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Many firms are striving to improve their environmental positions by presenting their environmental efforts to the public. To do so, they are applying green marketing strategies to help gain competitive advantage and appeal to ecologically conscious consumers. However, not all green marketing claims accurately reflect firms’ environmental conduct, and can be viewed as ‘greenwashing’. Greenwashing may not only affect a company’s profitability, but more importantly, result in ethical harm. Therefore, this research extends past greenwashing studies by examining additional influences on (...) |
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Corporate social responsibility reporting is becoming mainstream, yet there is limited research on whether and how CSR reports communicate value relevant information. We examine the effects of CSR report readability and tone on future CSR performance and the market reaction around the release of CSR reports. Using a hand-collected dataset of Fortune 500 companies that published stand-alone CSR reports from 2002 to 2014, we find that 1-year-ahead CSR performance is positively associated with the changes in both CSR report readability and (...) |
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The concept of sustainable and responsible (SR) investments expresses that every investment should be based on the SR investor’s code of ethics. To a large extent the allocation of SR investments to more sustainable companies and ethical practices is based on the environmental, social, and corporate governance (ESG) scores provided by rating agencies. However, a thorough investigation of ESG scores is a neglected topic in the literature. This paper uses Thomson Reuters ASSET4 ESG ratings to analyze the influence of firm (...) |
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While environmental claims are increasingly used by companies to appeal consumers, they also attract greater scrutiny from independent parties interested in consumer protection. Consumers are now able to compare corporate environmental claims against external, often disconfirming, information to form their brand attitudes and purchase intentions. What remains unclear is how the level of information specificity of both the environmental claims and external disconfirming information interact to influence consumer reactions. Two experiments address this gap in the CSR communication literature. When specific (...) |
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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. (...) |
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The sustainability labeling on the front of a package featured in a print advertisement may influence consumers’ product evaluations and purchase decisions. The findings of this exploratory study suggest that consumers seem to evaluate the sustainability claim more favorably if the advertisement highlights the personal impact on them. Moreover, environmental involvement appears to further moderate the effects of sustainability claims and environmental impact framing. The interactions that emerged in this study suggest that sustainability labeling effects constitute a complex phenomenon that (...) |
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The paper explores the influence of greenwash on green trust and discusses the mediation roles of green consumer confusion and green perceived risk. The research object of this study focuses on Taiwanese consumers who have the purchase experience of information and electronics products in Taiwan. This research employs an empirical study by means of the structural equation modeling. The results show that greenwash is negatively related to green trust. Therefore, this study suggests that companies must reduce their greenwash behaviors to (...) |
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The main purpose of this paper is to better understand how sustainability rating agencies, through discourse, promote an “ideology of numbers” that ultimately aims to establish a regime of normalization governing social and environmental performance. Drawing on Thompson’s (Ideology and modern culture: Critical social theory in the era of mass communication, 1990 ) modes of operation of ideology, we examine the extent to which, and how, the ideology of numbers is reflected on websites and public documents published by a range (...) |
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Fulfilling consumer expectations of corporate social responsibility can bring strategic advantage to firms. However, research on the topic is fragmented across disparate disciplines, and a comprehensive framework to connect CSR supply and demand is missing. As a result, firms often supply CSR that does not attract demand, as signified by pessimism about ethical consumerism in recent years and the inconclusive link between corporate financial and social performance. In this study, we propose a framework of strategic CSR management to define how (...) |
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The current study investigates the effects of green advertising and a corporation’s environmental performance on brand attitudes and purchase intentions. A 3 × 3 (firm’s environmental performance and its advertising efforts as independent variables) experiment using n = 302 subjects was conducted. Results indicate that the negative effect of a firm’s low performance on brand attitudes becomes stronger in the presence of green advertising compared to general corporate advertising and no advertising. Further, when the firm’s environmental performance is high, both (...) |
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When companies engage in corporate philanthropy, they can donate to a number of causes supporting a variety of issues, thus establishing cause portfolios. This research examines how the focus of a cause portfolio affects company evaluations. Results from an experiment show that when a company donates a small amount of money, consumers have lower evaluations of a company when the cause portfolio is focused (i.e., supports one issue) versus diverse (i.e., supports many issues). This is because the focused (vs. diverse) (...) |
