An Informative Essay on CSR Impact on Consumer Behavior

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An Informative Essay on CSR Impact on Consumer Behavior

CSR Impact on Consumer Behavior

The CSR impact on consumer behavior includes the effect on the number of channels such as the information asymmetry reduction, organizational legitimacy increase, and ethical decision-making by the consumer. The legitimacy of the organization is depicted in corporate behavior as well as in the values and beliefs that are shared with the consumers. In light of corporate behavior and consumer perception, it means that if the CSR of the organization is well-known, acknowledged, and supported by the consumers, then the organization is legitimate.

It also suggests that the CSR practices of the organization are aligned with consumer values and beliefs. Organizational legitimacy can be defined as the assumption and overall view about the business actions to be appropriate, proper, and desirable according to the beliefs, values, norms, and definitions of the socially built system.

The researchers consider legitimacy to be significant because of its impact on the attitudes and behavior of consumers. Consumers perceive legitimate organizations to be more trustworthy, predictable, and meaningful.

Another impact on consumer behavior of CSR is the asymmetry of information. As per the psychology of consumers, they place more importance on negative information as compared to positive one.

This is a widely held belief that organizations carrying out bad actions are considered to be consistently negative while those who are involved in good and moral acts are not remembered as socially responsible firms.

Reason For This Disbalance

The reason for this disbalance is that organizations face the pressure of conformity and ingratiation. If the organization acts in socially irresponsible behavior and in an unethical manner, then the business is considered to be irresponsible in a confident manner as compared to the manner in which the organization carries out CSR activities.

It is important that the consumers are aware of the ethical behavior of the organization so that the purchasing behavior of consumers can be transformed towards an ethical one. However, there are situations when the consumers have asymmetrical information to deal with.

Ethical Values

The consumers hold the organizations responsible for their moral obligations towards society and this is considered in broader aspects than only legal compliance. Consumers use ethical values for application when making an ethical decision. These values are developed on different philosophies and expectations.

Organizations are expected to carry out business activities in a socially and ethically responsible manner. This is considered by the consumers as the point of reference. However, the consumers do not give high value to the ethical behavior of the organization as they expect it as the duty of the organization.

It implies that the organizations have to meet the consumer expectations and also the consumer’s point of reference in order to go beyond expected ethical behavior.

Only through this act, the organizations can differentiate themselves in terms of CSR. On the other hand, consumers regard unethical organizations to be lacking the achievement of maintenance of reference points. Consumers poorly perceive such organizations.

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