How do CSI and CSR perceptions affect word of mouth recommendations? The role of trust, distrust, and moral norms

Abstract

PurposeThis paper has a twofold objective: (1) to examine how trust and distrust mediate the relationship between corporate social responsibility (CSR) and irresponsibility (CSI) perceptions and word of mouth recommendations; and (2) to show that moral norms moderate this mediating relationship.Design/methodology/approachTwo experimental studies test the proposed model. Study 1 performs a single-factor experiment with three levels of corporate social responsibility (positive, neutral, negative) to test the mediation hypothesis (N = 180, 66% females, mean age = 22.3). Study 2 validates the mediation findings and examines the role of moral norms as moderators (N = 240, 50% females, mean age = 39.5).FindingsStudy 1 reveals that trust in the company partially mediates the effects of CSR on word of mouth (WOM) recommendations. Study 2 shows that consumers who adhere to higher moral standards follow distinct paths to negative WOM. Specifically, these consumers tend to spread negative comments when they expect the firm to behave irresponsibly. When unsure about future corporate behaviour, they are less likely to spread negative WOM.Originality/valueThis is the first study, to the authors' knowledge, to demonstrate how moral norms shape the effects of distrust in the corporate culprit on word of mouth recommendations. Accordingly, this research proves that conceptualising trust and distrust as separate constructs is useful in explaining consumer reactions to corporate social irresponsibility.