Doing Good in Another Neighborhood: Attributions of CSR Motives Depend on Corporate Nationality and Cultural Orientation

Abstract

In the past few decades, consumers around the world have placed increasing value on corporate social responsibility (CSR). As a response, companies entering new markets have boosted spending in areas like cause-related marketing to improve their reputation and create goodwill among consumers in the host country. However, these efforts may not be effective for all consumers or in all countries. Drawing upon research on intergroup bias and attribution theory, the present work explores how consumers from individualistic (the United States and Canada) and collectivistic (South Korea and India) cultures form attributions and attitudes about the CSR activities of foreign and domestic firms. Across three studies, we find that collectivistic (but not individualistic) consumers make more altruistic (but not egoistic) attributions about the CSR motives of domestic (vs. foreign) companies, and that altruistic attribution leads to more positive attitudes toward the firm. We also showed that collectivists’ bias against foreign firms is attenuated when level of commitment to the cause (as conveyed by CSR duration) is high.