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While prior research suggests a link between mindfulness and ethical decision-making, most of the evidence for this link is correlational and refers to self-focused ethical behaviors. The paucity of experimental evidence, coupled with a lack of clarity on what mechanisms underlie the effect, limits our understanding of whether and how mindfulness might foster other-focused ethical behaviors. In this research, we hypothesize that state mindfulness might promote other-focused ethical behaviors by increasing resourcefulness, which we define as a perceived state of resource (...) |
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Prior studies in business ethics highlight the role of philanthropy in shaping stakeholders’ perceptions of a firm’s underlying moral tendencies and values. Scholars argue that philanthropy-based character inferences influence whether and how stakeholders engage with firms. We extend this line of reasoning to examine the impact of philanthropy on firms’ contracting costs in the capital market. We posit that philanthropy-based character inferences reduce investors’ agency concerns, thereby reducing firms’ cost of capital. We also posit that the strength of the philanthropy–cost (...) |
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This study investigates the connection between corporate social responsibility (CSR) and corporate reputation among the public using fuzzy set qualitative comparative analysis (fsQCA). To examine complex processes underlying the reactions of this influential stakeholder group, hypotheses are drawn from the category diagnosticity approach. Thereby, a psychological model of perceived (im)morality is transferred to the CSR context. In line with these hypotheses, positive/negative CSR activities influence reputation in the expected directions (H1a, b), while the effects of specific configurations of CSR activities (...) |
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Ethical corporate marketing—as an organisational-wide philosophy—transcends the domains of corporate social responsibility, business ethics, stakeholder theory and corporate marketing. This being said, ethical corporate marketing represents a logical development vis-a-vis the nascent domain of corporate marketing has an explicit ethical/CSR dimension and extends stakeholder theory by taking account of an institution’s past, present and (prospective) future stakeholders. In our article, we discuss, scrutinise and elaborate the notion of ethical corporate marketing. We argue that an ethical corporate marketing positioning is a (...) |
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This article examines corporate social responsibility (CSR) through the lens of political ontology. We contend that CSR is not only a discursive mean of legitimization but an inherently ontological practice through which particular worlds become real. CSR enables the politics of place-making, connecting humans and nonhumans in specific territorial configurations in accordance with corporate needs and interests. We discuss three CSR mechanisms of singularization that create a particular corporate ontology in place: (1) community engagements that form ‘stakeholders’; (2) CSR standards (...) |
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Joining voluntary thematic initiatives can be a means for firms to legitimate their business activities. However, a lack of review mechanisms could create incentives for free-riding. This might lead to a lower commitment to the initiative’s principles, and endanger its credibility and its members’ legitimacy benefits. Whether members of voluntary initiatives take advantage of the opportunity to free-ride has not been analyzed empirically so far. To fill this research gap, we investigate from an institutional theory perspective the actual implementation behavior (...) |
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We bring together social identity and social exchange perspectives to develop and test a moderated mediation model that sheds light on employees’ perceptions regarding the interrelations between an organization’s external and internal CSR initiatives and their job attitudes and work behaviours. This is important because employees’ sensemaking of CSR motives as being either self-focussed or others-focussed can produce meaningful variations in their job satisfaction and the dimensions of organizational commitment. Also, the consolidation of CSR’s underlying psychological mechanisms can advance our (...) |
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Even though the link between perceived corporate social responsibility fit and corporate reputation has received much attention from scholars, this tradition has ignored that the underpinnings of this association vary depending on the particular characteristics of each industry under study. To delve into this matter, we investigate in the increasingly relevant context of controversial industries how PCSR-fit could enhance corporate reputation and which are the mediating mechanisms of this association. Our academic contribution is twofold. First, we find that controversial sectors (...) |
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In China, many firms advertise that they follow environmentally friendly practices to cover their true activities, a practice called greenwashing, which can cause the public to doubt the sincerity of greenization messages. In this study, I investigate how the market values greenwashing and further examine whether corporate environmental performance can explain different and asymmetric market reactions to environmentally friendly and unfriendly firms. Using a sample from the Chinese stock market, I provide strong evidence to show that greenwashing is significantly negatively (...) |
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We investigate the impact of perceived greenwashing on customer satisfaction. Unlike prior research that largely examines customer perceptions associated with irresponsible behavior, we focus on cases where firms overcommit and/or do not deliver on promised socially responsible actions. We theorize that this type of greenwashing is associated with lower customer satisfaction because customers perceive greenwashing through the lens of corporate hypocrisy. Using data from the American Customer Satisfaction Index (ACSI) for U.S. companies during the period 2008–2016, we document a negative (...) |
