Corporate social responsibility (CSR) continues to gain attention atop the corporate agenda and is by now an important component of the dialogue between companies and their stakeholders. Nevertheless, there is still little guidance as to how companies can implement CSR activity in order to maximize returns to CSR investment. Theorists have identified many company-favoring outcomes of CSR; yet there is a dearth of research on the psychological mechanisms that drive stakeholder responses to CSR activity. Borrowing from the literatures on meansend (...) chains and relationship marketing, we propose a conceptual model that explains how CSR provides individual stakeholders with numerous benefits (functional, psychosocial, and values) and how the type and extent to which a stakeholder derives these benefits from CSR initiatives influences the quality of the relationship between the stakeholder and the company. The paper discusses the implications of these insights and highlights a number of areas for future research. (shrink)

This research investigates the interplay between leadership styles and institutional corporate social responsibility (CSR) practices. A large-scale field survey of managers reveals that firms with greater transformational leadership are more likely to engage in institutional CSR practices, whereas transactional leadership is not associated with such practices. Furthermore, stakeholder-oriented marketing reinforces the positive link between transformational leadership and institutional CSR practices. Finally, transactional leadership enhances, whereas transformational leadership diminishes, the positive relationship between institutional CSR practices and organizational outcomes. This research highlights (...) the differential roles that transformational and transactional leadership styles play for a firm’s institutional CSR practices and has significant implications for theory and practice. (shrink)

This paper examines how employees react to their organizations’ corporate social responsibility initiatives. Drawing upon research in internal marketing and psychological contract theories, we argue that employees have multi-faceted job needs and that CSR programs comprise an important means to fulfill developmental and ideological job needs. Based on cluster analysis, we identify three heterogeneous employee segments, Idealists, Enthusiasts, and Indifferents, who vary in their multi-faceted job needs and, consequently, their demand for organizational CSR. We further find that an organization’s CSR (...) programs generate favorable employee-related outcomes, such as job satisfaction and reduction in turnover intention, by fulfilling employees’ ideological and developmental job needs. Finally, we find that CSR proximity strengthens the positive impact of CSR on employee-related outcomes. This research reveals significant employee heterogeneity in their demand for organizational CSR and sheds new light on the underlying mechanisms linking CSR to employee-related outcomes. (shrink)

This paper examines the effects of employees’ sense that they work for a purpose-driven company on their workplace sustainability behaviors. Conceptualizing corporate purpose as an overarching, relevant, shared ethical vision of why a company exists and where it needs to go, we argue that it is particularly suited for driving employee sustainability behaviors, which are more ethically complex than the types of employee ethical behaviors typically examined by prior research. Through four studies, two involving the actual employees of construction companies, (...) we demonstrate that purpose drives the sustainability behaviors of employees by causing them to take psychological ownership of sustainability. In addition, we show that the sustainability-enhancing effect of purpose is stronger when employees perceive that they have higher autonomy in enacting their sustainability actions and for those employees for whom being moral is more central to their sense of self. (shrink)

This paper examines the question of why consumers engage in ethical consumption. The authors draw on self-affirmation theory to propose that the choice of an ethical product serves a self-restorative function. Four experiments provide support for this assertion: a self-threat increases consumers’ choice of an ethical option, even when the alternative choice is objectively superior in quantity (Study 1) and product quality (Study 2). Further, restoring self-esteem through positive feedback eliminates this increase in ethical choice (Studies 2 and 3). As (...) an additional test of the robustness of our results, a final study examined the effect of self-threat on choice in a field setting (Study 4). The findings indicate that ethical purchases are not just altruistic. They hold purposeful individual value and can help in the self-restorative process. Implications for managers making decisions regarding investment in ethical product features are discussed. (shrink)

In this research, we evaluate the response of Brazilian consumers to corporate social responsibility (CSR) initiatives accompanied by a price increase. We demonstrate that the extent to which Brazilian consumers perceive a company to be socially responsible (i.e., their CSR perceptions) is related to both the basic transactional outcome of purchase intentions as well as two relational outcomes: the likelihood to switch to a competitor and to complain about the CSR-based price increase. More interestingly, we find that these relationships are (...) jointly mediated by the consumers’ perceptions of price fairness and feelings of personal satisfaction. Perhaps most interesting, we find that these mediating effects vary with consumer purchasing power; the mediating effect of price fairness on purchase intention is stronger for lower income than for higher income consumers, whereas the mediating effects of personal satisfaction on switching and complaining intentions are stronger for higher income than for lower income consumers. (shrink)

In this research, we evaluate the response of Brazilian consumers to corporate social responsibility (CSR) initiatives accompanied by a price increase. We demonstrate that the extent to which Brazilian consumers perceive a company to be socially responsible (i.e., their CSR perceptions) is related to both the basic transactional outcome of purchase intentions as well as two relational outcomes: the likelihood to switch to a competitor and to complain about the CSR-based price increase. More interestingly, we find that these relationships are (...) jointly mediated by the consumers' perceptions of price fairness and feelings of personal satisfaction. Perhaps most interesting, we find that these mediating effects vary with consumer purchasing power; the mediating effect of price fairness on purchase intention is stronger for lower income than for higher income consumers, whereas the mediating effects of personal satisfaction on switching and complaining intentions are stronger for higher income than for lower income consumers. (shrink)