Consumer responses to corporate social irresponsibility: The role of moral emotions,evaluations, and social cognitions

We investigate the mediating roles of moral emotions and attitudes between perceptions of corporate irresponsible actions, on the one hand, and consumer responses, on the other hand, and further examine their contingencies based on consumer social cognitions. Our findings show that, for corporate transgressions, multiple social cognitions (moral identity, relational and collective self‐concepts, and affective empathy) moderate the elicitation of negative moral emotions (contempt and anger) and overall evaluations (attitudes), which, in turn, lead to negative responses toward the company (negative word of mouth, complaint behaviors, and boycotting). Our study adds to extant research on corporate social irresponsibility by examining three generic reactions people have toward corporate social irresponsibility and demonstrating important boundary conditions. In addition, hypotheses are tested on a sample of adult consumers. Implications for communication by firms are considered.     

Gender Differences in Double Standards

The purpose of the present study is to investigate gender differences in the use of double standards in ethical judgements of questionable conduct instigated by business or consumers. We investigate if consumers are more critical towards unethical corporate versus consumer actions and if these double standards depend on the gender of the respondent. In the first study, we compared evaluations of four specific unethical actions [cfr. DePaulo, 1987, in: J. Saegert (ed.) Proceedings of the Division of Consumer Psychology (American Psychological Association, Washington DC)] instigated by either the consumer or the corporation. In a second study, we investigated the perception of some general consumer and corporate (un)ethical actions in addition to DePaulo’s unethical scenarios. Both researches show that females are less likely to use double standards when it comes to their own (un)ethical behaviour compared to corporate (un)ethical actions. Furthermore, gender differences in the use of double standards depend on the type of unethical behaviour. Limitations and suggestions for further research are discussed.     

Ethical consumer decision‐making: The role of need for cognition and affective responses

Most of the academic research in the field of consumer ethics has focused on the cognitive antecedents and processes of unethical consumer behavior. However, the specific roles of discrete emotions such as fear have not yet been investigated thoroughly. This research examines the role of the need for cognition (NFC), the three affective responses—fear, power, and excitement—and perceived issue importance on moral intensity, ethical perceptions, and ethical intentions for four types of unethical consumer behaviors. A sample of consumers from the two cities of Alexandria and Cairo, Egypt (n = 346) participated in the survey. Most research hypotheses were supported. NFC, issue importance, and affect variables were all predictors of moral intensity, ethical perceptions, and ethical intentions in four different consumer ethics scenarios. The specific predictors varied from one consumer ethics scenario to another, however.     

Ethical Context, Organizational Commitment, and Person-Organization Fit

The purpose of this study was to assess the relationships among ethical context, organizational commitment, and person-organization fit using a sample of 304 young working adults. Results indicated that corporate ethical values signifying different cultural aspects of an ethical context were positively related to both organizational commitment and person-organization fit. Organizational commitment was also positively related to person-organization fit. The findings suggest that the development and promotion of an ethical context might enhance employees' workplace experiences, and companies should consider adopting ethical policies that support principled conduct, punish unethical actions, and increase individual perceptions of an ethical company environment.     

Anger Strays,Fear Refrains: The Differential Effect of Negative Emotions on Consumers’ Ethical Judgments

Although various factors have been studied for their influence on consumers’ ethical judgments, the role of incidental emotions has received relatively less attention. Recent research in consumer behavior has focused on studying the effect of specific incidental emotions on various aspects of consumer decision making. This paper investigates the effect of two negative, incidental emotional states of anger and fear on ethical judgment in a consumer context using a passive unethical behavior scenario (i.e., too much change received). The paper presents two experimental studies. Study 1 focuses on the interaction of moral intensity (amount of change) and incidental emotion state in predicting the ethical judgment while study 2 investigates the underlying causal mechanism behind the process, using a mediation analysis. The results reveal a significant interaction between moral intensity and incidental emotion. Specifically, individuals in the state of incidental fear exhibit higher levels of ethical judgment as the moral intensity increases as compared to individuals in the state of incidental anger. Further, perceived control is found to mediate the relationship between emotional state and ethical judgment under higher moral intensity condition.     

