Buffering or Aggravating Effect? Examining the Effects of Prior Corporate Social Responsibility on Corporate Social Irresponsibility

Zhang, Zhe; Gong, Mijia; Zhang, Shanshan

doi:10.1007/s10551-022-05036-x

Cited by 15 publications

(9 citation statements)

References 68 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The difference was significant [F(1, 486) = 99.63 and p < 0.001], thereby supporting the effectiveness of our manipulation. Regarding the CSR manipulation, following prior research (Guiral et al , 2020; Zhang et al , 2022), we asked participants whether CSR performance was “above the industry average,” “about at the industry average” or “below the industry average.” A total of 97.4% of participants correctly answered this question. However, 2.6% (13) of the subjects gave the wrong answer and, thus, were removed from the analysis, yielding a final sample of 488 validated responses.…”

Section: Resultsmentioning

confidence: 99%

“…The possible reasons are listed as follows. First, we used self-reported scales to measure negative emotions in Study 1, which ineluctably suffer from subjective bias (Zhang et al , 2022). Although the participants may experience negative emotions when confronted with distributive injustice, they may overstate or understate their negative emotional state.…”

Section: Discussionmentioning

confidence: 99%

“…To increase the accuracy and objectivity of the experiment, we used the latest facial expression analysis technology (Noldus FaceReader 5.0) to measure the participant’s emotional states. This facial expression analysis technology had been widely used in prior research, and its effectiveness had been validated (Qiao et al , 2021; Jiang et al , 2019; Zhang et al , 2022). The video recordings were split into fragments every 0.3 s, and quantitative indicators of the probability of seven basic emotions (neutral, happy, sad, angry, surprised, scared and disgusted) were provided (Figure 3).…”

Section: Methodsmentioning

confidence: 99%

“…Afterward, participants were presented with descriptions related to the CSR evaluation of company A. We follow prior studies (Guiral et al , 2020; Zhang et al , 2022) to manipulate different levels of internal (external) CSR by varying specific CSR dimension cores and rankings provided by an external rating agency in China. In the high internal (external) CSR condition, participants read:…”

Section: Study 1: Vignette Studymentioning

confidence: 99%

See 3 more Smart Citations

How corporate social responsibility moderates the relationship between distributive unfairness and organizational revenge: a deontic justice perspective

Deng

Zhang²

2022

CMS

Self Cite

View full text Add to dashboard Cite

Purpose This paper aims to investigate the differential moderating effects of two types (internal/external) of corporate social responsibility (CSR) on the relationship between distributive injustice and organization-directed revenge through the mediating role of negative emotions. Design/methodology/approach This paper conducts two studies. Study 1 was a vignette study based on a sample of 501 part-time master of business administration students in China aimed at testing the moderating effects of different levels of internal (external) CSR. Study 2 involved a laboratory experiment in which 108 postgraduate students were recruited to scrutinize the contrasting moderating effects of different types of CSR (internal vs external) and test the underlying mechanisms of negative emotions. The latest facial expression analysis technology (FaceReader 5.0 software) was used to detect participants’ emotional state. Findings Study 1 demonstrates that internal CSR buffers the relationship between distributive injustice and organizational revenge behavior through negative emotions. However, the moderating effect of external CSR is not significant. Study 2 reveals that compared with external CSR, distributive injustice induces fewer negative emotions in the presence of internal CSR and the mediating role of negative emotions detected by the facial expression analysis software is also verified. Practical implications The authors hope that the findings of this paper can provide theoretical references for enterprise managers to enhance their employee governance, develop more effective intervention policies and formulate corresponding coping mechanisms to prevent and mitigate workplace revenge behaviors. Originality/value First, this paper enriches the literature on the relationship between injustice and organization revenge by introducing CSR as an employee governance tool. Second, this paper reconciles prior inconsistent findings about employee response to CSR in the occurrence of negative events by distinguishing between external and internal CSR and examining the differential moderating effects of two types of CSR. Such distinction is derived from the heterogeneous justice perceptions arising from different CSR actions. In addition, the authors measure participants’ negative emotions through a multi-method approach integrating the latest technology for facial expression analysis and the PANAS scale, which represents a method advancement and provides implications for measuring emotions.

show abstract

Section: Resultsmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Section: Study 1: Vignette Studymentioning

confidence: 99%

See 2 more Smart Citations

How corporate social responsibility moderates the relationship between distributive unfairness and organizational revenge: a deontic justice perspective

