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Building a competitive advantage based on transparency: When and why does transparency matter for corporate social responsibility?

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  • Liu, Yeyi
  • Heinberg, Martin
  • Huang, Xuan
  • Eisingerich, Andreas B.

Abstract

Customers today are increasingly demanding transparency from firms. This article discusses the concept of performance transparency and explores when and why transparency plays a key role for a firm’s corporate social responsibility (CSR) effectiveness. In doing so, it addresses consumer skepticism as the logic of the transparency-CSR interaction and presents empirical evidence of the effect. It also discusses key principles for managing performance transparency effectively. Companies should monitor and track performance transparency regularly, initiate consistent transparency practices along with CSR activities, pay attention to the types of information made available, and adapt the transparency practices to the involvement level.

Suggested Citation

  • Liu, Yeyi & Heinberg, Martin & Huang, Xuan & Eisingerich, Andreas B., 2023. "Building a competitive advantage based on transparency: When and why does transparency matter for corporate social responsibility?," Business Horizons, Elsevier, vol. 66(4), pages 517-527.
    • Handle: RePEc:eee:bushor:v:66:y:2023:i:4:p:517-527
    DOI: 10.1016/j.bushor.2022.10.004
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    References listed on IDEAS

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