Analysis of the Effects of CSR and Compliance Programs on Organizational Reputation

Abstract

The present study undertakes an analytical investigation into the relationships between Corporate Social Responsibility (CSR), Compliance Programs, Reputational Risk Management, and Corporate Image. A survey was conducted among 154 senior professionals in companies across diverse sectors and sizes, using the Partial Least Squares Structural Equation Modeling (PLS-SEM) methodology with the aid of SmartPLS 4.0 software. The findings indicate that CSR exerts a substantial and immediate influence on both the management of reputational risk and the establishment of a robust corporate image. Furthermore, it has been observed that the adoption of Compliance Programs is driven by CSR, which also contributes, albeit to a lesser extent, to the strengthening of the external perception of the company. Conversely, proactive management of reputational risk has been demonstrated to enhance regulatory compliance and positively impact corporate image. The alignment of corporate social responsibility (CSR) with compliance initiatives has been demonstrated to engender sustainable competitive advantages within challenging regulatory contexts. In conclusion, the present paper puts forward the suggestion of conducting longitudinal studies in order to observe the evolution of the relationships under discussion over time.