Are Sustainable Consumers Health Conscious? A Segmentation Study of Wine Consumers

As a result of consumers’ increasing concerns with ethical, environmental, and health issues, sustainable consumption and production have become a popular topic of recent academic research and industry practices. The current study sought to provide in-depth insights into consumers’ views on sustainability by simultaneously examining their environmental and social awareness and behavior, health-conscious lifestyles, and diets; as well as the perceived importance of social and nutrition information on wine labels. Based on empirical data obtained through a web-based survey distributed to consumer panels in three markets – the US, the UK, and Germany – this research segmented wine consumers into four categories: Apathetic Consumers; Health-Conscious Diners; Holistic Perfectionists; and Ethical Advocates. The findings indicate that in general wine consumers are mindful about the environmental problems, social responsibility of companies, ethically produced and sustainably sourced products. The majority adhere to healthy lifestyles and watch their diets. Nevertheless, with the exception of only one cluster (Holistic Perfectionists), wine consumers do not actively seek social, environmental, or nutritional information on wine labels. This study shows that, at least currently, the preferences for the social factors are unlikely to outweigh dominating traditional wine purchase drivers, such as price, brand, country of origin, and grape variety. Industry implications for tailored marketing strategies are discussed.     

“Why Don’t Consumers Care About CSR?”: A Qualitative Study Exploring the Role of CSR in Consumption Decisions

There is an unresolved paradox concerning the role of corporate social responsibility (CSR) in consumer behavior. On the one hand, consumers demand more and more CSR information from corporations. On the other hand, research indicates a considerable gap between consumers’ apparent interest in CSR and the limited role of CSR in purchase behavior. This article attempts to shed light on this paradox by drawing on qualitative data from in-depth interviews. The findings show that the evaluation of CSR initiatives is a complex and hierarchically structured process, during which consumers distinguish between core, central, and peripheral factors. This article describes these factors in detail and explains the complexity of consumers’ assessment of CSR. These insights then serve as a basis for discussing the theoretical and managerial implications of the research findings. To this end, the article contributes to a better understanding of the role of CSR in consumption decisions.     

Are You a Chocolate Lover? An Investigation of the Repurchase Behavior of Chocolate Consumers

This study aimed to understand the factors affecting repurchase behavior of chocolate brands and, consequently, customer retention and acquisition. The study adopted a qualitative, inductive approach using in-depth interviews with 31 Australian consumers. The factors identified in the extant literature as antecedents of customers’ repurchase intention in the chocolate industry, including brand recognition, sales promotion, product price value, variety, taste, texture, size, packaging, and customer satisfaction, were confirmed. The results also indicated that functional value, product selection value, self-gratification value, socialization value, and transactional value were also considered during the consumer decision-making process. Implications for practitioners are provided.     

Successful Psychopaths: Are They Unethical Decision-Makers and Why?

Successful psychopaths, defined as individuals in the general population who nevertheless possess some degree of psychopathic traits, are receiving increasing amounts of empirical attention. To date, little is known about such individuals, specifically with regard to how they respond to ethical dilemmas in business contexts. This study investigated this relationship, proposing a mediated model in which the positive relationship between psychopathy and unethical decision-making is explained through the process of moral disengagement, defined as a cognitive orientation that facilitates unethical choice. The results of the study supported this model, and implications for theory and practice are discussed.     

What's behind the Successful Pass of the Registration Report?

On December 1, 2005, the registration report for Shanghai Expo was passed inParis. This is a critical moment for Shanghai, and the result of the hard work jointly.What is behind the smooth success? Here we got some first hand information fromthe insiders.…     

Consumers’ Response When Regulators Are Uncertain About the Source of Foodborne Illness

Health and safety officials are sometimes placed in an awkward position: knowing that a foodborne disease outbreak is occurring but not knowing which food is responsible. They have to advise consumers, but relying on ambiguous and evolving information raises the question, how do consumers respond to changing advice? Here, we estimate a model of the retail demand for tomatoes in the USA, accounting for the 2008 events in the USA in which consumers were advised that some types of tomatoes were contaminated with Salmonella bacteria, and later were advised that tomatoes were safe and peppers were not. Using the quantity of news media attention given to the Salmonella issue, we show that consumers generally responded to the advice that tomatoes were contaminated, but did not respond to the declaration that tomatoes were safe. The magnitude of response to contemporaneous news depended on the extent of coverage in previous weeks.     

