In search of the roots of corporate reputation management : be a consistent corporate social performer

Pérez‐Cornejo, Clara and Wilson, Alan and De Quevedo, Esther (2018) In search of the roots of corporate reputation management : be a consistent corporate social performer. In: 5th International Conference on Corporate Social Responsibility, 2018-06-27 - 2018-06-29.

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    Abstract

    Corporate reputation is considered as the most important intangible asset of the firm because of its potential to create value. This evidence has aroused a growing interest to study its antecedents. Corporate reputation is based on the expectations of the different stakeholders about the ability of the company to satisfy their interests. So, a company that has social concerns, extends its responsibilities beyond its shareholders to multiple interest groups can affect how it is perceived by all stakeholders affecting their overall corporate reputation. In fact, one of the most analyzed determinants of corporate reputation has been corporate social performance (CSP). However, previous literature has tested that different types of social performance have varying reputational impacts in different firms. In this sense, research has tested that this different effect of the social actions may be caused by industry, country and other context variables. On the other hand, some previous research has emphasized CSP impact on corporates may depend on the degree of consistency of its activities, but this statement has not been tested yet. For this reason, our main objective is to delve into the study of the effect of the consistency as managerial criterion in the firm´s social responsibility on corporate reputation. Specifically, we have focused on the effect of CSP consistency, through the internal consistency between social and environmental performance on corporate reputation and CSP consistency over time. The empirical analysis is based on an international sample of 133 companies during the period from 2010 to 2016. Our results support the view that consistency between social and environmental performance has a positive effect on corporate reputation. The results of this paper have managerial implications to get higher returns for the firm from its social responsibility management.