Punishing the good? How to minimize an unfair CSR-washing label

Abstract

Many businesses engage genuinely in corporate social responsibility (CSR). But others engage in CSR-washing: using social concerns for financial gain and the distortion of internal practices to project the image of CSR to stakeholders. Unfair CSR-washing happens when a company is accused of being a CSR-washer despite having made significant and genuine efforts to address social or environmental issues. CSR-washing harms firms’ reputations, resulting in the loss of consumer and stakeholder trust and even in potential lawsuits, depending on the type and severity of the behavior. We offer four interconnected, evidence-based recommendations to minimize a business’s unfair perception as a CSR-washer: (1) integrate CSR into core activities rather than peripheral activities, (2) adopt a bottom-up approach to CSR, (3) develop an integrative performance-management/CSR system, and (4) develop an effective CSR communication strategy. We also offer specific implementation guidelines for each recommendation. Implementing these evidence-based practices will help organizations plan, execute, and monitor their CSR initiatives while remaining authentic and minimizing the chance of being labeled as CSR-washers.