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Corporate Social Responsibility Depends on Ethical CEOs

Corporate social responsibility (CSR), once seen as a sure indicator of a company’s intentions, is increasingly becoming a trend for all companies to adopt.  More and more, companies engage in CSR for their own benefit, and stakeholders are left unsure which companies participate for the right reasons. Corporate social responsibility is the branch of business that handles how a company upholds ethical standards, including sustainable sourcing, production, and corporate transparency, sometimes “going beyond” expectations to engage in community building projects. Research on the effectiveness of CSR has almost solely relied on signaling theory, which proposes that companies send positive signals to stakeholders (consumers, employees, investors, and communities) when they engage in CSR.

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