Processing Inconsistent CSR Information: The Role of Discrepant Moral Identity Dimensions

Abstract

Inconsistent information between an organization’s corporate social responsibility (CSR) commitments and its perceived CSR (in-)actions is a big challenge for organizations because it is typically associated with corporate hypocrisy perceptions and related negative stakeholder reactions. However, contrary to the prevailing corporate hypocrisy literature, we argue that inconsistent CSR information not always relates to perceptions of corporate hypocrisy but depends on individual differences in processing CSR-related information. In this study, we investigate how an individual’s moral identity shapes reactions to inconsistent CSR information. The results from our three studies show that individuals who symbolize, i.e., display their moral identity to the public more than they internalize moral values react less negatively to inconsistent CSR information. These individuals perceive the organizations as less hypocritical because they interpret it in light of their own identity, which, we show, weakens their anger and willingness to change the company’s behavior. Furthermore, we find that this effect is amplified for extraverted but weakened for neurotic individuals. Our findings underline the importance of individual differences in processing CSR information.