Good neighbor or good employer?: A stakeholder view on CSR dimensions in reputation improvement

• Published in: Journal of global responsibility 2019-11, Vol.11 (1), p.93-110
• Main Authors: Tetrault Sirsly, Carol-Ann, Lvina, Elena, Ratiu, Catalin
• Format: Article
• Language: English
• Subjects: Dependency theory; Employees; Employers; Ethics; Individualized Instruction; Moral Issues; Reputation; Reputations; Resource Allocation; Social Action; Social responsibility; Stakeholders; Stockholders; Taxonomy
• ISSN: 2041-2568; 2041-2576
• DOI: 10.1108/JGR-03-2019-0033

PurposeThis 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/approachA longitudinal sample of 285 major US corporations was used to quantitatively test the hypotheses. Data was sourced from KLD, Osiris and Fortune MAC.FindingsStrengths 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/implicationsThis 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 implicationsManagement 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 implicationsAs organizations explore ways to effectively engage stakeholders for mutual benefit, this research shows how firms can have a positive impact.Originality/valueThis 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.