The debate around ethical consumption is often characterised by discussion of its numerous failures arising from complexity in perceived trade-offs. In response, this paper advances a pragmatist understanding of the role and nature of trade-offs in ethical consumption. In doing so, it draws on the central roles of values and value in consumption and pragmatist philosophical thought, and proposes a critique of the ethical consumer as rational maximiser and the cognitive and utilitarian discourse of individual trade-offs to understand how sustainable (...) consumption practices are established and maintained. An in-depth qualitative study is conducted employing phenomenological interviews and hermeneutic analysis to explore the consumption stories of a group of ethically minded consumers. The research uncovers the location of value within a fluid, yet habitual, plurality of patterns, preferences, morals, identities and relationships. Its contribution is to propose that consumer perception of value in moral judgements is represented by an overall form of aggregate personal advantage, which lacks conscious reflection and delivers a phenomenological form of value rooted in habits, reflecting a pragmatist representation of value unified as a ‘consummatory experience’. (shrink)

Despite their ethical intentions, ethically minded consumers rarely purchase ethical products (Auger and Devinney: 2007, Journal of Business Ethics76, 361–383). This intentions–behaviour gap is important to researchers and industry, yet poorly understood (Belk et al.: 2005, Consumption, Markets and Culture8(3), 275–289). In order to push the understanding of ethical consumption forward, we draw on what is known about the intention–behaviour gap from the social psychology and consumer behaviour literatures and apply these insights to ethical consumerism. We bring together three separate (...) insights – implementation intentions (Gollwitzer: 1999, American Psychologist54(7), 493–503), actual behavioural control (ABC) (Ajzen and Madden: 1986, Journal of Experimental Social Psychology22, 453–474; Sheeran et al.: 2003, Journal of Social Psychology, 42, 393–410) and situational context (SC) (Belk: 1975, Journal of Consumer Research2, 157–164) – to construct an integrated, holistic conceptual model of the intention–behaviour gap of ethically minded consumers. This holistic conceptual model addresses significant limitations within the ethical consumerism literature, and moves the understanding of ethical consumer behaviour forward. Further, the operationalisation of this model offers insight and strategic direction for marketing managers attempting to bridge the intention–behaviour gap of the ethically minded consumer. (shrink)

With regard to the topicality of corporate social responsibility in retail practice, only a few studies have comprehensively analyzed the role of CSR in retail. Due to the specific role of a retailer as a gatekeeper between the producer and the consumer in the supply chain, a comprehensive understanding of the impact of consumer perceptions of CSR activities is of great relevance. Therefore, this study contributes information regarding the impact of CSR activities on retailer performance. Using a comprehensive conceptualization of (...) CSR, the results of our customer survey suggest that CSR has positive implications as driver of customer loyalty and favorable consumer purchasing behavior. The authors demonstrate the CSR dimensions that are most important for retailers to influence positively consumer purchasing behavior. This study highlights the significance of the credibility of retailer CSR activities and show that consumers’ CSR orientation impacts the relationship between retailer CSR activities and consumer behavior. (shrink)

There are strong indications that many consumers are switching towards more socially and environmentally responsible products and services, reflecting a shift in consumer values indicated in several countries. However, little is known about the motives that drive some toward, or deter others from, higher levels of ethical concern and action in their purchasing decisions. Following a qualitative investigation using ZMET and focus group discussions, a questionnaire was developed and administered to a representative sample of consumers; nearly 1,000 usable questionnaires were (...) collected. The degree of awareness, concern and action regarding 16 ethical issues was quantified, using a measure developed from the Stages of Change concept within the Transtheoretical model. Motivations for ethical behaviour, in relation to each individual’s most salient ethical issue, were investigated using initially 22 motive statements within the framework of the Decisional Balance Scale (DBS). The findings suggest that the DBS and Stages model have an explanatory value within the ethical decision-making context, and that the motives identified do reflect the Decisional Balance Constructs. Indeed the study suggests that respondents’ motivational attitudes are a function of their stage of ethical awareness, concern and action. Therefore, the Decisional Balance Scale may well prove useful for designing appropriate interventions and communications to facilitate movement towards more ethical decision-making. These findings yield strategic insight for communicating messages to ethical consumers and for better understanding their purchasing decisions. (shrink)

In this paper, we examine the relationship between various Christian denominations and attitude and behavior regarding consumption of socially responsible products. Literature on the relationship between religiosity and pro-social behavior has shown that religiosity strengthens positive attitudes towards pro-social behavior, but does not affect social behavior itself. This seems to contradict the theory of planned behavior that predicts that attitude fosters behavior. One would therefore expect that if religiosity encourages attitude towards SR products, it would also increase the demand for (...) them. We test this hypothesis for four affiliations on a sample of 997 Dutch consumers, using structural equation modeling. We find that Christian religiosity, indeed, increases positive attitude towards SR products, except for the Orthodox Protestant affiliation. In accordance with the theory of planned behavior, attitude is found to increase the demand for SR products. We find no evidence of hypocrisy for any of the Christian denominations. (shrink)

