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Corporate crises in the age of corporate social responsibility

Author

Listed:
  • Catherine Janssen

    (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique)

  • Sankar Sen
  • Cb Bhattacharya

Abstract

Many companies today believe that corporate social responsibility (CSR) acts as a reservoir of goodwill, insulating the firm from the negative impacts of a crisis. Yet, the impact of CSR on public reaction to corporate crises is more complex. Drawing on research on stakeholder reactions to CSR and—more specifically—corporate crises, we present a contingent framework for understanding the roles of CSR in corporate crises and how to manage it. This framework posits that CSR plays four important roles: it (1) increases stakeholders' attention to crises, (2) affects blame attributions, (3) raises expectations, and (4) changes stakeholders' evaluations of crisis situations. Several factors underlying these roles are also discussed. Overall, this article underscores that while CSR may insulate companies and mitigate stakeholders' negative responses in some cases, in others it may actually lead to the opposite effect, amplifying the negative impact of a crisis. The article ends with a brief discussion of the implications of our framework for effective crisis management strategies in the age of CSR.

Suggested Citation

  • Catherine Janssen & Sankar Sen & Cb Bhattacharya, 2015. "Corporate crises in the age of corporate social responsibility," Post-Print hal-01563031, HAL.
    • Handle: RePEc:hal:journl:hal-01563031
    DOI: 10.1016/j.bushor.2014.11.002
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    Citations

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    Cited by:

    1. Gaëlle Angelergues, 2021. "L'engagement "idéologique" : nouvelles voies conceptuelles de la théorie du contrat psychologique et enjeux pour la RSE," Post-Print hal-03390281, HAL.
    2. David Noack & Douglas R. Miller & Dustin Smith, 2019. "Let Me Make It Up to You: Understanding the Mitigative Ability of Corporate Social Responsibility Following Product Recalls," Journal of Business Ethics, Springer, vol. 157(2), pages 431-446, June.
    3. Kyle D. Turner, 2022. "Actions in the spotlight: Differential effects of corporate social responsibility actions on organizational celebrity," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(4), pages 860-870, July.
    4. Muhammad Farrukh & Fanchen Meng & Muhammad Sajid & Imran Shahzad, 2020. "Does strategic fit matter in measuring organizational performance? An empirical analysis," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(4), pages 1800-1808, July.
    5. Cycyota, Cynthia S. & Ferrante, Claudia J. & Schroeder, Jessica M., 2016. "Corporate social responsibility and employee volunteerism: What do the best companies do?," Business Horizons, Elsevier, vol. 59(3), pages 321-329.
    6. Chang-Dae Ham & Jeesun Kim, 2019. "The Role of CSR in Crises: Integration of Situational Crisis Communication Theory and the Persuasion Knowledge Model," Journal of Business Ethics, Springer, vol. 158(2), pages 353-372, August.
    7. Zhe Zhang & Mijia Gong & Shanshan Zhang & Ming Jia, 2023. "Buffering or Aggravating Effect? Examining the Effects of Prior Corporate Social Responsibility on Corporate Social Irresponsibility," Journal of Business Ethics, Springer, vol. 183(1), pages 147-163, February.
    8. Zhe Zhang & Juan Wang & Ming Jia, 2022. "Multilevel Examination of How and When Socially Responsible Human Resource Management Improves the Well-Being of Employees," Journal of Business Ethics, Springer, vol. 176(1), pages 55-71, February.
    9. Nan Zhou & Heli Wang, 2020. "Foreign subsidiary CSR as a buffer against parent firm reputation risk," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(8), pages 1256-1282, October.
    10. Herenia Gutiérrez-Ponce & Julian Chamizo-González & Nuria Arimany-Serrat, 2022. "Disclosure of Environmental, Social, and Corporate Governance Information by Spanish Companies: A Compliance Analysis," Sustainability, MDPI, vol. 14(6), pages 1-19, March.
    11. Heike Schulze & Lydia Bals & Jon Warwick, 2022. "A sustainable sourcing competence model for purchasing and supply management professionals," Operations Management Research, Springer, vol. 15(3), pages 1418-1444, December.
    12. Antonio Juan Briones Peñalver & Juan Andrés Bernal Conesa & Carmen de Nieves Nieto, 2018. "Analysis of Corporate Social Responsibility in Spanish Agribusiness and Its Influence on Innovation and Performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(2), pages 182-193, March.
    13. Nick Lin-Hi & Igor Blumberg, 2018. "The Link Between (Not) Practicing CSR and Corporate Reputation: Psychological Foundations and Managerial Implications," Journal of Business Ethics, Springer, vol. 150(1), pages 185-198, June.
    14. Marta Stanislawska, 2022. "The Impact of the COVID-19 Pandemic and Energy Crisis on CSR Policy in Transport Industry in Poland," Energies, MDPI, vol. 15(23), pages 1-32, November.
    15. Pere Mercadé‐Melé & Carmina Fandos‐Herrera & Sofía Velasco‐Gómez, 2021. "How corporate social responsibility influences consumer behavior: An empirical analysis in the Spanish agrifood sector," Agribusiness, John Wiley & Sons, Ltd., vol. 37(3), pages 590-611, July.
    16. Zhe Ouyang & Ruixue Lv & Yang Liu, 2023. "Can corporate social responsibility protect firm value during corporate environmental violation events?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(4), pages 1942-1952, July.
    17. Min, Jihye & Kim, Jiyoung & Yang, Kiseol, 2023. "CSR attributions and the moderating effect of perceived CSR fit on consumer trust, identification, and loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).
    18. Lin, Chieh-Peng & Tsai, Yuan-Hui & Chiu, Chou-Kang & Liu, Chia-Ping, 2015. "Forecasting the purchase intention of IT product: Key roles of trust and environmental consciousness for IT firms," Technological Forecasting and Social Change, Elsevier, vol. 99(C), pages 148-155.
    19. Sojung Kim & Sejung Marina Choi, 2018. "Congruence Effects in Post-crisis CSR Communication: The Mediating Role of Attribution of Corporate Motives," Journal of Business Ethics, Springer, vol. 153(2), pages 447-463, December.
    20. Nan Zhou & Heli Wang, 0. "Foreign subsidiary CSR as a buffer against parent firm reputation risk," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-27.
    21. Jongmoo Jay Choi & Jimi Kim & Oded Shenkar, 2023. "Temporal Orientation and Corporate Social Responsibility: Global Evidence," Journal of Management Studies, Wiley Blackwell, vol. 60(1), pages 82-119, January.
    22. Nabeel Younus Ansari & Temoor Anjum & Muhammad Farrukh & Petra Heidler, 2021. "Do Good, Have Good: A Mechanism of Fostering Customer Pro-Environmental Behaviors," Sustainability, MDPI, vol. 13(7), pages 1-14, March.
    23. Valor, Carmen & Antonetti, Paolo & Zasuwa, Grzegorz, 2022. "Corporate social irresponsibility and consumer punishment: A systematic review and research agenda," Journal of Business Research, Elsevier, vol. 144(C), pages 1218-1233.
    24. Eglė Stonkutė & Jolita Vveinhardt & Włodzimierz Sroka, 2018. "Training the CSR Sensitive Mind-Set: The Integration of CSR into the Training of Business Administration Professionals," Sustainability, MDPI, vol. 10(3), pages 1-14, March.
    25. Kittichok Nithisathian & Lavanchawee Sujarittanonta & John C Walsh, 2016. "The Thick Black and White Ocean among Buddhist Pilgrimage Tourist Operators in Thailand," Journal of Social and Development Sciences, AMH International, vol. 7(3), pages 11-19.

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