Good neighbor or good employer?: A stakeholder view on CSR dimensions in reputation improvement. Issue 1 (2nd December 2019)

• Record Type: Journal Article
• Authors: Tetrault Sirsly, Carol-Ann; Lvina, Elena; Ratiu, Catalin
• Is Part Of: Journal of global responsibility. Volume 11:Issue 1(2020)
• Page Start: 93
• Page End: 110
• Publication Date: 2019-12-02
• Subjects: Corporate reputation -- Corporate social responsibility -- Latent growth modelling; Social responsibility of business -- Periodicals; Social entrepreneurship -- Periodicals; Ethics -- Periodicals; 658.40805
• DOI: 10.1108/JGR-03-2019-0033
• Languages: English
• ISSNs: 2041-2568

Abstract

Abstract : Purpose: This study aims to test Mattingly and Berman's (2006) taxonomy of social actions and develops divergent expectations for corporate social responsibility (CSR) dimensions directed toward institutional and technical stakeholders, with an aim to determine when CSR directed to different stakeholders is most likely to improve corporate reputation. Design/methodology/approach: A longitudinal sample of 285 major US corporations was used to quantitatively test the hypotheses. Data was sourced from KLD, Osiris and Fortune MAC. Findings: Strengths in CSR and actions directed toward technical stakeholders influence corporate reputation in a more profound way, when compared to those directed toward institutional stakeholders. Contrary to the authors' prediction, institutional concerns do not demonstrate a significant growth or reduction over the five-year period. Research limitations/implications: This study provides a longitudinal test of Mattingly and Berman's (2006) taxonomy of CSR actions and makes an important methodological contribution by operationalizing CSR not as a continuum from strengths to concerns, rather as two distinct constructs. Practical implications: Management practice can benefit from a more fine-grained approach to stakeholder expectations and reputation outcomes. The results of this study leverage relevant stakeholder impact while allowing firms to appreciate the change in CSR actions and to measure it accordingly, such that the undesirable status quo that leads to potential loss in reputation growth can be avoided. Social implications: As organizations explore ways to effectively engage stakeholders for mutual benefit, this research shows how firms can have a positive impact. Originality/value: This study tests and extends theory through an integrated lens, built on the stakeholder and resource dependence theories, while directing management attention to the broader reputational outcomes of targeted CSR initiatives. It provides justification for CSR investments over time.