Growth in CSR-washing claims in recent decades has been dramatic in numerous academic and activist contexts. The discourse, however, has been fragmented, and still lacks an integrated framework of the conditions necessary for successful CSR-washing. Theorizing successful CSR-washing as the joint occurrence of five conditions, this paper undertakes a literature review of the empirical evidence for and against each condition. The literature review finds that many of the conditions are either highly contingent, rendering CSR-washing as a complex and fragile outcome. (...) This finding runs counter to the dominant perception in the general public, among activists, and among a vocal contingent of academics that successful CSR-washing is rampant. (shrink)

This paper investigates the effectiveness of a new traceability label on consumer willingness to buy the labelled product and whether the effect is mediated by moral affective evaluations of the product. A between-subjects factorial design was used to test the effect of a new traceability label on willingness to buy a chocolate bar, while controlling for different product features and whether this effect was mediated through the consumer’s moral affective evaluations of the product. A broad sample of 1,064 ordinary Danish (...) consumers was recruited for the study from the panel of an online sample provider, age range 18–80. We found that the traceability label has a significant impact on consumer willingness to buy a chocolate bar. This impact is mediated by moral affective evaluations of the chocolate bar. Based on the dual process models of persuasion, we conclude that consumers mainly process the traceability label in a heuristic way, through a peripheral route, making a fast and frugal, affect-based judgment, rather than one based on elaborate reasoning. Being one of the first empirical studies on the impact of a traceability label on consumer willingness to buy a product, it provides valuable insights for businesses on the effects of a traceability label on consumer behaviour. In addition, it provides new insights on the process through which an ethical label influences consumer evaluations and purchase behaviour. This study is, to the best of our knowledge, the first to show that an ethical label influences consumer decision-making through activating a holistic moral affective evaluation of the offering, rather than through strengthening the consumer’s knowledge base for a more qualified reasoning process. (shrink)

The attention paid to the influence of organizational philanthropy on consumer responses has precipitated a shift in the role this practice plays in organizational dynamics—with philanthropy becoming an increasingly strategic marketing tool. The authors develop and test a model predicting that: (1) perceived organizational credibility will mediate the relationship between awareness of philanthropy and the outcomes of advocacy and financial sacrifice; (2) consumer social consciousness will moderate the relationship between awareness of philanthropy and firm credibility, and between credibility and the (...) outcome variables; and (3) these moderated relationships will be mediated by perceived credibility. Data obtained from a sample of professional golf patrons support our assertions. Notably, the findings implicate perceived credibility as a key intervening variable in the hypothesized relationships for the PGA Tour. (shrink)

This article explores the extent to which consumers consider ethics in luxury goods consumption. In particular, it explores whether there is a significant difference between consumers’ propensity to consider ethics in luxury versus commodity purchase and whether consumers are ready to purchase ethical-luxury. Prior research in ethical consumption focuses on low value, commoditized product categories such as food, cosmetics and high street apparel. It is debatable if consumers follow similar ethical consumption patterns in luxury purchases. Findings indicate that consumers’ propensity (...) to consider ethics is significantly lower in luxury purchases when compared to commoditized purchases and explores some of the potential reasons for this reduced propensity to identify or act upon ethical issues in luxury consumption. (shrink)

As a reflection of the values and ethics of firms, corporate social responsibility (CSR) has received a large amount of research attention over the last decade. A growing area of this research is the CSR-consumer relationship. Results of experimental studies indicate that consumer attitudes and purchase intentions are influenced by CSR initiatives-if consumers are aware of them. In order to create this awareness, business is increasingly turning to 'pro-social' marketing communications, but such campaigns is met with scepticism and their effectiveness (...) are therefore uncertain. Consequently, researchers in the field (for example, Maignan, 2001; Mohr et al., 2001) have called for empirical studies to determine the level of actual consumer awareness of CSR initiatives. This study examines the Australian banking sector, which engages in and promotes its CSR activities, to help fill this gap. Results from our qualitative study with bank managers, and our quantitative study with consumers, indicate low consumer CSR awareness levels. Consumer understanding of many of the social issues banks engage with is also low. While CSR is effective in eliciting favourable consumer attitudes and behaviour in theory, CSR has not proven its general effectiveness in the marketplace. The low consumer awareness of the various social issues in which firms engage with their CSR programs suggests that firms may need to educate consumers, so they may better contextualise CSR initiatives communicated. However, better context may amount to little if claimed CSR initiatives are perceived as inconsistent with other facets of the business that reflect its values and ethics. (shrink)

