CSR in times of crisis: why CSR activities can be both a blessing and burden during an organizational crisis

Abstract

Purpose

When a crisis occurs, do corporate social responsibility (CSR) activities protect organizational reputation by buffering negative effects or do CSR activities intensify negative effects, potentially leading to a worse reputation compared to if the organization had no prior CSR engagement? The authors hypothesize that if a crisis emerges in a domain aligned with an organization’s CSR initiatives (crisis-congruent CSR) backfire effects would arise, adversely affecting the organization’s reputation. Conversely, in cases of incongruence, where the crisis emerges in a domain not aligned with an organization’s previous CSR involvement, a buffering effect would manifest, protecting the organization’s reputation.

Design/methodology/approach

The authors conducted an experiment with a 3 (crisis-congruent, crisis-incongruent, and no CSR activities) × 2 (repeated measures) mixed factorial design. In the first scenario, no information was provided concerning a company’s social commitment. Alternatively, participants were exposed to an article illustrating the company’s dedication either to healthcare (crisis-incongruent commitment) or to combating sexism (crisis-congruent commitment). Afterward, participants were presented with a newspaper article addressing allegations of sexism against the company’s CEO.

Findings

The findings demonstrate that prior CSR activities have the potential both to serve as a buffer and to cause backfire effects in times of crisis. Domain congruence is the decisive moderator of these effects: Crisis-incongruent CSR activities acted as a buffer, crisis-congruent CSR activities “backfired” and led to more negative perceptions of the company’s reputation.

Originality/value

The study directly contributes to the understanding of CSR effects in crisis communication, while also addressing the often paradoxical and contradictory findings of prior studies.

Citation

Koch, T., Viererbl, B., Beckert, J. and Keilmann, J. (2024), "CSR in times of crisis: why CSR activities can be both a blessing and burden during an organizational crisis", Journal of Communication Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JCOM-09-2023-0095