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)

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)

There is an unresolved paradox concerning the role of corporate social responsibility (CSR) in consumer behavior. On the one hand, consumers demand more and more CSR information from corporations. On the other hand, research indicates a considerable gap between consumers’ apparent interest in CSR and the limited role of CSR in purchase behavior. This article attempts to shed light on this paradox by drawing on qualitative data from in-depth interviews. The findings show that the evaluation of CSR initiatives is a (...) complex and hierarchically structured process, during which consumers distinguish between core, central, and peripheral factors. This article describes these factors in detail and explains the complexity of consumers’ assessment of CSR. These insights then serve as a basis for discussing the theoretical and managerial implications of the research findings. To this end, the article contributes to a better understanding of the role of CSR in consumption decisions. (shrink)

Corporate social responsibility (CSR) is an area of great interest, yet little is known about how CSR is perceived and practiced in the professional sport industry. This study employs a mixed-methods approach, including a survey, and a qualitative content analysis of responses to open-ended questions, to explore how professional sport executives define CSR, and what priorities teams have regarding their CSR activities. Findings from this study indicate that sport executives placed different emphases on elements of CSR including a focus on (...) philanthropic activities and ethical behaviors. The data suggest that professional sport executives view CSR as a strategic imperative for their business. Sport executives indicated that a number of factors influenced the practice of their CSR including: philanthropy (altruistic giving), an emphasis on the local community, partnerships, and ethical concerns. We also examine important organizational variables for sport (winning, revenues, and team value) and highlight their relationship with reported CSR involvement. We discuss the implications of the findings and propose recommendations for both theory and practice. (shrink)