Discard the false and retain the true: the effect of hypocrisy on the cognitive legitimacy of social enterprises

Abstract

PurposeHypocrisy often observed in the social responsibility practices of commercial enterprises is more likely to occur in social enterprises. However, this issue has received little research attention. This study explores, from a consumer perspective, the formation of perceived hypocrisy and its impact on the cognitive legitimacy of social enterprises.Design/methodology/approachThis research conducted two experiments, and data were collected from 515 subjects in China to test the proposed hypotheses.FindingsBehavioral inconsistency in social enterprises leads to consumers' perceived hypocrisy. The higher the perceived hypocrisy towards social enterprises, the weaker their cognitive legitimacy of social enterprises. At a lower level of inconsistency, the perceived hypocrisy of social enterprises was lower than that of commercial enterprises. Egoistic attribution to prosocial behavior moderated the negative effect of perceived hypocrisy on cognitive legitimacy. The stronger the egoistic attribution, the greater is the negative effect of perceived hypocrisy on the cognitive legitimacy of social enterprises.Practical implicationsSocial entrepreneurs should be acutely aware of the harmful effects of hypocrisy on social enterprises. Social enterprises should not exaggerate their propaganda or be consistent with their words and actions.Originality/valueThis study innovatively analyzes the damage to the cognitive legitimacy of social enterprises caused by the hypocrisy that tends to occur in commercial enterprises and argues from the consumer viewpoint. These findings enrich the perspective on exploring social enterprise legitimacy.