Does corporate social responsibility reporting actually destroy firm reputation?
Corresponding Author
María del Mar Miras-Rodríguez
Facultad de Turismo y Finanzas, Universidad de Sevilla, Sevilla, Spain
Correspondence
María del Mar Miras-Rodríguez, Universidad de Sevilla (Spain), Avd. Ramón y Cajal 1, 41018 Sevilla, Spain.
Email: mmiras@us.es
Search for more papers by this authorFrancisco Bravo-Urquiza
Facultad de Turismo y Finanzas, Universidad de Sevilla, Sevilla, Spain
Search for more papers by this authorBernabé Escobar-Pérez
Facultad de Turismo y Finanzas, Universidad de Sevilla, Sevilla, Spain
Search for more papers by this authorCorresponding Author
María del Mar Miras-Rodríguez
Facultad de Turismo y Finanzas, Universidad de Sevilla, Sevilla, Spain
Correspondence
María del Mar Miras-Rodríguez, Universidad de Sevilla (Spain), Avd. Ramón y Cajal 1, 41018 Sevilla, Spain.
Email: mmiras@us.es
Search for more papers by this authorFrancisco Bravo-Urquiza
Facultad de Turismo y Finanzas, Universidad de Sevilla, Sevilla, Spain
Search for more papers by this authorBernabé Escobar-Pérez
Facultad de Turismo y Finanzas, Universidad de Sevilla, Sevilla, Spain
Search for more papers by this authorFunding information: Ministerio de Economía y Competitividad. Plan Estatal 2013–2016 Retos – Proyectos I+D+i. ECO2015-69937-R; Facultad de Turismo y Finanzas. Universidad de Sevilla; Cátedra de Responsabilidad Social de la Universidad de Sevilla
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.
REFERENCES
- Adams, C. A. (2008). A commentary on: Corporate social responsibility reporting and reputation risk management. Accounting, Auditing & Accountability Journal, 21(3), 365–370. https://doi.org/10.1108/09513570810863950
10.1108/09513570810863950 Google Scholar
- Aguilera, R. V., Rupp, D. E., Williams, C. A., & Ganapathi, J. (2007). Putting the S back in corporate social responsibility: A multilevel theory of social change in organizations. Academy of Management Review, 32(3), 836–863. https://doi.org/10.2307/20159338
- Ali, R., Lynch, R., Melewar, T. C., & Jin, Z. (2015). The moderating influences on the relationship of corporate reputation with its antecedents and consequences: A meta-analytic review. Journal of Business Research, 68(5), 1105–1117. https://doi.org/10.1016/j.jbusres.2014.10.013
- Alon, A., & Vidovic, M. (2015). Sustainability performance and assurance: Influence on reputation. Corporate Reputation Review, 18(4), 337–352. https://doi.org/10.1057/crr.2015.17
- Alvesson, M., & Spicer, A. (2012). Critical leadership studies: The case for critical performativity. Human Relations, 65(3), 367–390. https://doi.org/10.1177/0018726711430555
- Amor-Esteban, V., Galindo-Villardón, M. P., & García-Sánchez, I. M. (2019). A multivariate proposal for a National Corporate Social Responsibility Practices Index (NCSRPI) for international settings. Social Indicators Research, 143(2), 525–560. https://doi.org/10.1007/s11205-018-1997-x
- Amujo, O. C., Laninhun, B. A., Otubanjo, O., & Ajala, V. O. (2012). Impact of corporate social irresponsibility on the corporate image and reputation of multinational oil corporations in Nigeria. In R. Tench, W. Sun, & B. Jones (Eds.), Critical studies on corporate responsibility, governance and sustainability: 263–293. Bingley, UK: Emerald Group Publishing Limited. https://doi.org/10.1108/S2043-9059(2012)0000004020
- Andalib Ardakani, D., & Soltanmohammadi, A. (2019). Investigating and analysing the factors affecting the development of sustainable supply chain model in the industrial sectors. Corporate Social Responsibility and Environmental Management, 26(1), 199–212. https://doi.org/10.1002/csr.1671
