The role of corporate social responsibility and corporate social irresponsibility in shaping corporate reputation: An analysis of competitive action and innovation strategies

Abstract

This study delves into the intricate interplay of Corporate Social Responsibility (CSR) and Corporate Social Irresponsibility (CSI) within the context of corporate reputation, further illuminated by the influential moderating effects of competitive action and innovation. It underscores that CSR positively influences firms' corporate reputation, aligning with established notions of ethical practices enhancing stakeholder trust and public perception. Conversely, CSI's adverse impact on corporate reputation serves as a cautionary tale against ethical negligence. To explore this link, the study analyzes a sample of top global automotive firms using dynamic panel data system Generalized Method of Moments (GMM) estimates. The investigation of secondary data from 132 global automotive firms over the period 2016–2022 finds evidence supporting the association between CSR, CSI, and reputation. Notably, competitive action emerges as a significant moderator in this equation. The study reveals that firms with high competitive action experience a more pronounced positive relationship between CSR and corporate reputation, while a parallel link exists between competitive action and the adverse influence of CSI on reputation. This underlines competition's role in intensifying reputational effects. Additionally, innovation assumes a similar role as a moderator. High innovation levels accentuate the positive CSR‐corporate reputation relationship, underscoring the potency of innovation in amplifying ethical impact. Conversely, innovation mitigates the negative CSI‐corporate reputation link, highlighting the potential of innovative practices to offset the repercussions of irresponsibility. In conclusion, this study provides a nuanced understanding of how CSR, CSI, competitive action, and innovation collectively shape corporate reputation. This intricate nexus unveils the intertwined dynamics of ethics, competition, and innovation that define modern corporate landscapes, casting light on their far‐reaching implications for organizations' reputational trajectories.

Measuring corporate citizenship and public image: evidence from scale development and validation

“…Afterward, conceptual limits have been decided for the extracted articles by including those that, in their hub, have the substance of public image or reputation and excluding those articles that only explore the matter of public affairs or relations. Along these lines, around 130 papers have been reviewed, with specific emphasis on the fundamental studies to strictly grasp what is and is not embraced by the said domains (Axjonow et al , 2018; Capriotti and Moreno, 2007; Chai et al , 2015; Fombrun, 2005; Fombrun et al , 2000; Gazzola et al , 2020; Gray and Balmer, 1998; Javed et al , 2020; Kumar, 2018; Lin, 2023; Mackey, 2014; Maignan et al , 1999; Nyberg and Murray, 2020; Pérez-Cornejo et al , 2020; Pruzan, 2001; Streimikiene et al , 2021; Tran et al , 2015; Virvilaite and Daubaraite, 2011).…”

“…But where does corporate citizenship fit into this background of public image? Arguments of Lantos (2002) and Pérez-Cornejo et al (2020) edify this enigma, apparently, where a firm, if it makes use of citizenship practices, draws the interest of the public the most by generating positioning signals (Axjonow et al , 2018) and positive public perceptions (Lin, 2023) by dint of signaling theory (Javed et al , 2020) and public value theory (Meynhardt and Gomez, 2019). And having an improved inclination among the public by being a good corporate citizen can create abundant wonders for themselves (Chattananon et al , 2007), which comprises growing revenues, augmenting brand credibility, nurturing customer commitment, synchronizing employee affairs and inhibiting employment crisis (Pfau et al , 2008; Ramayah et al , 2022; Virvilaite and Daubaraite, 2011; Yeh, 2021).…”

ESG controversies and corporate performance: The moderating effect of governance mechanisms and ESG practices

“…CSR strategies encompass diverse practices aimed at meeting various stakeholder expectations, including those related to the environment, society, and shareholders (Erhemjamts & Huang, 2019;Fiore et al, 2020;Lin, 2024;Liu et al, 2023;L opez-Manuel et al, 2023;Zhang et al, 2023). To encompass the breadth of CSR activities, the acronym ESG (Environmental, Social, and Governance) has emerged, signifying policies adopted by companies to address environmental and societal objectives, thereby meeting stakeholder needs (Bresciani et al, 2016;Luo & Bhattacharya, 2006).…”

How does digital transformation improve new product development performance from the perspective of resource orchestration?—Analysis based on configuration

“…This robust R&D force provides a reliable support for the enterprise's research and development efforts. This is because, for enterprises, R&D personnel represent a critical source of innovation and sustained competitive advantage [62]. The productivity and efficiency of R&D personnel directly influences the conversion efficiency of the enterprise's R&D input and the output of NPD [63].…”