Business Ethics: A European Review, EarlyView.

Researchers and companies are paying increasing attention to corporate social responsibility programs and the reaction to them by consumers. Despite such corporate efforts and an expanding literature exploring consumers’ response to CSR, it remains unclear how consumers perceive CSR and which “Gestalt” consumers have in mind when considering CSR. Academics and managers lack a tool for measuring consumers’ perceptions of CSR. This research explores CPCSR and develops a measurement model. Based on qualitative data from interviews with managers and consumers, (...) the authors develop a conceptualization of CPCSR. Subsequently, model testing and validating occurs on three large quantitative data sets. The conceptualization and the measurement scale can assist companies to assess CPCSR relative to their performance. They also enable managers in identifying shortcomings in CSR engagement and/or communication. Finally, the paper discusses implications for marketing practice and future research. (shrink)

Perceptions of a firm’s stance on corporate social responsibility (CSR) are influenced by its corporate marketing efforts including branding, reputation building, and communications. The current research examines CSR from the consumer’s perspective, focusing on antecedents and consequences of perceived CSR. The findings strongly support the fact that particular cues, namely perceived financial performance and perceived quality of ethics statements, influence perceived CSR which in turn impacts perceptions of corporate reputation, consumer trust, and loyalty. Both consumer (...) trust and loyalty were also found to reduce the perceived risk that consumers experience in buying and using products. From these significant findings, we draw several conclusions and implications, including the importance of enhancing firm focus toward its ethical commitment and long-term reputation. (shrink)

The findings of this article increase our understanding of corporate social responsibility from the consumers' perspective in a Chinese setting. Based on primary data collected via a self-administered survey in Shanghai and Hong Kong and results of similar studies conducted in Europe and the United States, we provide evidence to show that Chinese consumers are more supportive of CSR. We also show that Carroll's pyramid of responsibilities can be applied in China. We evaluated the importance placed by Chinese consumers on (...) the four responsibilities of firms - economic, legal, ethical and philanthropic - and find that economic responsibilities are most important while philanthropic responsibilities are of least importance. The nature of these differences is important for firms intending to use corporate social responsibility for strategic purposes. (shrink)

The notion of “responsible luxury” may appear as a contradiction in terms. This article investigates the influence of two defining characteristics of luxury products—scarcity and ephemerality—on consumers’ perception of the fit between luxury and corporate social responsibility (CSR), as well as how this perceived fit affects consumers’ attitudes toward luxury products. A field experiment reveals that ephemerality moderates the positive impact of scarcity on consumers’ perception of fit between luxury and CSR. When luxury products are enduring (e.g., jewelry), a scarce (...) product is perceived as more socially responsible than a more widely available one and provokes positive attitudes. However, this effect does not appear for ephemeral luxury products (e.g., clothing). The perceived fit between luxury and CSR mediates the combined effects of scarcity and ephemerality on consumers’ attitudes toward luxury products. This study provides valuable insights that luxury brand managers can use to design their CSR and marketing strategies. (shrink)

An important aspect of brand perception emanates from its corporate social responsibility activity. When two brands involved in CSR activities form a cobranding alliance, their respective CSR perceptions can impact consumer attitudes toward the alliance. As an ethically-oriented strategy, the alliance can be potentially beneficial to both partner brands, and can create opportunities for promoting CSR activities. The research streams on brand management, cobranding, and CSR, however, are silent about this important branding strategy that has several embedded business (...) and societal benefits. This study examines how CSR-based consumer perceptions and ethical self-identity impact consumer evaluation of cobrands. Employing a quasi-experimental between-subjects design, the study tests six cobranding scenarios in three product categories. The data were collected via structured questionnaires resulting in 318 valid responses. The data were analyzed employing Partial Least Squares Structural Equation Modeling. The results confirm that positive CSR perceptions toward the partner brands are robust indicators of attitudes toward cobrands. Further, the match between the CSR activities of the partner brands and the product categories influences cobrand attitudes. The results also show evidence of ‘spill-over’ effects, where the alliance has a positive impact on subsequent CSR perceptions toward the partner brands. Additionally, the findings demonstrate an asymmetry in the effects of the cobrand on subsequent CSR perceptions wherein consumers with low ethical self-identity show greater spill-over effects from the cobrand than those with high ethical self-identity. The study contributes to knowledge in the domains of business ethics, cobranding, and social responsibility. The findings have managerial implications for designing CSR-based ethical branding strategies for cobrands. (shrink)