This paper investigates under what conditions a good corporate social responsibility (CSR) can compensate for a relatively poor corporate ability (CA) (quality), and vice versa. The authors conducted an experiment among business administration students, in which information about a financial services company's CA and CSR was provided. Participants indicated their preferences for the company's products, stocks, and jobs. The results show that for stock and job preferences, a poor CA can be compensated by a good CSR. For product preferences, a (...) poor CA could not be compensated by a good CSR, at least when people thought that CA is personally relevant to them. Furthermore, a poor CSR could be compensated by a good CA for product, stocks, and job preferences. (shrink)

Drawing from a multi-sourced data corpus gathered from high-net-worth social media influencers, this article explores how these individuals reconcile ethicality and living a luxury lifestyle through the enactment of three types of personas on Instagram: Ambassador of ‘True’ Luxury, Altruist, and ‘Good’ Role Model. By applying the concepts of taste regimes and social moral licensing, we find that HNW social media influencers conspicuously enact and display ethicality, thereby retaining legitimacy in the field of luxury consumption. As these individuals are highly (...) influential, they could leave a potentially significant mark on public discourse and, consequently, on their audiences’ construction of ethically responsible luxury consumption. In this vein, this article offers significant managerial insights into professional influencers and discusses ethical managerial practices to ensure ethical collaborations between influencers and managers. (shrink)

Despite the growing public awareness of social sustainability issues, little is known about what drives firms to emphasize social criteria in their supplier management practices and what the precise benefits of such efforts are. This is especially true for relationships with international suppliers from the world's emerging economies in Asia, Latin America, and Eastern Europe. Building on stakeholder theory, we address the issue by examining how pressures from customers, the government, and employees as primary constituencies of the firm determine the (...) extent to which firms consider social aspects in the selection of emerging economy suppliers. Further, we analyze how such socially sustainable supplier selection relates to the capabilities of the firm's suppliers, its market reputation, and the learning in its supply management organization. We test the developed research framework empirically using data from 244 U. S. and German corporations. Our findings, consistent with our hypothesized model, suggest that middle-level supply managers as internal stakeholders play a major driving role for firms' socially sustainable supplier selection, and that strong positive links exist between that selection and the investigated outcomes. (shrink)

While considerable attention has been given to the harm done to consumers by marketing, less attention has been given to the harm done by consumers as an indirect effect of marketing activities, particularly in regard to supply chains. The recent development of dramatically expanded global supply chains has resulted in social and environmental problems upstream that are attributable at least in part to downstream marketers and consumers. Marketers have responded mainly by using corporate social responsibility (CSR) communication to counter the (...) critique of CSR practice, but these claims of ethical corporate behavior often lack credibility and can result in a backlash against brands. The article argues that more adequate attention to the harmful upstream effects of downstream marketing and consumption decisions requires greater attention to stakeholder marketing and marketer efforts to help create responsible consumers. It concludes by identifying implications for further research in this important emergent area of marketing ethics. (shrink)

Many consumers implicitly associate sustainability with lower product strength. This so-called ethical = less strong intuition (ELSI) poses a major threat for the success of sustainable products. This article explores this pervasive lay theory and examines whether it is a key barrier for sustainable consumption patterns. Even more importantly, little is known about the underlying mechanisms that might operate differently at the implicit and explicit levels of the consumer’s decision-making. To fill this gap, three studies examine how the implicit judgments (...) that consumers activate automatically shape their consumption behaviors, in concert with their more controlled explicit beliefs about sustainable products. The Main Study investigates the ELSI’s imprint on actual shopping patterns and disentangles the implicit and explicit mechanisms of the lay theory. This paper also asks how this negative influence can be attenuated by examining whether the consumer’s interest in sustainable consumption reduces reliance on the ELSI. Two follow-up studies confirm the robustness from different methodological and practical perspectives. Implications for companies and policy makers are derived. (shrink)

What motivates manufacturing companies to make costly investments in producing in an environmentally clean manner? The traditional argument is that such behaviour is value reducing, and that therefore, firms must be forced by regulation to invest in "green" production processes. A counter-argument is that firms have an incentive to make environmental investments in an attempt to attract "green" consumers and investors, hence gaining competitive advantage over their rivals. In this paper, we employ a game-theoretic approach that demonstrates that competing firms' (...) incentives to make voluntary investments in environmental "clean-up" are affected by the size of the investment costs and the extent of consumer and investor "green" awareness. We argue that an increase in green behaviour can be induced by a combination of governmental subsidies for firms that invest in environmentally clean production processes, together with an education program that promotes "green" awareness amongst consumers, investors and the managers themselves. (shrink)