Deng

Zhang²

2022

CMS

Self Cite

View full text Add to dashboard Cite

show abstract

“…In line with Armstrong (1977), Lange and Washburn (2012) as well as Nardella et al (2023a, b) propose that CSI originates from the impartial observer's subjective evaluations towards corporate actions. In contrast, recent studies suggest that the determination of what constitutes irresponsible behavior should be made by interest groups, advocating for a stakeholder approach in defining CSI (Temouri et al, 2022;Zhang et al, 2023). The literature that adopts the stakeholder approach characterizes CSI as a set of corporate behaviors that detrimentally impact the legitimate rights and interests of recognized stakeholders (Hericher and Bridoux, 2023;Markoczy et al, 2023).…”

Section: Research Backgroundmentioning

confidence: 99%

Corporate social irresponsibility: a contingent social media crisis management perspective

Ma,

Xue

2023

View full text Add to dashboard Cite

PurposeToday's business world has been tarnished with numerous corporate irresponsible behaviors. It is thus of great importance for firms to carry out crisis management on the condition of corporate social irresponsibility (CSI). Taking a contingent social media crisis management perspective, the authors aim to investigate the relation between CSI and firm value while also examining the moderating effects of being known in social media and generalized favorability in social media on this relation.Design/methodology/approachThe empirical analysis conducted in the authors' research is based on a sample of 203 CSI events that occurred within publicly listed firms in China between 2011 and 2015. During the process of the authors' data collection, the authors initially verified the occurrence of CSI events in publicly listed firms by reviewing reports from reputable sources such as the 21st Century Business Herald and China Securities Journal. Subsequently, the authors collected the information pertaining to media coverage of these CSI events from the China Core Newspapers Full-text Database (CCND). Additionally, the authors obtained the remaining data from reliable sources such as Guba, the China Stock Market and Accounting Research Database (CSMAR) and the Chinese News Analytics Database (CNAD). To test the authors' hypotheses, the event study and multiple-regression analysis methods are adopted.FindingsThe authors find CSI generates a negative impact on firm value. Moreover, while being known in social media strengthens the negative relation between CSI and firm value, generalized favorability in social media weakens such relation.Research limitations/implicationsThere are two streams of limitations that present promising avenues for future studies. Theoretically, the authors explore the mechanisms of CSI affecting firm value from a contingent social media crisis management perspective. Consequently, the authors' study does not encompass other potential mechanisms that may exist in the CSI–firm value linkage. In terms of empirical analysis, three issues arise that provide opportunities for further investigation. First, the authors have not accounted for all potential factors that could influence the link between CSI and firm value. Second, the authors' data are subject to limitation since it comes from manual collection. At last, because the authors confirm the sample based on the actual CSI events of publicly listed firms in China, the authors' sample size is small.Originality/valueThe authors' findings contribute to a more comprehensive understanding of the relation between CSI and firm value, as well as effective strategies for responding to CSI through the utilization of social media. Consequently, the authors' results have the potential to stimulate further research on the implications of CSI and the management of corporate crises through social media platforms.

show abstract

Corporate hypocrisy and ESG rating divergence

He,

Chen,

Zhu

2024

Corp Soc Responsibility Env

View full text Add to dashboard Cite

We draw upon impression management theory and cognitive dissonance theory to examine whether or not corporate hypocrisy triggers substantial environmental, social, and governance (ESG) rating divergence and to further investigate the influence channels of cognitive dissonance and impression management. In addition, our study explores the moderating role of media coverage with different emotional biases in shaping the relationship between corporate hypocrisy and ESG rating divergence. By utilizing a comprehensive dataset comprising 3562 Chinese listed companies and 25,898 firm‐year observations from 2010 to 2022, findings reveal that hypocritical firms exhibit significantly large ESG rating divergence. In particular, these firms induce cognitive dissonance among rating agencies, resulting in rating disparities, which are further magnified when using impression management through the selective disclosure of negative information or symbolic promotion of positive information. Furthermore, positive media coverage weakens the positive association between corporate hypocrisy and ESG rating divergence, whereas negative media coverage strengthens this relationship. Lastly, we find that the impact of corporate hypocrisy on ESG rating divergence is more pronounced for companies with higher average ESG scores, lower long‐term charitable involvement, and lower information opacity. These findings withstand various sensitivity tests utilizing alternative measures for rating divergence and corporate hypocrisy, as well as different sample compositions. Our conclusions remain robust even after addressing endogeneity concerns using a two‐stage least squares regression model.

show abstract

Buffering or Aggravating Effect? Examining the Effects of Prior Corporate Social Responsibility on Corporate Social Irresponsibility

Cited by 15 publications

References 68 publications

How corporate social responsibility moderates the relationship between distributive unfairness and organizational revenge: a deontic justice perspective

How corporate social responsibility moderates the relationship between distributive unfairness and organizational revenge: a deontic justice perspective

Corporate social irresponsibility: a contingent social media crisis management perspective

Corporate hypocrisy and ESG rating divergence

Contact Info

Product

Resources

About