The pseudo‐panopticon: the illusion created by CSR‐related transparency and the internet

The purpose of this paper is to examine how corporate social responsibility (CSR) transparency claims are propagating a belief in a modern panopticon for ensuring responsible corporate behavior. Corporations use transparency claims to cultivate the impression of full disclosure. The paper aims to explore why people believe transparency ensures responsible behavior from corporations as well as the negative effects of this pseudo‐panopticon.

The paper explores transparency in relation to CSR, CSR reporting, the internet, and activism and describes how their confluence produces pseudo‐panopticon.

The paper finds that the pseudo‐panopticon allows corporations to claim transparency in CSR communication and for stakeholders to accept that claim. The reality is that a minority of activist stakeholders bear the burden of ensuring true transparency by questioning disclosure.

Transparency should be seen as a process, and it fails if activists cannot create public awareness of CSR shortcomings. The challenge is to find ways to make transparency as a process work in a world where apathy and self‐deception, in part facilitated by the pseudo‐panopticon, work against the process.

The paper builds on the process view of transparency by developing its implications for CSR communication. The result is a novel approach to CSR reporting and transparency that contributes to other critical voices concerned about the value and effects of CSR communication.