Nearly all studies of consumers’ willingness to engage in ethical or socially responsible purchasing behavior is based on unconstrained survey response methods. In the present article we ask the question of how well does asking consumers the extent to which they care about a specific social or ethical issue relate to how they would behave in a more constrained environment where there is no socially acceptable response. The results of a comparison between traditional survey questions of “intention to purchase” and (...) estimates of individuals willingness-to-pay for social attributes in products reveal that simple survey questions are too “noisy” to provide operationally meaningful information and overstate intentions to a considerable extent. (shrink)

This article examines the drivers and barriers for corporate social responsibility (CSR) in the Norwegian graduate uniform industry, which is a market devoid of large corporations, consisting entirely of two small businesses. It finds that these small businesses' CSR activities are not particularly well explained by the existing literature on CSR in small- and medium-sized enterprises, which assumes the presence of large competitors. This raises the question of whether small businesses that do not compete against large corporations may actually behave (...) more like ‘little big firms’ when it comes to CSR. The article finds that the two businesses studied are mostly driven by external pressure to improve their social responsibility. Such pressure stems partly from news reports on their activities and partly from increasing competition leading to a situation where the small businesses operating in the market scrutinise each others' activities. (shrink)

Over the past two decades, the phenomenon of socially responsible investing has become more widespread. However, knowledge about the individual socially responsible investor is largely limited to descriptive and comparative accounts. The question of "why do some investors practice socially responsible investing and others don't?" is therefore still largely unanswered. To address this shortcoming in the current literature, this paper develops a model of the decision to invest socially responsibly that is grounded in the cognition literature. The hypotheses proposed in (...) the model are tested with an experimental survey. The results indicate that the framing of the investing situation influences the likelihood of engagement in socially responsible investing and how much return the individuals are willing to sacrifice when choosing socially responsible over conventional investments. The study does not find support for a relationship between expectations about corporate social responsibility and the likelihood of engagement in socially responsible investing. (shrink)

We examine the role of socio-demographic factors on consumers’ pro-environmental behavior (PEB)–a subset of ethical behavior and analyze its implications in an emerging market, with a sample study from India. Multivariate analysis of variance (MANOVA) was performed as research method. Results show that males display higher PEB than their female counterparts. Married consumers score more on PEB than single. Mid-age consumers (36–50) also score high on PEB than young and old-age consumers. Furthermore, highly educated consumers are more pro-environmentalist than graduates (...) and post-graduates. The novelty of this study is that centers on the use of demographic variables interactively in order to form microsegments. For instance, married men score more on PEB scale than unmarried men and women and prefer green channels even more (i.e., public transportation). On the contrary, unmarried women display no hesitation in paying more for energy-efficient goods compared to married men and unmarried men. Marketers may aim in setting such PEBs as the moral standards among consumers being an easily identifiable segment as their prime target. (shrink)

The current work examines how cues traditionally used to signal environmental friendliness, specifically the color green and eco-labels, and influence product efficacy perceptions and subsequent purchase intentions. Across three experiments, we find that environmental cues used in isolation reduce perceptions of product efficacy. We argue that this efficacy discounting effect occurs because the isolated use of an environmental cue introduces category ambiguity by activating competing functionality and environmentally friendly schemas during evaluation. We discuss the implications of our findings for research (...) on environmental consumption as well as offer insight into the effective use of environmental cues on product packaging. (shrink)

An important aspect of brand perception emanates from its corporate social responsibility activity. When two brands involved in CSR activities form a cobranding alliance, their respective CSR perceptions can impact consumer attitudes toward the alliance. As an ethically-oriented strategy, the alliance can be potentially beneficial to both partner brands, and can create opportunities for promoting CSR activities. The research streams on brand management, cobranding, and CSR, however, are silent about this important branding strategy that has several embedded business and societal (...) benefits. This study examines how CSR-based consumer perceptions and ethical self-identity impact consumer evaluation of cobrands. Employing a quasi-experimental between-subjects design, the study tests six cobranding scenarios in three product categories. The data were collected via structured questionnaires resulting in 318 valid responses. The data were analyzed employing Partial Least Squares Structural Equation Modeling. The results confirm that positive CSR perceptions toward the partner brands are robust indicators of attitudes toward cobrands. Further, the match between the CSR activities of the partner brands and the product categories influences cobrand attitudes. The results also show evidence of ‘spill-over’ effects, where the alliance has a positive impact on subsequent CSR perceptions toward the partner brands. Additionally, the findings demonstrate an asymmetry in the effects of the cobrand on subsequent CSR perceptions wherein consumers with low ethical self-identity show greater spill-over effects from the cobrand than those with high ethical self-identity. The study contributes to knowledge in the domains of business ethics, cobranding, and social responsibility. The findings have managerial implications for designing CSR-based ethical branding strategies for cobrands. (shrink)