In this research, we evaluate the response of Brazilian consumers to corporate social responsibility (CSR) initiatives accompanied by a price increase. We demonstrate that the extent to which Brazilian consumers perceive a company to be socially responsible (i.e., their CSR perceptions) is related to both the basic transactional outcome of purchase intentions as well as two relational outcomes: the likelihood to switch to a competitor and to complain about the CSR-based price increase. More interestingly, we find that these relationships (...) are jointly mediated by the consumers’ perceptions of price fairness and feelings of personal satisfaction. Perhaps most interesting, we find that these mediating effects vary with consumer purchasing power; the mediating effect of price fairness on purchase intention is stronger for lower income than for higher income consumers, whereas the mediating effects of personal satisfaction on switching and complaining intentions are stronger for higher income than for lower income consumers. (shrink)

Using a national survey of US consumers, this study demonstrates the positive effects of corporate social responsibility communication factors on consumers’ CSR knowledge, trust, and perceptions of corporate reputation. The study also examines the role of a stakeholder-specific factor of consumer–company identification in the process of CSR communication. The findings suggest that the positive effects of CSR informativeness are enduring and independent of consumers’ identification levels with a company, whereas the positive consequences of the personal relevance, transparency, and (...) factual tone of CSR communication intensify as the identification levels increase. Although CSR communication in which a self-promotional tone is adopted has a negative relationship with consumer trust and corporate reputation, such negative effects are not evident among consumers with very high identification levels with a company. Such CSR communication in fact improves consumers’ CSR knowledge and, in turn, has a positive effect on corporate reputation. (shrink)

Corporate volunteering is known to be an effective employee engagement initiative. However, despite the prominence of corporate social responsibility in academia and practice, research is yet to investigate whether and how CV may influence consumer perceptions of CSR image and subsequent consumer behaviour. Data collected using an online survey in Australia show perceived familiarity with a company’s CV programme to positively impact CSR image and firm image, partially mediated by others-centred attributions. CSR image, in turn, strengthens affective (...) and cognitive loyalty as well as word-of-mouth. Further analysis reveals the moderating effect of perceived leveraging of the corporate volunteering programme, customer status and the value individuals place on CSR. The paper concludes with theoretical and managerial implications, as well as an agenda for future research. (shrink)

Despite widespread discussion of the impact of corporate social responsibility activities on consumer perceptions, little research has examined how consumers cope with CSR-based crisis response messages as a bolstering strategy. To fill this gap, we propose a framework integrating situational crisis communication theory with the persuasion knowledge model, applying the model to an experiment with a 2 × 2 × 2 between-subjects factorial design. In Study 1, we found interaction effects between CSR motives and crisis type on word-of-mouth (...) intention and purchase intention. In addition, inferences about CSR motives interacted with perceptions about CSR history on purchase intention. In Study 2, we replicated study 1 and found that crisis responsibility mediated the main effect of crisis type on behavioral intentions, but neither the main effect of CSR motives and CSR history nor the interactions effects among those variables were mediated by crisis responsibility. Our results indicate that consumer inferences from a company’s CSR-based crisis communications play a significant role in increasing consumer behavioral intentions in two situations: when a crisis is accidental and when a CSR history is short. Ethical and theoretical implications are discussed. (shrink)

This study examines consumers’ uses of corporate social responsibility communication channels, the relationship of such uses to consumers’ CSR awareness, and the mechanisms through which consumers’ CSR awareness can lead to their intention to participate in CSR activities. Specifically, we explored the mediation effects of consumers’ CSR associations with a company, consumers’ assessment of the company’s CSR credibility, and consumers’ perceptions of their relationship with the company, applying the conceptual frameworks of the uses and gratification theory, source credibility theory, (...) and organization–public relationship scholarship. We conducted an online survey of a company’s customers, and the results showed that their level of awareness of the company’s CSR activities was positively related to the degree of use of all communication channels through which they received CSR messages, except CSR reports. The degree of the customers’ awareness of the company’s CSR programs, however, did not always correspond to the customers’ intention to participate in the programs: a crucial condition mediating between the customers’ knowledge of CSR programs and their intention to participate in the programs was their associating the company with CSR. The CSR associations influenced CSR credibility and perceived OPR quality, which, in turn, led to CSR participation intention. We discuss the theoretical and practical implications of these findings. (shrink)

This research investigates how consumers’ ethical brand perceptions are affected by differentially valenced information. Drawing on literature from person-perception formation and using a sequential, mixed method design comprising qualitative interviews and two experiments with a national representative population sample, our findings show that only when consumers perceive their judgment of a brand’s ethicality to be pertinent, do they process information holistically and in line with the configural model of impression formation. In this case, negative information functions as a diagnostic (...) cue to form an unethical brand perception, irrespective of other positive information at hand. However, in the case where processing relevance of the un/ethical information provided is low, brand perception formation is algebraic, in which case positive information can counterbalance and neutralize the detrimental impact of brand misbehavior. Our findings extend existing research on consumer perceived ethicality as well as consumer reactions to corporate social responsibility and sustainability initiatives, which has so far assumed the asymmetric impact of negative information on ethical perceptions and consumer attitudes to be prevalent. We derive a range of academic and managerial implications and present a number of important avenues for future research. (shrink)

