IDEAS home Printed from https://ideas.repec.org/a/kap/jbuset/v187y2023i3d10.1007_s10551-022-05137-7.html
   My bibliography  Save this article

Do LGBTQ-Supportive Corporate Policies Affect Consumer Behavior? Evidence from the Video Game Industry

Author

Listed:
  • Petr Parshakov

    (HSE University)

  • Iuliia Naidenova

    (HSE University)

  • Carlos Gomez-Gonzalez

    (University of Zurich)

  • Cornel Nesseler

    (Norwegian University of Science and Technology)

Abstract

This paper empirically examines how consumers react when a company marks a product with a gay label. The company under scrutiny is one of the largest video game developers in the world, and the labeled product is a popular video game character. We use a regression discontinuity design to exploit the quasi-experimental setting. The main finding was significant drop in demand for this character and a return to previous levels after approximately 3 months. Possible mechanisms and dynamics were explored by analyzing demand for other characters and by surveying consumers. The results are consistent after performing robustness checks based on grid search, subsampling, and placebo tests.

Suggested Citation

  • Petr Parshakov & Iuliia Naidenova & Carlos Gomez-Gonzalez & Cornel Nesseler, 2023. "Do LGBTQ-Supportive Corporate Policies Affect Consumer Behavior? Evidence from the Video Game Industry," Journal of Business Ethics, Springer, vol. 187(3), pages 421-432, October.
    • Handle: RePEc:kap:jbuset:v:187:y:2023:i:3:d:10.1007_s10551-022-05137-7
    DOI: 10.1007/s10551-022-05137-7
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10551-022-05137-7
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10551-022-05137-7?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Leonardo Bursztyn & Robert Jensen, 2017. "Social Image and Economic Behavior in the Field: Identifying, Understanding, and Shaping Social Pressure," Annual Review of Economics, Annual Reviews, vol. 9(1), pages 131-153, September.
    2. Ailawadi, Kusum L. & Neslin, Scott A. & Luan, Y. Jackie & Taylor, Gail Ayala, 2014. "Does retailer CSR enhance behavioral loyalty? A case for benefit segmentation," International Journal of Research in Marketing, Elsevier, vol. 31(2), pages 156-167.
    3. Xinming Deng & Yang Xu, 2017. "Consumers’ Responses to Corporate Social Responsibility Initiatives: The Mediating Role of Consumer–Company Identification," Journal of Business Ethics, Springer, vol. 142(3), pages 515-526, May.
    4. Katherine B. Coffman & Lucas C. Coffman & Keith M. Marzilli Ericson, 2017. "The Size of the LGBT Population and the Magnitude of Antigay Sentiment Are Substantially Underestimated," Management Science, INFORMS, vol. 63(10), pages 3168-3186, October.
    5. Guido Berens & Cees Riel & Johan Rekom, 2007. "The CSR-Quality Trade-Off: When can Corporate Social Responsibility and Corporate Ability Compensate Each Other?," Journal of Business Ethics, Springer, vol. 74(3), pages 233-252, September.
    6. Sandra Cavaco & Patricia Crifo, 2014. "CSR and financial performance: complementarity between environmental, social and business behaviours," Applied Economics, Taylor & Francis Journals, vol. 46(27), pages 3323-3338, September.
    7. Zhi Tang & Clyde Eiríkur Hull & Sandra Rothenberg, 2012. "How Corporate Social Responsibility Engagement Strategy Moderates the CSR–Financial Performance Relationship," Journal of Management Studies, Wiley Blackwell, vol. 49(7), pages 1274-1303, November.
    8. Giovanni Cespa & Giacinta Cestone, 2007. "Corporate Social Responsibility and Managerial Entrenchment," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 16(3), pages 741-771, September.
    9. Palihawadana, Dayananda & Oghazi, Pejvak & Liu, Yeyi, 2016. "Effects of ethical ideologies and perceptions of CSR on consumer behavior," Journal of Business Research, Elsevier, vol. 69(11), pages 4964-4969.
