While the link between corporate social responsibility (CSR) and corporate reputation (CR) has been well-established in the prior literature, studies that identify boundary conditions to better understand how CSR matters for CR in the eyes of stakeholders are still limited. Incorporating stakeholder theory with upper echelons theory and institutional theory, this study aims to explore whether and how the CSR-CR relationship is influenced by political ideologies (conservatism vs liberalism) of chief executive officers (CEOs), as well as the states in which firms’ headquarters are located.
A longitudinal sample of 172 US firms between 2009 and 2014 was collected. Random effects models were used in analyzing the panel data in the study.
The relationship between CSR and CR is stronger when firms are led by more liberal CEOs or headquartered in more liberal states.
The study highlights the role political ideology plays in improving the effectiveness of the influence of CSR on corporate reputation.
