Corporate Social Responsibility and Competitive Advantage: Overcoming the Trust Barrier

Corporate Social Responsibility and Competitive Advantage: Overcoming the Trust Barrier

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Article ID: iaor20119622
Volume: 57
Issue: 9
Start Page Number: 1528
End Page Number: 1545
Publication Date: Sep 2011
Journal: Management Science
Authors: , ,
Keywords: social capital
Abstract:

This research builds on the complementary corporate social responsibility (CSR) literatures in strategy and marketing to provide insight into the efficacy of CSR as a challenger's competitive weapon against a market leader. Through an investigation of a real‐world CSR initiative, we show that the challenger can reap superior business returns (i.e., more positive attitudinal and behavioral outcomes) among consumers who had participated in its CSR initiative, relative to those who were merely aware of the initiative. Specifically, participant consumers demonstrate the desired attitudinal and behavioral changes in favor of the challenger, regardless of their affective trust in the leader, whereas aware consumers' reactions become less favorable as their affective trust in the leader increases. Furthermore, participant consumers, but not aware ones, form a communal, trust‐based bond with the challenger.

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