How corporate social responsibility activities influence employer reputation: The role of social media capability

Abstract : This study analyzes the relation between the firm's corporate social responsibility (CSR) activities, employer reputation, and social media in the academic conversation on business value of technology. Motivated by the controversy over the function of social media in the firm's generation of value from CSR activities, this study hypothesizes that firms that perform CSR activities may become better employers and that this positive relationship may be stronger when firms leverage social media technologies. We explain this effect of social media by arguing that these social technologies enable higher social visibility and exposure/credibility. We tested our research model with data from 100 organizations in Spain. The results provided two key insights: 1) CSR activities enable firms to build greater employer reputation; and 2) social media capability amplifies the effect of CSR activities on employer reputation. This study contributes to Information Systems and Business Ethics research by arguing theoretically and demonstrating empirically that leveraging a technology such as social media generates business value through maximization of the positive impact of CSR activities on employer reputation of the firm.