Several companies recently believe that corporate social responsibility (CSR) acts as a reservoir of goodwill, which covers the firm from adverse effects in a crisis situation.
Yet, the effect of CSR on public reaction to corporate crises is less simple. Research on different reactions to CSR from different stakeholders, especially--corporate catastrophes, present a contingent framework for understanding the functions of CSR in corporate catastrophes and the way to handle it.
This framework posits that CSR plays with four significant roles: it (1) increases stakeholders' attention to catastrophes, (2) affects blame attributions, (3) raises expectations, and (4) changes stakeholders' assessments of catastrophe scenarios. Many tools underlying these roles are under discussion. In conclusion this scenario emphasizes that businesses may be covered by CSR and mitigate stakeholders' negative answers in some cases, in others it may really lead to the contrary effect, amplifying the negative impact of a crisis. The article ends with short discussion of the implications of our framework for crisis management strategies that are effective in the era of CSR.
PUBLICATION DATE: March 15, 2015 PRODUCT #: BH660-PDF-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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