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 (...) of capital relationship is contingent on uncertainty regarding a firm’s character, visibility of a firm, and prevailing philanthropic norms. We test and find support for our arguments in a longitudinal study of philanthropy and the cost of capital. Our findings have implications for business ethics research on corporate philanthropy and corporate social performance and for organizational research on social judgment. (shrink)

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 (...) on consumers’ attributions, this study applies attribution theory to conceptualize four distinct CSR positions which reflect varying combinations of congruence or incongruence between a company’s external CSR communication and its actual internal CSR actions. Using an online experiment, the effects of the CSR positions on consumer attributions for intrinsic and extrinsic CSR motivations and purchase intentions were tested across three CSR domains: environmental; labor; and lesbian, gay, bisexual, and transgender inclusion. Overall, the findings attest to the significant effect of internal–external congruence-based CSR positioning on how consumers respond to CSR communication. Importantly, the results indicate that discreet positioning is perceived similarly to uniform positioning, while misleading and unethical tactics such as CSR-washing are sure to backfire. Theoretical and managerial implications are discussed. (shrink)

Corporate social responsibility (CSR) has emerged as an effective way for firms to create favorable attitudes among consumers. Although prior research has addressed the direct influence of proactive and reactive CSR on consumer responses, this research hypothesized that consumers’ perceived organizational motives (i.e., attributions) will mediate this relationship. It was also hypothesized that the source of information and location of CSR initiative will affect the motives consumers assign to a firms’ engagement in the initiative. Two experiments were conducted to test (...) these hypotheses. The results of Study 1 indicate that the nature of a CSR initiative influences consumer attribution effects and that these attributions act as mediators in helping to explain consumers’ responses to CSR. Study 2 suggests that the source of the CSR message moderates the effect of CSR on consumer attributions. The mediating influence of the attributions as well as the importance of information source suggests that proper communication of CSR can be a viable way to inculcate positive corporate associations and purchase intentions. (shrink)

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 (...) green and general corporate advertising result in more unfavorable brand attitudes than no advertising. The study’s counter-intuitive findings are explained by attribution theory. (shrink)

Despite the emergence of corporate social responsibility, the impact of CSR efforts on customer relationships remains decidedly unclear. Moreover, previous studies have examined CSR in cross-sectional, experimental, and/or artificial settings. Through field survey data collected at both the beginning (n = 750) and conclusion (n = 469) of the 2007-2008 NBA season, the authors investigate linkages between customers' perceptions of the CSR performance of an NBA team and the strength of their relationship with this same organization. With all respondents of (...) the latter survey participating in both samples, the authors assess how CSR performance impacts customer relationships over time. The findings show how a firm that engages in CSR initiatives may reap rewards by building trusting and committed customer relationships which, in turn, help forge desirable customer behaviors. The results also demonstrate how CSR's influence strengthens over the course of the tested business cycle, thus yielding revealing insights to academics and practitioners when it comes to understanding the real-world impact of CSR performance for strengthening customer relationships. (shrink)

Supererogation has gained attention as a means of explaining the voluntary behaviours of individuals and organizations that are done for the benefit of others and which go above what is required of legislation and what may be expected by society. Whilst the emerging literature has made some significant headway in exploring supererogation as an ethical lens for the study of business there remain several important issues that require attention. These comprise, the lack of primary evidence upon which such examinations have (...) been made, attention has been given to only singular pro-social acts of organizations, and the focus has been upon the actions of large organizations. Furthermore, Heyd’s (Supererogation, Cambridge University Press, 1982) original taxonomy of six supererogatory acts, comprising Moral Heroism, Beneficence, Volunteering, Favour, Forgiveness and Forbearance, has been considered to be complete and other forms of supererogatory acts have not yet been explored. In order to address these gaps this study poses the research questions: First, it studies how a single, contemporary SME performs multiple supererogatory acts in its attempts to address its social and environmental goals that go beyond CSR. Second, it seeks to gain a deeper theoretical understanding of Heyd’s (Supererogation, Cambridge University Press, 1982) taxonomy of six forms of supererogation through the capture of primary data. This research makes a three-year case study examination of a single SME that has been formally recognized for its work in addressing social and environmental issues at local, national and global levels. Primary data are acquired of the supererogatory acts that it performs through a three-year participant observation case study, utilizing 61 interviews and 3 focus groups with internal and external stakeholders. In doing so, it addresses the empirical limitations of the extant research, substantiates each of the forms that supererogatory acts may take, and makes a contribution to the theory of supererogation by identifying a further class of act that is ‘Sharing’. (shrink)

Prior research has found attributions to mediate the relationship between the elements of corporate social responsibility activities and consumer responses to firms; however, the question of what variables determine consumer attributions of CSR remains partially unaddressed. This article analyzes why consumers make attributions of CSR that are either positive, or negative. The results obtained from two empirical studies indicate that company–cause fit, corporate ability, and interpersonal trust have a positive influence on the motives that consumers attribute to CSR, whereas corporate (...) hypocrisy has a negative effect. This research contributes to our understanding of the psychological mechanisms underlying impactful consumer judgments and provides guidance for organizations in responding to such evaluations. (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)