Navigating CSR challenges: insights into brand value and brand strength

This study aims to better understand customer responses to Corporate Social Responsibility (CSR) by investigating the impact of CSR performance on brand value during the previously unexplored periods of COVID-19 and post-COVID-19. Moreover, the research introduces a novel perspective by examining the influence of Environmental, Social, and Governance (ESG) disclosure regulations and brand strength on this relationship. We employed a panel regression analysis on an international sample of companies. During a period when CSR sensitivity may increase, the findings reveal that CSR performance negatively impacts brand value. Moreover, this trend was further accentuated during the COVID-19 years, in countries with voluntary ESG disclosures and when there is a strong pre-existing relationship with customers. Theoretical and managerial implications are discussed, along with directions for future research.