The influence of business ethics on purchase intention: Do consumers really careabout a firm’s behavior?
Write a research paper on a topic relating to business ethics. Your paper must be 8–10 pages, double spaced, not including the title page, abstract, and references pages. Include 8–10 scholarly references in addition to the course textbooks and the Bible. Use your textbooks as sources; other acceptable sources are peer-reviewed journal articles, theoretical texts, and the Bible. Citations must be in current APA format.
The paper must be written in third person. You will choose a topic and write a rationale for that topic. Final approval must be received from your instructor. The Annotated Bibliography will not be part of the final paper. The final paper will include only the references section and in-text citations with page numbers.
Paper For Above instruction
The influence of business ethics on purchase intention: Do consumers really careabout a firm’s behavior?
Business ethics have always been a significant concern for organizations aiming to build trust and maintain a good reputation with consumers. The central question investigated in this research is whether consumers genuinely care about a company's ethical behavior or if their purchasing decisions are primarily driven by product attributes and price. Existing literature presents mixed findings, emphasizing the complexity of consumer ethical preferences and their actual purchasing behavior.
To understand this dynamic, it is essential to explore various perspectives and empirical evidence. Boulstridge and Carrigan (2000) examined whether consumers modify their purchasing behavior based on corporate responsibility. Their focus group research indicated an attitude-behavior gap, where consumers often profess care about ethical issues but do not always act accordingly. This suggests that while consumers might value corporate responsibility, it may not significantly influence their actual buying decisions, especially when faced with price or convenience considerations.
Contrarily, Brunk and Bluemelhuber (2010) proposed a multidimensional framework that emphasizes how unethical corporate conduct negatively impacts consumer perceptions, which could in turn influence purchasing behavior. They argue that mass outrage over corporate misconduct can tarnish brand images and dissuade consumers from engaging with such firms. This aligns with the notion that corporate malfeasance damages consumer trust, thereby affecting purchase intention.
Further insights come from Carrigan and Attalla (2001), who investigated whether ethical consumers are a
myth. Their research suggested that consumers often do not prioritize ethics over other product features, casting doubt on the idea that ethical behavior is a primary driver of purchase decisions. The implication is that ethical considerations may be secondary unless they are prominently marketed or aligned with other consumer preferences.
Cultural differences in consumer perceptions of corporate social responsibility (CSR) also influence purchase intentions. Eshra and Beshir (2017) examined how CSR impacts consumer behavior in Egypt, revealing that consumer awareness of CSR and perceived company responsibility can positively influence trust and purchase decisions. This underscores the importance of social and cultural context in shaping consumer attitudes toward corporate ethics.
The role of communication in shaping consumer perceptions and purchase intentions is explored by Byrum (2017), who emphasized social media's influence in CSR communication. Effective messaging can enhance brand reputation and stimulate consumer purchase intent. Companies that transparently communicate their ethical commitments and CSR initiatives can potentially sway consumer behavior favorably.
Additionally, Kaur (2013) found a significant relationship between CSR and consumer trust, which is a crucial factor in purchase decisions. Consumers who trust a brand are more inclined to buy from companies that demonstrate social responsibility. Conversely, a lack of transparency or unethical practices can lead to consumer boycotts or negative word-of-mouth, harming firm profitability.
Madar, Huang, and Tseng (2013) investigated whether ethical purchase intentions translate into actual behavior, focusing on animal-testing issues in shampoo products. They discovered that consumer awareness of CSR efforts is a prerequisite for genuine ethical purchasing intentions. Without awareness, consumers’ expressed ethical preferences rarely influence their buying choices.
Servaes and Tamayo (2013) analyzed how customer awareness of CSR impacts firm value, concluding that high customer awareness enhances the benefits of CSR activities. When consumers are aware of a company's responsible behavior, they are more likely to reward it through loyalty and purchase. Conversely, low awareness diminishes the impact of CSR initiatives.
Finally, Viriyavidhayavongs and Yothmontree (2002) highlighted that consumers' ethical considerations regarding employees and suppliers significantly affect their willingness to reward or punish firms based on ethical conduct. Their findings confirm that ethical behavior does matter to consumers and can serve as a
competitive advantage if effectively communicated and perceived.
In conclusion, the literature indicates that consumers' care about corporate ethical behavior is nuanced and context-dependent. While some studies suggest a discrepancy between expressed values and actual behavior, others demonstrate that ethical conduct and effective communication can positively influence purchase intentions. Therefore, organizations aiming to enhance consumer loyalty should consider integrating authentic ethical practices with strategic communication to foster trust and align with consumer values.
References
Boulstridge, E., & Carrigan, M. (2000). Do consumers really care about corporate responsibility? Highlighting the attitude—behaviour gap.
Journal of Communication Management , 4(4). https://doi.org/10.1108/eb023532
Brunk, K. H., & Bluemelhuber, C. (2010). The impact of un/ethical corporate conduct on consumers' ethical perceptions - a multidimensional framework.
Advances in Consumer Research , 37.
Carrigan, M., & Attalla, A. (2001). The myth of the ethical consumer - do ethics matter in purchase behaviour?
Journal of Consumer Marketing , 18(7).
Eshra, N., & Beshir, N. (2017). Impact of corporate social responsibility on consumer buying behavior in Egypt.
World Review of Business Research , 7(1), 32-44.
Hosmer, L. T. (2011).
The Ethics of Management: A multidisciplinary approach (7th ed.). McGraw Hill/Irwin.
Kaur, P. (2013). The effect of CSR on consumer’s buying behavior.
International Journal of Innovative Research & Development , 2(11).
Madar, A., Huang, H. H., & Tseng, T. H. (2013). Do ethical purchase intentions really lead to ethical purchase behavior? A case of animal-testing issues in shampoo.
International Business Research , 6(7).
Servaes, H., & Tamayo, A. (2013). The impact of corporate social responsibility on firm value: The role of customer awareness.
Management Science , 59(5).
Viriyavidhayavongs, V., & Yothmontree, S. (2002). The impact of ethical considerations in purchase behavior: A propaedeutic to further research.
ABAC Journal , 22(3), 1-15.