IDEAS home Printed from https://ideas.repec.org/a/wly/corsem/v27y2020i5p2060-2070.html
   My bibliography  Save this article

Living wage in the framework of corporate social responsibility: Analyzing its impact on consumer response

Author

Listed:
  • Carlos Guerrero Medina
  • Myriam Martínez‐Fiestas
  • Maria I. Viedma‐del‐Jesus
  • Jessica Alzamora Ruiz

Abstract

Several studies indicate that corporate social responsibility (CSR) has a positive impact on consumer response. However, in spite of its effect can greatly vary, not all types of CSR have been equally examined. The current study evaluates, for the first time, the impact of living wage (LW) on consumer response through a comparative analysis with another CSR initiative, fair trade (FT), whose impact has been the subject of wide research. The findings suggest that LW has a greater effect on the perceived value of commercial proposals than FT within the segment of consumers that values CSR (prosocial). Moreover, each initiative generates a high level of processing fluency among this group. However, the main difference with LW is that it also exerts a positive impact on consumers that are averse to CSR (non‐prosocials). The findings are examined taking into consideration the beneficiary proximity. Academic, methodological, business, and social implications are identified.

Suggested Citation

  • Carlos Guerrero Medina & Myriam Martínez‐Fiestas & Maria I. Viedma‐del‐Jesus & Jessica Alzamora Ruiz, 2020. "Living wage in the framework of corporate social responsibility: Analyzing its impact on consumer response," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(5), pages 2060-2070, September.
    • Handle: RePEc:wly:corsem:v:27:y:2020:i:5:p:2060-2070
    DOI: 10.1002/csr.1946
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/csr.1946
    Download Restriction: no
    File URL: https://libkey.io/10.1002/csr.1946?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Barbara Wisse & Rob Eijbergen & Eric F. Rietzschel & Susanne Scheibe, 2018. "Catering to the Needs of an Aging Workforce: The Role of Employee Age in the Relationship Between Corporate Social Responsibility and Employee Satisfaction," Journal of Business Ethics, Springer, vol. 147(4), pages 875-888, February.
    2. Moon Seop Kim & Dong Tae Kim & Jae Il Kim, 2014. "CSR for Sustainable Development: CSR Beneficiary Positioning and Impression Management Motivation," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 21(1), pages 14-27, January.
    3. Öberseder, Magdalena & Schlegelmilch, Bodo B. & Murphy, Patrick E., 2013. "CSR practices and consumer perceptions," Journal of Business Research, Elsevier, vol. 66(10), pages 1839-1851.
    4. Zhu, Linlin & He, Yi & Chen, Qimei & Hu, Miao, 2017. "It's the thought that counts: The effects of construal level priming and donation proximity on consumer response to donation framing," Journal of Business Research, Elsevier, vol. 76(C), pages 44-51.
    5. Richard Anker & Martha Anker, 2017. "Living Wages Around the World," Books, Edward Elgar Publishing, number 17350.
    6. Andrea Werner & Ming Lim, 2016. "The Ethics of the Living Wage: A Review and Research Agenda," Journal of Business Ethics, Springer, vol. 137(3), pages 433-447, September.
    7. Stewart A. Shapiro & Jesper H. Nielsen, 2013. "What the Blind Eye Sees: Incidental Change Detection as a Source of Perceptual Fluency," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 39(6), pages 1202-1218.
    8. Konuk, Faruk Anıl, 2018. "The role of store image, perceived quality, trust and perceived value in predicting consumers’ purchase intentions towards organic private label food," Journal of Retailing and Consumer Services, Elsevier, vol. 43(C), pages 304-310.
    9. Patricia Martínez & Ángel Herrero & Raquel Gómez‐López, 2019. "Corporate images and customer behavioral intentions in an environmentally certified context: Promoting environmental sustainability in the hospitality industry," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(6), pages 1382-1391, November.
    10. Sung, Jihyun & Woo, Hongjoo, 2019. "Investigating male consumers’ lifestyle of health and sustainability (LOHAS) and perception toward slow fashion," Journal of Retailing and Consumer Services, Elsevier, vol. 49(C), pages 120-128.
