IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v129y2021icp838-848.html
   My bibliography  Save this article

The business case for CSR: A trump card against hypocrisy?

Author

Listed:
  • Hafenbrädl, Sebastian
  • Waeger, Daniel

Abstract

Why do many companies use a business case frame when referring to their Corporate Social Responsibility (CSR) activities? Two experiments (N = 1687) show that using a business case frame makes for a better impression management strategy than moral frames. By signaling that CSR activities are driven by instrumental reasons, and therefore not diagnostic of a company's moral character, a business case frame (and also a hybrid frame) suppresses accusations of hypocrisy. Consequently, when companies do not appear fully committed to CSR, using a business case frame makes them seem less hypocritical and elicits more favorable social evaluations, compared to using a moral frame. When companies appear committed to CSR, business case, hybrid and moral frames elicit similarly positive evaluations. These results support our theorizing that the rhetorical frames used when referring to CSR are not cheap talk, but constitute costly signals because they affect how companies are subsequently evaluated.

Suggested Citation

  • Hafenbrädl, Sebastian & Waeger, Daniel, 2021. "The business case for CSR: A trump card against hypocrisy?," Journal of Business Research, Elsevier, vol. 129(C), pages 838-848.
  • Handle: RePEc:eee:jbrese:v:129:y:2021:i:c:p:838-848
    DOI: 10.1016/j.jbusres.2019.08.043
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296319305132
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jbusres.2019.08.043?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Pascual Berrone & Andrea Fosfuri & Liliana Gelabert, 2017. "Does Greenwashing Pay Off? Understanding the Relationship Between Environmental Actions and Environmental Legitimacy," Journal of Business Ethics, Springer, vol. 144(2), pages 363-379, August.
    2. Donald D. Bergh & Brian L. Connelly & David J. Ketchen Jr & Lu M. Shannon, 2014. "Signalling Theory and Equilibrium in Strategic Management Research: An Assessment and a Research Agenda," Journal of Management Studies, Wiley Blackwell, vol. 51(8), pages 1334-1360, December.
    3. Jost, John T. & Blount, Sally & Pfeffer, Jeffrey & Hunyady, Gyorgy, 2003. "Fair Market Ideology: Its Cognitive-Motivational Underpinnings," Research Papers 1816, Stanford University, Graduate School of Business.
    4. Perks, Keith J. & Farache, Francisca & Shukla, Paurav & Berry, Aidan, 2013. "Communicating responsibility-practicing irresponsibility in CSR advertisements," Journal of Business Research, Elsevier, vol. 66(10), pages 1881-1888.
    5. Joseph Farrell & Matthew Rabin, 1996. "Cheap Talk," Journal of Economic Perspectives, American Economic Association, vol. 10(3), pages 103-118, Summer.
    6. Fabrizio Zerbini, 2017. "CSR Initiatives as Market Signals: A Review and Research Agenda," Journal of Business Ethics, Springer, vol. 146(1), pages 1-23, November.
    7. Janet Adams & Armen Tashchian & Ted Shore, 2001. "Codes of Ethics as Signals for Ethical Behavior," Journal of Business Ethics, Springer, vol. 29(3), pages 199-211, February.
    8. Tobias Hahn & Frank Figge & Jonatan Pinkse & Lutz Preuss, 2018. "A Paradox Perspective on Corporate Sustainability: Descriptive, Instrumental, and Normative Aspects," Journal of Business Ethics, Springer, vol. 148(2), pages 235-248, March.
    9. Uriel Haran, 2013. "A Person--Organization Discontinuity in Contract Perception: Why Corporations Can Get Away with Breaking Contracts But Individuals Cannot," Management Science, INFORMS, vol. 59(12), pages 2837-2853, December.
    10. C. Batson & Elizabeth Collins & Adam Powell, 2006. "‘Doing Business After the Fall: The Virtue of Moral Hypocrisy’," Journal of Business Ethics, Springer, vol. 66(4), pages 321-335, July.
    11. JP Vergne & Georg Wernicke & Steffen Brenner, 2018. "Signal Incongruence and Its Consequences: A Study of Media Disapproval and CEO Overcompensation," Organization Science, INFORMS, vol. 29(5), pages 796-817, October.
    12. Bolton, Lisa E. & Mattila, Anna S., 2015. "How Does Corporate Social Responsibility Affect Consumer Response to Service Failure in Buyer–Seller Relationships?," Journal of Retailing, Elsevier, vol. 91(1), pages 140-153.
    13. Rodolphe Durand & Deborah Philippe, 2011. "The impact of norm-conforming behaviors on firm reputation," Post-Print hal-00609203, HAL.