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Assessing the impact of CSR initiatives can be a complex task for marketers given the variety of methods of communicating about CSR as well as the broad range of stakeholders that CSR initiatives might interest. Social media helps increase the visibility and credibility of CSR communication and provides new ways of reaching and involving stakeholders in CSR initiatives. Using data collected and coded from Facebook pages of the Top 100 Global Brands, the authors introduce a new measure of effectiveness for (...) |
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This paper analyzes the determinants underlying the internalization of proactive environmental management proposed by certifiable environmental management systems such as those set out in ISO 14001 and the European Management and Auditing Scheme. Using a study based on 232 usable questionnaires from EMAS-registered organizations, we explored the influence of institutional pressures from different stakeholders and the role of corporate strategy in the “substantial” versus “symbolic” integration of environmental practices. The results highlighted that although institutional pressures generally strengthen the internalization of (...) |
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Consumer skepticism of corporate environmental activities is on the rise. Yet research on this timely, intriguing, and important topic is scarce for both academics and practitioners. Building on attribution theory, we develop and test a theoretically anchored model that explains the sources and consequences of green skepticism. The study findings reveal that consumers’ perceptions of industry norms, corporate social responsibility, and corporate history are important factors that explain why consumers assign different motives to corporate environmental actions. In addition, the results (...) |
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Addressing organizational wrongdoing (OW) is crucial for sustainable development. However, there seems to be a lack of structured analysis of this concept within the realm of the UN Sustainable Development Goals (UN SDGs). This study aims to map the economic, business, and management literature on OW in relation to the SDGs using metadata extracted from 374 journal articles indexed in the Web of Science database for the period 2000–2023. This study highlights the need for a more systematic approach to understanding (...) |
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Sustainable luxury is a strategic issue for managers and for society, yet it remains poorly understood. This research seeks to clarify how corporate social responsibility actions directly and indirectly affect consumers’ willingness to pay a premium price for luxury brand products, as well as how a long-term orientation might moderate these relationships. A scenario study presents fictional CSR actions of two brands, representing different luxury products, to 1,049 respondents from two countries. The results of a structural equation modeling approach show (...) |
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Business Ethics: A European Review, EarlyView. |
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Many researchers believe the tremendous industrial development over the past two centuries is unsustainable because it has led to unintended ecological deterioration. Despite the ever-growing attention sustainable supply-chain management has received, most SSCM research and models look at the consequences, rather than the antecedents or motives of such responsible practices. The few studies that explore corporate motives have remained largely qualitative, and large-scale empirical analyses are scarce. Drawing on multiple theories and combining supply-chain and business ethics literature, we purport that (...) |
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In this theoretical paper, I analyze business groups’ corporate social responsibility. Building on economic thinking, I propose that the level and diversity of CSR investments of business groups evolve with the development of the country, as a result of the interaction of two drivers: the level of infrastructure deficiencies and the cost of negative externalities. I argue that in underdeveloped countries, business groups have high levels and low diversity of CSR investments, focusing on the social arena to compensate for infrastructure (...) |
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Consumers are increasingly facing product evaluation and choice situations that include information about product sustainability, i.e., information about a product’s relative environmental and social impact. In many cases, consumers have to make decisions that involve a trade-off between product sustainability and other valued product attributes. Similarly, product and marketing managers need to make decisions that reflect how consumers will respond to different trade-off scenarios. In the current research, we study consumer responses across two different possible trade-off scenarios: one in which (...) |
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Although most consumers are positive about socially responsible companies, in order to benefit from CSR efforts, effective and clear CSR communication is important. However, due to the constantly rising profusion of eco-labels, based on either own claims from the organization or claims made by an external third party, consumers may encounter difficulties in identifying truly responsible firms, which could result in less effective CSR initiatives, even for those responsible firms. Therefore, building on attribution theory, this study seeks to identify how (...) |
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The purpose of this paper is to provide a basis for a systematic development of signaling theory on CSR initiatives. The paper proposes signaling theory as a framework supportive of a strategic CSR approach; maps extant research on signaling through CSR initiatives; offers a comprehensive assessment of the most diffused CSR initiatives and discusses their eligibility as signaling devices; and outlines a research agenda to further develop and test signaling theory in business ethics. Specifically, the study reconsiders some key assumptions, (...) |
