CSR, ethical corporate behaviour, and purchase intentions in Hong Kong

This research establishes a framework to study the influence of corporate social responsibility (CSR)and ethical corporate behaviour on purchase intentions in Hong Kong. Adopting a positivist approach, a between-subjects, 2 x 2 factorial, laboratory experiment involving self-administered questionnaires were used to evaluate the influence of consumer perceptions of CSR and ethical corporate behaviour on purchase intention. Vignettes about a well-known fast-moving consumer goods company were developed to represent the four treatment combinations of CSR and ethical corporate behaviour. The research participants were students studying bachelor of business administration programs in Hong Kong. The results of a two-way ANOVA identified a significant interaction between CSR and ethical performance such that: (1) CSR had a strong effect when ethical corporate behaviour was poor and (2)ethical corporate behaviour had a strong effect when CSR was negative. Multiple regression revealed that CSR trust, CSR perceptions, and expectations of ethical corporate behaviour all influenced purchase intentions. However, CSR awareness was not related to purchase intentions, although it was found that CSR trust mediated the relationship between CSR awareness and purchase intentions. The findings lead to four implications. First, companies should avoid negative CSR and negative ethical behaviour. Second, the interaction between CSR performance and ethical behaviour may help reverse the damage (and vice versa). Third, managers should work to build consumer trust in their CSR programs, including attributions of sincerity and the balance between perceptions of the company's social and economic motives for CSR efforts. Finally, the replication of prior CSR findings in Hong Kong suggests that companies should focus on CSR globally, not just in Western nations.