The Effect of CSR Attributes on CSR Authenticity: Focusing on Mediating Effects of Digital Transformation

Abstract

What corporate social responsibility (CSR) attributes determine the CSR authenticity of a company? In the face of the Fourth Industrial Revolution, what direction should the CSR strategy pursue? In the electronics industries in Korea and China, are there any differences in CSR attributes? In this study, we start with some of these basic questions. Considering the promotional and actual costs incurred from CSR activities, CSR strategy are not an issue that can be easily determined from the corporate perspective. However, now it is essential for companies to carry out CSR and sustainable development goals (SDGs) activities, and businesses cannot overlook social issues either. Companies cannot pursue only growth through corporate interests without social value. In this study, we derive three attributes of CSR fit, CSR sustainability, and CSR impact to verify the authenticity of CSR activities. Moreover, we demonstrated the impact of these three attributes on CSR authenticity for the electronics industries in Korea and China. As a result of empirical testing, most of three attributes above mentioned (i.e., CSR fit, CSR sustainability, and CSR impact) produce meaningful results for CSR authenticity. However, CSR sustainability was rejected for the Korea sample, and CSR fit was rejected for the Chinese sample, showing some differences between the two countries. Meanwhile, the digital transformation of the Fourth Industrial Revolution had strong partial mediating effects between CSR attributes and CSR authenticity. This means that digital transformation can be an important pathway to achieve CSR authenticity and suggests that important mediating effects can eventually lead to a firm’s competitiveness.

How digital transformation improves corporate environmental management: A review and research agenda

“…Verina and Titko (2019) proposed that companies undergo "organizational change" and "cultural transformation" and find "ways to move towards customer centricity" in the context of DT. Moreover, DT is a strong partial mediator between CSR attributes and CSR authenticity (Liu and Jung, 2021). In addition, Camodeca and Almici (2021) found that digital technologies significantly improve ESG and help companies to achieve Sustainability Development Goals.…”

Authentic corporate social responsibility: antecedents and effects on consumer purchase intention

“…Recent studies investigated the construct of authenticity in CSR with special regard to antecedents influencing its perception and ultimately the degree of perceived authenticity among consumers (Becker-Olsen et al, 2006;Alhouti et al, 2016;Joo et al, 2019;Jeon and An, 2019;Liu and Jung, 2021). The following table provides an overview of the antecedents of CSR authenticity (see Table 1).…”

“…Investigated antecedents and definition Type and sample size Liu and Jung (2021) Sustainability CSR sustainability relates to keeping CSR activities consistent (systematically aligned with the overall firm's strategy) with an entity's resource commitment, objectives and performance tactics from start to finish continuously Fit CSR fit is a relational relationship between the attributes of the enterprise and the CSR activities it implements Impact CSR impact refers to the extent to which CSR activities have substantially resulted in the resolution of social problems…”

“…High fit is normally associated with a positive impact on attitudes toward the company, brand or other outcomes (Brunner and Langner, 2017). Most researchers argue that high fit positively influences consumer outcomes, for example, purchase intention and attitudes toward the company (Becker-Olsen et al, 2006;Kim and Lee, 2020;Liu and Jung, 2021). However, there is also evidence that consumers connect high fit with economic benefits and self-serving motives and therefore judge those CSR activities negatively.…”

Can digital transformation improve the information environment of the capital market? Evidence from the analysts' prediction behaviour

“…Besides financial information, the influence of the enterprise digital information environment on the capital market is reflected in two aspects: the enterprise social responsibility report (Liu and Jung, 2021) and the non‐public information. The corporate social responsibility report's disclosure of non‐financial information plays a significant role in replenishing financial information (Porter and Kramer, 2006), which will effectively promote forecast accuracy and the number of analysts tracking it, and lower the degree of information asymmetry between the capital market and enterprise.…”