Market-based social governance schemes that establish standards of conduct for producers and traders in international supply chains aim to reduce the negative socioenvironmental effects of globalization. While studies have examined how characteristics of social governance schemes promote socially responsible producer behavior, it has not yet been examined how these same characteristics affect consumer behavior. This is a crucial omission, because without consumer demand for socially produced products, the reach of the social benefits is likely to be limited. We develop a (...) comprehensive model that links twocharacteristics of market-based social governance schemes—(1) stringency and enforcement of requirements, and (2) promotion—to two conditions required for governance schemes to generate significant social benefits: (1) socially responsible behavior of participating firms; and (2) consumer demand for socially produced products which, in turn, expands products produced according to social governance schemes, and thus, the quantity of social benefits. We discuss market-based social governance schemes in the context of fair trade coffee. (shrink)

Transparency is a crucial condition to implement a CSR policy based on the reputation mechanism. The central question of this contribution is how a transparency policy ought to be organised in order to enhance the CSR behaviour of companies. Governments endorsing CSR as a new means of governance have different strategies to foster CSR transparency. In this paper we discuss the advantages and disadvantages of two conventional policy strategies: the facilitation policy and the command and control strategy. Using three criteria (...) (efficiency, freedom and virtue) we conclude that both strategies are defective. Most attention is paid to the facilitation strategy since governments nowadays mainly use this. In evaluating this strategy we analyse the Dutch case. As an alternative we introduce a third government policy: the development of a self-regulating sub-system. By construing an analogy with the historical development of corporate financial disclosure, we point out that the vital step in the creation of a self-regulating subsystem is the creation of strong informational intermediate organisations. (shrink)

An overview and assessment of the current state of research on individual consumption of Fair Trade (FT) products is given on the basis of 51 journal publications. Arranging this field of ethical consumption research according to key research objectives, theoretical approaches, methods, and study population, the review suggests that most studies apply social psychological approaches focusing mainly on consumer attitudes. Fewer studies draw on economic approaches focusing on consumers’ willingness to pay ethical premia for FT products or sociological approaches relying (...) on the concept of consumer identity. Experimental, qualitative and conventional survey methods are used approximately equally often. Almost all studies draw on convenience or purposive samples and most studies are conducted in the USA or the United Kingdom. Several problems in current research are identified: amongst others, studies’ rather narrow theoretical focus, potential hypothetical and social desirability bias of conventional survey data, and a lack of generalizability of empirical findings. In turn, we suggest that research would benefit from both a multiple-motives and a multiple-methods perspective. Considering competing theories can help to single out key behavioral determinants of individual FT consumption. The combination of different methods such as conventional surveys and field experiments contributes to uncovering respondents’ truthful answers and improves generalizability of results. Scholars in the field of ethical consumption research should use experiments to detect causal relations proposed by theories and conduct cross-country surveys to gather insights as to how differences in market structures, cultural traits, and other path dependencies affect patterns of individual FT consumption. (shrink)

This paper researches perceptions of the concept of price fairness in the Dutch coffee market. We distinguish four alternative standards of fair prices based on egalitarian, basic rights, capitalistic and libertarian approaches. We investigate which standards are guiding the perceptions of price fairness of citizens and coffee trade organizations. We find that there is a divergence in views between citizens and key players in the coffee market. Whereas citizens support the concept of fairness derived from the basic rights approach, holding (...) that the price should provide coffee farmers with a minimum level of subsistence, representatives of Dutch coffee traders hold the capitalistic view that the free world market price is fair. (shrink)

Business Ethics: A European Review, EarlyView.

Current research suggests consumers trade off price, quality, and sustainability attributes when making choices. Prior studies have typically focused on product attribute dyads, rather than multiattribute decision-making in the sustainability context. For scholars and practitioners, understanding which attributes are more important to consumers in tradeoff contexts has been a challenge. Self-other orientation may play a significant role in predicting consumers’ sustainable choices. We use prior research on equity sensitivity to demonstrate that segmenting consumers by their disposition to self-other tradeoffs helps (...) predict price–quality–sustainability tradeoffs. We hypothesize and test how members of these equity sensitivity segments tradeoff price, quality, and sustainability attributes in consumption decisions. Through four conjoint studies featuring diverse product assortments and sustainability issues, we find that price provides high utility for Entitled consumers, while sustainability provides high utility for Benevolent consumers. When product attributes are combined, Benevolents are more likely than Entitleds to purchase sustainable products. We also demonstrate that, in the absence of product choices, Equity Sensitives are more willing to choose a sustainable option over a conventional option, even when prices are high. In light of these findings, we discuss the implications for scholars looking to broadly predict consumers’ sustainable choices and for firms looking to target consumers with consumer-centric sustainability strategy. (shrink)

