IDEAS home Printed from https://ideas.repec.org/a/spr/ijocsr/v5y2020i1d10.1186_s40991-019-0046-7.html
   My bibliography  Save this article

CSR commitments, perceptions of hypocrisy, and recovery

Author

Listed:
  • Dustin Smith

    (Webster University)

  • Eric Rhiney

    (Webster University)

Abstract

This paper examines perceived hypocrisy when a failure is aligned with prior social performance. It is hypothesized that commitment to a CSR domain creates greater performance expectations thus exacerbating the effects when an aligned failure occurs. Study 1 demonstrates that failure alignment and severity increase perceived hypocrisy which negatively impacts customer evaluations of trust, repurchase intent, and brand attitude. Study 2 evaluates two response strategies of apology and compensation vs. no response. An apology significantly reduced perceptions of hypocrisy only when the failure was unaligned with prior CSR. Compensation significantly reduced hypocrisy in both the unaligned and aligned conditions.

Suggested Citation

  • Dustin Smith & Eric Rhiney, 2020. "CSR commitments, perceptions of hypocrisy, and recovery," International Journal of Corporate Social Responsibility, Springer, vol. 5(1), pages 1-12, December.
    • Handle: RePEc:spr:ijocsr:v:5:y:2020:i:1:d:10.1186_s40991-019-0046-7
    DOI: 10.1186/s40991-019-0046-7
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s40991-019-0046-7
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1186/s40991-019-0046-7?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. Kent Walker & Fang Wan, 2012. "The Harm of Symbolic Actions and Green-Washing: Corporate Actions and Communications on Environmental Performance and Their Financial Implications," Journal of Business Ethics, Springer, vol. 109(2), pages 227-242, August.
    2. David Noack & Douglas R. Miller & Dustin Smith, 2019. "Let Me Make It Up to You: Understanding the Mitigative Ability of Corporate Social Responsibility Following Product Recalls," Journal of Business Ethics, Springer, vol. 157(2), pages 431-446, June.
    3. Carroll, Archie B., 1991. "The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders," Business Horizons, Elsevier, vol. 34(4), pages 39-48.
    4. Sora Kim, 2014. "What’s Worse in Times of Product-Harm Crisis? Negative Corporate Ability or Negative CSR Reputation?," Journal of Business Ethics, Springer, vol. 123(1), pages 157-170, August.
    5. Chang-Hyun Jin & Jung-Yong Lee, 2019. "The Halo Effect of CSR Activity: Types of CSR Activity and Negative Information Effects," Sustainability, MDPI, vol. 11(7), pages 1-20, April.
    6. Bougie, J.R.G. & Pieters, R. & Zeelenberg, M., 2003. "Angry customers don't come back, they get back : The experience and behavioral implications of anger and dissatisfaction in services," Other publications TiSEM 1708fb71-fd68-41d9-b870-e, Tilburg University, School of Economics and Management.
    7. Irene Pollach, 2015. "Strategic corporate social responsibility: the struggle for legitimacy and reputation," International Journal of Business Governance and Ethics, Inderscience Enterprises Ltd, vol. 10(1), pages 57-75.
    8. James D. Westphal & David L. Deephouse, 2011. "Avoiding Bad Press: Interpersonal Influence in Relations Between CEOs and Journalists and the Consequences for Press Reporting About Firms and Their Leadership," Organization Science, INFORMS, vol. 22(4), pages 1061-1086, August.
    9. Jay J. Janney & Steve Gove, 2011. "Reputation and Corporate Social Responsibility Aberrations, Trends, and Hypocrisy: Reactions to Firm Choices in the Stock Option Backdating Scandal," Journal of Management Studies, Wiley Blackwell, vol. 48(7), pages 1562-1585, November.
    10. Öberseder, Magdalena & Schlegelmilch, Bodo B. & Murphy, Patrick E., 2013. "CSR practices and consumer perceptions," Journal of Business Research, Elsevier, vol. 66(10), pages 1839-1851.
    11. Eileen Fischer & Rebecca Reuber, 2007. "The Good, the Bad, and the Unfamiliar: The Challenges of Reputation Formation Facing New Firms," Entrepreneurship Theory and Practice, , vol. 31(1), pages 53-75, January.
