Corporate social responsibility gap and firm value: The moderating role of trust
Joo, Y.
Joo, Y.
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2025-08
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Abstract
Focusing on a firm’s imbalance between internal and external stakeholder orientations, we propose that the impact of this stakeholder disparity on the firm’s market value depends on country-level trust. Integrating sociology research on societal trust with strategy research on corporate social responsibility (CSR), we argue that firms in countries with higher outgroup trust experience more negative effects from gaps between internal and external CSR actions. In contrast, in countries with greater ingroup trust compared to outgroup trust, the negative impact of the CSR gap on firm value is mitigated. Our empirical analysis of firms across 46 countries supports our predictions. Our study is the first to theoretically and empirically demonstrate the multilevel social capital framework on firm value throughout the cross-national investigation of the interactive influence of firm-level stakeholder orientations and country-level trust radius.
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Park S-B and Youngbin J (2025) Corporate social responsibility gap and firm value: The moderating role of trust. Submission accepted for the: 85th Academy of Management Annual Meeting, Copenhagen, Denmark, 25-29th July, 2025.
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