In this article, we examine the empirical association between firm value and CSR engagement for firms in sinful industries, such as tobacco, gambling, and alcohol, as well as industries involved with emerging environmental, social, or ethical issues, i.e., weapon, oil, cement, and biotech. We develop and test three hypotheses, the window-dressing hypothesis, the value-enhancement hypothesis, and the value-irrelevance hypothesis. Using an extesive US sample from 1995 to 2009, we find that CSR engagement of firms in controversial industries positively affects firm (...) value after controlling for various firm characteristics. To address the potential endogeneity problem, we further estimate a system of equations and change regression and continue to find a positive relation between CSR engagement and firm value. Our findings support the value-enhancement hypothesis and are consistent with the premise that the top management of US firms in controversial industries, in general, considers social responsibility important even though their products are harmful to human being, society, or environment. (shrink)

Research on fair trade has flourished over the past decade as fair trade food products have gained popularity amongst consumers in many developed economies. This study examines the effects of recessionary economic conditions on fair trade consumers’ purchasing behaviour. An online survey was administered to 306 fair trade consumers from Canada, the United Kingdom and the United States of America. The results reveal a discrepancy among fair trade consumers as only consumers that purchase fair trade on an occasional basis adhered (...) to established consumer behaviour norms, i.e. decreasing their purchases of fair trade products and becoming significantly more price aware. Respondents who actively consume fair trade generally remained loyal to their purchase. While some active consumers altered their purchasing behaviour, this phenomenon was not common amongst this group as no statistically significant changes were observed. Differences were also noted among the three countries as the Canadian and US fair trade consumers significantly decreased their consumption of fair trade as a result of the recession, whereas the UK consumers did not. In addition to the research results, theoretical and managerial implications will be discussed along with future research directions. (shrink)

While considerable attention has been given to the harm done to consumers by marketing, less attention has been given to the harm done by consumers as an indirect effect of marketing activities, particularly in regard to supply chains. The recent development of dramatically expanded global supply chains has resulted in social and environmental problems upstream that are attributable at least in part to downstream marketers and consumers. Marketers have responded mainly by using corporate social responsibility (CSR) communication to counter the (...) critique of CSR practice, but these claims of ethical corporate behavior often lack credibility and can result in a backlash against brands. The article argues that more adequate attention to the harmful upstream effects of downstream marketing and consumption decisions requires greater attention to stakeholder marketing and marketer efforts to help create responsible consumers. It concludes by identifying implications for further research in this important emergent area of marketing ethics. (shrink)

There is an unresolved paradox concerning the role of corporate social responsibility (CSR) in consumer behavior. On the one hand, consumers demand more and more CSR information from corporations. On the other hand, research indicates a considerable gap between consumers’ apparent interest in CSR and the limited role of CSR in purchase behavior. This article attempts to shed light on this paradox by drawing on qualitative data from in-depth interviews. The findings show that the evaluation of CSR initiatives is a (...) complex and hierarchically structured process, during which consumers distinguish between core, central, and peripheral factors. This article describes these factors in detail and explains the complexity of consumers’ assessment of CSR. These insights then serve as a basis for discussing the theoretical and managerial implications of the research findings. To this end, the article contributes to a better understanding of the role of CSR in consumption decisions. (shrink)

Nearly all studies of consumers’ willingness to engage in ethical or socially responsible purchasing behavior is based on unconstrained survey response methods. In the present article we ask the question of how well does asking consumers the extent to which they care about a specific social or ethical issue relate to how they would behave in a more constrained environment where there is no socially acceptable response. The results of a comparison between traditional survey questions of “intention to purchase” and (...) estimates of individuals willingness-to-pay for social attributes in products reveal that simple survey questions are too “noisy” to provide operationally meaningful information and overstate intentions to a considerable extent. (shrink)

