Hypocrites! Social Media Reactions and Stakeholder Backlash to Conflicting CSR Information

Abstract

AbstractAt a time when firms signal their commitment to CSR through online communication, news sources may convey conflicting information, causing stakeholders to perceive firm hypocrisy. Here, we test the effects of conflicting CSR information that conveys inconsistent outcomes (results-based hypocrisy) and ulterior motives (motive-based hypocrisy) on hypocrisy perceptions expressed in social media posts, which we conceptualize as countersignals that reach a broad audience of stakeholders. Across six studies, we find that (1) conflicting CSR information from internal (firm) and external (news) sources elicits hypocrisy perceptions regardless of whether the CSR information reflects inconsistencies in results or motives, (2) individuals respond to conflicting CSR information with countersignals accusing firms of hypocrisy expressed in social media posts, (3) hypocrisy perceptions are linked to other damaging stakeholder consequences, including behavior (divestment, boycotting, lower employment interest), affect (moral outrage), and cognition (moral condemnation), and (4) firms with higher credibility are more likely to experience adverse effects of conflicting CSR information. These findings advance theory regarding the effects of conflicting CSR information as it relates to the role of credibility and different forms of hypocrisy. Importantly, damaging social media posts and stakeholder backlash can arise from hypocrisy perceptions associated with inconsistent CSR results as well as inconsistent motives, and strong firm credibility only makes a firm more vulnerable to this backlash.