the US studies. In the Korean study, Consumers’ deontological orientation reduces perceived corporate authenticity when corporate motives seem business-oriented. Theoretical and practical implications are discussed.

Influence of corporate social responsibility on non-financial performance

Purpose Using a multinational corporation (MNC), Nestlé Ghana Limited (NGL) that operates in a developing economy (Ghana) as a case study, this paper aims to examine the influence of customers’ CSR awareness level and their perception of NGL’s corporate social responsibility (CSR) motives on the firm’s non-financial performance (image and reputation). Design/methodology/approach A quantitative approach, using questionnaires and simple random sampling method, was used to survey 300 customers. Structural equation model-partial least square (SEM-PLS) was used to analyse the data. Findings The results show that customers’ CSR awareness levels have a positive impact on NGL’s image and reputation. In contrast, the study revealed that customers’ perception of NGL’s CSR motives has a negative impact on NGL’s image and reputation. Practical implications NGL should maintain a balance between customers’ perception of its CSR motives and its image and reputation to project the firm’s CSR position as posted in the firm’s create shared value report. Originality/value The study is one of the few studies in sub-Saharan Africa, and especially in Ghana, about how an MNC’s CSR engagements influence its image and reputation in a developing economy context. It further makes a contribution to CSR literature in Ghana.

Managing Corporate Social Responsibility (CSR) Together: The Effects of Stakeholder Participation and Third-Party Organization (TPO) Endorsement on CSR Initiative Effectiveness

Engaging in strategic corporate social responsibility (CSR) initiatives is one of the strategies firms employ to positively influence stakeholder perceptions and induce desirable business outcomes. However, merely employing CSR initiatives may not always guarantee success, as poorly executed and inadequately managed CSR initiatives might be counterproductive for a company and even inhibit that company from reaping those initiatives’ benefits. The CSR literature claims that stakeholder participation and third-party organization (TPO) endorsements are effective CSR management approaches, yet little scholarly attention has been given to their effects on customers’ attitudes and intentions. To address the question pertaining to the impact of participation strategies (information, response, involvement) and third-party endorsement on CSR effectiveness determinants (perceived motives and skepticism) and customers’ intention to engage in a company’s CSR initiative, a 3 × 2 between-respondents factorial experiment with 213 Dutch health insurance clients was implemented. Results indicate that only stakeholder participation positively influences individuals’ intention to engage with the initiative, and that this effect is mediated by perceptions of CSR motives and low levels of skepticism.

Effects of Internal–External Congruence-Based CSR Positioning: An Attribution Theory Approach

Although corporate social responsibility (CSR) appears to be mutually beneficial for companies and consumers, the modern marketplace has left both parties in vulnerable positions. Consumers are increasingly subjected to incongruent CSR messages such as greenwashing, while companies are trapped in a strategic positioning dilemma with regard to how to most effectively and ethically approach CSR communication. This has led some companies to instead adopt a strategically silent approach, such as greenhushing. To capture this CSR positioning dilemma and test the positioning effects on consumers’ attributions, this study applies attribution theory to conceptualize four distinct CSR positions (uniform, discreet, washing, and apathetic) which reflect varying combinations of congruence or incongruence between a company’s external CSR communication and its actual internal CSR actions. Using an online experiment, the effects of the CSR positions on consumer attributions for intrinsic and extrinsic CSR motivations and purchase intentions were tested across three CSR domains: environmental; labor; and lesbian, gay, bisexual, and transgender (LGBT) inclusion. Overall, the findings attest to the significant effect of internal–external congruence-based CSR positioning on how consumers respond to CSR communication. Importantly, the results indicate that discreet positioning is perceived similarly to uniform positioning, while misleading and unethical tactics such as CSR-washing are sure to backfire. Theoretical and managerial implications are discussed.

Online corporate social responsibility communication strategies and stakeholder engagements: A comparison of controversial versus noncontroversial industries

AbstractThis study attempts to reveal the corporate social responsibility (CSR) programming and communication strategies of companies from controversial versus noncontroversial industry sectors and stakeholders' responses to these online CSR communications. A content analysis of CSR videos from 58 companies among the Fortune 500 and user comments on YouTube found that controversial and noncontroversial industries tended to use different strategies in their online CSR communications. Videos that (a) used information strategies, (b) took a company‐dominant perspective, and (c) described high fit CSR programs received more negative and skeptical comments; CSR videos that (a) emphasized the companies' commitment to the programs, (b) demonstrated the impact of CSR programs with anecdotal evidences, and (c) balanced their stated CSR motives between social benefits and business interests received less negative and skeptical comments. Most importantly, stakeholders' responses towards these communication strategies differed by industry sectors.

