Does pressure-induced partnership really matter? Empirical modelling of stakeholder pressure and firms’ CSR attitude

Abstract

Purpose The purpose of this paper is to show whether pressure-induced partnerships do impact the link between stakeholder pressure and firms’ CSR attitude. The veracity that stakeholder pressure and firms social attitude issues have been extensively covered in three interrelated literature, namely, corporate social responsibility (CSR), partnership and stakeholder management, is widely recognised. However, to date, efforts to investigate conditions under which partnerships initiated through stakeholder pressures help to impact firms’ CSR attitudes either as per their request or in a more balanced way, have rarely been explored. Design/methodology/approach Empirically, this paper adopts quantitative research approach (hierarchical multiple regression) to build a case that pressure-induced partnership is one such key driver that shapes firms’ CSR attitude. Findings Study results show that firms’ CSR attitude can only add value if these activities and firm reputation are aligned with meaningful pressure-induced partnerships. Originality/value The study’s methodological approach (hierarchical multiple regression) stands tall in studies that explore drivers that shape firms’ CSR attitude. The paper concludes with theoretical and managerial implications for future studies.

Why can CSR seem like putting lipstick on a pig? Evaluating CSR authenticity by comparing practitioner and consumer perspectives

“…These data suggest that both consumers and practitioners distrust CSR programmes by organisations with poor reputations supporting and extending Manimegalai and Baral's (2018) findings that trust was a mediating role between CSR and job outcomes for employees to external stakeholders as well. This finding confirms previous research indicating when a company's CSR activities and their reputation were congruous, CSR leads to positive outcomes; however, where there was incongruity between reputation and CSR activities it led to higher levels of scepticism (Abraham et al, 2018;Erdiaw-Kwasie, 2018;Kim and Lee, 2015).…”

“…MHT can account for some of the challenging dialectics emerging from the positive and negative outcomes for CSR in recent years. Because social responsibility has become a social expectation in many industries, the absence of a specific CSR programme can lead to dissatisfaction with consumers (Cone, 2013;Lacey, et al, 2014), but the presence of a CSR programme may not necessarily create enough satisfaction to lead to the positive outcomes associated with it (Barnett, 2019;Erdiaw-Kwasie, 2018;Mohr, et al, 2001) and may even jeopardise the relationship between the organisation and its critical stakeholders (Abraham, et al, 2018). Yet both Mohr, et al (2001) and Lacey, et al (2014) argue there are fundamental gaps in our understanding of the relationships between social responsibility initiatives and consumer attitudes that cannot be accounted for with the traditional statistical data on consumer attitudes and behavioural intention with regard to CSR.…”

“…If a primary objective for CSR programmes is to help manage and improve the relationships between organisations and stakeholders, then it is logical to begin by asking what benefits and drawbacks a CSR programme might have on this relationship. The pressure for active CSR initiatives is ever increasing (Arikan and Güner, 2013;Erdiaw-Kwasie, 2018), and it is being driven from a multitude of sources, including consumers' interests, fiercer competition, fear of scrutiny in the media and a growing number of employees/ potential recruits wanting to be associated with a good company (Lacey et al, 2014;Manimegalai and Baral, 2018). However, just because an organisation has implemented a CSR programme or does CSR-related activities does not guarantee it will lead to positive outcomes (Einwiller and Carroll, 2020).…”

“…Lii and Lee's (2011) research also suggests that companies engaged in philanthropic activities were more successful at improving positive attitudinal and behavioural outcomes amongst their consumers than those organisations engaging in cause-related marketing and sponsorship activities. Therefore, organisations that have been the most successful with their CSR-related efforts have been the ones that demonstrate that social responsibility is an inherent part of their core business identity; that is, CSR is not merely some set of behaviours that represent the organisation being "nice", but are those that are viewed as central to achieving business objectives (Blowfield and Murray, 2011;Du et al, 2010;Einwiller and Carroll, 2020;Erdiaw-Kwasie, 2018). In part, the extant research on social responsibility suggests that CSR activities should be relevant to the work the business does but not appear driven by profit motivation to improve stakeholder identification with the organisation, loyalty and trust (Ahmad et al, 2020;Arevalo and Aravind, 2017;Mohr et al, 2001;Stanaland et al, 2011).…”

“…Although CSR initiatives are commonly adopted in organisations with the assumption these initiatives will generate positive stakeholder outcomes like creating value and appeal with stakeholders (Habib and Hasan, 2019;Morgeson et al, 2013), this objective is not without its challenges (Barnett, 2019;Blowfield and Murray, 2011;Erdiaw-Kwasie, 2018). Given that alternative and competing versions of an organisation's identity that may exist, stakeholders often question the sincerity of the CSR initiatives, viewing the actions as merely an effort to improve the company's reputation (Abraham et al, 2018;Ahmad et al, 2020;Cornellissen, 2014;Windsor, 2001).…”