Tags:Corporate Hypocrisy, Corporate Social Responsibility, CSR, CSR Motivation, Ethics and Fraud
Abstract:
This research shows that when firms signal sincere CSR motivations through low expected benefits and then later engage in fraud or wrongdoing, that consumers will more harshly judge a firm than if they had signaled profit-driven expectations from CSR activities and also later engaged in fraud or wrongdoing. Thus, we show how firms may inadvertently demonstrate corporate hypocrisy through their signaled intents. This research not only adds to what is already known about CSR motivations and corporate hypocrisy, but also provides evidence of how financially signaled motivations are a type of CSR statement and can give consumers indicators about CSR motivations. When signaled intent is later met with inconsistent behavior, consumers infer corporate hypocrisy and worse judgements on a firm than if the firm had just signaled from the beginning that they were engaging in a CSR activity with the hopes of obtaining high expected financial benefits.
When Authenticity Backfires: Genuine CSR Intent Could Cause More Harm than Good