IDEAS home Printed from https://ideas.repec.org/a/pal/crepre/v27y2024i1d10.1057_s41299-023-00158-y.html
   My bibliography  Save this article

Calls to Action: The Dangers of Negative CSR Information and Stakeholder Punishments

Author

Listed:
  • Lisa D. Lewin

    (SUNY Old Westbury)

  • Danielle E. Warren

    (Rutgers, The State University of NJ)

Abstract

The purpose of this paper is to experimentally examine stakeholder punishments in response to poor CSR performance communicated through either internal or external channels. Across two experiments, we find that receiving negative CSR information communicated through internal channels (CSR reports) or external channels (news articles) causes individuals to punish a firm (less investment, lower employment interest, buy less, post negative comments on social media). Furthermore, we find sensitivity to a conflict of information from internal and external channels, which increased Calls to Action on social media. This is a concern for firms because such social media posts can elicit further punishments from stakeholders and inflict reputational costs on the firm. The findings of our studies suggest that firms should accurately report CSR performance, especially if external channels are likely to communicate negative CSR information regarding the firm because such conflicting information can elicit a strong online backlash.

Suggested Citation

  • Lisa D. Lewin & Danielle E. Warren, 2024. "Calls to Action: The Dangers of Negative CSR Information and Stakeholder Punishments," Corporate Reputation Review, Palgrave Macmillan, vol. 27(1), pages 1-17, February.
    • Handle: RePEc:pal:crepre:v:27:y:2024:i:1:d:10.1057_s41299-023-00158-y
    DOI: 10.1057/s41299-023-00158-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41299-023-00158-y
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1057/s41299-023-00158-y?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. Sweetin, Vernon H. & Knowles, Lynette L. & Summey, John H. & McQueen, Kand S., 2013. "Willingness-to-punish the corporate brand for corporate social irresponsibility," Journal of Business Research, Elsevier, vol. 66(10), pages 1822-1830.
    2. Rong-Tsu Wang, 2013. "Modeling Corporate Social Performance and Job Pursuit Intention: Mediating Mechanisms of Corporate Reputation and Job Advancement Prospects," Journal of Business Ethics, Springer, vol. 117(3), pages 569-582, October.
    3. Abdifatah Ahmed Haji & Paul Coram & Indrit Troshani, 2021. "Effects of integrating CSR information in financial reports on investors’ firm value estimates," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(2), pages 3605-3647, June.
    4. Paolo Perego & Ans Kolk, 2012. "Multinationals’ Accountability on Sustainability: The Evolution of Third-party Assurance of Sustainability Reports," Journal of Business Ethics, Springer, vol. 110(2), pages 173-190, October.
    5. Yoon, Eunsang & Guffey, Hugh J. & Kijewski, Valerie, 1993. "The effects of information and company reputation on intentions to buy a business service," Journal of Business Research, Elsevier, vol. 27(3), pages 215-228, July.
    6. Maria Besiou & Mark Hunter & Luk Wassenhove, 2013. "A Web of Watchdogs: Stakeholder Media Networks and Agenda-Setting in Response to Corporate Initiatives," Journal of Business Ethics, Springer, vol. 118(4), pages 709-729, December.