Towards an understanding of consumer recycling from an ethical perspective

Recycling is a post‐purchase consumer activity where the consumer usually considers not only individual but also social goals, ideas and ideologies. Accordingly, ethics is an inherent part of recycling; however, very few studies have explored this behaviour from an ethical point of view. The purpose of this paper is to explain consumer recycling by taking a multifaceted ethical approach. The conceptual model builds on theoretical underpinnings related to ethical consumption by exploring the extensions of the theory of planned behaviour, Jones' ethical decision‐making model and Holbrook's conceptualization of ethical consumption. Thus, the attitude‐intention framework incorporates three ethics‐related concepts: (1) moral obligation, i.e. the level of guilt to perform the behaviour, (2) moral intensity, i.e. the moral issue characteristics, and (3) collectivism, i.e. an individual‐level value orientation. The data were collected from a sample of Slovenian consumers, using an online consumer panel. The sample reflected the Slovenian population in terms of gender and age. The proposed conceptual model was tested using structural equation modelling. The results suggest the proposed ethical concepts play a significant role in the attitude‐intention framework. The more collectivistic individuals have more positive attitudes towards recycling. Moreover, the more consumers perceive recycling as morally intense, the more favourable their attitudes are. In turn, attitudes positively affect intentions to recycle. In addition, higher levels of moral obligation positively influence intentions to recycle. The only hypothesis that is not supported in this study refers to the influence of moral intensity on intentions to recycle. The implications for public policymakers and social marketers stem from a complex interplay of the antecedents of recycling behaviour. Future studies could go in several directions by extending the model to other moral issues, conducting a study in a cross‐cultural setting or taking a longitudinal approach.     

‘Consumers’ Evaluation of Unethical Marketing Behaviors: The Role of Customer Commitment’

While there is a significant amount of research investigating managerial ethical judgments, a limited amount examines consumer judgments of unethical corporate behavior and its impact on the marketplace. This study examines how consumers’ commitment to a company impacts not only their ethical judgment of corporate behavior but also the outcomes of that judgment. The authors test hypotheses with data from 334 consumers and find that consumers’ level of commitment attenuates the level of perceived fairness. More specifically, highly committed consumers may forgive companies for behaviors when perceived harm is low, but become progressively dissatisfied as the level of perceived harm increases. Results of the study point to the importance of considering ethical behavior from a consumer perspective. If corporate actions are perceived as unethical, the company stands to lose favor with their most committed customers. Considering that more time, effort and investment is required to gain a new customer as to retain an old, this study shows that engaging in behavior perceived as unethical by consumers risks alienating the most committed customers.     

Inverting the Pyramid of Values? Trends in Less-Developed Countries

The authors discuss the consistency of transnational companies in their home, as well as in less developed host countries, concerning ethics, values and social responsibility. Ethical behavior offers good reputation, credibility and tradition to the corporation. It leads to corporate social, environmental and economic responsibilities, cooperating to the desired sustainability. This paper analyzes the inversion of values that corporate governance systems have suffered. The meaning and implication of the corporate social responsibility is investigated and discussed. A “pyramid of values” is built upon individual ethical values at the basis. Over them, the organizational ethical values should indicate the limits of operations, so that the corporate social responsibility can be sustained, in the top. The authors comment that ethical values no longer lead the organization. Its communication with the stakeholders, specifically through reports, has been gradually replacing the code of ethics and corporate values. These reports have taken the basis of the pyramid leading the organizations to socially irresponsible and unethical behavior. They do not guarantee transparency or communicate the needs of the society. It appears that transnational companies do not behave the same way in their home country as they do in host countries, particularly in less developed regions like Latin America and Africa. Lack of communication and transparency may induce employees to unethical decisions and transform the reporting system into a marketing instrument. In order to guarantee compliance with the codes, transparency and ethical responsibility, communication within the organization is essential.     

Consumer ethics: A review and research agenda

Consumer ethics continues to draw the attention of academicians and practitioners as a significant economic and social issue globally. Consumer ethics refers to moral principles that govern a consumer's behaviour. This literature review seeks to enrich the discourse on consumer ethics through a comprehensive and detailed review of 106 articles, covering 21 journals from 2010 to 2020. Through an examination of theories, contexts, characteristics, and methodologies used in consumer ethics research, our review (1) presents a comprehensive and up-to-date overview of the research in this field and (2) sets a future research agenda to spur scholarly research. We found studies have primarily relied on a single theoretical lens such as the theory of marketing ethics, planned behaviour, and neutralization theory. Further consumer ethics research focuses on advanced countries, with a narrow focus on developing countries. We have diagnosed the need to examine boundary conditions impacting consumer ethics. Finally, we provide actionable inputs to combat unethical consumer actions as well as promote ethical consumption.     