    11. Puncheva-Michelotti, Petya & Hudson, Sarah & Michelotti, Marco, 2018. "The role of proximity to local and global citizens in stakeholders' moral recognition of corporate social responsibility," Journal of Business Research, Elsevier, vol. 88(C), pages 234-244.
    12. Duygu Turker, 2009. "Measuring Corporate Social Responsibility: A Scale Development Study," Journal of Business Ethics, Springer, vol. 85(4), pages 411-427, April.
    13. José M. Brotons & Manuel E. Sansalvador, 2020. "The relation between corporate social responsibility certification and financial performance: An empirical study in Spain," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(3), pages 1465-1477, May.
    14. Tully, Stephanie M. & Winer, Russell S., 2014. "The Role of the Beneficiary in Willingness to Pay for Socially Responsible Products: A Meta-analysis," Journal of Retailing, Elsevier, vol. 90(2), pages 255-274.
    15. Karl Widerquist, 2018. "The Bottom Line," Exploring the Basic Income Guarantee, in: A Critical Analysis of Basic Income Experiments for Researchers, Policymakers, and Citizens, chapter 0, pages 93-98, Palgrave Macmillan.
    16. Campbell, Colin L. & Heinrich, Daniel & Schoenmüller, Verena, 2015. "Consumers' reaction to fair trade motivated price increases," Journal of Retailing and Consumer Services, Elsevier, vol. 24(C), pages 79-84.
    17. Rashid, Md Sanuwar & Byun, Sang-Eun, 2018. "Are consumers willing to go the extra mile for fair trade products made in a developing country? A comparison with made in USA products at different prices," Journal of Retailing and Consumer Services, Elsevier, vol. 41(C), pages 201-210.
    18. Robert Pollin & Justine Burns & James Heintz, 2004. "Global apparel production and sweatshop labour: can raising retail prices finance living wages?," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 28(2), pages 153-171, March.
    19. Marco Lerro & Riccardo Vecchio & Francesco Caracciolo & Stefano Pascucci & Luigi Cembalo, 2018. "Consumers' heterogeneous preferences for corporate social responsibility in the food industry," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(6), pages 1050-1061, November.
    20. Aguinis, Herman & Vaschetto, Sofia J., 2011. "Editorial Responsibility: Managing the Publishing Process to Do Good and Do Well," Management and Organization Review, Cambridge University Press, vol. 7(3), pages 407-422, November.
    21. Theodoulidis, Babis & Diaz, David & Crotto, Federica & Rancati, Elisa, 2017. "Exploring corporate social responsibility and financial performance through stakeholder theory in the tourism industries," Tourism Management, Elsevier, vol. 62(C), pages 173-188.
    22. Paolo Antonetti & Stan Maklan, 2018. "Identity Bias in Negative Word of Mouth Following Irresponsible Corporate Behavior: A Research Model and Moderating Effects," Journal of Business Ethics, Springer, vol. 149(4), pages 1005-1023, June.
    23. Petya Puncheva-Michelotti & Sarah Hudson & Marco Michelotti, 2018. "The role of proximity to local and global citizens in stakeholders' moral recognition of corporate social responsibility," Post-Print hal-01774498, HAL.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jana Hojnik & Mitja Ruzzier & Tatiana S. Manolova, 2020. "Sustainable development: Predictors of green consumerism in Slovenia," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(4), pages 1695-1708, July.
    2. Daniel Belanche & Luis V. Casaló & Carlos Flavián & Alfredo Pérez-Rueda, 2021. "The role of customers in the gig economy: how perceptions of working conditions and service quality influence the use and recommendation of food delivery services," Service Business, Springer;Pan-Pacific Business Association, vol. 15(1), pages 45-75, March.
    3. Shilong Wei & Muhammad Safdar Sial & Ubaldo Comite & Phung Anh Thu & Daniel Badulescu & József Popp, 2021. "An Examination to Explain the Mechanism of Employees’ Environment-Specific Behavior through CSR and Work Engagement from the Perspective of Stewardship Theory," IJERPH, MDPI, vol. 18(17), pages 1-20, September.
    4. Magdalena Öberseder & Bodo Schlegelmilch & Patrick Murphy & Verena Gruber, 2014. "Consumers’ Perceptions of Corporate Social Responsibility: Scale Development and Validation," Journal of Business Ethics, Springer, vol. 124(1), pages 101-115, September.
