Do you punish or forgive socially responsible companies? A cross-country analysis of boycott campaigns

Abstract

This study empirically investigates how companies' social contribution affects boycott intention by considering the role of brand strength. We use a dataset from two politically and historically conflicting countries, South Korea and Japan, at two points in time. A structural equation model is employed to test the hypotheses. Our findings reveal the pivotal role of companies’ social contribution in mitigating boycott intention through enhanced brand strength. The results, which are unexpected, show that the direct and negative link of social contribution to boycott intention is stronger for South Korea than for Japan. By elaborating the mediating role of brand strength, this study contributes to the literature by examining the differential impacts of corporate social responsibility (CSR) practices on consumer boycotts in the context of a cross-country difference. Additionally, one managerial implication of this study is that global companies should appropriately respond to public expectations of being socially responsible actors while associating CSR practices with brand strength through creative communications.