Ensuring CSR and company reputation: the roles of sustainability performance and ethical leadership

This study investigates the intricate relationship among corporate social responsibility (CSR), corporate reputation, sustainability performance, and ethical leadership within the service sector. Employing stakeholder theory, a comprehensive theoretical model was developed to elucidate the mechanisms and conditions under which CSR initiatives enhance corporate reputation. Data were collected from 500 small and medium-sized enterprises (SMEs) in the service sector, and the proposed model was empirically tested using Covariance-Based Structural Equation Modeling (CB-SEM) via SmartPLS software. The empirical results confirm that CSR significantly influences both sustainability performance and corporate reputation. This study demonstrates that CSR exerts a positive indirect effect on corporate reputation through sustainability performance. Ethical leadership moderates both the positive and significant relationship between CSR and corporate reputation, and the indirect effect of CSR on corporate reputation via sustainability performance. The findings provide important theoretical insights into the boundary conditions under which CSR enhances corporate reputation and highlight the critical role of ethical leadership in maximizing the benefits of CSR and sustainability initiatives. Practical implications for managers seeking to enhance organizational reputation through ethical leadership, sustainability, and CSR strategies are also discussed.