Chinese Consumers’ Perception of Corporate Social Responsibility (CSR)

The findings of this article increase our understanding of corporate social responsibility from the consumers’ perspective in a Chinese setting. Based on primary data collected via a self-administered survey in Shanghai and Hong Kong and results of similar studies conducted in Europe and the United States, we provide evidence to show that Chinese consumers are more supportive of CSR. We also show that Carroll’s pyramid of responsibilities can be applied in China. We evaluated the importance placed by Chinese consumers on the four responsibilities of firms – economic, legal, ethical and philanthropic – and find that economic responsibilities are most important while philanthropic responsibilities are of least importance. The nature of these differences is important for firms intending to use corporate social responsibility for strategic purposes.     

How Important Are CEOs to CSR Practices? An Analysis of the Mediating Effect of the Perceived Role of Ethics and Social Responsibility

Drawing on the Agency–Stewardship approach, which suggests that manager profile may range from the agent model to the steward model, this article aims to examine how important CEOs are to corporate social responsibility (CSR). Specifically, this exploratory study proposes the existence of a relationship between manager profile and CSR practices and that this relation is mediated by the perceived role of ethics and social responsibility. After applying a mediated regression analysis using survey information collected from 149 CEOs in Spain, results show that those closer to the steward model are more inclined to attach great importance to ethics and social responsibility, and to implement CSR practices in their companies. Results also provide support for the suggested mediating effect. Thus, this article extends research in understanding top managers as drivers for CSR and suggests new ways to deal with this issue empirically.     

Are Consumers Really Bewildered by Overchoice? An Experimental Approach to the Tyranny of “Too Much”

Conventional wisdom advocates that consumers love choice. But just how much? This study delves into this subject by considering the cognitive factors that underpin the consumer’s reaction to plentiful assortment on the shelf, but which may cause “analysis paralysis” and indecision. In an attempt to investigate the above, this study adopts an experimental approach to ascertain what occurs when consumers are faced with a multitude of options within the product category of red wine. The results suggest that if executed correctly, retailers can effectively reduce assortment in such a manner that does not negatively impact perceptions of choice, but does indeed reduce the cost incurred when consumers are forced to weigh up options against each other. Of particular interest, the study finds that product knowledge and experience also has a material effect on the outcome of these endeavors. Hence, both product category familiarity and the nature of the consumer should be factored into the strategic thinking of how a retailer can optimize the merchandise assortment displayed to the customer.     

Connecting the Two Faces of CSR: Does Employee Volunteerism Improve Compliance?

In 2004, the United States Sentencing Commission amended the Federal Sentencing Guidelines to allow firms that create “effective compliance and ethics programs” to receive better treatment if prosecuted for fraud. Effective compliance and ethics, however, appear to be limited to activities focused on complying with the firms’ internal legal and ethical standards. We explored a potential connection between the firms’ external corporate social responsibility (CSR) behaviors and internal compliance: Is there an organizationally valid relationship between these two firm activities? That is, when organizations demonstrate CSR with behaviors external to the firm, such as employee volunteerism, are their employees more likely to demonstrate uncompromised legal and ethical compliance behavior internally? We collected data from 164 working professionals enrolled in a top-tier MBA program in the southeastern United States regarding their employer-sponsored volunteer activities and their intentions to comply in various organizational compliance vignettes. We found that employer-sponsored volunteerism is associated with uncompromised compliance choices in one of the three vignettes. This finding indicates preliminary support for further inquiry into the relationship within the firm between external CSR behaviors and policies regarding organizational compliance. Post hoc analyses suggest that employer-sponsored volunteerism is strongly associated with a positive organizational identity, but organizational identity is not associated with the significant compliance vignette. This evidence suggests that the underlying mechanism that connects external CSR behaviors and internal compliance intentions is complex and requires future study.     

A Circle of Influence: Are All the Stakeholders Included?

