This study investigates the relation between the disclosure of corporate social responsibility (CSR) bad news and reputation. In particular, our analysis focuses on the moderating effect that such disclosure may have on corporate reputation. A large and growing number of studies in the CSR accounting literature provides empirical evidence supporting the argument that CSR disclosure – which has been criticized for its self-laudatory style – may serve as a reputation management tool used to camouflage a company’s image among stakeholders, hence protect its reputation. These studies suggest that an optimistically biased reporting may enhance reputation. However, recent research in the financial accounting area shows that a non-or less-optimistically biased reporting may actually have positive effects on the credibility of the information disclosed. Therefore, the paper argues that the disclosure of CSR-related bad news could be beneficial and turn into better reputation. Based on data from a sample of the most visible companies in the US, this study shows that the disclosure of bad CSR news may have positive reputational outcomes

Not all bad news is harmful to a good reputation: evidence from the most visible companies in the US, 2024.

Not all bad news is harmful to a good reputation: evidence from the most visible companies in the US

Silvia Pilonato;Federica Ricceri
2024-01-01

Abstract

This study investigates the relation between the disclosure of corporate social responsibility (CSR) bad news and reputation. In particular, our analysis focuses on the moderating effect that such disclosure may have on corporate reputation. A large and growing number of studies in the CSR accounting literature provides empirical evidence supporting the argument that CSR disclosure – which has been criticized for its self-laudatory style – may serve as a reputation management tool used to camouflage a company’s image among stakeholders, hence protect its reputation. These studies suggest that an optimistically biased reporting may enhance reputation. However, recent research in the financial accounting area shows that a non-or less-optimistically biased reporting may actually have positive effects on the credibility of the information disclosed. Therefore, the paper argues that the disclosure of CSR-related bad news could be beneficial and turn into better reputation. Based on data from a sample of the most visible companies in the US, this study shows that the disclosure of bad CSR news may have positive reputational outcomes
Inglese
2024
https://link.springer.com/article/10.1007/s10997-022-09645-6
springer
28
9
36
29
Switzerland
internazionale
esperti anonimi
A stampa
Settore SECS-P/07 - Economia Aziendale
Settore ECON-06/A - Economia aziendale
3
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10808/62567
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