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Authenticity is essential to building trust, and consumers who feel they’ve been misled by a company’s advertising will not trust or think highly of the organization.Corporate social responsibility matters to the world because companies typically have great resources to enact positive change.

The Reputation Institute publishes a number of annual rankings for reputation, including the Most Reputable Companies in the United States as well as the Corporate Social Responsibility Rep Trak rankings.

Research indicates that with strong corporate social responsibility comes a buffer against scandals and better resilience against negative actions or information.

But perhaps more importantly, it creates a reputation of a reliable and honest company, which is valuable whether you’re facing scandals or not.

However, there is one important caveat: any violations that occur specifically pertaining to governance elicit a more harsh reaction and are more harshly sanctioned, as they may be considered hypocritical.

Research from Boston University and Baruch College suggests that with good corporate social responsibility, companies can build a “reservoir of goodwill.” This goodwill will increase customer motivations to minimize any negative information they may be presented with.

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