Analysis shows that transparency and stakeholder engagement improve trust and financial outcomes in organizations.
Introduction: Corporate Social Responsibility (CSR) has become a crucial element of modern business strategies, with organizations increasingly expected to contribute to societal well-being alongside their financial goals.Objective: The objective is to investigate how various CSR communication strategies, such as transparency and stakeholder engagement, affect stakeholder trust. It also aims to understand their contribution to financial performance, using data analysis to identify significant relationships between these factors.Methodology: Data collected through interviews with 30 CSR managers and executives, analyzing CSR reports from 15 organizations, and surveying 129 stakeholders (employees, consumers, and investors) on their perceptions of CSR communication and trust using a Likert scale (1-5). Independent variables include transparency in CSR communication, engagement with stakeholders, frequency of communication, CSR messaging strategy, and CSR focus areas. IBM SPSS 26 was used for data analysis. Multiple regression and ANOVA revealed significant positive relationships between CSR communication strategies (transparency, engagement, frequency) and stakeholder trust.Results: Descriptive statistics indicated higher trust in organizations with more frequent, transparent CSR communication and greater engagement with stakeholders.Conclusion: The investigation concludes that transparent, frequent, and engaging CSR communication strategies are essential in building stakeholder trust. Companies that focus on strategic, honest, and consistent communication across relevant CSR areas experience stronger stakeholder relationships and improved financial outcomes.
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Joyce et al. (2025) studied this question.
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