In 1949 Culliton noted that "... religion has something to offer business" (Culliton, 1949, p. 265). While religion definitely does have something to offer business, especially business ethics, it is only recently that empirical research linking religiosity and business ethics has been conducted. Indeed, religiosity affords a background, against which the ethical nature of business, including marketing and consumer behavior, can be interpreted. This article offers a descriptive, rather than normative, perspective in reviewing articles linking religion to business and consumer (...) ethics. The main objective of the article being both to present some of the most significant empirical findings to date and also to encourage researchers to pursue further research in this relatively under researched area. (shrink)

This article presents the results of a study that investigated the roles that one’s money ethic, religiosity and attitude toward business play in determining consumer attitudes/beliefs in various situations regarding questionable consumer practices. Two dimensions of religiosity – intrinsic and extrinsic religiousness – were studied. A global scale of money ethic was examined, as was a global measure of attitude toward business. Results indicate that both types of religiosity as well as one’s money ethic and attitude toward business were significant (...) determinants of at least some types of consumer ethical beliefs. (shrink)

This article presents the results of a study that investigated the roles that one's money ethic, religiosity and attitude toward business play in determining consumer attitudes/beliefs in various situations regarding questionable consumer practices. Two dimensions of religiosity - intrinsic and extrinsic religiousness - were studied. A global scale of money ethic was examined, as was a global measure of attitude toward business. Results indicate that both types of religiosity as well as one's money ethic and attitude toward business were significant (...) determinants of at least some types of consumer ethical beliefs. (shrink)

This manuscript reviews and synthesizes most of the major research studies in the area of consumer ethics that have appeared since 1990. It examines both conceptual and empirical works with an objective of encouraging researchers to pursue research in the consumer ethics area. Toward this end, the paper also suggests directions for future research.

An analysis is presented of the relationships between consumers ethical beliefs, ethical ideology, Machiavellianism, political preference and the individual difference variable "need for closure". It is based on a representative survey of 286 Belgian respondents. Standard measurement tools of proven reliability and robustness are used to measure ethical beliefs (consumer ethics scale), ethical ideology (ethical positioning), Machiavellianism (Mach IV scale) and need for closure. The analysis finds the following. First, individuals with a high need for closure tend to have beliefs (...) that are more ethical as regards possible consumer actions, and score higher on idealism and lower on Machiavellianism, than those with a low need for closure. Second, a correlation exists between political preference and ethical beliefs. Third, a significant relationship exists between ethical ideology and political preference for the two largest political parties. Fourth, individuals with a high and low need for closure have different political preferences for right-wing and left-wing parties. (shrink)

An analysis is presented of the relationships between consumers’ ethical beliefs, ethical ideology, Machiavellianism, political preference and the individual difference variable "need for closure". It is based on a representative survey of 286 Belgian respondents. Standard measurement tools of proven reliability and robustness are used to measure ethical beliefs (consumer ethics scale), ethical ideology (ethical positioning), Machiavellianism (Mach IV scale) and need for closure. The analysis finds the following. First, individuals with a high need for closure tend to have beliefs (...) that are more ethical as regards possible consumer actions, and score higher on idealism and lower on Machiavellianism, than those with a low need for closure. Second, a correlation exists between political preference and ethical beliefs. Third, a significant relationship exists between ethical ideology and political preference for the two largest political parties. Fourth, individuals with a high and low need for closure have different political preferences for right-wing and left-wing parties. (shrink)

While considerable attention has been given to the harm done to consumers by marketing, less attention has been given to the harm done by consumers as an indirect effect of marketing activities, particularly in regard to supply chains. The recent development of dramatically expanded global supply chains has resulted in social and environmental problems upstream that are attributable at least in part to downstream marketers and consumers. Marketers have responded mainly by using corporate social responsibility (CSR) communication to counter the (...) critique of CSR practice, but these claims of ethical corporate behavior often lack credibility and can result in a backlash against brands. The article argues that more adequate attention to the harmful upstream effects of downstream marketing and consumption decisions requires greater attention to stakeholder marketing and marketer efforts to help create responsible consumers. It concludes by identifying implications for further research in this important emergent area of marketing ethics. (shrink)

