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Corporate Social (Ir)responsibility and Corporate Hypocrisy: Warmth, Motive and the Protective Value of Corporate Social Responsibility

Author

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  • Chen, Zhifeng
  • Hang, Haiming
  • Pavelin, Stephen
  • Porter, Lynda

Abstract

This article examines how a firm’s prior record on corporate social responsibility (CSR) influences individual stakeholders’ perceptions of corporate hypocrisy in the wake of a corporate social irresponsibility (CSI) event. Our research extends extant corporate hypocrisy literature by highlighting the role of individual stakeholders’ inferences about a genuine CSR motive in their judgments of corporate hypocrisy. This can serve to differentiate perceived corporate hypocrisy from inconsistency that arises because of a lack of ability and/or resources. Our research further identifies a source for such perceptions: individual stakeholders’ perceptions of firm warmth generated by a firm’s prior record of CSR. In addition, we find that when CSR and CSI are in the same (vs. different) domains, it can strengthen perceptions of hypocrisy. This provides direct evidence to explain why markets react differently when CSR and CSI events occur in the same domain (vs. different ones).

Suggested Citation

  • Chen, Zhifeng & Hang, Haiming & Pavelin, Stephen & Porter, Lynda, 2020. "Corporate Social (Ir)responsibility and Corporate Hypocrisy: Warmth, Motive and the Protective Value of Corporate Social Responsibility," Business Ethics Quarterly, Cambridge University Press, vol. 30(4), pages 486-524, October.
    • Handle: RePEc:cup:buetqu:v:30:y:2020:i:4:p:486-524_3
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    Cited by:

    1. Xingqiang Du & Yiqi Zhang & Shaojuan Lai & Hexin Tao, 2024. "How Do Auditors Value Hypocrisy? Evidence from China," Journal of Business Ethics, Springer, vol. 191(3), pages 501-533, May.
    2. Vannucci, Virginia & Dasmi, Costanza & Nechaeva, Olga & Pizzi, Gabriele & Aiello, Gaetano, 2023. "WHY do YOU care about me? The impact of retailers’ customer care activities on customer orientation perceptions and store patronage intentions," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    3. Matthew Amengual & Rita Mota & Alexander Rustler, 2023. "The ‘Court of Public Opinion:’ Public Perceptions of Business Involvement in Human Rights Violations," Journal of Business Ethics, Springer, vol. 185(1), pages 49-74, June.
    4. Ryoo, Yuhosua, 2022. "Moral credentials versus moral credits: Two paths to consumers’ licensing of brand transgressions," Journal of Business Research, Elsevier, vol. 146(C), pages 13-31.
    5. He, Guanming & Li, April Zhichao, 2024. "Does media coverage of firms' environment, social, and governance (ESG) incidents affect analyst coverage and forecasts? A risk perspective," International Review of Financial Analysis, Elsevier, vol. 94(C).
    6. Md Jahir Uddin Khan & Md Abid Hasan & Ahmed Rabeeu & Mohammad Ashraf Hossain, 2024. "The Impact of Entrepreneurial Capital on CSR and New Joint Venture Performance in Emerging Economies," Sustainability, MDPI, vol. 16(13), pages 1-19, June.
    7. Indira Sen & Daniele Quercia & Licia Capra & Matteo Montecchi & Sanja Šćepanović, 2023. "Insider stories: analyzing internal sustainability efforts of major US companies from online reviews," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-9, December.
    8. Ramona Demasi & Christian Voegtlin, 2023. "When the Private and the Public Self Don’t Align: The Role of Discrepant Moral Identity Dimensions in Processing Inconsistent CSR Information," Journal of Business Ethics, Springer, vol. 187(1), pages 73-96, September.
    9. Valor, Carmen & Antonetti, Paolo & Zasuwa, Grzegorz, 2022. "Corporate social irresponsibility and consumer punishment: A systematic review and research agenda," Journal of Business Research, Elsevier, vol. 144(C), pages 1218-1233.

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