Corporate social responsibility (CSR) describes the concept of companies voluntarily incorporating environmental and social concerns in both their business operations and their interaction with stakeholders (Mickels
2009). By means of investments in green advertising and CSR, firms want to be perceived as environmentally friendly and socially involved in order to build up more positive brand attitudes and purchase intentions (Nyilasy et al.
2014). Indeed, CSR initiatives based on one of the three dimensions—social, ethical, or commercial—have been proven to affect consumer responses. For example, engaging in CSR may strengthen the relationship with consumers and may improve—over time—the corporate reputation (Du et al.
2010; Pomering and Johnson
2009), generates positive attitudes toward the firm, and may increase purchase behaviors (Becker-Olsen, Cudmore and Hill
2006; Du et al.
2010; Ellen et al.
2006; Sen and Bhatachharya
2001). Furthermore, although some studies found the opposite effect (e.g., Schuldt and Hannahan
2013), CSR communication may boost product perceptions. For example, in their study, Sörqvist et al. (
2015) found that people may prefer the taste of an eco-friendly classified coffee over the taste of another—seemingly nonorganic—alternative, even if they are actually identical. Overall, environmentally friendly and organic products tend to be idealized and receive more positive evaluations than less environmentally friendly alternatives (Mondelaers et al.
2009; Sörqvist et al.
2015). Engaging in CSR may thus not only issue forth from the belief that companies have to contribute to a sustainable environment, but also from the idea that CSR efforts offer business benefits (Du et al.
2010).
As most consumers are positive about socially responsible companies (Xiaoli and Kwangjun
2007), scholars stress the importance of CSR communication in benefiting from CSR efforts (Mohr et al.
2001; Morsing and Schultz
2006; Xiaoli and Kwangjun
2007), for example by means of eco-labels. In real-life situations, eco-labels are attractive instruments for informing consumers about the environmental impact of their purchase decisions (Rashid
2009). However, due to the constantly rising profusion of eco-labels, based on either own claims from the organization or claims made by an external third party, consumers may encounter difficulties in identifying truly responsible firms, which results in less effective CSR initiatives, even for those responsible firms.
Therefore, and by building on attribution theory, this study seeks to identify how uncertified (internal) CSR claims and verified third-party (external) CSR labels should be used in order to deter greenwashing and increase positive consumer evaluations. In sum, this study explores the interplay between external CSR labels and internal CSR claims, and tests the prediction that an internal claim stressing CSR initiatives is only effective when backed up by an external label verifying such a claim. The outcome measures used in this study include corporate credibility, brand evaluation, product experience, purchase intentions, and perceived CSR motives.
A possible underlying psychological mechanism that provides an explanation for the processing of external CSR labels and internal CSR claims in “green marketing” can be found in the Attribution Theory (Kelley
1973). Originating from the general psychology literature, the attribution theory investigates the underlying causal explanations people give when confronted with other people’s behaviors within social environments (Kelley
1973). The theory states that individuals attribute observed behavior either to a person’s internal disposition (e.g., a characteristic) or to external constraints (e.g., situational factors). Internal attribution will cause individuals to focus on intrinsic motives when seeking explanations for a certain behavior. On the other hand, external attribution will cause individuals to focus on extrinsic motives, thereby attributing behavior to external factors.
Research on consumer behavior has successfully adopted the attribution theory, suggesting that customers also engage in similar attributional processing when evaluating a corporation’s (as opposed to an individual’s) behavior (Weiner
2000). Within this framework, consumers attributing internally believe a company participates in CSR because of a sincere interest and concern for the environment. In contrast, consumers attributing externally may conclude that the company is participating in CSR because of situational factors, such as pressure from the market. Furthermore, CSR literature likewise testifies to the involvement of attributional processes in the evaluation of CSR messages (Ellen et al.
2006; Webb and Mohr
1998; Nyilasy et al.
2014).
Following Heider (
1944), there are two types of causal attributions for CSR communication: intrinsic motives which refer to dispositions of the actor and extrinsic motives which refer to environmental factors. Translated to CSR communication, consumer reactions may thus range from inferring an attempt to take opportunistic advantage of sustainable development trends (extrinsic motives) to a sincere environmental consciousness as part of the company’s DNA (intrinsic motive) (Parguel et al.
2011). Of course, in between these two extreme poles of the continuum, interpretations comprising shades of both poles will be frequent (e.g., imagine a consumer thinking “I think this is a good initiative but I do feel the company could put in even more effort”).
In general, when consumers are exposed to an internal CSR claim but have no further information, like a verified third-party label (external label), they are more likely to attribute this communication to the current sustainability trend, which is perceived as an extrinsic motive (Parguel et al.
2011). Whereas internal CSR communication itself will thus rather be perceived as extrinsic, positive external CSR communication should drive attributions to intrinsic motives due to higher levels of credibility and trust (Parguel et al.
2011; Becker-Olsen et al.
2006). Prior research found that consumers are more likely to have negative attitudes, beliefs, and behaviors toward the organization when they assign extrinsic motives compared to intrinsic motives (Becker-Olsen et al.
2006; Ellen et al.
2006; Mohr et al.
1998; Yoon et al.
2006).
Regarding the interaction between external and internal CSR communication, consumers might infer intrinsic or extrinsic motives depending on social consensus, distinctiveness, and consistency (Parguel et al.
2011) as described in the covariation model of Kelley (
1973). The current sustainability trend can be compared with the dimension of social consensus and indicates that an effect will be attributed to the cause with which it covaries (Parguel et al.
2011). The covariation model also includes two other dimensions: distinctiveness and consistency. Distinctiveness refers to the degree to which the behavior is repeated by the actor in several situations or occurs only within a particular situation, whereas consistency refers to the degree to which a particular behavior is repeated over time (Sjovall and Talk
2004). Thus, when a company’s external environmental performance is very positive and combined with an internal CSR claim, this would mean that the company complies with pro-environmental principles in various ways (the engagement is nondistinctive) and on frequent basis (the engagement is consistent) (Parguel et al.
2011). As a result, consumers might conclude that the internal CSR claim advertised is consistent with the company’s past behavior due to third-party observations (by the means of an external CSR label) and therefore attribute these claims to intrinsic motives (Parguel et al.
2011).
In contrast, an external CSR label that does not back up an internal CSR claim would make the internal CSR claim distinctive and inconsistent which in turn should drive attributions to more extrinsic motives (Parguel et al.
2011; Sjovall and Talk
2004). Especially in the latter case (i.e., where a mismatch between external labeling and internal claim presence occurs), consumers might be prompted to process the message to a greater extent in so far a perceived incongruence might instigate more elaborate information processing (as opposed to heuristic processing) to resolve the incongruence (cf. Lee and Laproo
2004).
This study seeks to identify how uncertified internal CSR claims and external third-party CSR labels affect consumer response, including corporate credibility, brand evaluation, product experience, purchase intentions, and perceived CSR motives. Based on the foregoing, the following hypotheses are proposed. Starting out from the finding that consumers tend to perceive an external source as more credible than an internal source, it is expected that:
However, the focus of current research is not so much on the main effects of our independent variables (i.e., external label and internal claim presence), but rather on the interaction between external CSR labeling and internal claims. Based on “greenwashing” literature and related topics such as the “self-promoter’s paradox” and consumer skepticism, we propose that:
Finally, based on attribution theory and related insights into the underlying psychological processes involved in claim and label perception, we argue that: