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🗞️ Driving the news: New research from the University of California, Berkeley, shows that corporate social responsibility (CSR) messaging can backfire, evoking negative associations among consumers
• The study found that even positive framing of CSR efforts reduced support for corporate bailouts, especially when consumers had existing skepticism toward big businesses
• This effect, termed "big business discontent," was particularly strong during the pandemic era when corporate bailouts were widely discussed
🔭 The context: The research involved nearly 7,000 participants who were exposed to different videos about corporate behavior, either framing companies as good or bad citizens or focusing on economic stability
• Participants with negative pre-existing beliefs about corporations were more likely to associate CSR efforts with past corporate failures, regardless of the positive framing
• This study highlights the limits of traditional economic models that assume consumers are rational actors with perfect recall
🌍 Why it matters for the planet: Misguided CSR messaging could hinder efforts to gain public support for corporate-led sustainability initiatives
• If positive ESG narratives evoke skepticism rather than trust, it may undermine corporate efforts to contribute to climate action and social justice
• Understanding consumer perceptions is crucial for companies to effectively promote sustainable business practices
⏭️ What's next: Companies may need to rethink their communication strategies, focusing less on controversial CSR claims and more on topics that resonate positively with their audience
• Redirecting messaging towards economic benefits or other non-contentious areas could enhance public support
• Further research could refine approaches to overcoming consumer skepticism about corporate motives
💬 One quote: "Even if you frame information in a positive way, consumers with pre-existing negative beliefs regarding social responsibility might draw up mostly negative experiences from memory" — Tim McQuade, Associate Professor, Haas School of Business
📈 One stat: 64% of participants exposed to CSR-focused videos showed lower support for corporate bailouts compared to those who watched a video about economic stability
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