    7. Jie Shen & Hongru Zhang, 2019. "Socially Responsible Human Resource Management and Employee Support for External CSR: Roles of Organizational CSR Climate and Perceived CSR Directed Toward Employees," Journal of Business Ethics, Springer, vol. 156(3), pages 875-888, May.
    8. Guido Berens & Cees Riel & Johan Rekom, 2007. "The CSR-Quality Trade-Off: When can Corporate Social Responsibility and Corporate Ability Compensate Each Other?," Journal of Business Ethics, Springer, vol. 74(3), pages 233-252, September.
    9. Mummolo, Jonathan & Peterson, Erik, 2019. "Demand Effects in Survey Experiments: An Empirical Assessment," American Political Science Review, Cambridge University Press, vol. 113(2), pages 517-529, May.
    10. R. Berry & F. Yeung, 2013. "Are Investors Willing to Sacrifice Cash for Morality?," Journal of Business Ethics, Springer, vol. 117(3), pages 477-492, October.
    11. Glavas, Ante & Kelley, Ken, 2014. "The Effects of Perceived Corporate Social Responsibility on Employee Attitudes," Business Ethics Quarterly, Cambridge University Press, vol. 24(2), pages 165-202, April.
    12. Alan Pomering & Sara Dolnicar, 2009. "Assessing the Prerequisite of Successful CSR Implementation: Are Consumers Aware of CSR Initiatives?," Journal of Business Ethics, Springer, vol. 85(2), pages 285-301, April.
    13. Katherina Glac, 2009. "Understanding Socially Responsible Investing: The Effect of Decision Frames and Trade-off Options," Journal of Business Ethics, Springer, vol. 87(1), pages 41-55, April.
    14. Wagner, Tillmann & Korschun, Daniel & Troebs, Cord-Christian, 2020. "Deconstructing corporate hypocrisy: A delineation of its behavioral, moral, and attributional facets," Journal of Business Research, Elsevier, vol. 114(C), pages 385-394.
    15. Robert Caruana & Andreas Chatzidakis, 2014. "Consumer Social Responsibility (CnSR): Toward a Multi-Level, Multi-Agent Conceptualization of the “Other CSR”," Journal of Business Ethics, Springer, vol. 121(4), pages 577-592, June.
    16. James C. Ward & Amy L. Ostrom, 2006. "Complaining to the Masses: The Role of Protest Framing in Customer-Created Complaint Web Sites," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 33(2), pages 220-230, July.
    17. Saheli Nath, 2021. "The Business of Virtue: Evidence from Socially Responsible Investing in Financial Markets," Journal of Business Ethics, Springer, vol. 169(1), pages 181-199, February.
    18. Dean Neu & Gregory Saxton & Jeffery Everett & Abu Rahaman Shiraz, 2020. "Speaking Truth to Power: Twitter Reactions to the Panama Papers," Journal of Business Ethics, Springer, vol. 162(2), pages 473-485, March.
    19. David Eberle & Guido Berens & Ting Li, 2013. "The Impact of Interactive Corporate Social Responsibility Communication on Corporate Reputation," Journal of Business Ethics, Springer, vol. 118(4), pages 731-746, December.
    20. Henri Kuokkanen & William Sun, 2020. "Companies, Meet Ethical Consumers: Strategic CSR Management to Impact Consumer Choice," Journal of Business Ethics, Springer, vol. 166(2), pages 403-423, October.
    21. Bob Fennis & Wolfgang Stroebe, 2014. "Softening the Blow: Company Self-Disclosure of Negative Information Lessens Damaging Effects on Consumer Judgment and Decision Making," Journal of Business Ethics, Springer, vol. 120(1), pages 109-120, March.
    Full references (including those not matched with items on IDEAS)