Commodity chain analysis (Bair and Ramsay, 2003 Multinational Companies and Global Human Resource Strategies) is used to explore where economic pressure (from consumers) or socio-political pressure (from governments and NGOs) can be applied to reduce worker exploitation. Six paths are illustrated with examples of successful and unsuccessful application of pressure. Three conclusions are reached :Economic pressure on companies and brand owners is more likely to lead to improved workplace conditions than socio-political pressure; Brand owners are more likely to implement improved (...) workplace conditions than retailers; and Retailers who are under extreme consumer price pressure will resist improving workplace conditions. (shrink)

In the context of the growing popularity of the ethical consumer movement and the appearance of different types of ethical collective communities, the current article explores the meanings drawn from the participation in Responsible Consumption Cooperatives. In existing research, the overriding focus has been on examining individual ethical consumer behaviour at the expense of advancing our understanding of how ethical consumers behave collectively. Hence, this article examines the meanings derived from participating in ethical consumer groups. A qualitative multi-method approach is (...) adopted to increase the validity of findings. This includes focus groups, in-depth interviews, observation and document analysis. Results show that ethical consumption in a group project offers a greater sense of effectiveness and control when compared to individual actions. Furthermore, these groups facilitate the creation of a social circle and encourage new learning as a result of the social interaction that takes place in the ethical community of the cooperative. (shrink)

Research based on the behavioral theory of the firm (BTOF) argues that firms will actively adopt strategic actions to respond to performance that falls below aspirations, that is performance shortfalls. However, most previous studies have focused on market-related strategic actions, paying less attention to the impact of performance shortfalls on non-market-related strategic actions, especially corporate social responsibility (CSR) and corporate social irresponsibility (CSI). In this study, we propose that firms facing performance shortfalls are likely to reduce CSR levels and increase (...) CSI levels. In addition, we also propose that board characteristics (board size, board age and board tenure) have a significant moderating effect on the above relationship. Empirical analyses based on an unbalanced panel data of China's listed firms from 2010 to 2018 show that our arguments are largely supported. (shrink)

To promote ethical and pro-environmental behavior, hypocrisy sometimes is made salient to individuals: i.e., they are made aware that their past behavior does not conform to expressed norms. The fact that this strategy may backfire and may even reduce the likelihood of individuals performing the desired action has been largely overlooked. This paper develops a theory of how hypocrisy stimulates two opposing heuristic processes: one that favors the former, positive outcome and one that renders hypocrisy non-effective. We test the model (...) and reveal important boundary conditions using the finding of a comprehensive field experiment. Situational and individual factors determine which of the competing mechanisms is activated. The paper contributes a novel understanding to managers and scholars of how hypocrisy operates and illuminates the contingencies of when this strategy is beneficial. (shrink)

Business Ethics: A European Review, EarlyView.

This paper examines the question of why consumers engage in ethical consumption. The authors draw on self-affirmation theory to propose that the choice of an ethical product serves a self-restorative function. Four experiments provide support for this assertion: a self-threat increases consumers’ choice of an ethical option, even when the alternative choice is objectively superior in quantity (Study 1) and product quality (Study 2). Further, restoring self-esteem through positive feedback eliminates this increase in ethical choice (Studies 2 and 3). As (...) an additional test of the robustness of our results, a final study examined the effect of self-threat on choice in a field setting (Study 4). The findings indicate that ethical purchases are not just altruistic. They hold purposeful individual value and can help in the self-restorative process. Implications for managers making decisions regarding investment in ethical product features are discussed. (shrink)

Corporations are spending a substantial and increasing amount of money on corporate social responsibility. However, little is known about the effects on key stakeholders of these activities. This study investigates if CSR activities have an effect on employees’ affective commitment. Two models test to what extent employees’ CSR perception, involvement in decision processes, and demographic variables are related to their AC relative to their perception of positive organizational support. The analysis is based on a sample of 512 employees from 4 (...) Scandinavian companies; 3 Norwegian and 1 Swedish, randomly selected from a population of 6,710 mostly Norwegian and Swedish employees in those 2 countries. The results indicate that CSR perception is a significant predictor of AC, although how employees feel that the company cares about them has stronger explanatory power on AC. Contrary to the few other studies addressing AC and CSR, gender was not found to be a significant variable in the model. (shrink)

