Consumer responses to company disclosure of socially responsible efforts

Abstract

Abstract Since the California Transparency in Supply Chains Act (CTSCA) was enacted, many large apparel retailers are required to post a corporate social responsibility statement on their website regarding their practices. The present study applies the CTSCA to the shopping context for evaluating consumer responses. A factorial experimental study using a scenario method was designed to explore the aims of this study. Participants were randomly assigned to one of two scenarios regarding either an apparel company’s website being compliant with the CTSCA, or an apparel company not have a disclosure on its website and therefore in violation of the CTSCA. A total of 716 responses were used in data analysis. The results show that there were significant effects of the presence of CTSCA on retailers’ website on consumer responses, after controlling consumer characteristics of socially responsible consumption behavior. That is, respondents in the study perceived that presenting the public statement in compliance with the CTSCA on a company’s website was more persuasive in decision making, promoted trust and enhanced usage and purchase intentions. The findings of the study suggest academic and marketing implications.

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