    12. Isabell Lenz & Hauke A. Wetzel & Maik Hammerschmidt, 2017. "Can doing good lead to doing poorly? Firm value implications of CSR in the face of CSI," Journal of the Academy of Marketing Science, Springer, vol. 45(5), pages 677-697, September.
    13. Suzanne C. Makarem & Haeran Jae, 2016. "Consumer Boycott Behavior: An Exploratory Analysis of Twitter Feeds," Journal of Consumer Affairs, Wiley Blackwell, vol. 50(1), pages 193-223, March.
    14. Alexander Dahlsrud, 2008. "How corporate social responsibility is defined: an analysis of 37 definitions," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 15(1), pages 1-13, January.
    15. Haiying Wei & Yaxuan Ran, 2019. "Male Versus Female: How the Gender of Apologizers Influences Consumer Forgiveness," Journal of Business Ethics, Springer, vol. 154(2), pages 371-387, January.
    16. Abagail McWilliams & Donald Siegel, 2000. "Corporate social responsibility and financial performance: correlation or misspecification?," Strategic Management Journal, Wiley Blackwell, vol. 21(5), pages 603-609, May.
    17. Nelarine Cornelius & Mathew Todres & Shaheena Janjuha-Jivraj & Adrian Woods & James Wallace, 2008. "Corporate Social Responsibility and the Social Enterprise," Journal of Business Ethics, Springer, vol. 81(2), pages 355-370, August.
    18. Won‐Moo Hur & Hanna Kim & Joon Hyo Jang, 2016. "The Role of Gender Differences in the Impact of CSR Perceptions on Corporate Marketing Outcomes," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 23(6), pages 345-357, November.
    19. Yuval Deutsch & Thomas W. Ross, 2003. "You are Known by the Directors You Keep: Reputable Directors as a Signaling Mechanism for Young Firms," Management Science, INFORMS, vol. 49(8), pages 1003-1017, August.
    20. Chi-Shiun Lai & Chih-Jen Chiu & Chin-Fang Yang & Da-Chang Pai, 2010. "The Effects of Corporate Social Responsibility on Brand Performance: The Mediating Effect of Industrial Brand Equity and Corporate Reputation," Journal of Business Ethics, Springer, vol. 95(3), pages 457-469, September.
    21. Casidy, Riza & Shin, Hyunju, 2015. "The effects of harm directions and service recovery strategies on customer forgiveness and negative word-of-mouth intentions," Journal of Retailing and Consumer Services, Elsevier, vol. 27(C), pages 103-112.
    22. Paul C. Godfrey & Craig B. Merrill & Jared M. Hansen, 2009. "The relationship between corporate social responsibility and shareholder value: an empirical test of the risk management hypothesis," Strategic Management Journal, Wiley Blackwell, vol. 30(4), pages 425-445, April.
    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. Kolcava, Dennis, 2020. "Do citizens hold business accountable for greenwashing by demanding more government intervention?," OSF Preprints sj4dk, Center for Open Science.
    2. Lu, Jintao & Jia, Xiaorong & Lev, Benjamin & Zhang, Chong & Gao, Yangyang & Zhao, Min & He, Yifan, 2021. "How to understand “salable fake goods” and “unsalable quality goods”? An insight from the view of quality responsibility and consumers’ brand loyalty," Technology in Society, Elsevier, vol. 67(C).
    3. Runyuan Jia & Juan Antonio Sánchez-Sáez & Francisco Segado Segado, 2023. "The Impact of the China Open 500 Event on Sense of Community: Comparisons of Volunteers’ Pre- and Post-Event Perceptions," Sustainability, MDPI, vol. 15(8), pages 1-21, April.
    4. 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.
    5. Yongzhi Qi & Yuchen Chai & Yifan Jiang, 2021. "Threshold effect of government subsidy, corporate social responsibility and brand value using the data of China’s top 500 most valuable brands," PLOS ONE, Public Library of Science, vol. 16(5), pages 1-15, May.
    6. Zhigang Ouyang & Fengyu Liu & Ge Zhai & Svitlana Bilan, 2020. "Assessment of Resident Happiness under Uncertainty of Economic Policies: Empirical Evidences from China," Sustainability, MDPI, vol. 12(18), pages 1-17, September.
    7. Xiaodan Wu & Richard Amoasi, 2024. "The role of CSR in sustaining corporate brands in the global market: The perspective of telecommunication companies in Ghana," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(1), pages 433-447, January.

