Here or there? Consumer reactions to corporate social responsibility initiatives: Egocentric tendencies and their modera
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Here or there? Consumer reactions to corporate social responsibility initiatives: Egocentric tendencies and their moderators Dale W. Russell & Cristel Antonia Russell
Published online: 25 July 2009 # The Author(s) 2009. This article is published with open access at Springerlink.com
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 D. W. Russell School of Public Health / Prevention Research Center, University of California, Berkeley, 50 University Hall, Berkeley, CA 94720, USA e-mail: [email protected] C. A. Russell (*) Department of Marketing, School of Business, University of Auckland, Auckland 1142, New Zealand e-mail: [email protected]
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environmental commitments saw profits increase by 16% and share prices increase by 45% over a 3-year period compared to 7% and 12%, respectively, for those companies without such strong commitments (EIU 2008). Furthermore, 991 multinational corporations reported that enhancing their brand reputation was an important competitive advantage factor when considering the implementation of their CSR activities (EIU 2008). As the public becomes more aware of and sensitive to corporate behavior, both positive and negative, a corporation's CSR reputation will become increasingly important (Berger and Kanetkar 1995; Daviss 1999). In the end, consumers, through their purchases and consumption of products, are the final judges of corporations' behavior.
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