Do business-wide sustainability labels boost consumer trust and enhance perceptions of sustainability information quality? An experiment among Z-generation members

Abstract

Purpose This study aims to explore the emerging trend of business-wide Sustainability Third-Party Labels (STPLs), exemplified by entities like B-Corp. These labels are awarded to organizations committed to a distinctive approach to business, typically embracing the triple-bottom-line (TBL) framework, prioritizing not only financial performance but also social and environmental impact. The research investigates whether these labels enhance trust and influence perceptions of sustainability information quality among young consumers in Spain. Design/methodology/approach A factorial experiment has been conducted among a convenience sample of individuals belonging to the Z-generation (n = 126). The experiment involved randomly exposing the participants to different versions of an informational brochure from a fictional company in the agricultural sector (with and without label). Following the experiment, a focus group with 15 participants was conducted to assist in interpreting the results. Findings The results of this study suggest that the use of a nonsector specific label across various sectors with distinct sustainability challenges can lead to confusion among Z-generation consumers. Especially within sectors grappling with environmental concerns, such labels may be susceptible to being perceived as manifestations of greenwashing. Additionally, the study adds supporting evidence to the existing body of literature asserting gender differences in the interpretation of sustainability signals, including labels. Originality/value As far as this research is concerned, to the best of the authors’ knowledge, this is the first research that studies the perception of Z-generation members regarding business-wide STPLs. Focusing on studying, the attitudes toward sustainability of younger generations and how they respond to signals like business-wide STPLs are relevant, as they not only possess the longevity to drive substantial change but are also more susceptible to behavioral shifts, thereby holding significant potential in shaping a sustainable future. The study combines both qualitative and quantitative perspective and provides critical insights, relevant to stakeholders within business-wide STPL ecosystems, emphasizing the need for strategic coherence and transparency in label implementation.