    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. Francisco Javier Forcadell & Elisa Aracil, 2017. "European Banks' Reputation for Corporate Social Responsibility," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 24(1), pages 1-14, January.
    2. Fuzhen Liu & Kee-hung Lai & Wei Cai, 2021. "Responsible Production for Sustainability: Concept Analysis and Bibliometric Review," Sustainability, MDPI, vol. 13(3), pages 1-27, January.
    3. Jacob Brower & Peter A. Dacin, 2020. "An Institutional Theory Approach to the Evolution of the Corporate Social Performance – Corporate Financial Performance Relationship," Journal of Management Studies, Wiley Blackwell, vol. 57(4), pages 805-836, June.
    4. Ilka Marie Frerichs & Thorsten Teichert, 2023. "Research streams in corporate social responsibility literature: a bibliometric analysis," Management Review Quarterly, Springer, vol. 73(1), pages 231-261, February.
    5. Zhe Zhang & Mijia Gong & Shanshan Zhang & Ming Jia, 2023. "Buffering or Aggravating Effect? Examining the Effects of Prior Corporate Social Responsibility on Corporate Social Irresponsibility," Journal of Business Ethics, Springer, vol. 183(1), pages 147-163, February.
    6. Michael S Lin & Yeasun K Chung, 2019. "Understanding the impacts of corporate social responsibility and brand attributes on brand equity in the restaurant industry," Tourism Economics, , vol. 25(4), pages 639-658, June.
    7. Deepa Sharma & Suman Chakraborty & Ashwath Ananda Rao & Lumen Shawn Lobo, 2023. "The Relationship of Corporate Social Responsibility and Firm Performance: A Bibliometric Overview," SAGE Open, , vol. 13(1), pages 21582440231, March.
    8. Meijui Sun & Ming-Chang Huang, 2022. "Does CSR reputation mitigate the impact of corporate social irresponsibility?," Asian Business & Management, Palgrave Macmillan, vol. 21(2), pages 261-285, April.
    9. Esra Alniacik & Charefeddine Moumen & Umit Alniacik, 2020. "The moderating role of personal value orientation on the links between perceived corporate social performance and purchase intentions," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(6), pages 2724-2734, November.
    10. Francisco González Santa Cruz & Iliana Loor Alcívar & Nelly Moreira Mero & Amalia Hidalgo-Fernández, 2020. "Analysis of the Dimensions of Corporate Social Responsibility: Study Applied to Co-operativism in Ecuador," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 148(2), pages 517-534, April.
    11. Luis Otero-González & Pablo Durán-Santomil & Luis-Ignacio Rodríguez-Gil & Rubén Lado-Sestayo, 2021. "Does a Company’s Profitability Influence the Level of CSR Development?," Sustainability, MDPI, vol. 13(6), pages 1-15, March.
    12. Hasan, Iftekhar & Karavitis, Panagiotis & Kazakis, Pantelis & Leung, Woon Sau, 2019. "Corporate Social Responsibility and Profit Shifting," MPRA Paper 91580, University Library of Munich, Germany.
    13. Nick Lin-Hi & Igor Blumberg, 2018. "The Link Between (Not) Practicing CSR and Corporate Reputation: Psychological Foundations and Managerial Implications," Journal of Business Ethics, Springer, vol. 150(1), pages 185-198, June.
    14. Riillo, Cesare Fabio Antonio & Sarracino, Francesco, 2014. "Motivations for Corporate Social Responsibility: all talk and no walk?," MPRA Paper 60211, University Library of Munich, Germany.
    15. Rüdiger Hahn, 2013. "ISO 26000 and the Standardization of Strategic Management Processes for Sustainability and Corporate Social Responsibility," Business Strategy and the Environment, Wiley Blackwell, vol. 22(7), pages 442-455, November.
    16. Kudla, Nicole & Stölzle, Wolfgang, 2011. "Sustainability Supply Chain Management Research," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 65(3), pages 263-301.
    17. Bongani Munkuli & Renee Horne, 2018. "Financial Markets Value Reputation for Corporate Social Responsibility (CSR) – A Study of the South African Mining Sector," Africagrowth Agenda, Africagrowth Institute, vol. 15(2), pages 17-22.
    18. Wójcik Piotr, 2018. "The business case for corporate social responsibility: A literature overview and integrative framework," Journal of Management and Business Administration. Central Europe, Sciendo, vol. 26(1), pages 121-148, March.
    19. Mario A. Morales-Parragué & Rodrigo A. Varela-Laso & Luis Araya-Castillo & Fidel Molina-Luque, 2023. "Corporate Social Responsibility: Where Does It Come from, and Where Does It Go? Evolution of the Conceptual Structure from 1975 to 2021," Sustainability, MDPI, vol. 15(7), pages 1-23, March.
    20. Jamshed Raza & Abdul Majid, 2016. "Perceptions and practices of corporate social responsibility among SMEs in Pakistan," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(6), pages 2625-2650, November.

    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:spr:ijocsr:v:5:y:2020:i:1:d:10.1186_s40991-019-0046-7. 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.