This study identifies the roles of consumers’ ethical orientations and CSR motives and the dynamics of these two variables on the subsequent consumers’ attitudinal and behavioral responses to CSR—perceived corporate authenticity and pro-firm behavioral intentions. To examine the impact of individual consumers’ ethical orientations, the authors measured consumers’ ethical orientations such as deontology and consequentialism through a Web-based survey conducted in Korea and in the USA. Further, to investigate the role of perceived CSR motives, the authors measured the perception of (...) a company’s business-oriented motives and society-oriented motives in conducting CSR. Results demonstrate the different role of ethical orientation in impacting consumers’ responses across these countries. Consumers’ consequentialist orientation appears to be positively associated with pro-firm behavioral intention in both the Korean and the US studies. In the Korean study, Consumers’ deontological orientation reduces perceived corporate authenticity when corporate motives seem business-oriented. Theoretical and practical implications are discussed. (shrink)

Firm managers play an important role in the implementation of corporate social responsibility (CSR) actions. Education is emerging as the key factor in developing a sense of moral responsibility amongst the business students who will eventually become company managers and decision makers. The aim of this research is, thus, twofold. First, to analyze the existence of a direct positive correlation between university students’ perception of CSR and its impact on business performance; and second, to examine the extent to which two (...) factors (advantages brought by CSR and responsibilities toward stakeholders) act as mediation variables in the aforementioned correlation. The analysis was performed with a sample of 390 business‐related university students. Amongst the potential contributions made by this study we can highlight the possibility of knowing future managers’ way of thinking and of knowing the aspects where educational centers might improve their CSR teaching. (shrink)

This research investigates the influence that consumers’ perceptions of retail business ethics have on their responses when retailers either create social discount spaces or do not. Using scenarios to imply these social practices and structural equation modeling to test the hypotheses among a sample of 689 respondents, the authors find that consumers’ perceptions of retail business ethics have positive effects on consumer loyalty, both directly and through consumer trust, as well as positive, strong influences on the (...) retailer’s corporate social responsibility and corporate reputation. Furthermore, consumers’ perceptions of retail business ethics exert a stronger effect on consumer trust in integrated social discount spaces, though social discount practices do not affect the link between such perceptions and loyalty. Compared with when the retailer does not offer discount space, collaborative and integrated social discount spaces have weaker effects on trust and loyalty to the retailer. These findings have several notable theoretical and practical implications. (shrink)

The Business Ethics Index (BEI), measuring consumer perceptions of ethical business behavior, was extended to four ex-communist countries (Russia, Poland, Romania, and Bulgaria). For Bulgaria, the two past dimensions are on the negative side of the scale. However, Bulgarians seem to be optimistic for the future ethical behavior of businesses. The same optimism about the future is observed for all four countries with Romania having the highest scores. Three hypotheses are proposed for the unusually high scores of the (...) past ethical perceptions expressed by Russians. (shrink)

This article is incorrectly classified as Review Paper in the online and print publication. The correct classification for this article is Original Paper. The publisher apologizes for the inconvenience caused.

The practice of ‘greenwashing’ may be characterized as the fabrication of green claims by organizations to portray a positive image. Greenwashing has not been examined in the United Arab Emirates, and the fashion sector is considered the second largest consumer of harmful chemicals, excessive water use, and non-compliant waste management practices behind the oil and gas sector. Using in-depth semi-structured interviews with fast fashion consumers in the UAE, an exploratory qualitative inquiry was conducted with a focus on the ‘seven (...) sins of greenwashing’ and ‘competitive altruism’ theories and the consumer perceptions of green claims made by major apparel manufacturing and retail firms in the UAE were investigated. A conceptual framework was developed to better understand the nature of corporate altruistic behavior and perceived advantages of green initiatives. The exploratory qualitative inquiry used for this study provided a great opportunity for gathering detailed information on consumer perceptions of greenwashing practices in the UAE. Future research and statistical representation are needed to cross reference the data and test the framework suggested here. (shrink)

After measuring consumers' sentiments toward business ethical practices in mostly Christian countries, the Business Ethics Index was expanded to two Muslim countries — Turkey and Egypt. The overall BEI for both countries was on the negative range, with Egypt exhibiting the widest gap between personal ethical perceptions and vicarious ones. No difference between genders was observed.

