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Investigating the direct and indirect effects of corporate hypocrisy and perceived corporate reputation on consumers’ attitudes toward the company

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  • Arli, Denni
  • Grace, Anthony
  • Palmer, Janet
  • Pham, Cuong

Abstract

Consumers are placing increasing importance on the social responsibility of firms when making purchase decisions. Nonetheless, corporate irresponsibility has become more prevalent in the corporate world. Through corporate social responsibility (CSR), companies can showcase their virtues and appear as good citizens while ignoring many internal standards. Hence, the primary purpose of this study was to explore the impact of corporate hypocrisy on CSR belief, corporate reputation, and consumers’ attitudes toward a company that may have a bad reputation. Second, we investigated the mediating effect of CSR belief and perceived corporate reputation on the relationships between corporate hypocrisy and consumers’ attitudes toward the company. We asked a sample of respondents in Australia (n =518) to respond to a real CSR campaign launched by a beer company. The results showed that CSR belief mediates the relationship between corporate hypocrisy and consumers’ attitudes toward the company. The results indicated a perception that companies may use CSR to try to shift the blame from producers to users. The results of this study provide guidelines for managers, social marketers, and public policy makers on how to create and evaluate companies’ CSR campaigns. The results of this study contribute to the debate on how consumers respond to various CSR campaigns as well as the intended or unintended consequences of CSR in directing consumers’ attention away from the negative impacts businesses have on society.

Suggested Citation

  • Arli, Denni & Grace, Anthony & Palmer, Janet & Pham, Cuong, 2017. "Investigating the direct and indirect effects of corporate hypocrisy and perceived corporate reputation on consumers’ attitudes toward the company," Journal of Retailing and Consumer Services, Elsevier, vol. 37(C), pages 139-145.
  • Handle: RePEc:eee:joreco:v:37:y:2017:i:c:p:139-145
    DOI: 10.1016/j.jretconser.2017.04.002
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    2. Yifan He & Wenfang Lin & Justas Streimikis, 2019. "Linking Corporate Social Responsibility with Reputation and Brand of the Firm," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 21(51), pages 422-422.
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    6. Zengrui Xiao & Ying Wang & Dongjie Guo, 2022. "Will Greenwashing Result in Brand Avoidance? A Moderated Mediation Model," Sustainability, MDPI, vol. 14(12), pages 1-15, June.
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    8. Sooyoung Choi & Young-joo Ahn & Insin Kim, 2020. "The Roles of Perceived Innovativeness in Creating Visitors’ Citizenship Behaviors at an International Game Exhibition," Sustainability, MDPI, vol. 12(12), pages 1-18, June.
    9. Juhua Xu & Eun-Kyoung Han, 2021. "How Temporal Order of Inconsistent CSR Information Affects Consumer Perceptions?," Sustainability, MDPI, vol. 13(8), pages 1-17, April.
    10. Laura Grazzini & Diletta Acuti & Valentina Mazzoli & Luca Petruzzellis & Daniel Korschun, 2020. "Standing for politics: What consequences for brands?," Italian Journal of Marketing, Springer, vol. 2020(1), pages 49-65, March.
    11. Wagner, Tillmann & Korschun, Daniel & Troebs, Cord-Christian, 2020. "Deconstructing corporate hypocrisy: A delineation of its behavioral, moral, and attributional facets," Journal of Business Research, Elsevier, vol. 114(C), pages 385-394.
    12. Valor, Carmen & Antonetti, Paolo & Zasuwa, Grzegorz, 2022. "Corporate social irresponsibility and consumer punishment: A systematic review and research agenda," Journal of Business Research, Elsevier, vol. 144(C), pages 1218-1233.
    13. Hua Jiang & Yang Cheng & Keonyoung Park & Wei Zhu, 2022. "Linking CSR Communication to Corporate Reputation: Understanding Hypocrisy, Employees’ Social Media Engagement and CSR-Related Work Engagement," Sustainability, MDPI, vol. 14(4), pages 1-24, February.
    14. Yi-Ping Chang & Hsiu-Hua Hu & Chih-Ming Lin, 2021. "Consistency or Hypocrisy? The Impact of Internal Corporate Social Responsibility on Employee Behavior: A Moderated Mediation Model," Sustainability, MDPI, vol. 13(17), pages 1-21, August.
    15. Mohit Tiwari & Tripti Tiwari & Samuel Sam Santhose & Lokanath Mishra & Rejeesh MR & Vinu Sundararaj, 2023. "Corporate social responsibility and supply chain: A study for evaluating corporate hypocrisy with special focus on stakeholders," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(2), pages 1391-1403, April.
    16. Qing Miao & Jun Zhou, 2020. "Corporate Hypocrisy and Counterproductive Work Behavior: A Moderated Mediation Model of Organizational Identification and Perceived Importance of CSR," Sustainability, MDPI, vol. 12(5), pages 1-20, March.
    17. Babu, Nishat & De Roeck, Kenneth & Raineri, Nicolas, 2020. "Hypocritical organizations: Implications for employee social responsibility," Journal of Business Research, Elsevier, vol. 114(C), pages 376-384.
    18. Nils Christian Hoffmann & Juelin Yin & Stefan Hoffmann, 2020. "Chain of Blame: A Multi-country Study of Consumer Reactions Towards Supplier Hypocrisy in Global Supply Chains," Management International Review, Springer, vol. 60(2), pages 247-286, April.

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