Paper Type

ERF

Abstract

Corporate social responsibility (CSR) communication has shifted from periodic disclosure to continuous expression on social media. While prior research emphasizes CSR disclosure and its financial consequences, little is known about firms’ relative positioning in social media environments. This study examines whether differentiated CSR communication on social media influences financial performance. Drawing on optimal distinctiveness theory, we explore how firms’ assimilation and differentiation in CSR communication may influence financial performance. Using social media and financial data from S&P 500 firms between 2014 and 2019, we found that assimilation, reflected in more frequent CSR communication intensity, and differentiation, reflected in greater semantic distinctiveness, are both positively associated with financial performance. By conceptualizing social media CSR as a relative strategic behavior, this study extends disclosure research and highlights communication as a competitive positioning mechanism in digital information environments.

Paper Number

1724

Comments

SIG GREEN

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Aug 15th, 12:00 AM

Fitting In and Standing Out: Strategic CSR Positioning on Social Media and Financial Performance

Corporate social responsibility (CSR) communication has shifted from periodic disclosure to continuous expression on social media. While prior research emphasizes CSR disclosure and its financial consequences, little is known about firms’ relative positioning in social media environments. This study examines whether differentiated CSR communication on social media influences financial performance. Drawing on optimal distinctiveness theory, we explore how firms’ assimilation and differentiation in CSR communication may influence financial performance. Using social media and financial data from S&P 500 firms between 2014 and 2019, we found that assimilation, reflected in more frequent CSR communication intensity, and differentiation, reflected in greater semantic distinctiveness, are both positively associated with financial performance. By conceptualizing social media CSR as a relative strategic behavior, this study extends disclosure research and highlights communication as a competitive positioning mechanism in digital information environments.