Based on a consumer survey conducted in France, Germany, and the U.S., the study investigates consumers'' readiness to support socially responsible organizations and examines their evaluations of the economic, legal, ethical, and philanthropic responsibilities of the firm. French and German consumers appear more willing to actively support responsible businesses than their U.S. counterparts. While U.S. consumers value highly corporate eco-nomic responsibilities, French and German consumers are most concerned about businesses conforming with legal and ethical standards. These findings provide useful (...) guidance for the efficient management of social responsibility initiatives across borders and for further academic inquiries. (shrink)

This study aims to examine how service employees’ perceptions of corporate social responsibility affect their creativity at work and its mediated link through compassion at work and their intrinsic motivation. Working with a sample of 250 hotel employees in South Korea, structural equation modeling is employed to test research hypotheses. The results of this research suggest that employees’ perceptions of CSR are positively related to employee creativity. Second, compassion at work mediated the positive relationship between employees’ perceptions (...) of CSR and creativity. Third, employees’ intrinsic motivation also mediated the positive relationship between employees’ perceptions of CSR and employee creativity. Finally, the relationship between employees’ perceptions of CSR and employee creativity is sequentially and fully mediated by compassion at work and their intrinsic motivation. The theoretical and managerial implications of the results and limitations of the study are discussed, and future research directions are suggested. (shrink)

With the rapid growth of native advertising, there has been an increased interest to address ethical concerns and deception online. To address this concern, we look at the consumer's ethical efficacy toward native ads and we compare native ads to banner ads. Results confirm that consumers trust native ads more than banner ads. Moreover, we uncover that consumers ethical efficacy affects their intention to share native ads through eWOM. However, consumer individual differences influence intention to share content online (...) and trust in the native ads. We study the moderating effects of salience, using the fashion context, and its influence on ad trust and willingness to share through eWOM. Recommendations for business professionals and academics are discussed and future research guidelines are addressed. (shrink)

This study offers gamers’ insights to a worldwide popular loot-box game that is widely associated with gambling: FIFA. Through an ethical lens, this study looks at how gamers perceive loot-box promotions, their enduring attitudes toward the game, as well as the role of gaming addictions. A mixed-method study revealed that while gamers found loot boxes and promotions ethically questionable, gaming addiction is positively correlated with perceived ad ethicality, suggesting coping and possible cognitive dissonance.

Consumers may sense hypocrisy in corporate social responsibility if they note inconsistency in enterprises’ words and deeds related to CSR. This inconsistency originates from the intentional selfish actions and unintentional actions of enterprises. Studies have revealed that consumers’ perception of hypocrisy has a negative influence on enterprise operation. However, studies have not examined how corporate responses to consumers’ hypocrisy perception affect consumers’ attitude and behavior. Therefore, the present study attempted to determine the measures that should be undertaken by enterprises to (...) reduce consumers’ negative response to them when consumers perceive them to be hypocritical. We conducted a situational simulation experiment to explore the effect of the match between corporate hypocrisy manifestation and the corporate response strategy on consumers’ negative behaviors toward an enterprise and to test the mechanism influencing this effect. The results indicated that the interaction between the type of corporate hypocrisy and the corporate response strategy has a significant effect on consumers’ negative behaviors toward an enterprise. Consumers’ negative emotions have a mediating influence on the aforementioned effect. This study explored the response strategies of enterprises during a corporate hypocrisy crisis, classified corporate hypocrisy crises into two types according to the different manifestations of corporate hypocrisy, and introduced situational crisis communication theory into research on corporate hypocrisy. The present results help expand knowledge on corporate hypocrisy. (shrink)

This paper explores how consumers perceive retailer ethics. Based on a review of the marketing and consumer research literature, we conceptualize consumer perceptions of the ethics of retailers as a multidimensional construct and propose that its effects on consumer purchase behavior and word-of-mouth communication are more salient when consumers have strong rather than weak ethical beliefs. The model was validated using a random sample of 399 respondents in a collectivist society. The results of structural equation modeling (...) confirmed that CPER is a second-order construct comprising product fairness, price fairness, non-deception, fair trade, and green products. CPER positively predicted consumer purchase behavior and word-of-mouth communication. Moreover, ethical beliefs moderated the positive relationship between CPER and the word-of-mouth communication of consumers with strong ethical beliefs but did not moderate the relationship between CPER and purchase behavior. The implications of the findings are discussed. (shrink)

