Consumers and CSR Understanding : Nuances in Consumer Perceptions of Corporate Responsibility Initiatives

With consumers increasingly questioning the role of business in creating social value, it is essential for most firms to address corporate responsibility in ways that go beyond the minimum legal requirement and to communicate their various societal contributions. However, corporate social responsibility (CSR) efforts often fail to have a significant positive impact on consumers, with the result that the “business case” for CSR can prove elusive (Bhattacharya and Sen 2004; Smith 2008; Vogel 2005). This chapter reviews some key research findings on how corporate responsibility initiatives and communications can be more in tune with consumer concerns and be more likely to generate the desired consumer response.First, a company needs to identify the social and environmental issues it should give attention to if consumers are to reward its efforts. This chapter presents an overview of research on consumer expectations about CSR initiatives, including CSR domains with particular relevance for consumers, be it from a personal interest in the cause (Sen and Bhattacharya 2001) or other factors such as the industry in which the company operates (Cook, Smith, and Jin 2012). Recognizing that the consumer’s perceptions of company responsibility do not always align with reality is vital to CSR decision-making. Consumer misperceptions may take different forms. On the one hand, with many firms engaging in ‘greenwashing’ (Delmas and Burbano 2011), consumers are increasingly skeptical about CSR communications and whether actual performance measures up to a company’s CSR claims. On the other, once consumers have a positive impression of a company or product, they may become faithful consumers and perceive the company as being more responsible than it is (Trudel and Cotte 2009). Another consideration is the extent to which consumers care about why a company engages in CSR; hence we examine the diversity of attributions made about CSR commitments. Going beyond the traditional view of two exclusive motivations – intrinsic and extrinsic – we consider the conditions that can make for an interaction between them or a “two-way street”, where values and strategic motives coexist and where a positive impact on company reputation may result from self-serving motives. As well as CSR attributions, the impact of CSR on company image is also contingent on the Company-CSR Cause fit. While a good fit is generally likely to elicit more favorable responses, research findings point to some important nuances, as we discuss.Social and environmental responsibility initiatives not only influence perceptions of the company but also its products. There is considerable complexity in regard to consumer inferences made about corporate responsibility and product performance, which may strongly influence the success of a product in the marketplace. Misperceptions regarding the trade-off between sustainability and performance are common; socially or environmentally responsible products are often perceived to be less effective than their ‘browner’ counterparts. Equally, environmentally friendly (green) characteristics may improve perceptions of products in categories where attributes of gentleness or health benefits are valued (Luchs, et al. 2010).In seeking to make sense of the various influences on consumer perceptions of CSR, this chapter considers how consumers interweave often quite dissimilar perceptions of corporate responsibility—and corporate irresponsibility. It concludes with the implications for managerial decisions on what CSR initiatives to undertake and how to communicate them