Perceived CSR and its ripple effects: understanding organisational legitimacy and stakeholder engagement

Vinod Sharma and Akhil M.P.

Social Responsibility Journal, 2025, vol. 22, issue 2, 371-391

Abstract: PurposeThis study aims to analyse how consumers perceive corporate social responsibility (CSR) initiatives and how these perceptions influence their emotional engagement and trust in organisations. This study uses Stakeholder Theory and Signalling Theory to examine how perceived social value contributes to enhancing a company’s legitimacy and deepening stakeholder relationships.Design/methodology/approachThe data were collected through purposive and snowball sampling techniques. In total, 412 responses were gathered, and proposed hypotheses were analysed through partial least squares structural equation modelling to investigate the relationships among emotional engagement, perceived social value and organisational legitimacy.FindingsThe findings show that CSR efforts work better when people believe they are honest and have a social purpose. Customers are more inclined to see a business as legitimate and feel more connected to it if they think it really helps society. This research also found that organisational legitimacy acts as a middleman, making the link between CSR perceptions and stakeholder involvement stronger.Originality/valueThis study shifts the emphasis from compliance-driven CSR to its strategic capacity in influencing emotional and reputational results. This paper presents a model based on theoretical frameworks and adapted to the Indian environment, providing new perspectives on how firms might enhance credibility and cultivate enduring relationships via genuine CSR initiatives. It adds to the expanding conversation about how CSR affects how organisations behave and how they interact with their stakeholders.

Keywords: Corporate social responsibility; Consumer perception; Stakeholder theory; Signalling theory; Organisational legitimacy; Emotional engagement (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:srjpps:srj-06-2025-0632

DOI: 10.1108/SRJ-06-2025-0632

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