Demographic differences among consumer groups have become increasingly important to the development of marketing strategies. Marketers depend heavily on the sales force to implement strategies at the consumer level and, not surprisingly, different groups may view the salesperson’s role differently. Unfortunately, unethical sales practices targeted at various consumer groups, and especially at seniors, have been utilized as well. The purpose of this study is to provide initial empirical evidence of the ethical ideological make-up of four age segments (...) outlined by Strauss and Howe (1991, Generations: The History of America’s Future 1584–2069, Morrow, New York) and to examine the propensity for these groups (seniors, in particular) to respond differentially to potentially unethical sales tactics. Data were collected from 179 respondents representing the four generational age groups. MANOVA revealed that the seniors in this study were distinct with respect to ethical ideology and less accepting of unethical sales tactics. Managerial implications are discussed for sales organizations to maximize their effectiveness across consumer groups. (shrink)

The aim of this research is to develop and validate a measurement scale for consumer’s perceptions of corporate social responsibility using the three-dimensional social, environmental and economic conceptual approach as a theoretical basis. Based on the stages of measurement scale creation and validation suggested by DeVellis and supported by Churchill Jr.’s :64–73, 1979) suggestions, five different empirical studies are developed expressly and applied to consumers of tourist services. This research involves 1147 real tourists from 24 countries in two (...) different cultural and geographical contexts. A three-dimensional 18-item scale is proposed for measuring consumer perceptions of corporate social, environmental and economic responsibilities. This paper presents the complete development of the scale, as well as the implications and limitations of the main findings and the managerial implications. (shrink)

Consumers are bombarded with labels and claims that are intended to address their concerns about how food products are produced, processed, and regulated. Among those are the natural or all-natural claims and the certified organic label. In this study, two focus groups were conducted to explore consumers’ attitudes toward all-natural and organic pork and to gather their reactions to the USDA organic standards for meat, and the policy for natural claims. Results indicated that participants had positive associations with the terms (...) “organic” and “all-natural” with exceptions regarding the trustworthiness of all-natural claims. Participants perceived the “no” labeling theme (no antibiotics, no hormones, no chemicals, etc.) often coupled with the all-natural label on pork products as identifying potential health and animal welfare risks. In response to the USDA standards and policies for labeling pork products as organic or all-natural, participants expressed confusion and had many unanswered questions. (shrink)

Many existing studies postulate that in developing economies philanthropy tends to dominate in the CSR orientation delivered by organizations and expected by local populations. To assess this in the emerging economy of Dubai in the United Arab Emirates, we conducted a preliminary investigation of how locals are responding to the growing number of CSR initiatives that are being implemented in the Emirate. Moreover, given that scholars have argued that Islamic principles of philanthropy should guide CSR initiatives in Muslim countries, we (...) also consider if our Emirati respondents connect CSR with Islamic philanthropy. Results from our survey of 267 local Muslim consumers in Dubai indicate that CSR is not typically equated with philanthropy. In addition, respondents displayed an appreciation of the economic benefits that CSR can generate. The implication is that organizations in Dubai no longer need to base their CSR on the platform of Islamic philanthropy as many scholars have argued. Our findings are significant for the wider Gulf region in that they suggest that in wealthy emerging nations, CSR may not be predominantly interpreted as the corporate philanthropy which is needed in poorer developing economies for the provision of infrastructure, schools, hospitals, and housing, and which in some Muslim contexts is also implemented because of local religious values. (shrink)

This research analyses the influence of the perception of Corporate Social Responsibility (CSR image) on consumer–company identification (C–C identification). This analysis involves an examination of the influence of CSR image on brand identity characteristics which provide consumers with an instrument to satisfy their self-definitional needs, thereby perceiving the brand as more attractive. Also, the direct and mediated influences (through their effect on brand attitude), of CSR-based C–C identification on purchase intention are analysed. The results offer empirical evidence that CSR (...) generates more C–C identification because it improves brand prestige and distinctiveness; brand coherence is also a powerful antecedent of brand attractiveness in the context of CSR communication. Finally, CSR-based C–C identification is able to generate directly better attitude towards the brand and greater purchase intention. (shrink)

Purpose The purpose of this paper is to explore the nuances of the consequences of greenwashing in the consumer and financial markets. Greenwashing is discussed frequently but in very abstract terms. Hence, a closer examination of the palpable consequences elucidates the ripple effects of this widespread phenomenon. Design/methodology/approach Focal points are the concept of green marketing, the stigmatization of corporations in the media and the regulatory consequences of greenwashing behaviour across consumer and financial markets. The two markets are (...) paralleled in order to trace the novelties as well as the points of commonality in greenwashing. Findings The current consequences are an insufficient deterrence in both markets. The regulatory trend in both markets is leaning towards more stringent and punitive measures, which will likely affect the efficacy of the deterrence factor. Originality/value The influence on consumer perception is identified both as a motivating factor for greenwashing and as one of the most immediate elements which is negatively influenced by its exposition. In addition to the fact that greenwashing practices are common across the two markets, this paper identifies that a systemic deterioration of investor trusts significantly compromises the potential of sustainable finance and impacts investment in the financial market, mirrored in the negative consequences on consumer reactions to greenwashed products. (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)