CSR through social media: examining the intervening factors

PurposeThe purpose of this paper is to examine the casual role of consumers’ perceptions of brands’ corporate social responsibility (CSR) motives (self-serving vs society-serving) in influencing consumer–brand relationships. Further, the authors explore the roles of brand initiated CSR activities (e.g. CSR co-creation), social media characteristics (e.g. media richness) and consumer’s community identification in shaping the effect of perceived CSR motive on consumer–brand relationship.Design/methodology/approachA 2 (CSR motives: self-oriented vs society-oriented) × 2 (CSR co-creation: yes vs no) × 2 (media richness: high vs low) between-subjects experimental design is employed.FindingsThe results elucidate that when consumers perceive that CSR is for self-serving (vs society-serving) motive, allowing consumers to co-create CSR in a high media-rich virtual platform enhances consumer–brand relationship quality. In addition, the results also support that the interactions of perceived CSR motives, co-creation and media richness enhance consumer–brand relationship through the mediation of community identification.Originality/valueThe current study draws implications for effective CSR co-creation through rich social media platforms, so as to enhance consumer–brand relationship quality via creating community identification.

Corporate social responsibility and SMEs

PurposeThis paper aims to investigate corporate social responsibility (CSR) in small and medium-sized enterprises (SMEs) in transition and developed economies.Design/methodology/approachBuilding on social capital theory, the creating shared value approach and institutional theory, the authors study why and how six SMEs in the food sector implement CSR.FindingsThe authors show that CSR adoption by SMEs is motivated by company values and beliefs, relationships with the local community, a desire to abide by rules and regulations and business motives. They also show that SMEs are involved in various CSR-related activities such as respecting their employees, infusing CSR in the supply chain and philanthropy.Originality/valueThe findings suggest that although there are similarities between the CSR motives and activities of SMEs in developed and transition countries, there are also some differences, which can be explained by differences in institutions and related to the maturity of the CSR construct in each setting. The authors consequently call for a more holistic approach when investigating CSR across countries, in particular when such investigation concerns SMEs.

The effects of CSR communication in corporate crises: Examining the role of dispositional and situational CSR skepticism in context

Although consumer skepticism about corporate social responsibility (CSR) is on the rise, research is sparse on the psychological dynamics of this skepticism, particularly when CSR communication serves as a company’s crisis response strategy. Employing two between-subjects design experiments, this study aims to fill this gap by looking at the role consumer CSR skepticism plays in consumer reactions to CSR communications in different types of crises. The study 1 results show that dispositional CSR skepticism did not moderate the effect of crisis type on attitudes and intentions when CSR was used as a post-crisis response strategy. The study 2 findings, however, indicated that situational CSR skepticism significantly mediated the impact of crisis type and CSR motives on purchase intentions only when the crisis stemmed from some accidental rather than preventable circumstance. Theoretical and practical implications are discussed.

Are high-fit CSR programs always better? The effects of corporate reputation and CSR fit on stakeholder responses

PurposeThe purpose of this paper is to examine how corporate reputation interacts with corporate social responsibility (CSR) fit and affects stakeholders’ skeptical attribution (SA) of CSR motives, as well as their attitudes, supportive communication intent and purchase intent. This study proposes that a high-fit CSR program does not necessarily engender more favorable outcomes, nor does it stimulate SA. The study proposes the effects of CSR fit differ by corporate reputation. For bad-reputation companies, low-fit is anticipated to generate more desirable CSR outcomes than high-fit initiatives.Design/methodology/approachTwo experiments were conducted. The first experiment employed a randomized 2 (CSR fit: high fit vs low fit) × 2 (good reputation vs bad reputation) × 2 (Industry: food retailing and insurance) full factorial design to examine the suggested hypotheses. The second study employed a randomized 2 (CSR fit: high fit vs low fit) × 2 (good reputation vs bad reputation) full factorial design with consumer samples to replicate the conceptual relationships among variables in the first study.FindingsWhile reputation plays a dominant role in influencing stakeholders’ CSR-related responses across both CSR fit situations, a SA partially mediates the relationship between reputation and stakeholder reactions. CSR fit interacts with reputation, and influences the partial mediation process through SA; under a bad reputation condition, low-fit CSR engenders less SA and results in better stakeholder reactions. A similar tendency was found with supportive communication intent and purchase intent. High-fit CSR initiatives by a negative reputation company engendered the weakest supportive intent and purchase intent. For a reputable company, across both CSR fits, respondents displayed generally very positive attitudes toward, greater intent to support, and intent to purchase from the company.Originality/valueThe study findings provide useful and empirically supported logical explanations of why high-fit CSR programs sometimes cause backlash effects, despite the general consensus that such initiatives generate positive outcomes. This study offers an alternative and more relevant perspective to conceptualize the complexity of anticipating CSR outcomes.