Traditionally, certified public accountants (CPAs) have served a unique role in the world of commerce and the profession of accounting. They perform an attest function and thereby serve as the chief providers of relevant, high quality accounting information to the decision making public. CPAs are licensed practitioners, who as expert independent accountants express opinions about an entity'sfinancial statements. Their license provides them with the exclusive right to perform this attest function. This monoploy relies on the concept of independence that is the normative standard of accountancy. It is this perceived independence of auditors which provides credibility, reliability and trust in the financial accounting information upon which stakeholders depend to make informed decisions. Now, however, we see the environment in which CPAs operate undergoing rapid change. Both the globalization of business operations and technological advances have radically changed how and where accountants work and the speed at which things happen. The very nature of accounting information services is evolving; moving from a concentration on audits to an increasing reliance on consulting and assurance services. New ethical issues have been raised by this confluence of changes in the accounting environment. Noteworthy is that the application of the principle of independence by CPAs has been called into question by no other than the SEC. Are those stakeholders who depend upon the independence of CPAs at risk? The influence of insiders has significantly increased as accounting firms perform multiple tasks for the same clients. This paper discusses the different groups who can potentially impair the independence of auditors and the steps that are being taken to enhance the "independence" of the auditors.     

Social Capital Initiatives: Employees and Communication Managers Leading the Way?

Organizations’ development of social capital and their decision to give back to society are becoming increasingly important to the business of managing organizations as much more than profit-driven entities. This article focuses on the rationale for an Australian–Canadian study on employees’ involvement in social capital initiatives and the communication management of these initiatives. As employees are key stakeholders, they play a vital part in achieving organizational goals. This study, a work in progress, highlights an in-depth, qualitative analysis of two organizations—one in Canada and one in Australia—committed to funding community projects as part of their corporate social responsibility development and commitment. The importance of a qualitative study that focuses on subjective components of social capital is that it develops understanding of employees’ attitudes, feelings, and viewpoints. It also begins to investigate why employees might/might not be committed, to organizations’ social capital initiatives. Using an interpretative analysis lens, an understanding of the moral, relational, and communication dynamics is explored. Questions surrounding concepts such as the moral fiber of social capital are highlighted and critiqued in the context of community engagement and what organizations’ social capital investments mean as part of their responsibility to society.     

Are Expired/Unused Coupons Worhless to Consumers and Advertisers?

This article calls for a reconsideration of the criteria commonly used to evaluate couponjng strategies. The paper outlines how potentially significant effects from merely collecting coupons without redeeming may be ignored by using the traditional means of redemption to evaluate a coupon drop. Several theoretical explana- tions for the possible impact of coupon collecting are posed along with managerial implications considering these theories.     

CSR Business as Usual? The Case of the Tobacco Industry

Tobacco companies have started to position themselves as good corporate citizens. The effort towards CSR engagement in the tobacco industry is not only heavily criticized by anti-tobacco NGOs. Some opponents such as the the World Health Organization have even categorically questioned the possibility of social responsibility in the tobacco industry. The paper will demonstrate that the deep distrust towards tobacco companies is linked to the lethal character of their products and the dubious behavior of their representatives in recent decades. As a result, tobacco companies are not in the CSR business in the strict sense. Key aspects of mainstream CSR theory and practice such as corporate philanthropy, stakeholder collaboration, CSR reporting and self-regulation, are demonstrated to be ineffective or even counterproductive in the tobacco industry. Building upon the terminology used in the leadership literature, the paper proposes to differentiate between transactional and transformational CSR arguing that tobacco companies can only operate on a transactional level. As a consequence, corporate responsibility in the tobacco industry is based upon a much thinner approach to CSR and has to be conceptualized with a focus on transactional integrity across the tobacco supply chain. Guido Palazzo is Assistant Professor for Business Ethics at the University of Lausanne (Switzerland). He graduated in Business Administration at the University of Bamberg (Germany) and earned his PhD in Political Philosophy (1999) from the University of Marburg (Germany). His research interests are in Corporate Social Responsibility, Corporate Branding, Democratic Theory, and Organizational Ethics. Ulf Richter is a doctoral student at the University of Lausanne. He is writing his thesis on Corporate Social Responsibility, conceptualizing the concept from a multidisciplinary perspective. He has studied in Germany, Peru and the US, and graduated from the European Business School, Oestrich-Winkel, majoring in International Management and Real Estate.     

Crossing the Boundaries of Obligation: Are Corporate Salaries a Form of Bribery?

Trans-National Corporations (TNCs) pay relatively high salaries to local people in host countries. TNCs assume that such employees will accept an employeeÇôemployer relationship similar to that which exists in North America, but the obligations and personal interests that such a relationship create often directly conflict with systems of obligation already established in the host country. When TNCs do business across the boundaries of systems of obligation, corporate salaries can be seen as a form of unethical bribery. In this paper, the core case of business bribery is described consistent with the usual philosophical analysis of bribery, and the grounds for thinking bribery is unethical are made clear. The amount of a bribe is irrelevant to the ethical analysis. Bribery is distinguished from tips and grease on structural grounds. The concept of a system of obligation is defined, and examples given that show the variability of systems of obligation in host countries. Arguments are given to show that salaries paid by TNCs create obligations and personal interests which sometimes conflict with existing systems of obligation, and that such payments have the same structure as more traditional forms of bribery. The ethical issues of corporations crossing the boundaries of systems of obligations are discussed.     