    10. Inoue, Yuhei & Funk, Daniel C. & McDonald, Heath, 2017. "Predicting behavioral loyalty through corporate social responsibility: The mediating role of involvement and commitment," Journal of Business Research, Elsevier, vol. 75(C), pages 46-56.
    11. Won Oh & Young Chang & Aleksey Martynov, 2011. "The Effect of Ownership Structure on Corporate Social Responsibility: Empirical Evidence from Korea," Journal of Business Ethics, Springer, vol. 104(2), pages 283-297, December.
    12. Feng Li & Venky Nagar, 2013. "Diversity and Performance," Management Science, INFORMS, vol. 59(3), pages 529-544, September.
    13. Alexander Chernev & Sean Blair, 2015. "Doing Well by Doing Good: The Benevolent Halo of Corporate Social Responsibility," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 41(6), pages 1412-1425.
    14. Pandej Chintrakarn & Sirimon Treepongkaruna & Pornsit Jiraporn & Sang Mook Lee, 2020. "Do LGBT-Supportive Corporate Policies Improve Credit Ratings? An Instrumental-Variable Analysis," Journal of Business Ethics, Springer, vol. 162(1), pages 31-45, February.
    15. Mohammed Hossain & Muhammad Atif & Ammad Ahmed & Lokman Mia, 2020. "Do LGBT Workplace Diversity Policies Create Value for Firms?," Journal of Business Ethics, Springer, vol. 167(4), pages 775-791, December.
    16. Amir Barnea & Amir Rubin, 2010. "Corporate Social Responsibility as a Conflict Between Shareholders," Journal of Business Ethics, Springer, vol. 97(1), pages 71-86, November.
    17. Zhilong Tian & Rui Wang & Wen Yang, 2011. "Consumer Responses to Corporate Social Responsibility (CSR) in China," Journal of Business Ethics, Springer, vol. 101(2), pages 197-212, June.
    18. Walsh, Gianfranco & Bartikowski, Boris, 2013. "Exploring corporate ability and social responsibility associations as antecedents of customer satisfaction cross-culturally," Journal of Business Research, Elsevier, vol. 66(8), pages 989-995.
    19. Andrea Stanaland & May Lwin & Patrick Murphy, 2011. "Consumer Perceptions of the Antecedents and Consequences of Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 102(1), pages 47-55, August.
    20. Joo, Young-Hyuck & Kim, Yunsik & Yang, Suk-Joon, 2011. "Valuing customers for social network services," Journal of Business Research, Elsevier, vol. 64(11), pages 1239-1244.
    21. W. E. Douglas Creed & Maureen A. Scully & John R. Austin, 2002. "Clothes Make the Person? The Tailoring of Legitimating Accounts and the Social Construction of Identity," Organization Science, INFORMS, vol. 13(5), pages 475-496, October.
    22. Joshua D. Angrist & Victor Lavy, 1999. "Using Maimonides' Rule to Estimate the Effect of Class Size on Scholastic Achievement," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(2), pages 533-575.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Enzo Brox & Riccardo Di Francesco, 2024. "The Cost of Coming Out," Papers 2403.03649, arXiv.org.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pandej Chintrakarn & Sirimon Treepongkaruna & Pornsit Jiraporn & Sang Mook Lee, 2020. "Do LGBT-Supportive Corporate Policies Improve Credit Ratings? An Instrumental-Variable Analysis," Journal of Business Ethics, Springer, vol. 162(1), pages 31-45, February.
    2. Zimmer, Lukas & Swoboda, Bernhard, 2023. "Perceived corporate social responsibility effects across nations – The role of national institutions," International Business Review, Elsevier, vol. 32(3).
    3. Do, Hung X. & Nguyen, Lily & Nguyen, Nhut H. & Nguyen, Quan M.P., 2022. "LGBT policy, investor trading behavior, and return comovement," Journal of Economic Behavior & Organization, Elsevier, vol. 196(C), pages 457-483.
    4. Van Ha Nguyen & Frank W. Agbola & Bobae Choi, 2022. "Does Corporate Social Responsibility Enhance Financial Performance? Evidence from Australia," Australian Accounting Review, CPA Australia, vol. 32(1), pages 5-18, March.
    5. Gwenael Roudaut, 2017. "The Representation of Managers, Shareholders and other Stakeholders inside the Boardroom: Does it Matter for CSR Commitment? ," Working Papers hal-01623944, HAL.
