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Companies, Meet Ethical Consumers: Strategic CSR Management to Impact Consumer Choice

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  • Henri Kuokkanen

    (Institut Paul Bocuse)

  • William Sun

    (Leeds Beckett University)

Abstract

Fulfilling consumer expectations of corporate social responsibility (CSR) can bring strategic advantage to firms. However, research on the topic is fragmented across disparate disciplines, and a comprehensive framework to connect CSR supply and demand is missing. As a result, firms often supply CSR that does not attract demand, as signified by pessimism about ethical consumerism in recent years and the inconclusive link between corporate financial and social performance. In this study, we propose a framework of strategic CSR management to define how a company’s supply of CSR could meet consumer demand for ethical products by aligning managerial and consumer perspectives. We then investigate empirically whether such a strategic approach, which integrates potential demand in CSR management, would influence consumer choice of products with CSR components. Our hybrid choice modeling allows the inclusion of psychological biases caused by social desirability and cynicism to increase result validity. The findings support the explanatory power of the framework and reveal that consumers prefer some CSR elements while others adversely affect choices. This study advances the understanding of strategic CSR management and its impact on consumer choice and helps managers include the right mix of CSR characteristics in their products to satisfy ethical consumers.

Suggested Citation

  • Henri Kuokkanen & William Sun, 2020. "Companies, Meet Ethical Consumers: Strategic CSR Management to Impact Consumer Choice," Journal of Business Ethics, Springer, vol. 166(2), pages 403-423, October.
    • Handle: RePEc:kap:jbuset:v:166:y:2020:i:2:d:10.1007_s10551-019-04145-4
    DOI: 10.1007/s10551-019-04145-4
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    4. Abdelmohsen A. Nassani & Zahid Yousaf & Adriana Grigorescu & Alexandra Popa, 2023. "Green and Environmental Marketing Strategies and Ethical Consumption: Evidence from the Tourism Sector," Sustainability, MDPI, vol. 15(16), pages 1-13, August.
    5. Dianxi Zhang & Asif Mahmood & Antonio Ariza-Montes & Alejandro Vega-Muñoz & Naveed Ahmad & Heesup Han & Muhammad Safdar Sial, 2021. "Exploring the Impact of Corporate Social Responsibility Communication through Social Media on Banking Customer E-WOM and Loyalty in Times of Crisis," IJERPH, MDPI, vol. 18(9), pages 1-14, April.
    6. Mobin Fatma & Imran Khan, 2023. "Impact of CSR on Customer Citizenship Behavior: Mediating the Role of Customer Engagement," Sustainability, MDPI, vol. 15(7), pages 1-11, March.
    7. Jing Claire Li & Abdelhafid Benamraoui & Neeta Shah & Sudha Mathew, 2021. "Dynamic Capability and Strategic Corporate Social Responsibility Adoption: Evidence from China," Sustainability, MDPI, vol. 13(10), pages 1-19, May.
    8. Jiangyuan Hou & Yanping Wang & Mingyue Du, 2023. "Friend or Foe: How Do Consumers and Producers Affect the ESG Rating Index? Evidence from China’s Market of Organic Milk," Sustainability, MDPI, vol. 15(14), pages 1-17, July.
    9. Kuokkanen, Henri & Kirillova, Ksenia, 2024. "Ethically transformative experiences in hotels," Annals of Tourism Research, Elsevier, vol. 105(C).
    10. Rosa Fioravante, 2024. "Beyond the Business Case for Responsible Artificial Intelligence: Strategic CSR in Light of Digital Washing and the Moral Human Argument," Sustainability, MDPI, vol. 16(3), pages 1-16, February.
    11. Wang, Xueqin & Wong, Yiik Diew & Li, Kevin X. & Yuen, Kum Fai, 2021. "Shipping industry's sustainability communications to public in social media: A longitudinal analysis," Transport Policy, Elsevier, vol. 110(C), pages 123-134.
    12. Premendra Kumar Singh & Asokan Vasudevan & Elangbam Nixon Singh & Bidhu Kanti Das & Raju Ganesh Sunder & Nilesh R. Mate & Rajinder Kumar & Niharika Singh & Bendangienla Aier, 2024. "Impact of Corporate Social Responsibility (CSR) on Customer Loyalty in Indian Telecom Industry: The Moderating Role of Consumer Demographics," Sustainability, MDPI, vol. 16(16), pages 1-20, August.
    13. Petar Gidaković & Mateja Kos Koklič & Mila Zečević & Vesna Žabkar, 2022. "The influence of brand sustainability on purchase intentions: the mediating role of brand impressions and brand attitudes," Journal of Brand Management, Palgrave Macmillan, vol. 29(6), pages 556-568, November.
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    15. Olukorede Adewole, 2024. "‘Leveraging on CSR as a tool of brand communication based on consumer’s perception with extrapolation from a novel 3-factor model," International Journal of Corporate Social Responsibility, Springer, vol. 9(1), pages 1-23, December.

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