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The role of moral emotions and individual differences in consumer responses to corporate green and non-green actions

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Abstract

We investigate the mediating role of moral emotions and their contingency on individual characteristics in consumer responses to corporate green and non-green actions. Two between subjects experiments were conducted to test our hypotheses on samples of adult consumers. The results show that, for corporate non-green actions, various individual difference characteristics (social justice values, empathy, moral identity, self-concept) moderate the elicitation of negative moral emotions (contempt, anger, disgust), which, in turn, lead to consumer negative responses (negative word of mouth, complaint behaviors, boycotting). Moreover, for corporate green actions, empathy moderates elicitation of positive emotions on gratitude, which, in turn, influences consumer positive responses (positive word of mouth, resistance to negative information, identification with the company, investment). This study adds to extant research by examining understudied “hot” moral emotional processes underlying consumer reactions toward corporate environmental responsibility and irresponsibility. Implications for marketing communication and segmentation decisions are considered.

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Notes

  1. One way to think about conditional indirect effects in the current study is that the moderation of perceived environmental action by the firm on felt moral emotions is mediated by the felt emotions in their effects on the outcome variables (Hayes 2013).

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Acknowledgments

The authors gratefully thank the Norwegian Research Council for financial support and thank the editor and two anonymous reviewers for their feedback and valuable suggestions.

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Authors and Affiliations

  1. Stord/Haugesund University College, Klingenbergvegen 8, N-5414, Stord, Norway

    Chunyan Xie

  2. University of Michigan, 701 Tappan St, 48109-1234, Ann Arbor, MI, USA

    Richard P. Bagozzi

  3. Norwegian School of Economics, Breiviksveien 40, N-5045, Bergen, Norway

    Kjell Grønhaug

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  1. Chunyan Xie
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Correspondence to Chunyan Xie.

Appendices

Appendix A: Narrative scenario of corporate environmental irresponsibility

Offshore Shipping ASA is a stock exchange listed company in western Norway with 1700 employees, and that owns and operates 35 special ships within supply activities, subsea construction, seismic operations, and tow and anchor handling operations. A large part of these are currently under contract to oil and petroleum related companies, both in the Norwegian sector and in foreign waters. Over the last 25 years, Offshore Shipping ASA has, by Norwegian standards, gradually grown to be a large and significant player within offshore shipping.

Compared to other Norwegian offshore shipping companies, Offshore Shipping ASA has generally not replaced aging ships with newer ones, and the shipping company therefore has a fleet with a very high elevated average age. A consequence of this has been that the shipping company has repeatedly received negative feedback from the Norwegian authorities concerning significant deficiencies and demands for improvements on many of its ships. The most precarious demand included deficiencies that in a worst case could have led to a large spill at sea. By remaining indifferent to such warnings, it was almost inevitable that one of the company’s ships would be involved in a large oil spill very close to the Norwegian coast several years ago. The spill occurred at night and lead to the death of many birds and fish in the area near of the spill and on the nearby beaches, including considerable damages to flora on the coastline. In a desperate attempt to avoid extensive clean-up costs and negative media attention, the shipping company required the ship’s crew to keep the spill a secret. The following morning numerous ships from other companies in the area reported a large oil spill to the authorities. By using vessel traffic data and satellite images, the supervisory authorities were able to confirm that the spill came from one of Offshore Shipping ASA’s ships. The resulting inspections of the ship confirmed the assumptions of The Norwegian Coastal Administration, and it was determined that the spill was a result of both a lack of maintenance and of aging equipment and general negligence of management. The authorities were also able to determine that the extent of the oil spill could have been greatly reduced if the spill had been reported immediately so that oil booms could have been set out sooner and the spill contained. Also the company had an inadequate emergency response program for dealing with damage to flora and fauna.

This event later lead to several heavy rounds in court for the shipping company, a loss of reputation, and large financial losses. Nonetheless, afterwards Offshore Shipping ASA has shown surprisingly little will in facing the requirements and criticism from both the authorities and various special interest organizations. For example, in recent years, Offshore ASA has had a special focus on expansion in international markets. Through this expansion strategy, a possibility opened up for gradually transferring the company’s aging ships from areas with strict environmental and safety requirements to areas with less stringent requirements. This has made it possible for the shipping company to continue operating a number of ships that would have represented a large environmental and safety risk in Norwegian waters. This has led to the shipping company consciously operating with a greater environmental risk than other comparable Norwegian shipping companies in its worldwide operations.

