Skip to main content
Log in

Consumer Responses to the Food Industry’s Proactive and Passive Environmental CSR, Factoring in Price as CSR Tradeoff

  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

This study examines consumer reactions to the food industry’s environmental corporate social responsibility (CSR) by varying levels of CSR and price as CSR tradeoffs. Findings reveal that proactive CSR programs generate more favorable attitudes toward and stronger intent to purchase from the company compared to passive CSR programs. Supportive communication intention also increases with CSR level in the low price condition. Regarding the impact of price, respondents showed more positive attitudes toward a company that charges cheaper prices in general. However, when a company demonstrates proactive initiatives, respondents did not distinguish between prices and showed generally positive intent to support and intent to purchase from the company. When a company practices passive CSR and offers cheaper products, respondents showed the weakest supportive and purchase intentions.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1
Fig. 2
Fig. 3

Similar content being viewed by others

References

  • Abdul-Muhmin, A. G. (2007). Explaining consumers’ willingness to be environmentally friendly. International Journal of Consumer Studies, 31, 237–247.

    Article  Google Scholar 

  • Alliance, D. (2011). Greening fast food packaging: A roadmap to best practices. Asheville, NC

  • Association, N. R. (2013). 2013 restaurant industry pocket factbook. Washington, DC.

  • Auger, P., Burke, P., Devinney, T., & Louviere, J. (2003). What will consumers pay for social product features? Jornal of Business Ethics, 42, 281–304.

    Article  Google Scholar 

  • Babiak, K., & Trendafilova, S. (2011). CSR and environmental responsibility: Motives and pressures to adopt green management practices. Corporate Social Responsibility and Environmental Management, 18, 11–24.

    Article  Google Scholar 

  • Bae, J., & Cameron, G. T. (2006). Conditioning effect of prior reputation on perception of corporate giving. Public Relations Review, 32, 144–150.

    Article  Google Scholar 

  • Banerjee, S. B., Iyer, E. S., & Kashyap, R. K. (2003). Corporate environmentalism: Antecedents and influence of industry type. Journal of Marketing, 67, 106–122.

    Article  Google Scholar 

  • Barone, M. J., Miyazaki, A. D., & Taylor, K. A. (2000). The influence of cause-related marketing on consumer choice: Does one good turn deserve another? Journal of the Academy of Marketing Science, 28, 248–262.

  • Basil, M. D. (1996). The use of student samples in communication research. Journal of Broadcasting & Electronic Media, 40, 431–440.

    Article  Google Scholar 

  • Becker-Olsen, K. L., Cudmore, B. A., & Hill, R. P. (2006). The impact of perceived corporate social responsibility on consumer behavior. Journal of Business Research, 59, 46–53.

    Article  Google Scholar 

  • Bem, D.J. (1970). Beliefs, attitudes, and human affairs. Belmont, CA : Brooks/Cole.

  • Berens, G., van Riel, C. B. M., & van Bruggen, G. H. (2005). Corporate associations and consumer product responses: The moderating role of corporate brand dominance. Journal of Marketing, 69, 35–48.

  • Bhattacharya, C. B., Korschun, D., & Sen, S. (2009). Strengthening stakeholder–company relationships through mutually beneficial corporate social responsibility initiatives. Journal of Business Ethics, 85, 257–272.

    Article  Google Scholar 

  • Bhattacharya, C. B., & Sen, S. (2003). Consumer-company identification: A framework for understanding consumers’ relationships with companies. Journal of Marketing, 67, 76–88.

    Article  Google Scholar 

  • Boehlje, M. (1993). Enviornmental regulation and coporate policy. Agribusiness, 9, 495–508.

    Article  Google Scholar 

  • Bortree, D. S. (2009). The impact of green initiatives on environemtnal legitimacy and admiration of the organization. Public Relations Review, 35, 133–135.

    Article  Google Scholar 

  • Bowen, H. (1953). Social responsibility of the businessman. New York: Harper and Row.

    Google Scholar 

  • Brown, T., & Dacin, P. (1997). The company and the product: Corporate associations and consumer product responses. Journal of Marketing, 61, 68–84.

    Article  Google Scholar 

  • Carroll, A. B. (1979). A three-dimensional conceptual model of corporate performance. Academy of Management, 4, 497–505.

    Google Scholar 

  • Carroll, A. B. (1999). Corporate social responsibility: Evolution of a definitional construct. Business and Society, 38, 268–295.

    Article  Google Scholar 

  • Choi, S., & Ng, A. (2011). Environmental and economic dimensions of sustainability and price effects on consumer responses. Journal of Business Ethics, 104, 269–282.

    Article  Google Scholar 

  • David, P., Kline, S., & Dai, Y. (2005). Corporate social responsibility practices, corporate identity, and purchase intention: A dual-process model. Journal of Public Relations Research, 17, 291–313.

    Article  Google Scholar 

  • Donaldson, T., & Preston, L. E. (1995). The stakeholder theory of the corporation: Concepts, evidence, and implications. Academy of Management Review, 20, 65–91.