    5. Kiyoung Chang & Jean Kabongo & Ying Li, 2021. "Geographic proximity, long-term institutional ownership, and corporate social responsibility," Review of Quantitative Finance and Accounting, Springer, vol. 56(1), pages 297-328, January.
    6. Athanasios Krystallis & Vlad Zaharia & Antonis Zairis, 2021. "“When” Does It Pay to Be Good? Attributions Mediate the Way CSR Elements Impact on Consumer Responses, and Are Controllable," Sustainability, MDPI, vol. 13(11), pages 1-16, May.
    7. Nils Christian Hoffmann & Juelin Yin & Stefan Hoffmann, 2020. "Chain of Blame: A Multi-country Study of Consumer Reactions Towards Supplier Hypocrisy in Global Supply Chains," Management International Review, Springer, vol. 60(2), pages 247-286, April.
    8. Ya-Chin Kang & Hsien-Sheng Hsiao & Jia-Yi Ni, 2022. "The Role of Sustainable Training and Reward in Influencing Employee Accountability Perception and Behavior for Corporate Sustainability," Sustainability, MDPI, vol. 14(18), pages 1-24, September.
    9. Subhajit Bhattacharya, 2017. "Does corporate social responsibility contribute to strengthen brand equity? An empirical study," International Review on Public and Nonprofit Marketing, Springer;International Association of Public and Non-Profit Marketing, vol. 14(4), pages 513-533, December.
    10. Back, Paula Regina, 2019. "On the relationship between corporate social responsibility and competitive performance in Brazilian Small and Medium Enterprises - empirical evidence from a stakeholders’ perspective," Thesis Commons bdumw, Center for Open Science.
    11. José António Pereirinha & Elvira Pereira, 2021. "Living Wages in Portugal: in search of dignity in a highly polarized labour market," Working Papers GHES - Office of Economic and Social History 2021/74, ISEG - Lisbon School of Economics and Management, GHES - Social and Economic History Research Unit, Universidade de Lisboa.
    12. Xin Guan & Naveed Ahmad & Muhammad Safdar Sial & Jacob Cherian & Heesup Han, 2023. "CSR and organizational performance: The role of pro‐environmental behavior and personal values," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(2), pages 677-694, March.
    13. Rania Béji & Ouidad Yousfi & Abdelwahed Omri, 2020. "Corporate Social Responsibility and Corporate Governance: A cognitive approach," Post-Print hal-03144756, HAL.
    14. Constanza Bianchi & Valentina Reyes & Veronica Devenin, 2020. "Consumer motivations to purchase from benefit corporations (B Corps)," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(3), pages 1445-1453, May.
    15. Veronica, Scuotto & Alexeis, Garcia-Perez & Valentina, Cillo & Elisa, Giacosa, 2020. "Do stakeholder capabilities promote sustainable business innovation in small and medium-sized enterprises? Evidence from Italy," Journal of Business Research, Elsevier, vol. 119(C), pages 131-141.
    16. Paramita, Widya & Indarti, Nurul & Virgosita, Risa & Herani, Rina & Sutikno, Bayu, 2022. "Let ethics lead your way: The role of moral identity and moral intensity in promoting social entrepreneurial intention," Journal of Business Venturing Insights, Elsevier, vol. 17(C).
    17. Alejandro Alvarado-Herrera & Enrique Bigne & Joaquín Aldas-Manzano & Rafael Curras-Perez, 2017. "A Scale for Measuring Consumer Perceptions of Corporate Social Responsibility Following the Sustainable Development Paradigm," Journal of Business Ethics, Springer, vol. 140(2), pages 243-262, January.
    18. Muhammad Ikram & Abdul Qayyum & Omer Mehmood & Jahanzaib Haider, 2020. "Assessment of the Effectiveness and the Adaption of CSR Management System in Food Industry: The Case of the South Asian versus the Western Food Companies," SAGE Open, , vol. 10(1), pages 21582440199, January.
    19. Shih-Tse Wang, Edward & Chen, Yu-Chen, 2019. "Effects of perceived justice of fair trade organizations on consumers’ purchase intention toward fair trade products," Journal of Retailing and Consumer Services, Elsevier, vol. 50(C), pages 66-72.
    20. Xisi Yang & Anja Weber & Anna-Katharina Grimm, 2022. "The effects of green consumer empowerment in advertising on corporate evaluations and purchase intention: the case of organic food," Review of Managerial Science, Springer, vol. 16(6), pages 1877-1909, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:corsem:v:27:y:2020:i:5:p:2060-2070. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1002/(ISSN)1535-3966 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.