- Aqueveque, C., Rodrigo, P., & Duran, I. J. (2018). Be bad but (still) look good: Can controversial industries enhance corporate reputation through CSR initiatives? Business Ethics: A European Review, 27(3), 222–237 https://doi.org/10.1111/beer.12183
- Axjonow, A., Ernstberger, J., & Pott, C. (2018). The impact of corporate social responsibility disclosure on corporate reputation: A non-professional stakeholder perspective. Journal of Business Ethics, 151(2), 429–450. https://doi.org/10.1007/s10551-016-3225-4
- Bachmann, P., & Ingenhoff, D. (2016). Legitimacy through CSR disclosures? The advantage outweighs the disadvantages. Public Relations Review, 42(3), 386–394. https://doi.org/10.1016/j.pubrev.2016.02.008
- Baraibar-Diez, E., & Sotorrío, L. L. (2018). The mediating effect of transparency in the relationship between corporate social responsibility and corporate reputation. Revista Brasileira de Gestão de Negócios, 20(1), 5–21. https://doi.org/10.7819/rbgn.v20i1.3600
- Bebbington, J., Larrinaga, C., & Moneva, J. M. (2008). Corporate social reporting and reputation risk management. Accounting, Auditing & Accountability Journal, 21(3), 337–361. https://doi.org/10.1108/09513570810863932
10.1108/09513570810863932 Google Scholar
- Bernal-Conesa, J. A., de Nieves-Nieto, C., & Briones-Peñalver, A. J. (2017). CSR strategy in technology companies: Its influence on performance, competitiveness and sustainability. Corporate Social Responsibility and Environmental Management, 24(2), 96–107. https://doi.org/10.1002/csr.1393
- Birkey, R. N., Michelon, G., Patten, D. M., & Sankara, J. (2016). Does assurance on CSR reporting strategy enhance environmental reputation? An examination in the US context. Accounting Forum, 40(3), 143–152. https://doi.org/10.1016/j.accfor.2016.07.001
- Bonsón, E., & Bednárová, M. (2015). CSR reporting practices of Eurozone companies. Revista de Contabilidad, 18(2), 182–193. https://doi.org/10.1016/j.rcsar.2014.06.002
- Boulstridge, E., & Carrigan, M. (2000). Do consumers really care about corporate responsibility? Highlighting the attitude—Behaviour gap. Journal of Communication Management, 4(4), 355–368. https://doi.org/10.1108/eb023532
10.1108/eb023532 Google Scholar
- Brammer, S., & Millington, A. (2005). Corporate reputation and philanthropy: An empirical analysis. Journal of Business Ethics, 61(1), 29–44. https://doi.org/10.1007/s10551-005-7443-4
- Brammer, S., Millington, A., & Pavelin, S. (2009). Corporate reputation and women on the board. British Journal of Management, 20(1), 17–29. https://doi.org/10.1111/j.1467-8551.2008.00600.x
- Brammer, S., & Pavelin, S. (2006). Corporate reputation and social performance: The importance of fit. Journal of Management Studies, 43(3), 435–455. https://doi.org/10.1111/j.1467-6486.2006.00597.x
- Cai, Y., Jo, H., & Pan, C. (2012). Doing well while doing bad? CSR in controversial industry sectors. Journal of Business Ethics, 108(4), 467–480. https://doi.org/10.1007/s10551-011-1103-7
- Campbell, D., Craven, B., & Shrives, P. (2003). Voluntary social reporting in three FTSE sectors: A comment on perception and legitimacy. Accounting, Auditing & Accountability Journal, 16(4), 558–581. https://doi.org/10.1108/09513570310492308
10.1108/09513570310492308 Google Scholar
- Carnevale, C., & Mazzuca, M. (2014). Sustainability report and bank valuation: Evidence from European stock markets. Business Ethics: A European Review, 23(1), 69–90. https://doi.org/10.1111/beer.12038
- Chatterjee, S., & Hadi, A. S. (2012). Regression analysis by example ( 5th ed.). Hoboken, NJ: John Wiley & Sons.