    Google Scholar 

  • Eagly, A. H., & Chaiken, S. (1993). The psychology of attitudes. Fort Worth, TX: Harcourt Brace Jovanovich.

  • Foodservice, S. (2013). Restaurant waste reduction. http://www.sustainablefoodservice.com/.

  • Forehand, M. R., & Grier, S. (2003). When is honesty the best policy? The effect of stated company intent on consumer skepticism. Journal of Consumer Psychology, 13, 349–356.

  • Fox, M. W. (1997). Eating with conscience: The bioethics for food. Troutdale, OR: New Sage Press.

    Google Scholar 

  • Friedman, M. (1962). Capitalism and freedom. Chicago: University of Chicago Press.

    Google Scholar 

  • Godes, D., & Mayzlin, D. (2004). Using online conversations to study word of mouth communication. Marketing Science, 23, 545–560.

    Article  Google Scholar 

  • Greenberg, J., & Eskew, D. E. (1993). The role of role playing in organizational research. Journal of Management, 19, 221–241.

    Article  Google Scholar 

  • Gremler, D. D., Gwinner, K. P., & Brown, S. W. (2001). Generating positive word-of-mouth communication through customer-employee relationships. International Journal of Service Industry Management, 12, 44–59.

    Article  Google Scholar 

  • Guthriea, J., Cuganesanb, S., & Ward, L. (2008). Industry specific social and environmental reporting: The Australian Food and Beverage Industry. Accounting Forum 32, 1–15.

  • Harris, J., Schwartz, M., & Brownell, K. (2010). Evaluating fast food nutrition and marketing to youth. New Haven, CT: Yale University.

    Google Scholar 

  • Hong, S., & Yang, S.-U. (2011). Public engagement in supportive communication behaviors toward an organization: Effects of relational satisfaction and organizational reputation in public relations management. Journal of Public Relations Research, 23, 191–217.

    Article  Google Scholar 

  • IMAP (2010). Food and beverage industry global report. http://www.imap.com/.

  • Jenkins, H. (2009). A ‘business opportunity’ model of corporate social responsibility for small-and medium-sized enterprises. Business Ethics: A European Review, 21–36.

  • Kassinis, G., & Vafeas, N. (2006). Stakeholder pressures and environmental performance. The Academy of Management Journal, 49, 145–159.

    Article  Google Scholar 

  • Kim, S. (2011). Transferring effects of CSR strategy on consumer responses: The synergistic model of corporate communication strategy. Journal of Public Relations Research, 23, 218-241.

  • Kim, Y., & Choi, Y. (2012). College students’ perception of Philip Morris’s tobacco-related smoking prevention and tobacco-unrelated social responsibility. Journal of Public Relations Research, 24, 184–199.

    Article  Google Scholar 

  • Laczniak, R. N., DeCarlo, T. E., & Ramaswani, S. N. (2001). Consumer response to negative word-of-mouth communication: An attribution theory perspective. Journal of Consumer Psychology, 11, 57–73.

    Article  Google Scholar 

  • Leanpath (2013). A short guide to food waste management best practices. www.leanpath.com.

  • Livesey, S. M., & Kearins, K. (2002). Transparentandcaring corporations? A study of sustainability reports by the bodyshop and royal dutch/shell. Organization and Environment, 15, 233–358.

    Article  Google Scholar 

  • MacKenzie, S. B., & Lutz, R. J. (1989). An empirical examination of the structural antecedents of attitude toward the Ad in an advertising pretesting context. Journal of Marketing, 53, 48–65.

    Article  Google Scholar 

  • Maignan, I., & Ferrell, O. C. (2001). Corporate citizenship as a marketing instrument—Concepts, evidence and research directions. European Journal of Marketing, 35, 457–484.

    Article  Google Scholar 

  • Maloni, M., & Brown, M. (2006). Corporate social responsibility in the supply chain: An application in the food industry. Journal of Business Ethics, 68, 35–52.

    Article  Google Scholar 

  • Margolis, J. D., Elfenbein, H. A., & Walsh, J. P. (2007). Does it pay to be good? A meta-analysis and redirection of research on the relationship between corporate social and financial performance. Boston, MA: Harvard Business School.

    Google Scholar 

  • Marklein, M. B. (2005, 10/19/2005). College gender gap widens: 57% are women, USA Today.

  • Marsh, K., & Bugusu, B. (2007). Food packaging and its environmental impact.

  • Martin, R. (2002). The virtue matrix calculating the return on corporate responsibility.

  • Mohr, L., & Webb, D. (2005). The effects of corporate social responsibility and price on consumer responses. The Journal of Consumer Affairs, 39, 121–147.

    Article  Google Scholar 

  • Nestle, M. (2013). Food politics: How the food industry influences nutrition and health. Berkeley, CA: University of California Press.

    Google Scholar 

  • NRA (2014). 2014 Restaurant Industry Forecase.

  • Olson, E. L. (2013). It’s not easy being green: The effects of attribute tradeoffs on green product preference and choice. Journal of the Academy of Marketing Science, 41, 171–184.

