Abstract
Researchers have increasingly focused on corporate social responsibility (CSR) as a driver of organizational change. However, it remains unclear how a firm’s socially irresponsible image compels it to transform. As irresponsible image can likewise generate stakeholder pressure and threaten organizational legitimacy, it is crucial to understand the role of stakeholders’ perception of corporate social irresponsibility (CSiR) as a catalyst for organizational change.
To address this gap, present research will, first, develop a scale to measure stakeholders’ perception of CSiR and subsequently assess how these perceptions affect organizational legitimacy and stakeholder’s trust. Additionally, the research will evaluate the impact of CSiR perception on organizational legitimacy and trust.
This study offers several implications for theory and practice. Currently, literature lacks a validated measure of stakeholders’ perceptions of CSiR. A perceptual measure of CSiR can assist firms in assessing stakeholders’ views of the organization and identifying potential threats to their legitimacy. This, in turn, can help businesses undertake informed organizational transformation in response to perceived irresponsibility.