This Case is about CRISIS MANAGEMENT, PUBLIC RELATIONS, SOCIAL RESPONSIBILITY, STRATEGIC PLANNING
PUBLICATION DATE: March 15, 2015 PRODUCT #: BH660-PDF-ENG
Many companies recently have faith in corporate social responsibility (CSR) that 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 disasters is not simple. Drawing on research on stakeholder reactions to corporate disasters, CSR and especially–, we present a framework that is contingent for understanding the functions of CSR in corporate disasters and the best way to handle it.
This framework explains four different impacts of CSR: it improves focus on crises, raises expectations, blame attributions, and changes evaluation of stakeholders of difficult situation.
Several variables underlying these functions are additionally discussed. Overall, this informative article underscores that while businesses may be insulated by CSR and mitigate stakeholders’ answers that are negative in others, sometimes it may really cause the contrary effect, amplifying the negative impact of a disaster. The post finishes using a simple discussion of the consequences of our framework for disaster management strategies that are successful in the era of CSR.