Corporate social responsibility (CSR) is a form of corporate self-regulation that represents the collective efforts of the private sector to promote environmentally, ethically, and socially responsible practices. As governments, shareholders, consumers, and other stakeholders demand greater transparency regarding corporate social and environmental impacts, an increasing number of corporations are motivated to communicate their socially responsible behaviors and practices to the public.

CSR communication is a complicated and challenging process for several reasons (Kim and Ferguson, 2018): 1) There are diverse interests among different stakeholders, such as consumers, shareholders, creditors, governments, and the local community. 2) Stakeholders are often skeptical about the credibility of CSR messages. It can be difficult to convince stakeholders that a CSR message is truly in line with the firm’s behavior and intentions, rather than an effort to artificially enhance its social image. 3) Many stakeholders are not fully aware of the environmental or social issues in which the firm engages with its CSR initiatives. This lack of awareness can lead to underappreciation or undervaluation of the firm’s CSR efforts.

Ineffective CSR communication can have an insignificant or even negative effect on the image of the firm, ultimately resulting in a failed attempt to gain stakeholders’ support.

Attributes of Effective CSR Communication

Several academic studies have explored the question of ‘how to make effective CSR communication’ and have provided helpful insights into understanding the factors that affect the effectiveness of CSR communication. For example, Kim and Ferguson (2018) identified seven attributes of effective CSR communication. Please click on the hotspots in the following image to learn more about those attributes.

Garcia et al. (2020) conducted a similar endeavor aimed at identifying the attributes of effective CSR communication, and ultimately identified 9 such attributes, including: 1) materiality, 2) absence of measurement uncertainty, 3) completeness, 4) neutrality, 5) freedom from error, 6) comparability among firms, 7) comparability across time, 8) clearness, and 9) conciseness.

Communicating Corporate Social Responsibility: Effective Strategies

Morsing and Schultz (2006) examined three CSR communication strategies: the stakeholder information strategy, the stakeholder response strategy, and the stakeholder involvement strategy.

• The stakeholder information strategy features one-way communication from corporate management to stakeholders about CSR actions, practices, and decisions.
• The stakeholder response strategy is a two-way asymmetric communication mechanism in which stakeholders receive information and have the opportunity to provide feedback through market surveys or opinion polls. The identification of CSR focus is determined by corporate management, who uses the feedback to enhance the persuasiveness of their decisions.
• The stakeholder involvement strategy is a two-way symmetric communication mechanism in which corporate CSR efforts are co-constructed with stakeholders. The identification of CSR focus is achieved through ongoing, proactive dialogue between corporate management and stakeholders (p. 326). Through frequent and systematic interaction, both parties negotiate and establish the most relevant CSR priorities.

The stakeholder involvement strategy is the most conducive to gaining stakeholder support because it involves stakeholders in a two-way dialogue that allows for co-creation of CSR efforts. By engaging stakeholders in the identification of CSR focus and working collaboratively with them, corporate management can gain a deeper understanding of stakeholder perspectives and needs. This approach can lead to the development of more effective CSR initiatives that align with stakeholder values, resulting in greater stakeholder satisfaction and support. Additionally, involving stakeholders in the decision-making process can create a sense of ownership and commitment to the CSR efforts, further increasing stakeholder buy-in and support.

However, implementing the stakeholder involvement strategy is by no means an easy task. It is crucial to remember that this strategy is most effective in fostering mutual understanding and rational agreement when both corporate managers and stakeholders are open to critiques and suggestions. The willingness to engage in constructive dialogue and make changes based on feedback is essential for building trust and developing long-term relationships with stakeholders. This requires a commitment to ongoing communication and collaboration, as well as a willingness to address difficult issues and conflicts in a transparent and respectful manner. Ultimately, the success of the stakeholder involvement strategy is contingent on the ability of all parties to work together towards shared goals and values.

Reference:

Garcia, T. N., Fernandez, F. B., & De La Cuesta, M. (2020). CSR reporting communication: Defective reporting models or misapplication? Corporate Social Responsibility & Environmental Management 27(2): 952–968.

Kim, S., & Ferguson, M. A. T. (2018). Dimensions of effective CSR communication based on public expectations. Journal of Marketing Communications 24(6):549–567.

Morsing, M., & Schultz, M. (2006). Corporate social responsibility communication: stakeholder information, response and involvement strategies. Business Ethics: A European Review 15(4): 323–338.

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