When and How is CSR a Reputation Insurance Mechanism

Bridoux, Flore;Hericher, Corentin
(2023) Strategic Management Society — Location: Toronto (30.September.2023)

Files

FinalAbstractSMS2023.pdf
  • Closed Access
  • Adobe PDF
  • 1.02 MB
Request a copy

Details

Authors
Abstract
While the insurance effect is often presented as part of the business case for CSR, findings in prior empirical literature are mixed and we are still in need of a more rigorous and integrated theory of CSR as a reputation insurance mechanism. To address this gap, we study how stakeholders’ reactions to negative events linked to firms vary with prior CSR. Using experiments, we show that CSR insurance effect depends on the type of negative events: it is stronger for accidents than for competence- and integrity-based failures. We also find that CSR protects firms against reputational damage and stakeholders’ punishing behavior by shielding them from the consequences of being judged irresponsible rather than by giving firms the benefit of the doubt.
Affiliations

Citations

  • APA
  • Chicago
  • FWB

Bridoux, F., & Hericher, C. (2023). When and How is CSR a Reputation Insurance Mechanism. Strategic Management Society, Toronto. https://hdl.handle.net/2078.5/215578