Does corporate social responsibility reporting actually destroy firm reputation?

Abstract

Previous research on the effects on corporate social responsibility (CSR) is inconclusive and academics have increasingly discussed the credibility of CSR reporting. Our research analyses the influence of CSR reporting on corporate reputation by considering different scenarios based on companies' CSR consistency, which reflects the coherence between their CSR reporting and CSR commitment. Theoretically, CSR reporting initiatives could be perceived by stakeholders as a substantive or symbolic strategy. Our findings highlight that corporate reputation tends to be negatively affected by CSR reporting, which is generally identified by stakeholders as an impression management strategy (particularly gaining an ‘in accordance’ Global Reporting Initiative level and assurance), although the relationship between CSR reporting and corporate reputation depends on the CSR consistency of a firm. This evidence has direct implications for academics to refine theoretical frameworks as well as for companies and regulators to better understand the effects of CSR reporting.