Comparing the effects of consumers' perceptions of companies' corporate social responsibility initiatives in emerging and developed markets

Abstract

Purpose: This work proposes a framework that attempts to explain the connection between the dimensions of consumer perceived corporate social responsibility (social, environmental, economic), firm trustworthiness and firm reputation, using market level of development as a moderating factor. Design/methodology/approach: Mexico and Spain were selected as the emerging and developed markets; a cross-cultural study with 1173 consumers (521 from Mexico and 652 from Spain) was undertaken. In each country, participants evaluated one of two well-known companies (one making consumer products and one providing retail services). The hypotheses were tested through SEM. Findings: The results showed that, in the emerging market, perceived environmental actions did not influence consumers' perceptions and, in the developed market, perceived social actions had no effect. Originality/value: The study identifies two mechanisms through which consumers' perceptions of a company's CSR influence company reputation, offering evidence that the level of development of a country can have a moderating effect on how the mechanisms operate.