- Cho, C. H., Guidry, R. P., Hageman, A. M., & Patten, D. M. (2012). Do actions speak louder than words? An empirical investigation of corporate environmental reputation. Accounting, Organizations and Society, 37(1), 14–25. https://doi.org/10.1016/j.aos.2011.12.001
- Cho, C. H., Michelon, G., Patten, D. M., & Roberts, R. W. (2014). CSR report assurance in the USA: An empirical investigation of determinants and effects. Sustainability Accounting, Management and Policy Journal, 5(2), 130–148. https://doi.org/10.1108/SAMPJ-01-2014-0003
10.1108/SAMPJ-01-2014-0003 Google Scholar
- Cho, C. H., & Patten, D. M. (2007). The role of environmental disclosures as tools of legitimacy: A research note. Accounting, Organizations and Society, 32(7–8), 639–647. https://doi.org/10.1016/j.aos.2006.09.009
- Clarkson, P. M., Li, Y., Richardson, G. D., & Vasvari, F. P. (2008). Revisiting the relation between environmental performance and environmental disclosure: An empirical analysis. Accounting, Organizations and Society, 33(4), 303–327. https://doi.org/10.1016/j.aos.2007.05.003
- Colleoni, E. (2013). CSR communication strategies for organizational legitimacy in social media. Corporate Communications: An International Journal, 18(2), 228–248. https://doi.org/10.1108/13563281311319508
10.1108/13563281311319508 Google Scholar
- Costa, R., & Menichini, T. (2013). A multidimensional approach for CSR assessment: The importance of the stakeholder perception. Expert Systems with Applications, 40(1), 150–161. https://doi.org/10.1016/j.eswa.2012.07.028
- Daddi, T., Iraldo, F., Testa, F., & De Giacomo, M. R. (2019). The influence of managerial satisfaction on corporate environmental performance and reputation. Business Strategy and the Environment, 28(1), 15–24. https://doi.org/10.1002/bse.2177
- Dangelico, R. M. (2015). Improving firm environmental performance and reputation: The role of employee green teams. Business Strategy and the Environment, 24(8), 735–749. https://doi.org/10.1002/bse.1842
- De Villiers, C., & Alexander, D. (2014). The institutionalization of corporate social responsibility reporting. The British Accounting Review, 46(2), 198–212. https://doi.org/10.1016/j.bar.2014.03.001
- Deegan, C. (2002). Introduction: The legitimising effect of social and environmental disclosures - A theoretical foundation. Accounting, Auditing & Accountability Journal, 15(3), 282–311. https://doi.org/10.1108/09513570210435852
10.1108/09513570210435852 Google Scholar
- Dell'Atti, S., Trotta, A., Iannuzzi, A. P., & Demaria, F. (2017). Corporate social responsibility engagement as a determinant of bank reputation: An empirical analysis. Corporate Social Responsibility and Environmental Management, 24(6), 589–605. https://doi.org/10.1002/csr.1430
- Delgado-García, J. B., Quevedo-Puente, D., & de la Fuente-Sabaté, J. M. (2010). The impact of ownership structure on corporate reputation: Evidence from Spain. Corporate Governance: An International Review, 18(6), 540–556. https://doi.org/10.1111/j.1467-8683.2010.00818.x
- Diouf, D., & Boiral, O. (2017). The quality of sustainability reports and impression management: A stakeholder perspective. Accounting, Auditing & Accountability Journal, 30(3), 643–667. https://doi.org/10.1108/AAAJ-04-2015-2044
- Du, S., Bhattacharya, C. B., & Sen, S. (2010). Maximizing business returns to corporate social responsibility (CSR): The role of CSR communication. International Journal of Management Reviews, 12(1), 8–19. https://doi.org/10.1111/j.1468-2370.2009.00276.x
- Ellen, P. S., Webb, D. J., & Mohr, L. A. (2006). Building corporate associations: Consumer attributions for corporate socially responsible programs. Journal of the Academy of Marketing Science, 34(2), 147–157. https://doi.org/10.1177/0092070305284976
- European Parliament and of the Council (2014). Directive 95/2014/EU about disclosure of non-financial and diversity information by certain large undertakings and groups. Retrieved from https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32014L0095
- Faul, F., Erdfelder, E., Buchner, A., & Lang, A. G. (2009). Statistical power analyses using G*Power 3.1: Tests for correlation and regression analyses. Behavior Research Methods, 41, 1149–1160. https://doi.org/10.3758/BRM.41.4.1149
- Freeman, R. E. (1984). Strategic management: A stakeholder approach. Boston, USA: Pitman.