    14. McDonnell, Mary-Hunter & King, Brayden & Soule, Sarah A., 2015. "A Dynamic Process Model of Private Politics: Activist Targeting and Corporate Receptivity to Social Challenges," Research Papers 3319, Stanford University, Graduate School of Business.
    15. Peter Norberg, 2018. "Bankers Bashing Back: Amoral CSR Justifications," Journal of Business Ethics, Springer, vol. 147(2), pages 401-418, January.
    16. Ping-Sheng Koh & Cuili Qian & Heli Wang, 2014. "Firm litigation risk and the insurance value of corporate social performance," Strategic Management Journal, Wiley Blackwell, vol. 35(10), pages 1464-1482, October.
    17. Keith Weigelt & Colin Camerer, 1988. "Reputation and corporate strategy: A review of recent theory and applications," Strategic Management Journal, Wiley Blackwell, vol. 9(5), pages 443-454, September.
    18. Paolo Antonetti & Stan Maklan, 2016. "An Extended Model of Moral Outrage at Corporate Social Irresponsibility," Journal of Business Ethics, Springer, vol. 135(3), pages 429-444, May.
    19. Norbert Steigenberger & Hendrik Wilhelm, 2018. "Extending Signaling Theory to Rhetorical Signals: Evidence from Crowdfunding," Organization Science, INFORMS, vol. 29(3), pages 529-546, June.
    20. Jean-Pascal Gond & Assâad El Akremi & Valérie Swaen & Nishat Babu, 2017. "The psychological microfoundations of corporate social responsibility: A person-centric systematic review," Post-Print halshs-01698534, HAL.
    21. Baskentli, Sara & Sen, Sankar & Du, Shuili & Bhattacharya, C.B., 2019. "Consumer reactions to corporate social responsibility: The role of CSR domains," Journal of Business Research, Elsevier, vol. 95(C), pages 502-513.
    22. Effron, Daniel A. & Lucas, Brian J. & O’Connor, Kieran, 2015. "Hypocrisy by association: When organizational membership increases condemnation for wrongdoing," Organizational Behavior and Human Decision Processes, Elsevier, vol. 130(C), pages 147-159.
    23. Melanie Richards & Thomas Zellweger & Jean-Pascal Gond, 2017. "Maintaining Moral Legitimacy through Worlds and Words: An Explanation of Firms' Investment in Sustainability Certification," Journal of Management Studies, Wiley Blackwell, vol. 54(5), pages 676-710, July.
    24. Michael Spence, 1973. "Job Market Signaling," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 87(3), pages 355-374.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Prasad, Krishna & Kumar, Satish & Devji, Shridev & Lim, Weng Marc & Prabhu, Nandan & Moodbidri, Sudhir, 2022. "Corporate social responsibility and cost of capital: The moderating role of policy intervention," Research in International Business and Finance, Elsevier, vol. 60(C).
    2. Lei Huang, 2023. "A moderation of business misdeeds on corporate remedy strategies," Journal of Marketing Analytics, Palgrave Macmillan, vol. 11(1), pages 21-31, March.
    3. Junyu Liu & Yuan Gao & Yuping Wang & Changhua Shao, 2024. "Corporate Social Responsibility and Investor Relations Management: Evidence from China," Sustainability, MDPI, vol. 16(15), pages 1-25, July.
    4. Kerstin Lopatta & Thomas Kaspereit & Sebastian A. Tideman & Anna R. Rudolf, 2022. "The moderating role of CEO sustainability reporting style in the relationship between sustainability performance, sustainability reporting, and cost of equity," Journal of Business Economics, Springer, vol. 92(3), pages 429-465, April.
    5. Geradts, Thijs H.J. & Alt, Elisa, 2022. "Social entrepreneurial action in established organizations: Developing the concept of social intrapreneurship," Journal of Business Research, Elsevier, vol. 151(C), pages 197-206.
    6. Diego Arias & Xabier Barriola & Cristian R. Loza Adaui, 2024. "Corporate purpose and early disaster response: Providing evidence of dynamic materiality?," Business Strategy and the Environment, Wiley Blackwell, vol. 33(5), pages 4598-4612, July.
    7. Yiming Wang & Yuhua Xie & Mingwei Liu & Yongxing Guo & Duojun He, 2024. "Silent Majority: How Employees’ Perceptions of Corporate Hypocrisy are Related to their Silence," Journal of Business Ethics, Springer, vol. 195(2), pages 315-334, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Francisco Javier Forcadell & Antonio Lorena & Elisa Aracil, 2023. "The firm under the spotlight: How stakeholder scrutiny shapes corporate social responsibility and its influence on performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(3), pages 1258-1272, May.
    2. Lianidou, Theano & Zhu, Di, 2023. "Corporate social purpose statements and employee perceptions about the CEO and the corporation: A large sample natural experiment," Journal of Business Research, Elsevier, vol. 169(C).