Consumers and the internal market for services: Shortcomings of the “new approach” of the Community

The paper discusses the new approach of the Community in the area of services, namely the principle that every service — like every good — should be allowed to circulate freely in the entire Internal Market provided it meets the standards of EEC law and of the country of origin. There are some exceptions to this principle, especially in the insurance area (market segregation in the industry's interest). The paper points out that the new approach might endanger consumer protection of Member States unless adequate standards of the receiving country exist. ECLG makes a number of suggestions to overcome the lacunae left by the new approach, especially by opting for minimal harmonisation, by applying rules of private internal law under the Rome Convention, and by providing for safeguard clauses.

---

Verbraucher und Binnenmarkt für Dienstleistungen: Mängel der sog. neuen Konzeption der Gemeinschaft

Zusammenfassung Die Gemeinschaft versucht in Vewirklichung der Grundfreiheiten des durch die Einheitliche Akte geänderten EWG-Vertrages die Vollendung des Binnenmarktes auch im Dienstleistungsbereich. Dabei sind unterschiedliche Herangehensweisen denkbar, nämlich das Prinzip der Minimalharmonisierung, die Marktsegmentierung oder die sog. neue Konzeption. Letztere findet sich vor allem im Banken- und Rundfunkbereich; dancah soll es für den Marktzutritt im gesamten Binnenmarkt ausreichen, daß die (angeglichenen) Standards des Ursprungslandes eingehalten werden. Die ECLG befürchtet einen Abbau des Verbraucherschutzes bei einer konsequenten Durchführung dieses Prinzips und macht Gegenvorschläge. Diese beziehen sich auf eine verstärkte Durchsetzung des Prinzips der Minimalharmonisierung, auf die Notwendigkeit der Anwendung der Regeln des Internationalen Privatrechts nach dem Römischen Schuldrechtsübereinkommen von 1980, und durch Verankerung von Schutzklauseln.

---

---

The European Consumer Law Group (ECLG) is a group of lawyers and law scholars in the EEC and EFTA countries, concerned with legal aspects of consumer protection. Correspondence regarding the paper should be directed to: Professor Norbert Reich, Centre for European Legal Policy, Universitätsallee GW 1, D-2800 Bremen 33, Federal Republic of Germany.     

Why Do Consumers Stay When Things Are Bad and Leave When Things Are Good?

The study seeks to identify and classify motives for customers leaving when things are good and motives for staying when things are bad. Thus, this study identifies reasons for remaining in a business relationship when not satisfied. These motives are termed Capture Assistants. The study also identifies reasons for leaving a provider when satisfied. These motives are termed Escape Assistants. The critical incident technique was used to gain insights. A total of 219 incidents were classified. The results reveal that Capture Assistants hinder customers from leaving because they manifest themselves as fears of loss. Conversely, Escape Assistants motivate satisfied customers to leave because they promise gains. Managerial implications are outlined.     

Three tiers of CSR: an instructive means of understanding and guiding contemporary company approaches to CSR?

Heightened concern with global issues has led to shifts in corporate social responsibility (CSR) programs. To capture the distinct nature of this global focus, researchers have developed a three‐generation CSR typology. In this paper, we first evaluate the usefulness of this typology for understanding corporate approaches to CSR by examining how several companies position themselves thematically in CEO introductions to sustainability reports. On the basis of this, we then evaluate the practical value of this typology for assisting those who work with CSR strategy. The analysis revealed expressions of all three CSR generations, with third‐generation thinking being apparent, but not dominant. It also verified that the three‐generation CSR typology can be an instructive means of both evaluating as well as framing a company's approach to sustainability, though with modifications. On the basis of the identified strengths and weaknesses of the typology, we develop a practitioner‐focused, three‐tiered model that can strategically guide the development of CSR programs.     

Are we living at the expense of the developing countries?

The industrial nations are often accused of achieving their relative affluence by using natural resources at the expense of the developing countries. Is this accusation justified? Would it really be in the developing countries' interests if the industrial nations drastically reduced their consumption of natural resources, as is so often demanded?