When Firms Continue Doing Business in Aggressor Nations: A Refined Moral Decoupling Perspective on Consumer Response

Abstract

Russia's invasion of Ukraine prompted many Western companies to pull out of the aggressor country. This study examines why and when consumers purchase from companies that choose to sustain operations in Russia. This study advances a refined moral decoupling model where effects of transgression relevance on purchase intention are channeled not only through judgments of performance and morality, but additionally through judgment of social responsibility. Results of an empirical study with four German companies and a sample of German consumers indicate that the relevance of a company's transgression influences consumer purchase intention through judgments of social responsibility and morality. This remains stable regardless of individual differences in moral decoupling. However, judgments of performance mediate a transgression's effects on purchase intention only with individuals who are less prone to decoupling. Effects of a company's perceived social responsibility on purchase intention are weaker with the politically more liberal than with the more conservative, whereas effects of morality are enhanced by a more liberal political orientation and the strength of a person's moral identity. These findings aid researchers and practitioners by advancing a refined moral decoupling framework that has greater relevance in the context of political conflict and war.