I can Talk: Corporate Moral Responsibility, Word-of-Mouth, and Shared Values

Abstract

This study investigated how inconsistencies between corporate moral responsibility (CMR) messages and CMR actions undertaken by corporations impact consumers’ positive and negative word-of-mouth (PWOM and NWOM) intentions using the expectancy violation theory. It also investigated the moderation effect of different types of CMR issues and consumers’ shared values on the relation. Analyses of data collected from 1296 U.S. consumers revealed that participants’ word-of-mouth (WOM) intentions, both positive and negative, were impacted by inconsistencies between CMR initiatives and actions. When inconsistency was absent, highest PWOM intention was generated for issues related to workers and least for shareholders. Shared values significantly moderated the relation as well. When CMR message action was consistent, PWOM intention was higher for participants with high shared value (vs. low shared value). These findings add knowledge to the literature of CMR and guide corporate CMR-related communications.