Examining those risk and benefit perceptions utilised in the formation of attitudes and opinions about emerging technologies such as nanotechnology can be useful for both industry and policy makers involved in their development, implementation and regulation. A broad range of different socio-psychological and affective factors may influence consumer responses to different applications of nanotechnology, including ethical concerns. A useful approach to identifying relevant consumer concerns and innovation priorities is to develop predictive constructs which can be used to (...) differentiate applications of nanotechnology in a way which is meaningful to consumers. This requires elicitation of attitudinal constructs from consumers, rather than measuring attitudes assumed to be important by the researcher. Psychological factors influencing societal responses to 15 applications of nanotechnology drawn from different application areas were identified using repertory grid method in conjunction with generalised Procrustes analysis. The results suggested that people differentiate nanotechnology applications based on the extent to which they perceive them to be beneficial, useful, necessary and important. The benefits may be offset by perceived risks focusing on fear and ethical concerns. Compared to an earlier expert study on societal acceptance of nanotechnology, consumers emphasised ethical issues compared to experts but had less concern regarding potential physical contact with the product and time to market introduction. Consumers envisaged fewer issues with several applications compared to experts, in particular food applications. (shrink)

While consumer motivation to maintain a relationship with a retailer is a function of personal idiosyncratic characteristics, specific perceptions of retailers may play a role in influencing receptivity to relationship maintenance. This study integrates relationship marketing tactics and corporate associates into a model of consumer ethical purchasing behavior that improves the relationship between sellers and buyers. Results show social benefits, special treatment benefits, CSR, and service quality have direct and indirect impact on ethically questionable consumer behaviors (...) in retailing. This study also modifies the consumer ethics scale of Muncy and Vitell for the East Asian market with good reliability and validity in order to measure ethically questionable consumption behaviors in retailing. Finally, some theoretical contribution and practical implications are discussed. (shrink)

Ethical concerns of Internet users continue to rise. Accordingly, several scholars have called for systematic empirical research to address these issues. This study examines the conceptualization and measurement of consumers' perceptions regarding the ethics of online retailers. Also, this research represents a first step into the analysis of the relationship between CPEOR, consumers' general Internet expertise and reported positive word of mouth. Results, from a convenience sample of 357 online shoppers, suggest that CPEOR can be operationalized as a second-order (...) construct composed of four dimensions: security, privacy, fulfillment, and non-deception. Our findings also indicate that consumers' general Internet expertise significantly improves CPEOR and CPEOR are strongly predictive of consumers' WOM. Managerial and research implications are offered. (shrink)

With regard to the topicality of corporate social responsibility in retail practice, only a few studies have comprehensively analyzed the role of CSR in retail. Due to the specific role of a retailer as a gatekeeper between the producer and the consumer in the supply chain, a comprehensive understanding of the impact of consumer perceptions of CSR activities is of great relevance. Therefore, this study contributes information regarding the impact of CSR activities on retailer performance. Using a (...) comprehensive conceptualization of CSR, the results of our customer survey suggest that CSR has positive implications as driver of customer loyalty and favorable consumer purchasing behavior. The authors demonstrate the CSR dimensions that are most important for retailers to influence positively consumer purchasing behavior. This study highlights the significance of the credibility of retailer CSR activities and show that consumers’ CSR orientation impacts the relationship between retailer CSR activities and consumer behavior. (shrink)

It was proposed that ethical evaluation of insurance claim padding behavior would be affected by characteristics of the policyholder, insurance agent, and company. These three factors were manipulated in written scenarios and the premise was tested in a factorial experimental design. No significant support was found for an effect of any of the three factors on ethical perceptions of claim padding. However, females found claims padding to be significantly less ethical than males. Given a claim scenario where the actual (...) loss was $500 and the claimed amount was $3000, subjects awarded an average of $986.91 on the claim. Many respondents were willing to compensate victims for intangible losses as well as tangible losses. (shrink)

