Does corporate social responsibility reporting actually destroy firm reputation?

Abstract

Previous research on the effects on corporate social responsibility (CSR) is inconclusive and academics have increasingly discussed the credibility of CSR reporting. Our research analyses the influence of CSR reporting on corporate reputation by considering different scenarios based on companies' CSR consistency, which reflects the coherence between their CSR reporting and CSR commitment. Theoretically, CSR reporting initiatives could be perceived by stakeholders as a substantive or symbolic strategy. Our findings highlight that corporate reputation tends to be negatively affected by CSR reporting, which is generally identified by stakeholders as an impression management strategy (particularly gaining an ‘in accordance’ Global Reporting Initiative level and assurance), although the relationship between CSR reporting and corporate reputation depends on the CSR consistency of a firm. This evidence has direct implications for academics to refine theoretical frameworks as well as for companies and regulators to better understand the effects of CSR reporting.

Certified corporate social responsibility? The current state of certified and decertified B Corps

“…One potential barrier to the success of implementing CSR and communicating a company's effort is external stakeholders' perceived authenticity of the acts (Miras‐Rodríguez et al, 2020). Although consumers have high expectations for companies to be socially responsible, a study found that consumers were skeptical of CSR activities (Schröder & McEachern, 2005).…”

NGOs, corporate social responsibility and sustainable development trajectories in a new reformative spectrum: ‘New wine in old bottles or old wine in new bottles?’

“…Social accounting reporting (Tagesson et al, 2009) still deals with voluntary disclosure by organisations that pays considerable attention to aspects like the social and environmental well‐being of the community/ies for which they operate. There is therefore a need to choose the most suitable reporting tool to communicate social impact information (Bond & Morrison‐Saunders, 2011; Borgert et al, 2018; Calvo et al, 2020; Miras‐Rodríguez et al, 2020; Rozema et al, 2012; Sheate, 2012).…”

Credibility of environmental issues in non-financial mandatory disclosure: Measurement and determinants

“…According to legitimacy and stakeholder theories, disclosure is part of the dialog between companies and their stakeholders. Companies disclose CSR initiatives and performances with the aim of managing reputational risks (Michelon, 2011) and to achieve or increase their level of legitimacy (Dowling & Pfeffer, 1975;Lindblom, 2010): the type and scope of information can significantly influence the competitive advantage of a company and especially its credibility (Coombs, 1992;Hur et al, 2020;Seele & Lock, 2015;Sethi, 1975) and reputation (Miras-Rodríguez et al, 2020).…”