The Relationship Between Corporate Social Responsibility and Corporate Reputation in Serbia

Abstract

Corporate social responsibility (CSR) is a concept that is based on the idea of a balance between economic, social, and environmental goals of companies. In contemporary business, companies need to be responsible not just to their shareholders, but to broader stakeholders, where employees, customers, investors, suppliers, local community, and natural environment are mostly affected. Also, CSR is seen as a concept that can enhance different financial and market performances, where corporate reputation is gaining more and more attention. Corporate reputation is seen as one of the most important companies’ assets, and it has a great influence on business success. Based on the stakeholder theory and resource-based theory, the authors of this paper investigated both concepts to increase the body of knowledge and provide some practical implications for companies. The paper aims to investigate the relationship between CSR and corporate reputation. The problem of the research is defining of a relationship between CSR and corporate reputation in companies in Serbia, and between specific dimensions of CSR and corporate reputation. The methodology used in the research obtained the analysis of available literature and the empirical analysis of the data on CSR and reputation. The sample was created from 73 large private processing companies in the Republic of Serbia. The authors used PLS-SEM method to investigate the proposed relations, i.e., that CSR has a positive relation with corporate reputation. This methodology was for the first time conducted in the business environment in Serbia, which will enhance the possibility of comparison with the results from other countries. The results pointed that CSR, as a higher-order construct, has a positive relation with corporate reputation, like all dimensions of CSR (responsibility to employees, customers, local community, environment, suppliers). At the end, the authors proposed theoretical and practical implications and limitations of the research.

ESG performance, investor attention, and company reputation: Threshold model analysis based on panel data from listed companies in China

“…This study fills this gap. Moreover, this research findings also resonate with studies on topics like CSR and financial performance, and reputation [ [22] , [23] , [24] , [25] ], further revealing the pivotal role of investor attention in this relationship. This provides more detailed insights for market participants and decision-makers.…”

“…For instance, a study within Indonesia's cement industry discovered that a company's perception of CSR significantly influences its reputation, organizational commitment, and consumers' purchase intentions [ 22 ]. Similarly, research from Serbia also validated the positive correlation between CSR and corporate reputation [ 23 ]. Additionally, a study in China's restaurant industry delved into how a company's CSR efforts shape its standing within the community [ 24 ].…”

Linking Informative and Factual CSR Communication to Reputation: Understanding CSR Motives and Organizational Identification

“…As reputation reveals "the degree to which stakeholders perceive a company as good or bad" (p. 185, [84]), numerous studies [85][86][87][88][89] have investigated the impact of CSR on corporate reputation. CSR programs are indicative of an organization's commitment to engaging in activities aiming to advance environmental and social goals beyond their financial and legal obligations to stakeholders [90][91][92], 2022. Stakeholders' assessments of CSR thus constitute an essential reference point for gauging corporate reputation [93].…”

The Mediating Role of Employee Commitment in the Relationship Between Corporate Social Responsibility and Firm Performance in Serbia

“…One of the approaches is that CSR needs to be understood as part of the business strategy, while the other one sees CSR as a waste of money, having a negative influence on business. This second point of view is rooted in Friedman’s agency theory that “supports the idea that the use of corporate resources for non-commercial activities harms the value for all stakeholders” (Berber et al, 2018, p. 148). According to him, “the social responsibility of business is to increase its profits” (Friedman, 2007).…”