Analysing the relevance of ethical alignment in Corporate Social Responsibility initiatives
(A2023-114403)

AUTHORS

Alan Mathew Kunnumpuram, Norwegian School of Economics; Magne Supphellen, Norwegian School of Economics

ABSTRACT

Unconstrained usage of green marketing and misalignment of CSR initiatives have adversely impacted perceived green performance of many companies. This research work analyses the impact of ethical alignment of CSR activities on the measure of perceived greenwashing and green brand equity. Deriving from the ethical principles of stakeholder evaluation, perceived contribution to a sustainability problem and perceived opportunity to solve a sustainability issue are identified as the two main determinants of green claim evaluations. Structural equation modeling is used to test four hypotheses on the two identified determinants of green equity and perceived greenwashing. While one determinant indicates a positive effect on both evaluators the other created adverse effect on both the evaluators. Additionally, the moderating effects stemming from consumer ́s regulatory focus are demonstrated to have a significant role as psychological factors driving consumer decision making in sustainability claims.