Exploring the use of CSR signals by companies in controversial industries

To reduce information asymmetries with stakeholders, firms frequently adopt Corporate Social Responsibility (CSR) as a signal that makes their commitment to sustainability observable. In this paper, we focus on how organizations in controversial industries use CSR signals. These organizations need to overcome the skepticism of stakeholders and it is not clear if they are prone to involve in CSR signaling. Through an explorative content analysis on corporate websites, we take into account two dimensions of CSR signaling, namely CSR policies and CSR reporting. Companies in controversial industries show some degree of involvement in CSR reporting, while seem less active in adopting CSR policies. These findings suggest controversial organizations to embrace a more strategical and organic approach to CSR signaling. In addition, the study offers insights about the inter-sectorial comparisons, demonstrating that companies operating in the most environmental-unfriendly sectors (Materials, Energy and Utilities) are keener to engage in CSR policies signaling than companies belonging to other controversial industries.