Double-edged sword of corporate social responsibility (CSR) halo: the role of CSR efforts and crisis type and severity

Abstract

ABSTRACT In recent years, the restaurant industry has been struggling with a variety of brand crises, including both product and moral harm crises. To mitigate the negative impact of such crises on their brands, companies are actively engaging in corporate social responsibility (CSR) initiatives. While a number of previous studies have investigated the influence of CSR on consumers’ responses to a brand in a routine setting, few have incorporated crisis-related situational variables into their examination of the role of CSR in a brand crisis situation. In order to test the extent to which the CSR halo plays a role in consumers’ evaluation in a brand crisis event, this study used a scenario-based 2 CSR efforts (low/high) x 2 crisis type (product harm/moral harm crisis) x 2 crisis severity (low/high) experimental design. The findings suggest that a higher level of brand engagement in CSR can offset the negative consequences of brand crisis in the case of product harm and less severe brand crisis, compared to moral harm and severe brand crisis, respectively. Our results provide valuable insights for companies wishing to respond successfully to a brand crisis event based on predicted consumers’ responses and on their CSR reputation.