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The Halo Effect of CSR Activity: Types of CSR Activity and Negative Information Effects

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  • Chang-Hyun Jin

    (Department of Business Administration, Kyonggi University, Gyeonggi-do 16227, Korea)

  • Jung-Yong Lee

    (Department of Business Administration, SungKyunKwan University, Seoul 03063, Korea)

Abstract

This study attempts to assess the role of the polarity of information or publicity about a company (whether positive, negative, or neutral) and two CSR activities (e.g., environmental preservation and supporting social welfare in developing countries) in the relationships between consumers and brands and also to investigate how a corporate image, as perceived by consumers, affects the formation of an image of a company or brand through the halo effect of Corporate Social Responsibility (CSR) activity. An experimental design was used to test the hypotheses. A group of subjects who were exposed to negative publicity about a company showed a change in average values in their attitudes toward the brand, purchase intention, corporate image, attitude to the CEO, and brand loyalty. The formation of attitudes or images changed more positively when the type of CSR activity involved was closely related to a company’s corporate image. The results of the analysis used to test the halo effect of a company’s CSR activity indicate that corporate CSR activity is closely related to consumer attitude formation or changes in perceptions of a company. The results of this study provide an opportunity to assess the importance of negative information about a company or product, as well as types of CSR activity that affect image formation. The study suggests that only CSR activities that are highly congruent with a company’s image or its products can produce positive and amicable reactions from consumers through the halo effect.

Suggested Citation

  • Chang-Hyun Jin & Jung-Yong Lee, 2019. "The Halo Effect of CSR Activity: Types of CSR Activity and Negative Information Effects," Sustainability, MDPI, vol. 11(7), pages 1-20, April.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:7:p:2067-:d:220708
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