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Can Firm Performance and Corporate Reputation Be Improved by Communicating CSR in Social Media?: A Pilot Study Analysis
Abstract
As stakeholders make their decisions based on corporate reputation, it is vital for the companies to ensure that their CSR activities are communicated effectively via social media (SM) channels. It can be argued that by leveraging CSR in SM channels, firms have the possibility in strengthening trust and loyalty of their stakeholders and thereby enhancing corporate reputation and firm performances. Hence, the study aims to examine how CSR communication has an impact on firm performances and reputation. Top 50 and bottom 50 companies that are ranked in the Social Media Sustainability Index (2016) are collected along with four reputation ranking indices and Twitter data for this study. Although there is no significant relationship between Twitter and corporate reputation, there is a significant relationship between Twitter and firm performances.
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