Here or there? Consumer reactions to corporate social responsibility initiatives: Egocentric tendencies and their moderators

Abstract

This research examines how consumers react to corporate social responsibility (CSR) programs that vary in geographic focus. Three experiments compare consumers' patronage of a company in response to local and distant CSR initiatives. The extant egocentrism literature suggests that a CSR activity focused locally, and thus, with greater personal relevance, should increase patronage of the company responsible for the CSR activity. Indeed, this egocentric bias, exhibited in the form of increased purchase intentions or actual choices, is found across all three studies. However, these egocentric tendencies are moderated by consumers' superordinate identities. In study 1, consumers' greater intentions to patronize a company whose CSR activity is domestic vs. foreign are moderated by their sense of global identity. In study 2, consumers' increased choices of a company whose CSR activity is in their home state vs. a distant state are moderated by levels of environmental consciousness. Finally, in study 3, increased patronage of a company whose CSR activity focuses in consumers' home city vs. a distant city depends on the salience and level of consumers' superordinate group identity.Keywords Egocentrism . Consumer behavior . Corporate social responsibility . Identity Corporate social responsibility (CSR) efforts are generally instituted to generate goodwill for the company and increase profits. A 2008 survey found that 95% of corporations recognize the importance of addressing public expectations for businesses to act in a more socially responsible way (Economist). Another survey of 715 top international CEOs found that companies with strong social and Market Lett (2010) 21:65-81

The Role of Generativity in the Effects of Corporate Social Responsibility on Consumer Behavior

“…Previous research has focused on how consumers react to CSR [1,28,29]. Findings show the effect of CSR on consumer responses, such as customer attitudes toward the product [30], positive product and brand evaluations [31], consumer-company identification [3], consumer loyalty [30], customer donations [32], and consumer satisfaction [33], e.g., behaviors such as the one is represented in Figure 1.…”

“…For example, Giacalone et al [35] find a positive relationship between consumer generativity and sensitivity to CSR. Moreover, the positive impact of CSR on purchase intention has been well-studied [29,36,37], while understanding how CSR affects generative consumer purchase intention needs further attention.…”

Effects of ethical ideologies and perceptions of CSR on consumer behavior

“…Egoistic consumers only support the CSR activities of a company if they find themselves directly benefiting from such activities (Morales, 2005;Reed et al, 2007;Russell & Russell, 2010).…”

Reinforcing Intangible Assets through CSR in a Globalized World

“…The speed at which news travels today in the global context means that what a firm does in one geographical context is heard about all over the world in a very short lapse of time, amplifying the role played by the media in the construction of brand image and of corporate reputation (MarkHerbert and von Shantz, 2007;van Gelder, 2002). Therefore, in the age of internet and global communications, what a firm does in one country becomes a factor of evaluation worldwide, and goes beyond the boundaries of the local context (Russell and Russell, 2010). As Dimofte, Johansson and Ronkainen (2008: p. 115) affirm, "a brand's globality could imply worldwide success and, thus, the seal of approval of a wide marketplace audience".…”

“…The vision of the firm as a cell of a social system in not a new theme, but it certainly has been amplified by recent, notorious financial and social scandals that have made the world community more informed and aware of the diffuse presences of socially irresponsible aspects of business. Thus, CSR and brand image are two interrelated aspects, because brand image reflects all that which leads to the firm (Popoli, 2011;Van Gelder, 2002) and, therefore, the brand must be able to meet stakeholder's expectations not only regarding visible components of the marketing mix (product/service, price, place, promotion), but also the "value system", including both economical and social values, with which they identify (Hildebrand, Sen and Bhattacharya, 2011;Peloza and Shang, 2011;Russell and Russell, 2010). Therefore, CSR is an important driver for reinforcing brand image, which is one of the most important intangible asset that contributes to firm's competitiveness and economic performances.…”