When apologies backfire: a moderated mediation model of exposure by NGOs, companies’ hypocrisy, and consumers’ political orientations

Abstract

ABSTRACT To determine when and why a company’s apology for a moral transgression might backfire, this study considers a rarely researched cue: exposure of company misconduct by non-governmental organisations (NGOs). In three experimental studies, we demonstrate that after companies’ moral transgressions are exposed by NGOs, their apologies exacerbate consumers’ negative responses because consumers view the companies as having increased moral and behavioural hypocrisy. Consumers’ political orientations moderate the mediating effect of companies’ moral hypocrisy as, following exposure by an NGO, conservatives perceive the company issuing an apology to be more deceptive, which is not the case for liberals. Thus, this study expands upon the developing research stream related to the efficacy of apologies as strategic responses to preventable crises. It specifies an underlying mechanism that explains when and why exposure by NGOs causes apologies to backfire and suggests practical guidelines for companies when developing appropriate apologies.