Appendix B: Narrative scenario of corporate environmental responsibility

Offshore Shipping ASA is a stock exchange listed company in western Norway with 1700 employees, and that owns and operates 35 special ships within supply activities, subsea construction, seismic operations, and tow and anchor handling operations. A large part of these are currently under contract to oil and petroleum related companies, both in the Norwegian sector and in foreign waters. Over the last 25 years, Offshore Shipping ASA has, by Norwegian standards, gradually grown to be a large and significant player within offshore shipping.

Offshore Shipping ASA has customer service and innovation as its primary core values, and offers functional and environmentally friendly shipping solutions with high international standards. Closely following up construction projects, developing new technology, and further developing existing solutions are important areas of focus for Offshore Shipping ASA. Especially in recent years, the shipping company and its partners have invested large resources in developing various environmentally sound and effective solutions and products. Among other things, the shipping company has employed a so-called Environment & Development Engineer, whose primary goal is to develop the company’s environmental solutions. As a consequence of such initiatives, Offshore Shipping ASA has become recognized by both politicians and environmental organizations as a pioneer in environmentally friendly shipping, and has been awarded prestigious environmental prizes.

Working closely with a number of technology companies, Offshore Shipping ASA has analyzed, developed, and implemented many new and innovative environmental solutions. These include a new system for cleaning ballast water, developing a new anti-fouling bottom paint that will potentially improve a ship’s propulsion and save fuel, installing new cleaning systems on the oldest vessels that will reduce emissions to both the air and sea, as well as analyzing and implementing new routines for ships under way and maneuvering in ports that will potentially lead to a savings in fuel consumption by up to 20 percent. An emphasis on routines for maintenance and optimizing engines has also been an important part of this. Nonetheless, Offshore Shipping ASA wants to take this development a step further, and has therefore started an extensive and ambitious project with the goal of studying how to design an entirely new generation of environmentally-friendly ships. In this matter, Offshore Shipping ASA’s General Manager has stated that this will be an important step into the future in shipping, and that the company wants to work in a goal-oriented manner to complete this project so that the shipping company can be a world leader in environmental responsibility and sustainability. The project is closely connected to Offshore Shipping ASA’s goal of building up a completely carbon-neutral fleet.

In recent years Offshore Shipping ASA has experienced strong international growth. By offering solutions that exceed the strictest international technical and environmental requirements, the shipping company has been a driving force for environmentally friendly shipping in international markets. An example of this is the use of double hulls around the fuel tanks on all of its ships, which is not required by either the classification societies or the IMO. The United Nation has recognized Offshore Shipping ASA as a world leader in environmental responsibility.

Appendix C: Narrative scenario of the control condition

Offshore Shipping ASA is a stock exchange listed shipping company that currently owns and operates around 35 special ships within the petro-maritime sector. The fleet includes a number of supply vessels, construction and subsea operations vessels, seismic vessels, and offshore anchor handling tug vessels. A large part of these are currently under contract to oil and petroleum related companies, both in the Norwegian sector and in foreign waters. At the same time, individual vessels operate on shorter contracts within the so-called spot market. Since the company was established, Offshore Shipping ASA’s main office has been located in western Norway. Over time, a number of foreign agent offices have also been opened. Over the last 25 years, Offshore Shipping ASA has, by Norwegian standards, gradually grown to be a large and significant player within offshore shipping.

Today, Offshore Shipping ASA employs about 1700 people, both offshore and onshore. As for the various onshore offices, these encompass operations and management, diverse personnel and offshore support functions, as well as a separate development division. The development division has focuses on technological refinements as a step towards expanding in existing and new markets. A large proportion of the employees on Offshore ASA’s ships today are Norwegian citizens. Both the wage conditions and retirement arrangements that Offshore Shipping ASA offers are considered competitive by Norwegian standards.

Like similar companies, Offshore Shipping ASA has program for customer support and maintaining operations. The shipping company has been able to offer functional and cost-effective vessel solutions, while maintaining international standards. In recent years, Offshore Shipping ASA has focused on expansion in international markets. This includes areas around Brazil and the Gulf of Mexico. Offshore Shipping ASA’s General Manager has stated that further growth in the company and the continued development of their solutions will largely depend on access to new and international markets.

Appendix D1

Table 8 Correlation matrix of latent constructs in the condition of corporate irresponsibility
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Appendix D2

Table 9 Correlation matrix of latent constructs in the condition of corporate responsibility
Full size table

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Xie, C., Bagozzi, R.P. & Grønhaug, K. The role of moral emotions and individual differences in consumer responses to corporate green and non-green actions. J. of the Acad. Mark. Sci. 43, 333–356 (2015). https://doi.org/10.1007/s11747-014-0394-5

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