Can CSR Impact the Reputation of a Company? From the Eyes of Different Stakeholders

Abstract

This study investigates the impact of CSR on different stakeholder reputations. For this purpose, we consider reputation from the eyes of three major stakeholders—employees, investors, and customers. Content analysis technique based on a four-point scale was used to measure the CSR of the sample companies, whereas reputation was measured using an appropriate proxy from different stakeholders’ perspectives. System generalized method of moments (GMM) was employed to study the impact of CSR on different stakeholder reputation. The results pointed out that CSR has an insignificant impact on different stakeholder reputations. There is a need for Indian companies to disclose more quality information about their CSR actions to capitalize on its benefits in improving their reputation.