CSR Activities as a Neutralizer: Halo Effect of CSR for Asian Companies

Introduction

Companies from all around the globe have started to enter other locations. Similar is also valid for East Asia, especially for China or Japan. However, these companies also face severe issues in managing cultural orientation in the Western side of the world. Especially when there is any negative issue or rumor that gets triggered in local communities. In fact, due to this form of conditions company may face several conditions that are out of their control for e.g., negative issues get propagated through local media or through interaction of customers or through the internet, etc. Hence the use of CSR activities may act as a buffer to control the negative effect of these forms of rumors or negative information through developing positive and pro-social image of the company (Cho & Kim, 2012). Although there are two main types of halo effect, i.e., inter-dimensional similarity halo effect and general impression halo effect. However, these two dimensions cannot be segregated on empirical backgrounds. However, research related to CSR’s Halo Effect explored two separate categories i.e., within-domain CSR Halo effects in comparison to cross-domain Halo Effects and Likelihood performance CSR Halo Effect in comparison to Performance CSR Halo-Effect (Smith et al., 2019).