The Effects of Water Footprint Management on Companies’ Reputations and Legitimacy under the Influence of Corporate Social Responsibility and Government Support: Contributions to the Chilean Agri-Food Industry

Water management initiatives are implemented under a concept called water footprint management (WF management). Different initiatives and pressures might have a positive influence on the implementation of WF management, such as the adoption of corporate social responsibility (CSR) practices, government support and coercive pressures. This study assessed the effects that CSR practices, government support, and coercive pressures have on the implementation of WF management initiatives. This study also evaluated the effects that the adoption of WF management has on firms’ reputations and legitimacy. A quantitative methodology was employed, in which a survey of 113 Chilean firms in the agri-food industry was carried out. Data were analyzed with the Partial Least Squares–Structural Equation Modelling method, which determines causal relationships between constructs. We found that CSR and government support exert a direct, positive, and significant influence on WF management. Also, WF management was found to have a direct, positive, and significant effect on firms’ reputations and legitimacy. CSR has a greater influence on WF management compared to government support, which shows that CSR initiatives are of paramount importance, surpassing the support provided by governments for the implementation of WF management practices. Considerable indirect effects of CSR on reputation and legitimacy were also observed. This study’s findings imply a crucial role for governments in prioritizing coercive pressures. In addition, it is imperative that agri-food firms foster their CSR programs to improve the implementation of WF practices, as the urgency of the situation cannot be overstated.