This study examines the complex interplay between corporate social irresponsibility (CSiR) and stakeholder reactions, focusing on the divergent impacts of sustainability transformations. Specifically, we investigate how efforts to mitigate CSiR's adverse effects on shareholder activism through corporate sustainable strategies—green talent and technology realignment initiatives—can yield contrasting responses among shareholders and employees. Applying a muti-stakeholder attribution framework, our primary argument posits that while CSiR is a direct catalyst for shareholder activism, it does not significantly affect employee complaints because they may be attributed to external causes rather than the organization. However, when firms initiate internal green talent and technology realignment initiatives, including green job searching and green innovation activities, this internalization of response strategies might lead employees to reattribute firm misconduct internally. This shift in attribution is expected to heighten employee sensitivity and complaints regarding CSiR. The study seeks to contribute to the fields of corporate social responsibility and organizational behavior by highlighting the critical role of attribution processes in shaping employee responses to internal sustainability efforts. The findings highlight the need for a balanced and holistic approach in addressing the varying expectations and perceptions of diverse stakeholder groups within the corporate sustainability framework.
