Abstract

In their interactions in the business environment, consumers are placing an increased importance on the social actions with which firms are involved. Typically, research has focused on the positive benefits of corporate social responsibility (CSR) or how consumers respond to negative CSR. Negative CSR involves the presence of a transgression, usually some violation of what is generally acceptable in terms of ethics, society, and the consumer–firm relationship. It occurs when a firm engages in activities that are damaging to communities, customers, employees, and/or the natural environment. These failures are often accompanied by positive CSR declarations and activities, creating inconsistent or contradictory information (Wagner et al. 2009). However, little research exists that investigates how consumers react to contradictory CSR information and what firms can do to mitigate its effects. Therefore, this study seeks to understand the impact of contradictory CSR information on consumers and identify communication strategies firms can employ to promote their positive CSR outcomes to alleviate any negative effects from CSR failures.

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