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Greenwashing is a phenomenon that is linked to scandals that often occur at the supply-chain level. Nevertheless, research on this subject remains in its infancy; much more is needed to advance our understanding of stakeholders’ reactions to greenwashing. We propose here a new typology of greenwashing, based on the locus of discrepancy, i.e. the point along the supply-chain where the discrepancy between ‘responsible words’ and ‘irresponsible walks’ occurs. With three experiments, we tested how the different forms of greenwashing affect stakeholders’ (...) |
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This paper examines the impact of corporate social responsibility disclosure on corporate reputation as perceived by non-professional stakeholders. Proponents of CSR disclosure argue that CSR disclosure can be considered as a tool for reputation management. We empirically investigate this claim using a reputation index which tracks the general public’s perceptions of corporate reputation over time. In our analysis, we focus on disclosure in stand-alone CSR reports and control for CSR performance. We find that, in contrast to the common belief, stand-alone (...) |
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While “green marketing” has emerged as powerful competitive force, many markets lack clear institutional standards or knowledgeable customers to allow firms committed to sustainable practices to differentiate themselves from opportunistic, green-washing competitors. Within these contexts we propose a firm-level lens based on authentic firm reputation as an important, yet poorly understood, competitive force. Drawing on interview data from the architectural design services context we identify the elements that firms use to communicate their own authenticity, as well as discourage green-washing behavior (...) |
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Corporate social responsibility research has focused often on the business returns of corporate social initiatives but less on their possible social returns. We study an actual company–consumer partnership CSR initiative promoting ecologically correct and conscious consumption of bottled mineral water. We conduct a survey on adult consumers to test the hypotheses that consumer skepticism toward the company–consumer partnership CSR initiative and the moral emotion of elevation mediate the relationship between company CSR motives perceived by consumers and consumer behavioral responses following (...) |
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Selling fair-trade products can be problematic because of their higher price when compared with conventional alternatives. We propose that one way to solve this problem is to make consumers aware of the benefits of fair-trade. To this end, we perform three experimental studies to show that partitioned pricing (PP), which explicitly displays fair-trade as a separate price component, increases consumers’ purchase intention toward the fair-trade product. This effect can be explained by increased perceptions of price fairness, which itself is mediated (...) |
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In recent years an assemblage of nuclear energy proponents has coalesced around the notion of ‘Climate First’ – arguing that nuclear power is a necessary component of the fight against climate chan... |
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Firms usually need to attract debt to form and grow, but increasing financial leverage also entails increased risks and costs for stakeholders, such as customers and employees. Accordingly, past research suggests that for common commercial firms (CCFs), which prioritize profits, higher leverage leads to lower sales growth and higher employment costs. However, Certified B Corporations (CBCs) distinguish themselves by having a credible prosocial mission and, therefore, might be better insulated against the adverse effects of higher leverage. Using a European multi-country (...) |
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Although corporate social responsibility appears to be mutually beneficial for companies and consumers, the modern marketplace has left both parties in vulnerable positions. Consumers are increasingly subjected to incongruent CSR messages such as greenwashing, while companies are trapped in a strategic positioning dilemma with regard to how to most effectively and ethically approach CSR communication. This has led some companies to instead adopt a strategically silent approach, such as greenhushing. To capture this CSR positioning dilemma and test the positioning effects (...) |
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Governmental policies are encouraging companies to reduce the environmental impact of their packaging and particularly overpackaging, which raises a broad range of ethical considerations. However, experiments comparing an overpackaged product with a non-overpackaged product have shown that eliminating overpackaging may have a negative influence on brand image and consumer purchase intention. In this paper, we draw on attribution theory to examine the influence of the absence of overpackaging on consumers’ response, depending on their environmental consciousness and the absence of overpackaging (...) |
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Companies often benefit from others’ attributions of moral conviction for prosocial behavior, for example, attributions that a company has a sincere moral desire to improve the environment when behaving sustainably. Across four studies, we explored how organizations’ changing resource positions influenced people’s attributions for the motivations underlying prosocial organizational behaviors. Observers attributed less moral conviction following prosocial behavior when they believed an organization was losing economic resources. This effect was primarily a “penalty” assessed against organizations that were losing resources, as (...) |
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The sizeable theoretical and empirical literature on corporate social responsibility and business ethics in Western, developed economies indicates that the topic has attracted significant interest from academics and practitioners. There is, however, less evidence of the practice of CSR and business ethics in non-Western, transition economies, as insufficient attention is paid to the contextual specifications and underlying processes that may lead to different versions of CSR. Therefore, this paper examines the practice and sense-making of CSR and business ethics from the (...) |
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