How corporate social responsibility information influences stakeholders' intentions

Abstract

The study shows how positive and negative information on corporate social and environmental responsibility influences purchase, employment, and investment intentions of various stakeholders. We manipulated the information on corporate social responsibility (CSR) activities of a hypothetical firm in a between‐subjects experimental design. The design had two treatments. In the ‘positive CSR’ treatment, the company's social and environmental performance was described in a positive perspective (depicting a strong social performance), whereas in the ‘negative CSR’ treatment it was described in a negative perspective (depicting a weak social performance). In both treatments, information about other key characteristics of the focal company were kept constant. Respondents' intentions to purchase products from, seek employment with, and invest in the company were evaluated by multi‐item scales. The results demonstrate that positive CSR information about a firm enhances consumers' intentions to purchase products from, potential employees' intentions to seek employment with, and potential investors' intentions to invest in the company. Theoretical and managerial implications of the findings are discussed. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment.