CSR Investment in Reducing Corporate Reputation Risk

Abstract

This study employs a Systematic Literature Review (SLR) approach to identify, evaluate, and systematically synthesize various studies discussing the role of Corporate Social Responsibility (CSR) investment in reducing corporate reputational risk. This approach aims to provide a comprehensive and structured overview based on empirical evidence from previous literature. Data were collected through Google Scholar using the Publish or Perish software, with the keywords “CSR investment, corporate reputation, reputational risk.” From a total of 7,040 articles initially found, the
selection process was refined using inclusion and exclusion criteria, resulting in 10 relevant journal articles published between 2015 and 2025 for further analysis. The review findings indicate that CSR investments effectively reduce reputational risk through several factors, including increased consumer trust and loyalty, stronger stakeholder relationships, and a positive public and media image. Consistently implemented CSR practices also enhance a company’s resilience against external pressures such as boycotts or reputation crises. Overall, tangible CSR actions that contribute to lowering reputational risk include the implementation of sustainable social and environmental programs, transparent communication with the public, and
active corporate involvement in relevant social issues. CSR thus functions not merely as a branding tool but as a risk mitigation strategy that builds public trust and protects a company’s long-term reputation