A moderated mediation model of corporate social responsibility

Abstract

Purpose – The purpose of this paper is to examine the effects of corporate ability (CA) and corporate social responsibility (CSR) on perceptions of CSR motives, attitudes, and behavioral intentions toward a company. Design/methodology/approach – These effects were tested using a 2 (CA: good vs poor)×2 (CSR: continuous vs one-time) between-subjects experiment. The company with good CA was depicted as a top 20 Fortune 500 company, but in the poor CA condition, it faced disappointing financial outcomes due to the failure of its new product. To manipulate the different levels of CSR, the company’s charitable giving and community involvement was described as a continuous commitment or one-time donation. Findings – Continuous CSR commitment significantly increased consumers’ positive attitudes, purchase intention, and willingness to support an organization. These positive effects become particularly more powerful for a company with poor business performance. Participants attributed more sincere and less image-promotion motives of CSR to a company with poor CA than to that with good CA. For the company with poor CA, both types of CSR motives mediated the relationship between CSR and the outcomes, while only sincere motives served as a mediator for the company with good CA. Practical implications – The findings suggest the possibility that CSR initiatives pursued by unprofitable companies may be more recognized and appreciated than those by business giants. Thus, a company should maintain its CSR activities as a long-term strategy, especially when the company is not an industry leader. Originality/value – This research suggests that the mediating role of perceived CSR motives can be contingent upon CA.