In recent years, new forms of high-tech controlled environment agriculture (CEA) have received increased attention and investment. These systems integrate a suite of technologies – including automation, LED lighting, vertical plant stacking, and hydroponic fertilization – to allow for greater control of temperature, humidity, carbon dioxide, oxygen, and light in an enclosed growing environment. Proponents insist that CEA can produce sustainable, nutritious, and tasty local food, particularly for the cities of the future. At the same time, a variety of critics (...) raise concerns about its environmental impacts and energy use, high startup costs, and consumer accessibility challenges, among other issues. At this stage, however, relatively little research has explored actual consumer knowledge and attitudes related to CEA processes and products. Guided by theories of sense-making, this article draws from structured interviews with local food consumers in New York City to examine what people know and think about high-tech CEA. From there, it explores the extent to which CEA fits into consumer conceptualizations of what makes for “good food.” Key findings emphasize that significant gaps in public understanding of CEA remain, that CEA products’ success will depend on the ability of the industry to deliver on its environmental promises, and that concerns about “unnatural” aspects of CEA will need to be allayed. Given the price premium at which high-tech CEA products are currently sold, the industry’s expansion will depend in large part on its ability to convince value-oriented food consumers that the products meet the triple-bottom-line of economic, social, and environmental sustainability goals. (shrink)

Across Europe, micro firms (SMEs with up to 10 employees) account for the vast majority of business activities. Supporting micro firms in the transition towards sustainability is essential: many small steps will result in a big leap. To this scope knowledge is needed on the specific challenges encountered by micro firms in the region they operate in. The research presented here offers a contribution to this knowledge. It explores the perception of Corporate Social Responsibility (CSR), its rewards and difficulties by (...) micro firms in Frisia, Groningen and Drenthe - the three Northern provinces of The Netherlands. (shrink)

Based on three empirical studies, this research sets out to conceptualise and subsequently operationalise the construct of consumer perceived ethicality (CPE) of a company or brand. Study 1 investigates consumer meanings of the term ethical and reveals that, contrary to philosophical scholars' exclusively consequentialist or nonconsequentialist positions, consumers' ethical judgments are a function of both these evaluation principles, illustrating that not any one scholarly definition of ethics alone is capable of capturing the content domain. The resulting conceptualisation identifies (...) six key themes explicating the construct. Building upon these findings, studies 2 and 3 were conducted to operationalise CPE. Such operationalisation is an essential prerequisite for future explorations and theory development given the absence of a suitable tool to capture and quantify the strength and direction of CPE. The key focus was on developing a valid and reliable multi-item measurement tool that is practical, parsimonious and easy to administer. The scale's general applicability allows deployment in academic and business contexts as well as different research areas and doing thus facilitates the much-needed theory building in this new research area. (shrink)

Recent academic articles point to an increased vagueness and overlap in concepts related to business ethics and corporate responsibility. Further, the perception of these notions can differ in the smallbusiness world from the original academic definitions. This article focuses on the cognition of small-business owner-managers. Given the impact of small-business owner-managers on their ventures, corporate responsibility and ethical issues can take a different route in SMEs. The small-business owner-manager is able to shape the corporate culture and to enact values other (...) than profit. Adopting a cognitive perspective, we have identified how the small-business owner-manager makes sense of notions linked to corporate social responsibility (CSR) and business ethics. The concept of sensemaking has recently been applied to CSR (Basu and Pallazzo, 2008; Cramer et al., 2006). Applying a cognitive perspective to small-business owners may help in explaining specific phenomena found within smallbusiness ownership. For this research, the Repertory Grid Technique (RGT) is used, a method that has not previously been widely applied in the business and society field. Our findings to an extent invalidate the confusion in terminology found in the academic literature. Smallbusiness owner-managers, pragmatically and rather clearly, differentiate among the various concepts related to corporate responsibility and business ethics but, at the same time, they recognise the interrelationships and interdependencies of these concepts. These findings contribute to a better understanding of how small-business owners think and integrate corporate responsibility and ethical issues into their decisionmaking. (shrink)

The results of an empirical study intoperceptions of the treatment of farm animals inthe Netherlands are presented. A qualitativeapproach, based on in-depth interviews withmeat livestock farmers and consumers was chosenin order to assess motivations behindperceptions and to gain insight into the waypeople deal with possible discrepancies betweentheir perceptions and their daily practices.Perceptions are analyzed with the help of aframe of reference, which consists ofvalues, norms, convictions, interests, andknowledge.The perceptions of the interviewed farmersare quite consistent and without exceptionpositive: (...) according to them, nothing is wrongwith animal welfare in livestock breeding. Theperceptions of the consumers we interviewed aremore divergent, but generally negative. Bothgroups show ambivalence as a result ofdiscrepancies between perceptions and behavior.Although the consumers share the impressionthat the living conditions of livestock animalsare far from optimal, most of them still buyand eat meat from the meat industry. Thefarmers believe the welfare of their animals isgood, but, as frequent defensive utterancesshow, they feel uncomfortable with expressed orunexpressed accusations of mistreating animals.The ways the respondents deal with thisambivalence were analysed by drawing ontheories of dissonance reduction and distancing devices. (shrink)

