Political CSR and Populism: Toward an Information-Based Theory of Political CSR

Abstract

Extant research on political corporate social responsibility (PCSR) has not yet addressed how the populist turn impacts PCSR theory and practice. This conceptual article analyzes how populism influences PCSR across a range of political environments. We draw on signaling and screening theories to develop a conceptual model that advances PCSR literature by proposing an information-centric approach. We highlight the necessity of high-quality information as an enabling condition for effective PCSR-related decision-making, and our model explains how the depreciation of information transparency under populism impacts PCSR strategy. We thus contribute to PCSR literature with a new information-based theorization by showing how PCSR depends on the political environment and by enhancing our understanding of the role of the state in the development of PCSR strategies.

Social Challenges for Business in the Age of Populism

“…The gradual decline of corporatist forms of interest group representation, the marginalization of social dialogue, and a shift toward particularistic state-firm relations create a new context for businesses. As Zena Al-Esia et al (2023) show in this special issue, populism affects political CSR strategy in autocratic and hybrid systems more than in democratic regimes. In these contexts, corporations rely on populist state actors for policy information and either gradually or overtly align with populist agendas due to poor information quality.…”

“…Due to the degraded quality of information in these contexts, businesses become reliant on populist state actors for policyrelated information and gradually or completely align with populist agendas. In the latter scenario, populism could transform political CSR into a shortsighted and irresponsible approach, resulting in "unintended" (negative) consequences (Al-Esia et al, 2023).…”

“…By contrast, in the event of a misalignment, CSR may serve as a countermeasure against populist policies. However, in a populist political climate, the distortion of information frequently impairs businesses' capacity to identify value (mis)alignment, thereby impeding their ability to develop a response that is consistent with their values (Al-Esia et al, 2023). Indeed, they conclude that the lack of independent information sources within populist contexts poses a challenge to the private sector's capacity to gauge the true public sentiment accurately.…”

“…Indeed, they conclude that the lack of independent information sources within populist contexts poses a challenge to the private sector's capacity to gauge the true public sentiment accurately. Consequently, this situation often leads to the adoption of "comply" and "calibrate" CSR activities by private sector actors, which are likely to strengthen populist agendas (Al-Esia et al, 2023).…”