Inside the mind of the stakeholder

In the previous section, we explained that when it comes to managing CR, stakeholder reactions matter. That is why a critical pathway linking CR activity to improvements in business and societal performance (i.e., CR value) lies in what we call the stakeholder route. As a result, CR value is often best understood by examining the behaviors of individual stakeholders. For example, consumers may become loyal patrons, and employees may make the extra effort to perform well on the job.

Of course, such positive or desired responses to CR activity are not guaranteed. Responses are driven by a psychological process in which stakeholders interpret the CR activities of the company. Companies with an understanding of this psychological process are the ones best prepared to engage in the types of CR activity that stakeholders find most compelling. And these activities ultimately lead to the sort of CR value that managers seek.