Abstract

Although the term socially responsible firm is becoming more common in the marketplace, the question remains why consumers do not automatically make positive association for positive firm actions. Drawing from attribution theory, this research proposes that the absence of an automatic positive attribution (i.e. the firm is inherently good) is due to firm and CSR factors that may lead consumers to make alternative attributions. The CSR factors included in this study were CSR investment and CSR stakeholder reach. The findings in two separate studies showed that a high investment in CSR and CSR stakeholder reach that targeted multiple stakeholders had direct positive effects on purchase intentions, corporate evaluations, brand credibility, and brand trust. Firm factors of firm size and public scrutiny also impacted consumer responses: Firms under high public scrutiny who made a higher investment and a diversified CSR stakeholder reach experienced more positive corporate evaluations (Study 1). In addition, smaller firms with a focused CSR stakeholder reach had higher corporate evaluations than larger firms (Study 2). These firm and CSR factors led to higher values driven attributions (i.e. consumer attributions that the firm has a genuine concern for social issues), a mediator for a number of the consumer responses. Implications on how to design an optimal CSR program in light of firm constraints are addressed.