10.1057/palgrave.crr.1540226 Google Scholar
- García-Sánchez, I. M., & Araújo-Bernardo, C. A. (2019). What colour is the corporate social responsibility report? Structural visual rhetoric, impression management strategies, and stakeholder engagement. Corporate Social Responsibility and Environmental Management, 27, 1117–1142. https://doi.org/10.1002/csr.1869
- Gómez-Mejía, L. R., & Balkin, D. B. (2002). Management. New York, NY: McGraw-Hill.
- GRI, Global Reporting Initiative. (2015). Sustainability and reporting trends in 2025: Preparing for the future. Amsterdam, The Netherlands: Global Reporting Initiative.
- Henseler, J. (2017). Bridging design and behavioral research with variance-based structural equation modeling. Journal of Advertising, 46(1), 178–192. https://doi.org/10.1080/00913367.2017.1281780
- Henseler, J., Hubona, G., & Ray, P. A. (2016). Using PLS path modeling in new technology research: Updated guidelines. Industrial Management & Data Systems, 116(1), 2–20. https://doi.org/10.1108/IMDS-09-2015-0382
- Hetze, K. (2016). Effects on the (CSR) reputation: CSR reporting discussed in the light of signalling and stakeholder perception theories. Corporate Reputation Review, 19(3), 281–296. https://doi.org/10.1057/s41299-016-0002-3
- Hooghiemstra, R. (2000). Corporate communication and impression management – New perspectives why companies engage in corporate social reporting. Journal of Business Ethics, 27(1–2), 55–68. https://doi.org/10.1023/A:1006400707757
- Hu, L. T., & Bentler, P. M. (1998). Fit indices in covariance structure modeling: Sensitivity to underparameterized model misspecification. Psychological Methods, 3(4), 424–453. https://doi.org/10.1037/1082-989X.3.4.424
- Hughey, C. J., & Sulkowski, A. J. (2012). More disclosure= better CSR reputation? An examination of CSR reputation leaders and laggards in the global oil & gas industry. Journal of Academy of Business and Economics, 12(2), 24–34.
- Ioannou, I., & Serafeim, G. (2012). What drives corporate social performance? The role of nation-level institutions. Journal of International Business Studies, 43(9), 834–864. https://doi.org/10.1057/jibs.2012.26
- Jabeen, F., & Faisal, M. N. (2018). Imperatives for improving entrepreneurial behaviour among females in the UAE. Gender in Management: An International Journal, 33(3), 234–252. https://doi.org/10.1108/GM-03-2016-0042
- Kim, Y. (2014). Strategic communication of corporate social responsibility (CSR): Effects of stated motives and corporate reputation on stakeholder responses. Public Relations Review, 40(5), 838–840. https://doi.org/10.1016/j.pubrev.2014.07.005
- Kim, S. (2019). The process model of corporate social responsibility (CSR) communication: CSR communication and its relationship with consumers' CSR knowledge, trust, and corporate reputation perception. Journal of Business Ethics, 154(4), 1143–1159. https://doi.org/10.1007/s10551-017-3433-6
- KPMG. (2013). KPMG survey of corporate responsibility reporting 2013. Amsterdam, The Netherlands: KPMG International Global Sustainability Services.
- KPMG. (2017). KPMG international survey of corporate responsibility reporting 2017. Amsterdam, The Netherlands: KPMG International Global Sustainability Services.
