The Relationship Between a Firm's Prerecall CSR Efforts and Postrecall Market Performance

摘要

Despite the extensive work in the CSR literature,less attention is made to the role of a firm's CSR record in negative events.In the current study,we investigate how a firm's CSR efforts may alter the impact of a negative firm event on subsequent product market performance.In particular,we focus on product recalls,which have seen keen interest in the marketing literature because of their huge impact on firm performance(e.g.Cleeren,van Heerde,and Dekimpe 2013;Thirumalai and Sinha 2011).Prior research has shown that a product recall hurts a firm's image,sales,advertising effectiveness,and price elasticity(Dawar and Pillutla 2000;Cleeren,van Heerde,and Dekimpe 2013),all of which may damage the firm's market performance.Hence,we aim to explore how a firm's CSR efforts may moderate the extent of this damage.We design our empirical study to provide answers to the following questions:(1)Does high CSR efforts by a firm before a product recall help it in protecting its market share after a product recall announcement?(2)How the CSR impact may differ across different CSR domains?(3)Which recall characteristics may moderate the relationship between prerecall CSR efforts and postrecall market penalties?