A transformative approach to corporate social responsibility: an antidote to corporate hypocrisy

Mauricio Losada-Otálora and Linda Alkire (née Nasr)

The Service Industries Journal, 2021, vol. 41, issue 3-4, 200-222

Abstract: Despite the substantial budgets spent on Corporate Social Responsibility (CSR), customers’ reactions toward companies’ socially responsible strategies are not always in line with companies’ goals. This is mainly due to the rising CSR-related-hypocrisy occurring as a customer response to a common concern that companies are investing in symbolic CSR. These perceptions not only limit the sought-after outcomes of CSR but could result in a worsening of reputation and financial loss for services. As such, the key research question in this paper is: ‘From a customers’ perspective, what factors can help reduce the perception of CSR-related-hypocrisy within banking services?’. In addressing this question, this paper adopts a transdisciplinary approach bridging the gap between CSR and Transformative Service Research (TSR) literature. Findings suggest that when CSR-related-activities positively affect the wellbeing of customers, it is less likely that they judge a firm CSR activity as a hypocrite. In the retail banking sector, this paper shows higher perceived bank information transparency results in lower levels of perceived CSR-related-hypocrisy, especially when CSR activities improve the financial self-efficacy of customers. By bridging TSR and CSR lenses, this paper posits CSR activities offer service companies a unique opportunity for creating ‘uplifting changes’ in the life of customers.

Date: 2021
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DOI: 10.1080/02642069.2019.1655000

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The Service Industries Journal is currently edited by Eileen Bridges, Professor Domingo Ribeiro, Ronald Goldsmith, Barry Howcroft and Youjae Yi

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