Corporate Social Responsibility as a Catalyst for Generalized Trust: An Exploratory Empirical Analysis

There is growing evidence in the literature that when companies actively engage in corporate social responsibility (CSR), they demonstrate a commitment to ethical and responsible business practices. This commitment subsequently helps them build trust with diverse stakeholders, including customers, employees, investors, and business partners. However, whether CSR can extend its positive influence toward trust among individuals in society, commonly known as generalized trust, remains largely unknown and unexplored in the current literature. Given the vital role of generalized trust in supporting social cohesion and overall societal well-being, more research is needed in this particular area. The current study contributes to the existing body of knowledge on CSR by formulating a theoretical hypothesis regarding the influence of CSR on generalized trust and conducting an in-depth empirical analysis to validate this hypothesis. Using a sample of over 4000 firms operating across multiple countries, this study provides robust evidence supporting the positive role of CSR in promoting generalized trust. Specifically, the findings suggest that, by actively fulfilling social and environmental obligations through CSR initiatives, companies can make significant contributions toward a more equitable and sustainable society, which serves as the essential foundation of generalized trust. Ultimately, this fosters greater levels of trust among individuals in society. These findings open fruitful avenues for further research and offer meaningful implications for business managers and policymakers.