We attempt to quantify and qualify the preferences of consumers for beef with a number of environmental and food quality attributes. Our goal is to evaluate the viability of a proposed food co-operative based in the Wood River watershed of southern Saskatchewan, Canada. The food co-operative was designed to provide a price premium to producers who adopted alternative management practices. In addition, the study evaluated the acceptance of a proposed food co-operative by consumer that had environmental interests as compared to (...) the general population. Conjoint analysis was used to determine the trade-off and relative value of beef with the following production and purchasing characteristics: (a) use of hormones, antibiotics and vaccination in production; (b) method of obtaining the beef including monthly or yearly purchase contracts or a local market; (c) price relative to beef purchased from the local grocery store; and (d) impact on the river ecosystem. Consumers from environmental groups had stronger environmental and food quality preferences than individuals from the general population. However, consumers from both groups expressed a willingness to pay higher prices for food that had these attributes. It was uncertain whether the magnitude of the premium, in combination with a desire not to enter a long-term purchasing commitment, would be large enough to encourage farmers to adopt the alternative management. (shrink)

Research in the U. S. on fair trade consumption is sparse. Therefore, little is known as to what motivates U. S. consumers to buy fair trade products. This study sought to determine which values are salient to American fair trade consumption. The data were gathered via a Web-based version of the Schwartz Value Survey (SVS) and were gleaned from actual consumers who purchase fair trade products from a range of Internet-based fair trade retailers. This study established that indeed there are (...) significant interactions between personal values and fair trade consumption and that demographics proved to be useless in creating a profile of the American fair trade consumer. (shrink)

This study uses best–worst scaling experiments to examine differences across six countries in the attitudes of consumers towards social and ethical issues that included both product related issues (such as recycled packaging) and general social factors (such as human rights). The experiments were conducted using over 600 respondents from Germany, Spain, Turkey, USA, India, and Korea. The results show that there is indeed some variation in the attitudes towards social and ethical issues across these six countries. However, what is more (...) telling are the similarities seen and the extent to which individual variation dominates observable demographics and country-based variables. (shrink)

This article reports the results of research aimed at developing and validating a multi-item scale to measure consumers' agreement with three main justifications for not engaging in socially responsible consumption behaviours, namely the 'economic rationalist argument' founded on the idea that the costs of SRC are greater than its benefits, the 'economic development reality argument' based on the idea that ethical and moral aspirations are less important than the economic development of countries, and the 'government dependency argument' grounded in the (...) premise that government inaction demonstrates the legal character and the banality of unethical consumption behaviours. The scale items were generated on the basis of a multi-country qualitative study of consumers. The content validity of the scale was assessed in the first study. The second study was a survey of 157 Canadian adult consumers in which the threedimensional scale and other scales measuring relevant concepts were administered. The survey results showed that the 28-item resulting scale is reliable and generally behaves as one would theoretically expect. Implications for consumption ethics researchers and policy makers are proposed. (shrink)

There is an emerging consensus in the corporate social responsibility literature suggesting that the quest for the so-called business case for CSR should be abandoned. In the same vein, several researchers have suggested that future research should start examining not whether, but rather when CSR is likely to have strengthened, weakened or even nullified effects on organizational outcomes :69–74, 2012). Using perspectives from several theoretical frameworks, we contribute to the literature by empirically examining the tension between functional and sustainability attributes (...) in a novel context, namely that of green e-banking services. The findings indicate that the positive effect of CSR on users’ attitudes towards green e-banking services is moderated by two primarily utilitarian information systems factors—namely perceived ease of use and perceived usefulness—and an important utilitarian individual difference variable—namely perceived self-efficacy with technology. Our findings are also important if interpreted within the context of the ethical decision-making literature :375–413, 2005), as they indicate that the linkage between moral judgment and moral outcomes is unlikely to be that straightforward. (shrink)

We examined the subjective experiences of young environmentalists who engage in green consumption practices from the theoretical lens of Warde’s :131–153, 2005) practice theory. Data were gathered through 21 photo-elicited, in-depth interviews with young environmentalists. Based on our findings, we postulated a theoretical framework to understand green consumption practices among our informants as a process with three interrelated phases: green credibility seeking, green procurement and prosumption, and green whispers. This inductive investigation revealed various symbolic meanings of green consumption that are (...) instrumental in effectively engaging in green consumption practice and are widely shared among our informants. Our investigation extends the existing literature on green consumption with an alternative theoretical perspective and provides managers with insights into the motivations and practices of green consumers. (shrink)

