This study investigates the sensemaking of Corporate Social Responsibility (CSR) in strong regulation-based approaches with elements of transparent and mandatory sustainability reporting. We employ a case study design to explore the sensemaking of German family firms of the European Union’s Corporate Sustainability Reporting Directive (CSRD). In a matrix, we illustrate how family firms (reporting and not reporting required) respond to regulatory pressures: (1) no response, (2) symbolic compliance, (3) substantive compliance, (4) symbolic conformity, (5) substantive conformity and discuss how these responses are linked to firms’ drive for optimal distinctiveness. We contribute to the literature on how firms respond to regulatory CSR pressures and management’s optimal distinctiveness debate.
