What to say and what to do: the determinants of corporate hypocrisy and its negative consequences for the customer–brand relationship

Abstract

Purpose This study aims to empirically examine the determinants of corporate hypocrisy and to investigate the potential negative impact on the consumer–brand relationship, specifically on trust, switch and resilience intentions. Design/methodology/approach A 2 (mission: no and yes) × 3 (sustainability activities: perfect, imperfect and no duty) experiment was developed. A total of 548 US consumers were randomly assigned to one of six case conditions and asked to respond to an online survey. The responses were analyzed by both two-way analysis of variance and PROCESS. Findings The results showed that respondents who saw clear sustainability goals in the companies’ mission statements had lower levels of corporate hypocrisy than those who did not, and when the mission statements and activities related to corporate sustainability were congruent, the respondents were less likely to elicit corporate hypocrisy than when they were not. Also, consumers showed lower levels of trust when corporate hypocrisy was present, which negatively impacted their switch and resilience intentions. Originality/value This study provided empirical evidence demonstrating how and to what extent corporate hypocrisy is formed by varying sustainability goals and activities. These findings urge brand managers to recognize the ripple effect created by a mismatch between their stated sustainability goals and their activities. Also, these findings could provide apparel management with guidelines for formulating and communicating companies’ sustainability goals and activities.