The global corporate scandals such as Enron, Worldcom and Global Crossing have raised fundamental issues of business ethics as well as economic, social and anthropological questions concerning the nature of business competition and global capitalism. The purpose of this conceptual paper is to introduce the concept of "welfare exchange" to the existing notions of economic, social and anthropological notions of business and exchange in markets and society in the 21st century. Global competition and business success in the 21st century continue (...) to raise the nature of economic value and the interaction among diverse actors in international markets, institutions and society. We believe that the nature of such exchange between consumers and organizations, which can also be termed social marketing, need to increasingly take into account a welfare and ethical component. In this paper, we introduce our concept of welfare exchange to emphasize the importance of such welfare and ethical issues in the global business environment of the 21st century. (shrink)

Using two samples drawn from contrasting developed and developing countries, this investigation considers the powerful, unique Millennial consumer group and their engagement in ethical consumerism. Specifically, this study explores the levers that promote their ethical consumption and the potential impact of country of residence on cause-related purchase decisions. Three distinct subgroups of ethical consumers emerge among Millennials, providing insight into their concerns and behaviors. Instead of being conceptualized as a single niche market, Millennials should be treated as a collection of (...) submarkets that differ in their levels of awareness of ethical issues, consider discrete motives when making consumption decisions, and are willing to engage in cause-related purchasing to varying degrees. These findings have several critical implications for theory and practice. (shrink)

This paper researches perceptions of the concept of price fairness in the Dutch coffee market. We distinguish four alternative standards of fair prices based on egalitarian, basic rights, capitalistic and libertarian approaches. We investigate which standards are guiding the perceptions of price fairness of citizens and coffee trade organizations. We find that there is a divergence in views between citizens and key players in the coffee market. Whereas citizens support the concept of fairness derived from the basic rights approach, holding (...) that the price should provide coffee farmers with a minimum level of subsistence, representatives of Dutch coffee traders hold the capitalistic view that the free world market price is fair. (shrink)

Corporate volunteering is known to be an effective employee engagement initiative. However, despite the prominence of corporate social responsibility in academia and practice, research is yet to investigate whether and how CV may influence consumer perceptions of CSR image and subsequent consumer behaviour. Data collected using an online survey in Australia show perceived familiarity with a company’s CV programme to positively impact CSR image and firm image, partially mediated by others-centred attributions. CSR image, in turn, strengthens affective and cognitive loyalty (...) as well as word-of-mouth. Further analysis reveals the moderating effect of perceived leveraging of the corporate volunteering programme, customer status and the value individuals place on CSR. The paper concludes with theoretical and managerial implications, as well as an agenda for future research. (shrink)

The increasing debate on corporate ethics raises the question of whether consumers are willing to reward and punish corporate behaviour based on its ethicality. In this context, this article investigates the direct effect on consumers' willingness to pay. Price response to product-related ethical information is explored in an experiment dealing with social issues in sportswear and environmental issues in consumer electronics. It is shown that in both areas, consumers demonstrate an increased willingness to pay for ethically produced goods. However, the (...) response is subject to a negativity bias. In contrast to prior research that used abstract stimulus measures, a ratio for quantifying this bias is suggested based on consumers' willingness to pay and their price expectations. This measure allows us to analyse a consumer's individual bias. (shrink)

This study examines consumer reactions to the food industry’s environmental corporate social responsibility by varying levels of CSR and price as CSR tradeoffs. Findings reveal that proactive CSR programs generate more favorable attitudes toward and stronger intent to purchase from the company compared to passive CSR programs. Supportive communication intention also increases with CSR level in the low price condition. Regarding the impact of price, respondents showed more positive attitudes toward a company that charges cheaper prices in general. However, when (...) a company demonstrates proactive initiatives, respondents did not distinguish between prices and showed generally positive intent to support and intent to purchase from the company. When a company practices passive CSR and offers cheaper products, respondents showed the weakest supportive and purchase intentions. (shrink)

This conceptual article applies the customer value (CV) concept in the context of green marketing aiming to provide insights on the factors that motivate and/or hinder the development of consumer–green brand relationships. The article draws upon existing literature on the streams of CV, relationship marketing and environmental behaviour and synthesises relevant findings to propose an integrated conceptual framework entailing all identified types of value and cost, psychographic characteristics, as well as dimensions of relationship quality (RQ) and loyalty. Furthermore, it addresses (...) existing questions on the links among constructs and proposes several relationships that may lead to a better understanding of consumer behaviour towards green brands. Through the here-proposed conceptual model, the article initiates the process of empirically examining the consumer adoption of and relationship development with green brands. The CV framework adopted here may provide practitioners with knowledge on the value and sacrifice factors, as well as the dimensions of RQ that are the most important in targeting green consumers and designing relationship marketing strategies. The article also fulfils an identified gap in the literature, as it is the first that brings together and applies research findings from CV and relationship marketing fields in the green marketing context and proposes an integrated approach to understanding consumer–green brands relationships. (shrink)