The Formation of Reputation in CSR Disclosure: The Role of Signal Transmission and Sensemaking Processes of Stakeholders

A growing number of companies are issuing corporate social responsibility (CSR) reports to publicize their commitment sustainable development. However, skepticism remains among stakeholders about firms’ CSR information, which could hinder the success worldwide campaigns. Our paper examines mechanisms how disclosure resonates with and influences attitudes towards firms. Extending current knowledge signaling effects, this provides a framework illustrating interplay between properties readers’ sensemaking processes, thereby predicting reputation is shaped through communication. In order test our theoretical hypotheses, survey was conducted on 53 firms 1521 respondents. The results show that better comprehension report is, stronger signals authenticity performance (CSP) they perceive, value fit recognized, eventually, more trust hold for firm. relationship partially mediated by signaling-sensemaking process. research contributes literature micro-foundations strategic applying theory in context disclosure. findings have practical implications strategies.