    Article  Google Scholar 

  • Pelsmacker, P. D., Driesen, L., & Rayp, G. (2005). So consumers care about ethics? Willingness to pay for fair-trade coffee. The Journal of Consumer Affairs, 39, 363–385.

    Article  Google Scholar 

  • Schroder, M. J. A., & McEachern, M. G. (2005). Fast foods and ethical consumer value: A focus on McDonald’s and KFC. British Food Journal, 107, 212–224.

    Article  Google Scholar 

  • Sen, S., Bhattacharya, C. B., & Korschun, D. (2006). The role of corporate social responsibility in strengthening multiple stakeholder relationships: A field experiment. Academy of Marketing Science, 34, 158–166.

    Article  Google Scholar 

  • Starbucks (2012). 2012 Global responsibility report: Year in review. http://www.starbucks.com/assets/581d72979ef0486682a5190eca573fef.pdf.

  • Stockton, S. (2013). Obesity etiology: Examination of fast-food eating among college students. Journal of Aging Science, 2, 1–6.

    Google Scholar 

  • Swanson, D. L. (1995). Addressing a theoretical problem by reorienting the corporate social performance model. Academy of Management Review, 20, 43–64.

    Google Scholar 

  • Torugsa, N. A., O’Donohue, W., & Hecker, R. (2012). Proactive CSR: An empirical analysis of the role of its economic, social and environmental dimensions on the association between capabilities and performance. Journal of Business Ethics, 115, 383–402.

    Article  Google Scholar 

  • Trudel, R. & Cotte, J. (2008). Does it pay to be good. MIT Sloan Management Review, 50, 2, 61–68.

  • Wade, J. A. (2001). Stakeholders, ethics and social responsibility in the food supply chain. In J. F. Eastham & S. D. Ball (Eds.), Food supply chain management (pp. 111–123). Oxford: Butterworth-Heinemann.

  • Welford, R., Chan, C., & Man, M. (2007). Priorities for corporate social responsibility: A survey of businesses and their stakeholders. Corporate Social Responsibility and Environmental Management, 15, 52–62.

    Article  Google Scholar 

  • Welford, R., & Frost, S. (2006). Corporate social responsibility in Asian supply chains. Corporate Social Responsibility and Enviornmental Management, 13, 166–176.

    Article  Google Scholar 

  • Westbrook, R. A. (1987). Product consumption-based affective responses and postpurchase process. Journal of Marketing Research, 24, 258–270.

    Article  Google Scholar 

  • Westendorf, M. L. (2000). Food waste to animal feed. Ames: Iowa State University Press.

    Book  Google Scholar 

  • Wu, S.-L. (2008). Factors influencing environmental strategies among food service franchisors in Taiwan. The Management Case Study Journal, 8, 2–17.

    Google Scholar 

  • Yoon, Y., Giirhan-Canli, Z., & Schwarz, N. (2006). The effect of corporate social responsibility (CSR) activities on companies with bad reputations. Journal of Consumer Psychology, 16, 377–390.

  • Zaror, C. A. (1992). Controlling the environmental impact of the food industry: An integral approach. Food Control, 3, 190–199.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Yeonsoo Kim.

Appendix: Sample Stimuli

Appendix: Sample Stimuli

News Article

The Orlando City Council announced newly enacted legislation that will become effective on February 1. The legislation limits the use of disposable products and encourages using recyclables. Under this law, at least eighty percent of the disposables used by businesses must be recyclable and set aside for recycling. Local businesses that fail to meet this requirement are subject to fines of up to thirty thousand dollars.

The decision corresponds with the Environmental Protection Agency’s nationwide effort to reduce the amount of waste from certain industries such as food, clothing, and paper manufacturers and suppliers. “Many companies use disposable products for their convenience and for economic efficiency. But the toll on the environment has begun to outweigh the convenience”, said city councilman Kerri Anderson.

Anderson explained that because of the legislation, plastic ware usage among fast-food chains will be greatly affected. Beginning in February, customers who do not want to consume disposable plastic ware will have the option of using durable plastic cups and porcelain plates in Orlando restaurants.

Scenario

Imagine that you are at the food court to eat lunch. There are several fast-food chains that you can select from. You want to eat a hamburger and a chicken salad. You find a hamburger franchise called “A.A.”, which is a fast-food chain that has a reputation for making good-quality burgers and great salads. The food price at A.A. is relatively higher compared to similar restaurants in the area.

You recently heard that the fast-food chain A.A. plans to offer durable tableware in place of disposable plastic service ware and accordingly, plans to hire additional employees for dishwashing and table service. A.A. has also announced that they will expand their environmental sustainability budget by 5 % the following year. The sustainability budget is meant to address eco-friendly environmental goals of improving waste management practices and reducing the impact of non-biodegradable materials.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Kim, Y. Consumer Responses to the Food Industry’s Proactive and Passive Environmental CSR, Factoring in Price as CSR Tradeoff. J Bus Ethics 140, 307–321 (2017). https://doi.org/10.1007/s10551-015-2671-8

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10551-015-2671-8

Keywords

Navigation