Do Actions Speak Louder than Words? An Exploratory Study on CSR

• DOI: http://doi.org/10.1111/basr.12143
• Published date: 01 June 2018
• Author: Julia Dare
• Date: 01 June 2018

Do Actions Speak Louder than

Words? An Exploratory Study

on CSR

JULIA DARE

ABSTRACT

This research investigates various firm motives for prac-

ticing corporate social responsibility (CSR). More pre-

cisely, it examines whether a firm’s primary motive for

undertaking CSR is related to the type of actions per-

formed. Such exploratory research is overdue following

more than 40 years of scholarly contention on the finan-

cial rewards of doing (and looking) good. By uncovering

and measuring specific aspects of CSR, I offer an initial

understanding of interactions within firm CSR operations.

Theory on types of CSR have surfaced, yet empirical stud-

ies are few. In this research, I address this disparity by

using original quantitative measures of both motive and

type. The outcomes of this investigation challenge certain

extant notions of CSR, while introducing a measure of

objectivity in some long-standing debates among scholars

and corporate stakeholders.

Julia Dare, Ph.D. is an Assistant Professor, Management, Eberhardt School of Business,

University of the Pacific, Stockton, CA. E-mail: jdare@pacific.edu.

V

C2018 W. Michael Hoffman Center for Business Ethics at Bentley University. Published by

Wiley Periodicals, Inc., 350 Main Street, Malden, MA 02148, USA, and 9600 Garsington

Road, Oxford OX4 2DQ, UK. DOI: 10.1111/basr.12143

Business and Society Review 123:2 303–339

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INTRODUCTION

For over 40 years, researchers have debated whether corpo-

rate social responsibility (CSR) improves a firm’s bottom

line. Study results have been decidedly inconsistent, elicit-

ing support, rejection, as well as indifference (see the meta-

analyses by Beurden and G€

ossling 2008; Gama Boaventura et al.

2012; Margolis and Walsh 2003; Orlitzky et al. 2003). Scholars

have grown weary of this struggle to accurately characterize the

effects of CSR on firm performance. The present means of observ-

ing CSR is rife with heterogeneous models and measurements; it is

time we uncover the veil of CSR and examine its underpinnings.

This necessitates greater knowledge of the motives that spur firms

to practice CSR and the specific actions firms undertake. By defin-

ing relationships between CSR motives and actions, we can aid

stakeholder examinations of firm authenticity in performing CSR

and the prospects of social change. Likewise, this research will

build a foundation for future scholars to test the effects of motive

and distinct CSR actions on profits.

I conduct this research to explore how unique CSR motives

might affect the type of CSR action a firm performs. I suggest that

distinct CSR actions stem from three primary motivations: instru-

mental, relational, and moral (for a discussion, see Aguilera et al.

2007). These motivations may operate sequentially, overlap, or

work in isolation. I borrow this classification view from Swanson

(1995) and Cropanzano et al. (2001).

While different CSR models have emerged, little is known about

the selection process. Examining distinct types of CSR activities

and their underlying motives may supplement our understanding

of why firms adopt certain models of CSR.

The CSR field continues to develop by examining how and why

firms engage in activities for the good of stakeholders and the envi-

ronment, as well as studying the effects of these activities. CSR

research tends to focus on the following areas: concepts, which

attempt to define CSR; corporate context, which examines influen-

ces and circumstances that can affect a firm’s CSR; CSR-related

strategy, which focuses on the strategic reasons firms may engage

in CSR; corporate reputation, which examines whether and how

company reputations are affected by CSR activity; as well as the

304 BUSINESS AND SOCIETY REVIEW

complex relationship between CSP and CFP (Wang and Gao 2016).

This article expands upon the area of CSR-related strategy. Prior

research has attempted to classify motives behind firm CSR activi-

ties (e.g., Aguilera et al. 2007) and categorize various types of CSR

engagement (e.g., Becker-Olsen et al. 2006; Matten and Moon

2008; Porter and Kramer 2006), but stopped short of examining

the relationship between motive and type. The present study

answers the call for empirical investigation. I expand upon Porter

and Kramer’s (2006) proposed classification of CSR type and theo-

rize relationships between instrumental, relational, and moral CSR

motives and strategic, responsive, and artificial types of CSR.

Empirically, the study suggests that a firm’s particular motivation

to engage in CSR influences the type of CSR activities performed.

This article begins by outlining different types of CSR activities

and explaining theoretical linkages to firm motivation. Subse-

quently, my hypotheses are developed, and my research methodol-

ogy is summarized. I then outline my contributions to theory,

research, and practice. Finally, I close by posing a number of ques-

tions identified in this early stage of research for future

investigation.

CSR TYPE

Along with an examination of CSR motives, a better understanding

of the distinct types of CSR may explain why discrete companies

practice CSR through different means (Aguilera et al. 2007). A

firm’s CSR programs provide salient information about the intrin-

sic values of a firm (Agle and Caldwell 1999). Also, managers tend

to engage in acts that are consistent with firm character (see Social

Identity theory, Tajfel and Turner, 1985, and research on organiza-

tional identification, Bergami and Bagozzi, 2000). Thus, under-

standing CSR type may enhance firm transparency.

Various typologies of CSR have surfaced. Becker-Olsen et al.

(2006) classify CSR as either high-fit or low-fit, where fit is the per-

ceived connection between a firm’s social initiative and product

line, positioning, target market, and/or brand image (Varadarajan

and Menon 1988). This categorization depends on multiple factors

that change by firm, market, and product; the typology is also

305JULIA DARE