Recent academic articles point to an increased vagueness and overlap in concepts related to business ethics and corporate responsibility. Further, the perception of these notions can differ in the small-business world from the original academic definitions. This article focuses on the cognition of small-business owner-managers. Given the impact of small-business owner–managers on their ventures, corporate responsibility and ethical issues can take a different route in SMEs. The small-business owner–manager is able to shape the corporate culture and to enact values other (...) than profit. Adopting a cognitive perspective, we have identified how the small-business owner–manager makes sense of notions linked to corporate social responsibility (CSR) and business ethics. The concept of sensemaking has recently been applied to CSR (Basu and Pallazzo, 2008; Cramer et al., 2006). Applying a cognitive perspective to small-business owners may help in explaining specific phenomena found within small-business ownership. For this research, the Repertory Grid Technique (RGT) is used, a method that has not previously been widely applied in the business and society field.Our findings to an extent invalidate the confusion in terminology found in the academic literature. Small-business owner–managers, pragmatically and rather clearly, differentiate among the various concepts related to corporate responsibility and business ethics but, at the same time, they recognise the interrelationships and interdependencies of these concepts. These findings contribute to a better understanding of how small-business owners think and integrate corporate responsibility and ethical issues into their decision-making. (shrink)

Although most consumers are positive about socially responsible companies, in order to benefit from CSR efforts, effective and clear CSR communication is important. However, due to the constantly rising profusion of eco-labels, based on either own claims from the organization or claims made by an external third party, consumers may encounter difficulties in identifying truly responsible firms, which could result in less effective CSR initiatives, even for those responsible firms. Therefore, building on attribution theory, this study seeks to identify how (...) uncertified internal CSR claims and external third-party CSR labels should be used in order to deter greenwashing and increase positive consumer evaluations. Within a 3 × 2 design, respondents are exposed to different coffee product packages measuring their attitude toward the brand, corporate credibility, purchase intention, and scent perception, as well as perceived attributional CSR motives. Overall, findings indicate that especially an external CSR label affects consumer responses toward the firm. Moreover, perceived CSR motives serve as a mediator between an external CSR label and corporate credibility and brand attitude, respectively. These findings warrant further consideration of introducing an external multilevel rating systems by governmental law. (shrink)

Developing trust in a company is a significant part of building the company-consumer relationship. Previous studies have sought to identify the positive consequences of trust such as loyalty and repurchase, but the question of what builds trust remains largely unanswered. To answer the question, we developed a model that depicts the relationships among transparency, social responsibility, trust, attitude, word-of-mouth (WOM) intention, and purchase intention. An online survey was conducted with a US nationwide sample of 303 consumers, and the data (...) were analyzed using the structural equation modeling method. The results indicated that consumers’ perceptions of a corporation’s efforts to be transparent in the production and labor conditions and to be socially responsible by giving back to the local community directly affected these consumers’ trust and attitudes toward the corporation, and indirectly affected their intentions to purchase from and spread positive WOM about the corporation. Theoretical and practical implications are discussed. (shrink)

The results of an empirical study intoperceptions of the treatment of farm animals inthe Netherlands are presented. A qualitativeapproach, based on in-depth interviews withmeat livestock farmers and consumers was chosenin order to assess motivations behindperceptions and to gain insight into the waypeople deal with possible discrepancies betweentheir perceptions and their daily practices.Perceptions are analyzed with the help of aframe of reference, which consists ofvalues, norms, convictions, interests, andknowledge.

Current literature suggests that corporate social responsibility (CSR) can affect consumers’ attitudes towards an organization and is regarded as a driver for reputation-building and fostering sustained consumer patronage. Although prior research has addressed the direct influence of CSR on consumer responses, this research examined the mediating influence of consumer’s perceived organizational motives within an NGO setting. Given the heightened public attention surrounding the 2008 Beijing Olympic Games, data were collected from consumers of the Games to assess their (...) perceptions of the International Olympic Committee’s (IOC) socially responsible initiatives. We hypothesized that consumers of the Games were likely to cognitively elaborate on CSR messages by way of three specific attribution effects derived from the literature. The results show that, contingent on CSR awareness, consumers responded positively to social efforts judged to be values-driven and stakeholder-driven; and a negative response was seen for efforts judged to be strategic. These attribution effects influenced various types of patronage and perceived organizational reputation. (shrink)