- Lee, S. Y. (2016). How can companies succeed in forming CSR reputation? Corporate Communications: An International Journal, 21(4), 435–449. https://doi.org/10.1108/CCIJ-01-2016-0009
- Liao, Z. (2019). Is environmental innovation conducive to corporate financing? The moderating role of advertising expenditures. Business Strategy and the Environment, 29, 954–961. https://doi.org/10.1002/bse.2409
- Lin-Hi, N., & Müller, K. (2013). The CSR bottom line: Preventing corporate social irresponsibility. Journal of Business Research, 66(10), 1928–1936. https://doi.org/10.1016/j.jbusres.2013.02.015
- Lu, Y., Abeysekera, I., & Cortese, C. (2015). Corporate social responsibility reporting quality, board characteristics and corporate social reputation: Evidence from China. Pacific Accounting Review, 27(1), 95–118. https://doi.org/10.1108/PAR-10-2012-0053
- Mahoney, L. S., Thorne, L., Cecil, L., & LaGore, W. (2013). A research note on standalone corporate social responsibility reports: Signaling or greenwashing? Critical Perspectives on Accounting, 24(4), 350–359. https://doi.org/10.1016/j.cpa.2012.09.008
- Melo, T., & Garrido, A. (2012). Corporate reputation: A combination of social responsibility and industry. Corporate Social Responsibility and Environmental Management, 19(1), 11–31. https://doi.org/10.1002/csr.260
- Merkl-Davies, D. M., & Brennan, N. M. (2011). A conceptual framework of impression management: New insights from psychology, sociology and critical perspectives. Accounting and Business Research, 41(5), 415–437. https://doi.org/10.1080/00014788.2011.574222
- Michelon, G. (2011). Sustainability disclosure and reputation: A comparative study. Corporate Reputation Review, 14(2), 79–96. https://doi.org/10.1057/crr.2011.10
10.1057/crr.2011.10 Google Scholar
- Michelon, G., Pilonato, S., & Ricceri, F. (2015). CSR reporting practices and the quality of disclosure: An empirical analysis. Critical Perspectives on Accounting, 33, 59–78. https://doi.org/10.1016/j.cpa.2014.10.003
- Michelon, G., Pilonato, S., Ricceri, F., & Roberts, R. W. (2016). Behind camouflaging: Traditional and innovative theoretical perspectives in social and environmental accounting research. Sustainability Accounting, Management and Policy Journal, 7(1), 2–25. https://doi.org/10.1108/SAMPJ-12-2015-0121
- Miras-Rodríguez, M. M., Carrasco-Gallego, A., & Escobar-Pérez, B. (2015). Has the CSR engagement of electrical companies had an effect on their performance? A closer look at the environment. Business Strategy and the Environment, 24(8), 819–835. https://doi.org/10.1002/bse.1848
- Moneva, J. M., Rivera-Lirio, J. M., & Muñoz-Torres, M. J. (2007). The corporate stakeholder commitment and social and financial performance. Industrial Management & Data Systems, 107(1), 84–102. https://doi.org/10.1108/02635570710719070
- Muñoz, M. J., Rivera, J. M., & Moneva, J. M. (2008). Evaluating sustainability in organisations with a fuzzy logic approach. Industrial Management & Data Systems, 108(6), 829–841. https://doi.org/10.1108/02635570810884030
- Neville, B. A., Bell, S. J., & Mengüç, B. (2005). Corporate reputation, stakeholders and the social performance-financial performance relationship. European Journal of Marketing, 39(9/10), 1184–1198. https://doi.org/10.1108/03090560510610798
- Nitzl, C. (2016). The use of partial least squares structural equation modelling (PLS-SEM) in management accounting research: Directions for future theory development. Journal of Accounting Literature, 37, 19–35. https://doi.org/10.1016/j.acclit.2016.09.003
- Odriozola, M. D., & Baraibar, E. (2017). Is corporate reputation associated with quality of CSR reporting strategy? Evidence from Spain. Corporate Social Responsibility and Environmental Management, 24(2), 121–132. https://doi.org/10.1002/csr.1399
- Othman, S., Darus, F., & Arshad, R. (2011). The influence of coercive isomorphism on corporate social responsibility reporting and reputation. Social Responsibility Journal, 7(1), 119–135. https://doi.org/10.1108/17471111111114585
