CORPORATIONS PUBLIC ALLEGATIONS: THE BUFFERING EFFECT OF CSR STRATEGY ON CONSUMER SKEPTICISM

Previous research suggests that corporate social responsibility (CSR) can be a firm’s communication instrument to stimulate positive consumer behaviour such as positive word-ofmouth. Skarmeas & Leonidou (2013) find that when firms faces allegation concerning social irresponsibility, CSR strategies might aggravate consumers’ negative, instead of positive, responses. To complete research in the CSR domain, this study focuses on the condition when a firm lapses into scandal and examines the effect of CSR initiatives on consumers’ skepticism and attitude toward that firm. This study integrates three CSR strategy communication factors: proactivity (proactive/reactive), length of time (longer/shorter) and communication sources (internal/external). The results indicate that consumers perceive a firm with moral or ethical character when it conducts long-term engagement CSR strategy. On the other hand, if a company reactively involves in CSR initiatives, consumers will attribute the firm with more egoistic-driven motives. Egoistic-driven attribution relates positively to consumer skepticism and has negative influence on consumers’ attitude. On the contrary, values-driven attribution relates negatively to consumer skepticism and has positive impact on consumers’ attitude. This research investigates the effect of CSR strategy and the results could provide corporates guidelines as to how to conduct CSR tactics during crisis.