Individual, Social and Organizational Sources of Sharing and Variation in the Ethical Reasoning of Managers

A growth in consumer and media ethical consciousness has resulted in the need for organizations to ensure that members understand, share and project an approved and unified set of ethics. Thus understanding which variables are related to sharing and variation of ethical reasoning and moral intent, and the relative strength of these variables is critical. While past research has examined individual (attitudes, values, etc.), social (peers, significant others, etc.) and organizational (codes of conduct, senior management, etc.) variables, it has focused on their influence on the individual – and not on their role in relation to patterns of group sharing and variation in an organization. Introduced as a new methodology to study ethics, microcultural analysis stipulates that to explain patterns of sharing and variation, one must understand how individual, social and organizational variables influence sharing and variation. Key hypotheses predict that managers who share in individual, social or organizational determinants will be more likely to share in ethical reasoning and moral intent. Qualitative and quantitative research supports the key hypotheses, finding social ties, personal moral intensity, Machiavellianism, locus of control and codes of ethics as significant determinants. Individuals who share in these determinants are more likely to share in ethical reasoning and moral intent. Additionally, regression analysis reveals social ties and personal moral intensity to be the strongest determinants. Based on these results, managerial recommendations focus on a holistic approach, manipulating these three determinants to cultivate a unified code of ethics within an organization.     

The Influence of Business School’s Ethical Climate on Students’ Unethical Behavior

Business schools play an instrumental role in laying the foundations for ethical behavior and socially responsible actions in the business community. Drawing on social learning and identity theories and using data collected from undergraduate business students (n = 318), we found that ethical climate was a significant predictor of unethical behavior, such that students with positive perceptions about their business school’s ethical climate were more likely to refrain from unethical behaviors. Moreover, we found that high moral and institutional identities strengthened the effect of ethical climate on unethical behavior. In addition to novel theoretical contributions to the business ethics and socio-psychology literature, this study offers practical pathways through which business schools can nurture and instill the values and behaviors that ultimately help shape positive organizational ethics. Directions for future research are provided.     

Double Standards: The Role of Techniques of Neutralization

Despite the growing number of studies examining consumers?? perceptions of unethical corporate and consumer practices, research examining the apparent double standard existing between what consumers perceive as acceptable corporate behaviour and what they believe are acceptable consumer practices remains scarce. Contradictory, double standards are often quoted by other researchers as a major stream in ethical literature. The few studies dealing with this topic as well as this study indicate that people rate corporate unethical actions as less admissible compared to similar consumer misactions. However, little is known about the processes underlying these double standards. This research investigates whether the techniques of neutralization could provide a meaningful way of approaching this phenomenon. Findings indicate that the higher the extent to which people agree with arguments explaining away the misbehaviour instigated by consumers or business, the more they tolerate these questionable consumer and corporate practices. Furthermore and more importantly, these techniques give an answer on the question why people judge business (representatives) more harshly than consumers. More specifically, results show that the same respondents who justify questionable consumer actions to a certain degree, condone the same misbehaviours instigated by business (representatives) to a much lesser extent. In this way, the techniques of neutralization concern a process explaining the double standard phenomenon.     

Investigating the impact of guilt and shame proneness on consumer ethics: a cross national study

Studies show that emotions of guilt and shame significantly influence how people live their daily lives when it comes to making ethical decisions. Nonetheless, individuals’ proneness toward guilt and shame has received limited attention in consumer behaviour literature. The study focuses on the impact of anticipated emotions (i.e. guilt and shame) on various consumers’ ethical and unethical behaviours. Using a combination of a panel data sample and a university sample, the overall results between the two countries (i.e. Australia and Indonesia) reveal more similarities than differences. Consumers with high guilt‐proneness are less likely to agree on those unethical behaviours. This study has important theoretical implications for understanding the similarities and differences between both nations and the impact of guilt and shame proneness on consumer ethics.     

