The Paradox of CSR: Exploring the Boomerang Effect of Firms’ Investments During Product Recalls
Keywords:
Corporate Social Responsibility, Boomerang Effect, Product RecallsAbstract
This study, The Paradox of CSR: Exploring the Boomerang Effect of Firms' Investments During Product Recalls, investigates the unintended consequences of corporate social responsibility (CSR) investments in the context of product recalls. While CSR initiatives are typically seen as a means to build trust and reputation, this research uncovers how excessive or poorly timed CSR investments can backfire during crisis situations such as product recalls. By examining case studies of major firms that experienced product recalls, the study explores the mechanisms behind the "boomerang effect," where increased CSR efforts, instead of improving the firm’s image, may exacerbate consumer skepticism, fuel negative perceptions, and undermine brand equity. The research highlights the role of timing, transparency, and consumer perception in shaping the outcomes of CSR investments during crises. It concludes with recommendations for firms to adopt a more balanced and context-sensitive approach to CSR, ensuring that these investments align with crisis management strategies and consumer expectations. The findings suggest that while CSR can be a powerful tool for companies in crisis, it must be carefully calibrated to avoid amplifying the negative effects of product recalls.
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Copyright (c) 2023 Chun Zhu Wang
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