Faced with an ever-growing number of ethical marketing issues and uncertainty about the impact of specialized ethics journals, researchers are struggling to keep abreast of developments in the field. In order to address these challenges, our paper provides a comprehensive review of the literature on marketing ethics over almost 50 years, offers a citation analysis and develops a unique marketing ethics impact factor (MEIF). We contribute to the field in three important ways. First, we present a state-of-the-art picture of marketing (...) ethics research. This provides an account of the research focus in each decade, assesses the importance of specific topics in the debate and identifies existing research gaps. Second, we identify the most influential papers and researchers in the marketing ethics area. Third, we evaluate the most important journals in terms of their impact on marketing ethics. To this end, we have developed an MEIF. This improves our ability to judge a journal's influence on this particular sub-discipline. (shrink)

Ethical behavior among businesses has gained significant prominence in recent years. Survey evidence shows that Asian consumers demand for greater social responsibility among businesses. Thus, a deeper understanding of the factors that contribute to such a demand is useful. This study examines the influence of religiosity and values on corporate social responsibility (CSR) support among consumers in Hong Kong and Singapore. Primary data collected among consumers in these cities point to a significant direct relationship between religiosity and CSR support. In (...) Hong Kong, this attitude is due both to altruistic as well as for egotistical (or face saving) reasons. In Singapore, this is mainly due to the latter. The results imply that different motivations should guide CSR strategies in these two cities. (shrink)

As a reflection of the values and ethics of firms, corporate social responsibility (CSR) has received a large amount of research attention over the last decade. A growing area of this research is the CSR-consumer relationship. Results of experimental studies indicate that consumer attitudes and purchase intentions are influenced by CSR initiatives-if consumers are aware of them. In order to create this awareness, business is increasingly turning to 'pro-social' marketing communications, but such campaigns is met with scepticism and their effectiveness (...) are therefore uncertain. Consequently, researchers in the field (for example, Maignan, 2001; Mohr et al., 2001) have called for empirical studies to determine the level of actual consumer awareness of CSR initiatives. This study examines the Australian banking sector, which engages in and promotes its CSR activities, to help fill this gap. Results from our qualitative study with bank managers, and our quantitative study with consumers, indicate low consumer CSR awareness levels. Consumer understanding of many of the social issues banks engage with is also low. While CSR is effective in eliciting favourable consumer attitudes and behaviour in theory, CSR has not proven its general effectiveness in the marketplace. The low consumer awareness of the various social issues in which firms engage with their CSR programs suggests that firms may need to educate consumers, so they may better contextualise CSR initiatives communicated. However, better context may amount to little if claimed CSR initiatives are perceived as inconsistent with other facets of the business that reflect its values and ethics. (shrink)

There is a growing interest in understanding consumer ethical actions in relation to their dealings with firms. This paper examines whether there are differences between Northern and Southern European Union (EU) consumers'' perceptions of ethical consumer behaviour using Muncy and Vitell''s (1992) Consumer Ethics Scale (CES). The study samples 962 university students across four Northern EU countries (Germany, Denmark, Scotland, The Netherlands) and four Southern EU countries (Portugal, Spain, Italy, Greece). Some differences are identified between the two samples, which might (...) question the ability of organisations to consider the EU as one homogeneous market. (shrink)

One of the gaps in the current international marketing literature is in the area of consumer ethics. Using a sample drawn from Japanese consumers, this study investigates these individuals' reported ethical ideology and their perception of a number of different ethical situations in the realm of consumer behavior. Comparisons are then made across several demographic characteristics. The results reveal differences which provide theoretical support for expanded research in the area of cross-cultural/cross-national consumer ethics and highlight the need for managers to (...) consider possible differences in the ethical behavior of consumers when entering a new international market. In addition, this study extends current knowledge in international marketing ethics by utilizing a research design and survey instruments similar to previous studies on consumer ethics. (shrink)