    3. Ding Wang & Jiang Wei & Niels Noorderhaven & Yang Liu, 2023. "Signaling Effects of CSR Performance on Cross-border Alliance Formation," Journal of Business Ethics, Springer, vol. 186(4), pages 831-850, September.
    4. Wang, Ding & Wei, Jiang & Noorderhaven, Niels & Liu, Yang, 2023. "Signaling effects of CSR performance on cross-border alliance formation," Other publications TiSEM 8216bc26-81cb-4d2a-b81a-4, Tilburg University, School of Economics and Management.
    5. Norbert Steigenberger & Hendrik Wilhelm, 2018. "Extending Signaling Theory to Rhetorical Signals: Evidence from Crowdfunding," Organization Science, INFORMS, vol. 29(3), pages 529-546, June.
    6. François Maon & Valérie Swaen & Kenneth de Roeck, 2021. "Coporate branding and corporate social responsibility: Toward a multi-stakeholder interpretive perspective," Post-Print hal-03275858, HAL.
    7. Maurer, Joshua D. & Creek, Steven A. & Allison, Thomas H. & Bendickson, Joshua S. & Sahaym, Arvin, 2023. "Affiliation rhetoric and digital orientation in crowdfunding appeals," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    8. Michael E. Cummings & Hans Rawhouser & Silvio Vismara & Erin L. Hamilton, 2020. "An equity crowdfunding research agenda: evidence from stakeholder participation in the rulemaking process," Small Business Economics, Springer, vol. 54(4), pages 907-932, April.
    9. Annika Veh & Markus Göbel & Rick Vogel, 2019. "Corporate reputation in management research: a review of the literature and assessment of the concept," Business Research, Springer;German Academic Association for Business Research, vol. 12(2), pages 315-353, December.
    10. Domenico Sardanelli & Francesca Conte & Agostino Vollero & Alfonso Siano, 2021. "CSR signals: exploring their use in controversial industries," Italian Journal of Marketing, Springer, vol. 2021(3), pages 249-266, September.
    11. Zhong, Xi & Chen, Weihong & Ren, Ge, 2022. "The impact of corporate social irresponsibility on emerging-economy firms’ long-term performance: An explanation based on signal theory," Journal of Business Research, Elsevier, vol. 144(C), pages 345-357.
    12. Ibrahim Alnawas & Nabil Ghantous & Jane Hemsley-Brown, 2023. "Can CSR foster brand defense? A moderated-mediation model of the role of brand passion," Journal of Brand Management, Palgrave Macmillan, vol. 30(3), pages 190-206, May.
    13. Fabrizio Zerbini, 2017. "CSR Initiatives as Market Signals: A Review and Research Agenda," Journal of Business Ethics, Springer, vol. 146(1), pages 1-23, November.
    14. Keith J. Kelley & Marcelo J. Alvarado-Vargas, 2020. "IT Signal Generation and Management Capabilities’ Effect on Corporate Reputation: A Typological Approach to Strategic Positioning in a Digital World," Corporate Reputation Review, Palgrave Macmillan, vol. 23(3), pages 145-159, August.
    15. Arthur S. Jago & Nathanael Fast & Jeffrey Pfeffer, 2022. "Losing More than Money: Organizations’ Prosocial Actions Appear Less Authentic When Their Resources are Declining," Journal of Business Ethics, Springer, vol. 175(2), pages 413-425, January.
    16. Laura Pütz & Sabrina Schell & Arndt Werner, 2023. "Openness to knowledge: does corporate social responsibility mediate the relationship between familiness and absorptive capacity?," Small Business Economics, Springer, vol. 60(4), pages 1449-1482, April.
    17. Simon Kleinert, 2024. "The Promise of New Ventures’ Growth Ambitions in Early-Stage Funding: On the Crossroads between Cheap Talk and Credible Signals," Entrepreneurship Theory and Practice, , vol. 48(1), pages 274-309, January.
    18. Janssen, Catherine & Swaen, Valérie & Du, Shuili, 2022. "Is a specific claim always better? The double-edged effects of claim specificity in green advertising," Journal of Business Research, Elsevier, vol. 151(C), pages 435-447.
    19. Daniel Blaseg & Lars Hornuf, 2024. "Playing the Business Angel: The Impact of Well-Known Business Angels on Venture Performance," Entrepreneurship Theory and Practice, , vol. 48(1), pages 171-204, January.
    20. Edelman, Linda F. & Manolova, Tatiana S. & Brush, Candida G. & Chow, Clifton M., 2021. "Signal configurations: Exploring set-theoretic relationships in angel investing," Journal of Business Venturing, Elsevier, vol. 36(2).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:129:y:2021:i:c:p:838-848. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.