Corporate social responsibility in luxury contexts: potential pitfalls and how to overcome them

Sipilä, Jenni ; Alavi, Sascha ; Edinger-Schons, Laura Marie ; Dörfer, Sabrina ; Schmitz, Christian

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URN: urn:nbn:de:bsz:180-madoc-600728
Document Type: Article
Year of publication: 2021
The title of a journal, publication series: Journal of the Academy of Marketing Science
Volume: 49
Issue number: 2
Page range: 280-303
Place of publication: New York, NY
Publishing house: Springer Science + Business Media LLC
ISSN: 0092-0703 , 1552-7824
Publication language: English
Institution: Business School > Sustainable Business (Edinger-Schons 2015-2022)
Pre-existing license: Creative Commons Attribution 4.0 International (CC BY 4.0)
Subject: 330 Economics
Abstract: Recent marketing research has identified mixed effects of luxury companies’ corporate social responsibility (CSR) engagement on customer-level outcomes. To gain a better understanding of these effects, we develop a conceptual framework in which we propose that, unless carefully implemented, CSR engagement leads to lower financial performance, decreased customer loyalty, and elevated extrinsic CSR attributions for luxury companies. These effects are exacerbated if consumers actively deliberate on the company’s CSR efforts. However, luxury companies can mitigate these pitfalls and reap the potential rewards of CSR engagement by (1) engaging in company-internal, especially employee-focused CSR instead of company-external, philanthropic CSR or (2) framing their brands as sustainable instead of exclusive. We find consistent support for our theorizing in five empirical studies. The results contribute to existing knowledge on stakeholder reactions to luxury brands’ CSR and can help managers successfully navigate the implementation of CSR in luxury contexts.
Additional information: Online-Ressource

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