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Building Trust Between Consumers and Corporations: The Role of Consumer Perceptions of Transparency and Social Responsibility

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  • Jiyun Kang

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  • Gwendolyn Hustvedt

Abstract

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. Copyright Springer Science+Business Media Dordrecht 2014

Suggested Citation

  • Jiyun Kang & Gwendolyn Hustvedt, 2014. "Building Trust Between Consumers and Corporations: The Role of Consumer Perceptions of Transparency and Social Responsibility," Journal of Business Ethics, Springer, vol. 125(2), pages 253-265, December.
  • Handle: RePEc:kap:jbuset:v:125:y:2014:i:2:p:253-265
    DOI: 10.1007/s10551-013-1916-7
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    References listed on IDEAS

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    3. repec:eee:jbrese:v:95:y:2019:i:c:p:491-501 is not listed on IDEAS
    4. repec:gam:jsusta:v:10:y:2018:i:7:p:2173-:d:154432 is not listed on IDEAS
    5. repec:eee:jbrese:v:76:y:2017:i:c:p:8-13 is not listed on IDEAS
    6. Robbins, J.A. & Franks, B. & Weary, D.M. & von Keyserlingk, M.A.G., 2016. "Awareness of ag-gag laws erodes trust in farmers and increases support for animal welfare regulations," Food Policy, Elsevier, vol. 61(C), pages 121-125.
    7. repec:taf:oabmxx:v:4:y:2017:i:1:p:1396655 is not listed on IDEAS
    8. Mbaye Fall Diallo & Christine Lambey-Checchin, 2017. "Consumers’ Perceptions of Retail Business Ethics and Loyalty to the Retailer: The Moderating Role of Social Discount Practices," Journal of Business Ethics, Springer, vol. 141(3), pages 435-449, March.

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