To take a stand or not: effects of company-issue fit and perceived motivations for CSA on consumer response

Purpose This study examined how consumer response to corporations that take a stand (or not) on social/political issues – varied by “fit” between the company and the advocated issue – was mediated by perceptions of the motives for the advocacy. Design/methodology/approach A 2 (corporate stand: stand v. no stand) × 2 (company-issue fit: high v. low) experiment was conducted with a nationally representative sample of 1,204 U.S. adult consumers. Findings The study found that the effect of corporate stand taking on perceived corporate hypocrisy was moderated by company-issue fit. Also, companies were viewed as more hypocritical when taking a stand on an issue that was less relevant to the company’s business, despite the CSA being seen as being values-driven. Originality/value The study provides guidelines for companies to determine when and whether to take a stand on a CSA issue. Particularly, the results suggest that values promotion is not the sole determinant of successful CSA and that company-issue fit should be taken into account for a more comprehensive assessment of the given CSA.