CSR signals: exploring their use in controversial industries

To reduce information asymmetries with stakeholders and increase stakeholder engagement, firms frequently adopt corporate social responsibility (CSR) signals in order to highlight their commitment to sustainability. The paper explores how organizations in controversial industries use CSR signals, which play a key role in sustainable marketing strategies. These organizations are more likely to be affected by the skepticism of stakeholders, however it is not clear if and how they are involved in CSR signaling. Through a content analysis of corporate websites, CSR signaling is explored at the levels of strategic management (CSR policies), and operative management (CSR reporting). Companies in controversial industries show a degree of involvement in CSR reporting, while being less active in adopting CSR policies. These findings suggest that controversial organizations should embrace a more strategical and organic approach to CSR signaling. In addition, inter-sectoral comparisons are used which show that companies operating in the most environmentally unfriendly sectors (materials, energy and utilities) are keener to engage in CSR policy signaling than companies in other controversial industries.