    6. Abdelmajid Hmaittane & Jean-Pierre Gueyie & Mohamed Mnasri & Hayat El Guengue, 2023. "Do Lenders Value a Corporate Sustainability Structure?—Evidence from the Cost of Bank Loans," Sustainability, MDPI, vol. 15(6), pages 1-18, March.
    7. Dumitrescu, Claudia & Hughner, Renée Shaw & Shultz, Clifford J., 2018. "Examining consumers' responses to corporate social responsibility addressing childhood obesity: The mediating role of attributional judgments," Journal of Business Research, Elsevier, vol. 88(C), pages 132-140.
    8. François Maon & Valérie Swaen & Kenneth de Roeck, 2021. "Coporate branding and corporate social responsibility: Toward a multi-stakeholder interpretive perspective," Post-Print hal-03275858, HAL.
    9. Francesco Gangi & Antonio Meles & Eugenio D'Angelo & Lucia Michela Daniele, 2019. "Sustainable development and corporate governance in the financial system: Are environmentally friendly banks less risky?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(3), pages 529-547, May.
    10. Yimin Cheng & Xiaoyu Zhou & Kai Yao, 2023. "LGBT-Inclusive Representation in Entertainment Products and Its Market Response: Evidence from Field and Lab," Journal of Business Ethics, Springer, vol. 183(4), pages 1189-1209, April.
    11. Patricia Crifo & Elena Escrig-Olmedo & Nicolas Mottis, 2019. "Corporate Governance as a Key Driver of Corporate Sustainability in France: The Role of Board Members and Investor Relations," Journal of Business Ethics, Springer, vol. 159(4), pages 1127-1146, November.
    12. Sylvain Marsat & Guillaume Pijourlet & Muhammad Ullah, 2021. "Is there a trade‐off between environmental performance and financial resilience? International evidence from the subprime crisis," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(3), pages 4061-4084, September.
    13. Percy Marquina & Vincent Charles, 2021. "A Bayesian resampling approach to estimate the difference in effect sizes in consumer social responses to CSR initiatives versus corporate abilities," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(6), pages 1680-1699, November.
    14. Marcinkowska Elzbieta & Sawicka Joanna, 2023. "Corporate Social Responsibility as a Factor Influencing Purchasing Decisions of Consumers in Central and Eastern Europe," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 281-299.
    15. Collins E. Okafor & Nacasius U. Ujah & Eunho Cho & Winifred U. Okafor & Kevin L. James, 2023. "The Moderating Effect of a Golden Parachute on the Association between CSR and Firm Value: Does Gender-Driven Innovation Matter?," Sustainability, MDPI, vol. 15(6), pages 1-23, March.
    16. Saier Su & Fei Zhu & Haibo Zhou, 2022. "A Systematic Literature Review on Ownership and Corporate Social Responsibility in Family Firms," Sustainability, MDPI, vol. 14(13), pages 1-25, June.
    17. Heesup Han & Xiaoting Chi & Chang-Sik Kim & Hyungseo Bobby Ryu, 2020. "Activators of Airline Customers’ Sense of Moral Obligation to Engage in Pro-Social Behaviors: Impact of CSR in the Korean Marketplace," Sustainability, MDPI, vol. 12(10), pages 1-17, May.
    18. Yi, Yuyang & Zhang, Zongyi & Xiang, Cheng, 2022. "The value of CSR during the COVID-19 crisis: Evidence from Chinese firms," Pacific-Basin Finance Journal, Elsevier, vol. 74(C).
    19. McGuinness, Paul B. & Vieito, João Paulo & Wang, Mingzhu, 2017. "The role of board gender and foreign ownership in the CSR performance of Chinese listed firms," Journal of Corporate Finance, Elsevier, vol. 42(C), pages 75-99.
    20. Su, Lujun & Pan, Yue & Chen, Xiaohong, 2017. "Corporate social responsibility: Findings from the Chinese hospitality industry," Journal of Retailing and Consumer Services, Elsevier, vol. 34(C), pages 240-247.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jbuset:v:187:y:2023:i:3:d:10.1007_s10551-022-05137-7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.