A two-path model of the impact of LGBTQ+ diversity CSR levels on public response

Abstract

Since conflicting opinions and expectations of stakeholders about LGBTQ+ diversity coexist, companies contemplate how far to draw the line of CSR involvement in relation to LGBTQ+ diversity. This study examines how different levels of LGBTQ+ diversity CSR (i.e., proactive, passive, refusal) affect public responses. The proposed model investigates how public perceptions of corporate support for LGBTQ+ diversity (PCSL), influenced by CSR level, affects two dimensions of corporate associations differently (corporate ability and CSR association), and consequently CSR responses (supportive communication intent, purchase intent, and corporate evaluation in this study). The role of perceived value-driven motivation as a mediator was also examined. An online experiment was conducted with two Fortune 500 companies (Dell and Kellogg's). Overall, the results suggest that proactive CSR leads to higher PCS-L and better CSR outcomes among the general public than a passive or refusal approach. PCS-L, directly and indirectly, affects individuals’ CSR associations, which are mediated by value-driven motives. In turn, CSR associations positively influence publics’ supportive communication intent, purchase intent and corporate evaluations. As for CA associations, we found that they had a rather complicated relationship with PCS-L. Specifically, PCS-L had a direct negative effect on CA associations (Dell) or no effect (Kellogg), indicating possible backlash effects. However, higher PSC-L resulted in more favorable perceived motives of the CSR program, driven by the company's moral grounds and corporate values, consequently resulting in greater CA associations (positive indirect impact). Thus, perceived value-driven motives can offset potential backlash effects related to CA associations and corresponding CSR outcomes.