How do stakeholders react to Corporate Social Irresponsibility (CSiR)? What are the emotional mechanisms and behavioral outcomes following CSiR perception? The psychology of CSR literature has yet to address these important questions and has largely considered CSR and CSiR as the opposite poles of the same continuum. In contrast, we view CSR and CSiR as distinct constructs and theorize about the cognitive (perceptual), emotional, and behavioral effects of CSiR activity on observers (i.e., primary and secondary stakeholders) building on theories of intergroup perception. Specifically, building on the Stereotype Content Model (SCM; Fiske et al., 2002) and the BIAS map (i.e., Behaviors from Intergroup Affect and Stereotypes; Cuddy et al., 2007)—which extends the SCM by predicting behavioral responses—we make predictions on potential stakeholder reactions to CSiR focusing on two practice-relevant cases: (a) a typical for-profit firm that engages in a CSiR activity, (b) an atypical admired firm that engages in CSiR activity.

authority, organizational corruption, opportunity, motivation, justification, political corruption, bureaucratic corruption,

It would seem, on the surface, logical that entrepreneurs would treat stakeholders with honesty and respect. However, this is not always the case-at times, entrepreneurs lie to stakeholders in order to take a step closer to achieving legitimacy. It is these legitimacy lies that are the focus of the current work. Overall, while we know that legitimacy lies are told, we know very little about the psychological processes at work that may make it more likely for someone to tell a legitimacy lie. Thus, we theorize about the pressure to pursue legitimacy, the situational and individual factors that affect this pursuit, as well as how this context can lead to moral disengagement and the telling of legitimacy lies. Our theorizing advances the existing literature and provides a dynamic framework by which future research can delve more deeply into the nuanced context that breeds the escalation of legitimacy lies.