Investigating the effects of corporate social responsibility on sustainable consumer purchase behavior

Abstract

PurposeSustainable manufacturing practices are excessively being practised in the industry today. The impact on sustainability is ever more visible to the stakeholders because of faster and more efficient communication due to social media and the internet. This paper aims to study the impact of greenwashing by corporations and the stakeholders’ environmental concerns on consumers’ sustainable purchase behaviour.Design/methodology/approachThe relationships between the impression of “greenwash”, sustainable purchasing behaviour, green word-of-mouth and green brand loyalty were investigated in this quantitative study. Participants who made up a representative sample filled out written surveys. The variables of interest were evaluated using scales that have undergone validation. Structural equation modelling was used in mediation analysis to investigate the mediating impacts of green word-of-mouth and green brand loyalty. The goal of the study was to offer empirical proof of how these factors affected consumers’ choices for sustainable products.FindingsAnalysis of the mediating relationship of perceived customer effectiveness in the relationship between environmental concern and sustainable purchase behaviour has been studied.Research limitations/implicationsThis study implicates that a company that primarily markets basic green and sustainable products or services must invest in informing people about environmental concerns and that by proper practices, a lot of the harm to the environment can be reduced.Originality/valueCorporate greenwashing, also called false greening, has received much public attention recently. The unethical practices by the corporations, which previously majorly went unnoticed, have also recently gained a lot of visibility. This paper is one of the early attempts towards establishing the effect of corporate greenwashing on sustainable consumer behaviour.