10.1108/17471111111114585 Google Scholar
- Pérez, A. (2015). Corporate reputation and CSR reporting strategy to stakeholders: Gaps in the literature and future lines of research. Corporate Communications: An International Journal, 20(1), 11–29. https://doi.org/10.1108/CCIJ-01-2014-0003
- Pérez, A., Lopez, C., & García-De los Salmones, M. M. (2017). An empirical exploration of the link between reporting to stakeholders and corporate social responsibility reputation in the Spanish context. Accounting, Auditing & Accountability Journal, 30(3), 668–698. https://doi.org/10.1108/AAAJ-11-2013-1526
- Pérez-Cornejo, C., de Quevedo-Puente, E., & Delgado-García, J. B. (2019). Reporting as a booster of the corporate social performance effect on corporate reputation. Corporate Social Responsibility and Environmental Management. https://doi.org/10.1002/csr.1881
- Ponzi, L. J., Fombrun, C. J., & Gardberg, N. A. (2011). RepTrak™ pulse: Conceptualizing and validating a short-form measure of corporate reputation. Corporate Reputation Review, 14(1), 15–35. https://doi.org/10.1057/crr.2011.5
10.1057/crr.2011.5 Google Scholar
- Rajak, S., & Vinodh, S. (2015). Application of fuzzy logic for social sustainability performance evaluation: A case study of an Indian automotive component manufacturing organization. Journal of Cleaner Production, 108, 1184–1192. https://doi.org/10.1016/j.jclepro.2015.05.070
- Sarstedt, M., Hair, J. F., Ringle, C. M., Thiele, K. O., & Gudergan, S. P. (2016). Estimation issues with PLS and CBSEM: Where the bias lies! Journal of Business Research, 69(10), 3998–4010. https://doi.org/10.1016/j.jbusres.2016.06.007
- Schons, L., & Steinmeier, M. (2016). Walk the talk? How symbolic and substantive CSR actions affect firm performance depending on stakeholder proximity. Corporate Social Responsibility and Environmental Management, 23(6), 358–372. https://doi.org/10.1002/csr.1381
- Shabana, K. M., Buchholtz, A. K., & Carroll, A. B. (2017). The institutionalization of corporate social responsibility reporting. Business & Society, 56(8), 1107–1135. https://doi.org/10.1177/0007650316628177
- Shabana, K. M., & Ravlin, E. C. (2016). Corporate social responsibility reporting as substantive and symbolic behaviour: A multilevel theoretical analysis. Business and Society Review, 121(2), 297–327. https://doi.org/10.1111/basr.12089
- Sen, S., & Bhattacharya, C. B. (2001). Does doing good always lead to doing better? Consumer reactions to corporate social responsibility. Journal of Marketing Research, 38(2), 225–243. https://doi.org/10.1509/jmkr.38.2.225.18838
- Sierra, L., Zorio, A., & García-Benau, M. A. (2013). Sustainable development and assurance of corporate social responsibility reports published by IBEX-35 companies. Corporate Social Responsibility and Environmental Management, 20(6), 359–370. https://doi.org/10.1002/csr.1303
- Soleimani, A., Schneper, W. D., & Newburry, W. (2014). The impact of stakeholder power on corporate reputation: A cross-country corporate governance perspective. Organization Science, 25(4), 991–1008. https://doi.org/10.1287/orsc.2013.0889
- Vanhamme, J., & Grobben, B. (2009). “Too good to be true!”. The effectiveness of CSR history in countering negative publicity. Journal of Business Ethics, 85(2), 273. https://doi.org/10.1007/s10551-008-9731-2
- Vidaver-Cohen, D., & Brønn, P. S. (2015). Reputation, responsibility, and stakeholder support in Scandinavian firms: A comparative analysis. Journal of Business Ethics, 127(1), 49–64. https://doi.org/10.1007/s10551-013-1673-7
- Windsor, D. (2013). Corporate social responsibility and irresponsibility: A positive theory approach. Journal of Business Research, 66(10), 1937–1944. https://doi.org/10.1016/j.jbusres.2013.02.016
- Zou, H. L., Zeng, R. C., Zeng, S. X., & Shi, J. J. (2015). How do environmental violation events harm corporate reputation? Business Strategy and the Environment, 24(8), 836–854. https://doi.org/10.1002/bse.1849