Gaining legitimation during environmental crises: an inquiry into the relationship between corporate social responsibility, reputation, and blame attribution

Purpose - Responsible management of water resources is critical owing to its effects on the environment and society. This study aims to address customer perceptions of a water utility during a severe environmental crisis that affected northern Italy and aims to deepen the understanding of the relationship between corporate social responsibility (CSR), perceived crisis response and corporate reputation. Design/methodology/approach - This study draws on legitimacy theory and attribution theory, adopting a quantitative design. In detail, a moderated mediation model is used to investigate the direct effect of CSR on reputation, the mediating effect of perceived crisis response on the relationship between CSR and reputation and the moderating effect of blame attribution on the relationship between CSR and perceived crisis response. In addition, the evolution of the crisis event and its management is traced through the analysis of the water utilities’ sustainability reports published since the beginning of the crisis. Findings - The findings show that CSR affects corporate reputation directly and via perceived crisis response. In addition, CSR improves perceived crisis response, especially when an organization is held responsible for a crisis. The analysis of the CSR report allows for understanding the evolution of CSR policies of water utilities, shifting attention from a merely informative role of sustainability disclosure to a more comprehensive approach to perfluoroalkyl substances risks in the struggle of contributing to sustainable development. Theoretical and managerial implications are also discussed. Practical implications - The findings suggest some managerial implications about the usefulness of adopting CSR for crisis management and, furthermore, the importance of communicating CSR policies to all stakeholders overall – the customers of public utilities. Originality/value - This paper focuses on the relationship between CSR, reputation and blame attribution. Literature on this topic is still scarce overall in the field of public utilities. Furthermore, this study is relevant because it faces one of the major European environmental crises that affected the water sector and provides helpful insights for all public utility sectors and, more generally, for environmental crisis management.