Ethical human resource management mitigates the positive association between illegitimate tasks and employee unethical behaviour

Drawing on social cognitive theory and social information processing theory, we developed a moderated mediation model in which moral disengagement was theorised as a unique mechanism to explain why employees engage in unethical behaviours after performing illegitimate tasks. Ethical human resource management (HRM) was proposed as a boundary condition that influences this mechanism. We tested the model using time-lagged supervisor–subordinate matched data. The results showed that moral disengagement mediated the relationship between illegitimate tasks and unethical behaviours, and that this relationship was weaker when ethical HRM was perceived to be high level rather than low level. Thus, our hypotheses were supported. The theoretical and practical implications of these findings are discussed.     

Corporate Transparency: A Perspective from Thomas Aquinas’ Summa Theologiae

This article analyzes the issue of organizational transparency through the lens of Thomas Aquinas’ ethics. It provides moral justification for current claims about corporate transparency and sheds light on the ethical values and virtues affecting information disclosure decisions. Transparency is conceptualized as an informational mechanism necessary for performing the virtues of truthfulness, justice, and prudence. This article extends the organizational transparency and corporate social responsibility literatures by providing an alternative moral justification grounded in virtue-based theory, which extends our understanding of the information disclosure decisions made by management.     

(Un)Ethical Behavior and Performance Appraisal: The Role of Affect,Support, and Organizational Justice

Performance appraisals are widely used as an HR instrument. This study among 332 police officers examines the effects of performance appraisals from a behavioral ethics perspective. A mediation model relating justice perceptions of police officers’ last performance appraisal to their work affect, perceived supervisor and organizational support and, in turn, their ethical (pro-organizational proactive) and unethical (counterproductive) work behavior was tested empirically. The relationship between justice perceptions and both, ethical and unethical behavior was mediated by perceived support and work affect. Hence, a singular yearly performance appraisal was linked to both ethical and unethical behaviors at work. The finding that ethical and unethical aspects of employee behavior share several of the same organizational antecedents, namely organizational justice perceptions, has strong practical implications which are discussed as well.     

Consumers' Punishment and Rewarding Process via Purchasing Behavior

While there have been many studies of the ethical behavior ofmanagers, little research investigated the ethical beliefs andideologies of consumers. Moreover, even less is known about therelationship between consumer beliefs and ideology and purchasingbehavior. The present study investigates the extent to whichconsumers punish or reward what they perceive as either a firm'sethical or unethical behavior. The research model was tested onsamples of Israeli and Turkish respondents. The results indicatethat personal economic benefit, ideology (idealism versusrelativism), economic cost to others and locus of control explainconsumer reaction to ethical, purchasing dilemmas. Moralexpectations did not influence whether a consumer would purchasein a store offering an unethical proposition. Apparently,material gain, if large enough, outweighs one's moralpredisposition. Idealists were found to be less likely topurchase in an unethical store situation. The Turkish respondentswere more concerned with economic cost to others than the Israelirespondents, apparently owing to cultural differences between thetwo groups. Finally, those respondents having higher internallocus of control were found to be more ethical.     

Organizational Consequences, Marketing Ethics and Salesforce Supervision: Further Empirical Evidence

This study comparatively examines supervisory reactions of Turkish sales managers to potentially ethical and unethical salesperson behaviors while replicating Hunt and Vasquez-Parraga (1993). Four scenarios representing ethical and unethical conditions of over-stating plant capacity utilization and over-recommending expensive products were presented to the managers. As a result of this comparative study, it is empirically demonstrated that Turkish managers primarily rely on the inherent rightness of a behavior with a focus on the individual (i.e., deontological evaluations) in determining whether a salesperson's behaviors ethical or unethical, but the moral worth of a behavior (i.e., teleological evaluations) also play a role. Turkish managers rely both on the deontological and teleological evaluations in determining their intention to intervene through discipline and rewards. Furthermore, the results are consistent with Hunt and Vitell (1986), Etzioni's moderate deontology and inconsistent with the P-utility theory and ethical egoism.     

An Examination of the Relationship Between Ethical Work Climate and Moral Awareness

This paper draws from the fields of history, sociology, psychology, moral philosophy, and organizational theory to establish a theoretical connection between a social/organizational influence (ethical work climate) and an individual cognitive element of moral behavior (moral awareness). The research was designed to help to fill a gap in the existing literature by providing empirical evidence of the connection between organizational influences and individual moral awareness and subsequent ethical choices, which has heretofore largely been merely assumed. Results of the study provide evidence that ethical work climate (EWC) is a primary predictor of individual moral awareness, and that the influence of social factors often overrides the effects of individual differences in a work group setting. Implications for future research are provided.