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.
This is an MIT Sloan Management Review article. As the war for talent intensifies, there is growing evidence that a company's corporate social responsibility activities comprise a legitimate and compelling way to attract and retain good employees. To burnish their social responsibility credentials and thereby attract and retain talent, CEOs of companies such as Home Depot, Delta Air Lines and SAP recently pledged to deploy millions of employee volunteers on various community projects. Indeed, many companies big and small, including Cisco Systems, General Electric and IBM, view employee engagement in CSR as a "strategic imperative." But few organizations have figured out how to use CSR properly as part of their employee engagement efforts. They fall short of communicating their CSR intentions and initiatives to their employees and tend to keep CSR decisions in the hands of senior managers. At the same time, they fail to understand which CSR initiatives work best to excite which groups of employees. All in all, they fail to capture CSR's considerable potential to help them fight the war for talent. When used properly, CSR can strengthen employees' engagement by creating the feeling that they are part of a larger corporate mission and that the company shares their values, and by helping them enhance their own social connections. This article draws on recent studies to confirm that CSR can yield substantial returns for both employees and the company. The research demonstrates that CSR initiatives can fulfill employees' needs and motivate them to identify strongly with their employers, as is very much the case at The Timberland Co. Using frequent verbatims from study participants, the article portrays the challenges that companies face in making the most of their CSR strategies internally. The authors then recommend five practical steps that can help business leaders increase CSR's effectiveness as a lever for talent management, acquisition, and retention.
Although companies are devoting significant resources to corporate social responsibility (CSR) initiatives, insights into the optimal formulation, implementation, and effectiveness estimation of CSR strategies are currently scarce. Takes an in-depth look at when, why, and how CSR works from a consumer's perspective. In contrast to the simple, monotonic relationships between CSR and consumer purchase behavior evident in marketplace polls, this article proposes a more complex, contingent model of consumer responses to CSR. Articulates both the internal outcomes (e.g., awareness, attitudes, attachment) and external outcomes (e.g., word of mouth, purchase, loyalty) of CSR initiatives for not just the company, but also the consumer and the CSR issue/cause. Delineates the key factors that are likely to moderate the extent to which the inputs lead to the internal outcomes and the internal outcomes lead to the external ones. This framework can help guide companies in formulating and implementing their CSR initiatives as well as measuring the effectiveness of these initiatives.