But I see your true Colors shining through – CSR as Moderator of the Impact of Rainbow Washing
(A2024-117736)

AUTHORS

Pascal Bruno, International School of Management; Martin Ohlwein, International School of Management

ABSTRACT

Today, it seems in vogue to show solidarity with the LGBTQIA* community even if it does not stand up to closer scrutiny of actual practices. Many consumers expose this inauthentic behavior as rainbow washing. However, such a value-related transgression cannot be seen in isolation from the brand’s past reputation. Prior CSR efforts may influence the transgression’s adverse effect. An experiment reveals that while strong (vs. weak) CSR commitment helps maintain a more favorable brand attitude in the event of a transgression, it also amplifies negative effects of rainbow washing. Rainbow washing lowers brand credibility and triggers negative moral emotions more when prior CSR efforts had been intense. The results confirm marketers in their efforts to build a positive brand attitude through CSR. Simultaneously, the company’s actions must always live up to ‘walk the talk’. CSR serves as a safety cushion, but it comes at a price: a high relative loss of reputation in case of a transgression.