Corporate digital responsibility and consumer trust: a signaling theory perspective

This study examines how corporate digital responsibility (CDR) builds consumer trust in the digital economy from a signaling theory perspective. Prior studies have shown that responsible digital practices can increase consumer trust; however, the causal process remains unexplored. Hence, we develop and justify a CDR–trust signaling model that explains how observable corporate actions translate into trust. An integrative review spanning management, marketing, and digital ethics synthesizes the CDR literature and identifies four dimensions: responsible data handling, fair and accountable automated systems, protection of digital well-being, and sustainability. These dimensions operate as credible and costly signals of a firm’s ability (competence), benevolence, and integrity, which are key antecedents of trust. The findings indicate that robust CDR initiatives reduce information asymmetry and strengthen trust in highly vulnerable digital interactions and transactions. Therefore, trust is not simply a by-product of ethical compliance; it is a proximal outcome of credible CDR signals that reflect substantive corporate intent. This study extends signaling theory by specifying the mechanisms of trust formation in digital settings. It also provides managers with a framework to assess CDR maturity and design responsible digital strategies that enhance brand legitimacy and support mutually beneficial, long-term customer relationships.