PreprintCited by 26Corporate Social Responsibility ReportingEnvironmental Sustainability in BusinessSustainable Supply Chain Management

How Do Consumers Use ESG Disclosure? Evidence from a Randomized Field Experiment with Everyday Product Purchases

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Leonelli, Sinja, Muhn, Maximilian, Rauter, Thomas, Sran, Gurpal·2024·Journal of Accounting and Economics

Preprint — published as 10.1016/j.jacceco.2025.101811

Abstract

We combine a large-scale field experiment with a customized survey to study how consumers use and respond to ESG disclosure. In a sample of over 24,000 U.S. households, we first establish that while consumers moderately prefer to purchase from ESG-responsible firms, they rarely consult corporate reporting directly and face various frictions in learning about firm-level activities. In our field experiment, we then inform households about real firm-disclosed activities through several randomized information treatments. Consumers increase their purchase intent when exogenously presented with positive signals about environmental, social, and—to a lesser extent—governance activities. Full ESG reports increase purchase intentions only for consumers who choose to view them. After the experiment, consumers increase their actual purchases, but these effects are small, short-lived, and only materialize for social signals and viewed ESG reports. Through a follow-up survey, we provide explanations for why consumers (do not) change their behavior after our experiment.

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References 109 · Cited by 26

Authors
Leonelli, S., Muhn, M., Rauter, T., & Sran, G.
Affiliations
  • New York University (US)
  • Goethe University Frankfurt (DE)
  • University of Chicago (US)
Corresponding author
  • Leonelli, Sinja
  • Muhn, Maximilian
  • Rauter, Thomas
  • Sran, Gurpal
Venue
Journal of Accounting and Economics
Publisher
Elsevier BV
Published
2024
Volume
81
Issue
1
Pages
101811-101811
ISSN
0165-4101 (ISSN-L)
OpenAlex
W4412872470
Cited by
26
References
109
Citations by year
2026: 13 · 2025: 7 · 2024: 6
FWCI
17.23
Type
journal article
Language
en
Open access
Locations
  • Journal of Accounting and Economics (publishedVersion)
  • SSRN Electronic Journal (acceptedVersion)
  • Zurich Open Repository and Archive (University of Zurich) (submittedVersion, other-oa)
  • Zurich Open Repository and Archive (University of Zurich)
Funders
  • International Business Machines Corporation
  • University of Chicago (IRB22-1687)
  • Goethe-Universität Frankfurt am Main
  • Universität Mannheim
  • Booth School of Business, University of Chicago (AEARCTR-0010774)
Topics
  • Social Sciences › Business, Management and Accounting › Strategy and Management › Corporate Social Responsibility Reporting
  • Social Sciences › Business, Management and Accounting › Marketing › Environmental Sustainability in Business
  • Social Sciences › Business, Management and Accounting › Strategy and Management › Sustainable Supply Chain Management
Keywords
ESG disclosure, corporate sustainability reporting, consumer purchase behavior, purchase intention, information use, environmental cues, social signals, corporate governance, ESG reports, information frictions

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