    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. Percy Marquina & Vincent Charles, 2021. "A Bayesian resampling approach to estimate the difference in effect sizes in consumer social responses to CSR initiatives versus corporate abilities," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(6), pages 1680-1699, November.
    2. Kevin Money & Anastasiya Saraeva & Irene Garnelo-Gomez & Stephen Pain & Carola Hillenbrand, 2017. "Corporate Reputation Past and Future: A Review and Integration of Existing Literature and a Framework for Future Research," Corporate Reputation Review, Palgrave Macmillan, vol. 20(3), pages 193-211, November.
    3. Vanwalleghem, Dieter & Mirowska, Agata, 2020. "The investor that could and would: The effect of proactive personality on sustainable investment choice," Journal of Behavioral and Experimental Finance, Elsevier, vol. 26(C).
    4. Scheidler, Sabrina & Edinger-Schons, Laura Marie, 2020. "Partners in crime? The impact of consumers' culpability for corporate social irresponsibility on their boycott attitude," Journal of Business Research, Elsevier, vol. 109(C), pages 607-620.
    5. Breitsohl, Jan & Garrod, Brian, 2016. "Assessing tourists' cognitive, emotional and behavioural reactions to an unethical destination incident," Tourism Management, Elsevier, vol. 54(C), pages 209-220.
    6. Karikari Timothy Kwakye & Shimin Liu, 2024. "The Effect of Philanthropic Corporate Social Responsibility on Local CSR Awareness: Examining the Role of Corporate Transparency in Ghana," International Journal of Science and Business, IJSAB International, vol. 33(1), pages 105-122.
    7. Mobin Fatma & Zillur Rahman, 2016. "Consumer responses to CSR in Indian banking sector," International Review on Public and Nonprofit Marketing, Springer;International Association of Public and Non-Profit Marketing, vol. 13(3), pages 203-222, October.
    8. Orhan Akisik & Graham Gal, 2014. "Financial performance and reviews of corporate social responsibility reports," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 25(3), pages 259-288, December.
    9. Victoria-Sophie Osburg & Vignesh Yoganathan & Boris Bartikowski & Hongfei Liu & Micha Strack, 2020. "Effects of Ethical Certification and Ethical eWoM on Talent Attraction," Journal of Business Ethics, Springer, vol. 164(3), pages 535-548, July.
    10. Omer Irshad & Sohail Ahmad & Shahid Mahmood, 2024. "Fostering Purchase Intentions Through CSR and Service Quality: The Role of Customer Satisfaction, Brand Loyalty, and Admiration," Sustainability, MDPI, vol. 16(23), pages 1-19, December.
    11. Sabeen Hussain Bhatti & Kamran Iqbal & Gabriele Santoro & Fabio Rizzato, 2022. "The impact of corporate social responsibility directed toward employees on contextual performance in the banking sector: A serial model of perceived organizational support and affective organizational," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(6), pages 1980-1994, November.
    12. Dirk C. Moosmayer & Yanyan Chen & Susannah M. Davis, 2019. "Deeds Not Words: A Cosmopolitan Perspective on the Influences of Corporate Sustainability and NGO Engagement on the Adoption of Sustainable Products in China," Journal of Business Ethics, Springer, vol. 158(1), pages 135-154, August.
    13. Maria del García-de los Salmones & Angel Herrero & Patricia Martínez, 2021. "Determinants of Electronic Word-of-Mouth on Social Networking Sites About Negative News on CSR," Journal of Business Ethics, Springer, vol. 171(3), pages 583-597, July.
    14. Francisco Javier Forcadell & Elisa Aracil, 2017. "European Banks' Reputation for Corporate Social Responsibility," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 24(1), pages 1-14, January.
    15. Byung‐Jik Kim & Nayoung Jeon & Harim Sohn & Nahee Lee & Min‐Jik Kim, 2024. "The impact of corporate social responsibility on employee burnout: The crucial role of work overload," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(5), pages 4345-4360, September.
    16. Alejandro Alvarado-Herrera & Enrique Bigne & Joaquín Aldas-Manzano & Rafael Curras-Perez, 2017. "A Scale for Measuring Consumer Perceptions of Corporate Social Responsibility Following the Sustainable Development Paradigm," Journal of Business Ethics, Springer, vol. 140(2), pages 243-262, January.
    17. Fombelle, Paul W. & Voorhees, Clay M. & Jenkins, Mason R. & Sidaoui, Karim & Benoit, Sabine & Gruber, Thorsten & Gustafsson, Anders & Abosag, Ibrahim, 2020. "Customer deviance: A framework, prevention strategies, and opportunities for future research," Journal of Business Research, Elsevier, vol. 116(C), pages 387-400.
    18. Oana Branzei & Jeff Frooman & Brent Mcknight & Charlene Zietsma, 2018. "What Good Does Doing Good do? The Effect of Bond Rating Analysts’ Corporate Bias on Investor Reactions to Changes in Social Responsibility," Journal of Business Ethics, Springer, vol. 148(1), pages 183-203, March.
    19. Tahniyath Fatima & Said Elbanna, 2023. "Corporate Social Responsibility (CSR) Implementation: A Review and a Research Agenda Towards an Integrative Framework," Journal of Business Ethics, Springer, vol. 183(1), pages 105-121, February.
    20. Fatma, Mobin & Rahman, Zillur, 2016. "The CSR's influence on customer responses in Indian banking sector," Journal of Retailing and Consumer Services, Elsevier, vol. 29(C), pages 49-57.

    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:pal:crepre:v:27:y:2024:i:1:d:10.1057_s41299-023-00158-y. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    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.