Exploring how organizational performance feedback influences corporate social responsibility (CSR): the moderating role of LGBT inclusion

Abstract

PurposeCorporate social responsibility (CSR) captures organizational actions that account for economic, social and environmental performance. CSR is becoming increasingly relevant for organizations because of changing societal norms and attitudes. Prior research on CSR shows that socially responsible actions are beneficial for the firm and the society. However, much less is known about the antecedents of CSR. The authors suggest that CSR is a strategic organizational decision and use organizational performance feedback theory to explain how organizations decide on CSR activities.Design/methodology/approachUsing a longitudinal sample of 189 US public firms with 1,050 observations, the authors test how performance decreases below aspirations and performance increases above aspirations influence CSR. The authors also test for the moderation effect of LGBT inclusion on these relationships as a proxy for CSR consistency and stakeholder support.FindingsThe authors find that as organizational performance decreases further below aspirations, CSR increases and LGBT inclusion strengthens this increase. The authors also find that as performance increases above aspirations, organizations become more engaged in CSR, but LGBT inclusion does not moderate this relationship.Originality/valuePrior research recently started extending the performance feedback theory to CSR, but empirical findings on the relationships between performance feedback and CSR are seemingly inconclusive. Moreover, studies had primarily focused on performance below aspirations and to a much lesser extent on performance above aspirations. This study aims to better integrate organizational performance feedback theory to the CSR discourse.

Enhancing corporate social responsibility: the impact of consistency and organizational performance feedback

“…Additional research into these issues by Kotiloglu (2023) uses data from 189 publicly traded US firms. Data covered the period 2012–2020 and were obtained from relevant databases and indexes storing CSR-related information.…”

Beyond taste: examining sustainable value, perceived CSR and consumer behaviour in the restaurant industry

“…Consequently, Ahn and Kwon (2020) highlight the need for more work to maximise CSR effectiveness and positive consumer behaviour. Similarly, Kotiloglu (2023) calls for additional research into the antecedents of CSR.…”

“…Identifying potential influences on consumer behaviour is crucial to improving the customer–business relationships (Ahn and Kwon, 2020; Kotiloglu, 2023). Accordingly, in this study, the interrelationships between SVs, perceived CSR and customer behaviour in the restaurant industry are examined in order to address the following research questions: Do SVs influence CSR?…”