Beyond the Courtroom: How Judicial Transparency Triggers Anticipatory Impression Management to Drive CSR Evolution

Abstract

This study integrates anticipatory impression management with expectancy violation theory to examine how judicial transparency influences corporate social responsibility (CSR). Unlike previous research that broadly considers legal reforms, our framework posits that real‐time judicial transparency—by exposing firms to unexpected and detailed litigation information—induces expectancy violations among stakeholders. In response, firms proactively engage in CSR initiatives as an impression management strategy to offset potential reputational damage. Leveraging China’s open justice reform as a natural experiment, our empirical findings indicate that firms significantly intensify their CSR efforts following the reform. This effect is particularly pronounced in regions with low ex-ante judicial transparency, whereas it is relatively weaker among politically connected firms. By elucidating this novel mechanism, our study advances the CSR literature and provides valuable policy insights into how transparency reforms can drive ethical corporate behavior.

Keywords: Judicial transparency, Open justice reform, Corporate Social Responsibility, Anticipatory impression management, Expectancy violation theory