Build or buy corporate social responsibility? Socially responsible brand acquisitions and firm CSR perceptions

• Acquisition (versus development) of socially responsible brands impacts firm CSR perceptions. • Brand development (vs. acquisition) is more effective in increasing firm CSR perceptions. • When a socially responsible brands’ symbolic value is high, acquisition harms brand credibility. • Acquisitions of highly symbolic socially responsible brands thus decrease firm CSR perceptions. • Brand architecture and communication strategies can mitigate this negative effect. Because development of socially responsible brands is costly and risky, acquisition of socially responsible brands (SRB) has emerged as a frequently employed approach to enhancing firms’ CSR profile. This research explores the effectiveness of SRB acquisition (versus brand development) in increasing firm CSR perceptions and the moderating role of symbolic brand value in this relationship. This research demonstrates that SRB acquisition (vs. development) is generally less effective in signaling firm CSR and that the effect of SRB acquisitions on firm CSR perceptions depends on the acquired brand’s symbolic value. Seven experiments show that when symbolic brand value is high, acquisition (vs. development) of SRB harms the acquired brand’s credibility and subsequently reduces firm CSR perceptions. Two additional studies explore the role of brand architecture and communication strategies in mitigating the negative impact of highly symbolic, SRB acquisitions on consumers’ perceptions of firm CSR.