Brand scandals within a corporate social responsibility partnership: asymmetrical effects on for-profit and non-profit brands

ABSTRACT

This research explores the effects of a brand scandal that affects a for-profit brand collaborating with a non-profit organisation. Two experimental studies demonstrated that the effects on the for-profit brand were driven by the domain of the partnership and the crisis, while the effects on the non-profit brand were not. A crisis in the same domain as the partnership had stronger effects on the for-profit brand (intention to buy and negative word of mouth). These effects are mediated by perceptions of brand hypocrisy and a decrease in for-profit brand equity. The non-profit brand is equally hurt by the for-profit brand crisis, regardless of the partnership-crisis consistency.

Our results indicate a strong asymmetry: the non-profit brand, despite its innocence, is more vulnerable than the guilty for-profit brand.

KEYWORDS:

• Corporate social responsibility
• brand crisis
• brand equity
• brand hypocrisy
• mediation model

Disclosure of potential conflicts of interest

No potential conflict of interest was reported by the author(s).

Notes

1. https://www.unicef.org/partnerships/hm-and-hm-foundation.

2. https://www.theguardian.com/fashion/2019/feb/08/courting-controversy-from-hms-coolest-monkey-to-guccis-blackface-jumper.

3. https://www.uber.com/blog/new-york-city/give-meaning-to-your-commute-ride-for-a-cause/#:~:text=Follow%20these%20simple%20steps%20to,Ride%20for%20a%20cause!.

4. https://www.theguardian.com/technology/2017/jun/18/uber-travis-kalanick-scandal-pr-disaster-timeline.

5. https://walmart.org/diversity-equity-and-inclusion/centre-for-racial-equity.

6. https://laborrights.org/publications/walmart-effect-child-and-worker-rights-violations-narong-seafood.

7. https://www.burberryplc.com/en/news/corporate/2020/burberry-announces-initiative-to-support-youth-around-the-world-.html.

8. https://www.moodiedavittreport.com/montblanc-signs-off-a-new-charity-initiative-111209/.

9. https://www.red.org/impact.

Additional information

Notes on contributors

Veronica Gabrielli

Veronica Gabrielli, PhD, is Associate Professor of Marketing at the Department of Communication and Economics, University of Modena and Reggio Emilia (Italy). She obtained her PhD in Business Administration at the University of Venice (Italy). Her research interests include branding and marketing communications. She has published in academic journals, including the Journal of Brand Management, Journal of Product and Brand Management and Journal of Consumer Marketing.

Ilaria Baghi

Ilaria Baghi, PhD, is Associate Professor of Marketing at the Department of Communication and Economics, University of Modena and Reggio Emilia (Italy). She obtained her PhD in Business Administration at the University of Venice (Italy). She teaches Strategic Marketing and International Marketing, and her research interests focus mainly on consumer behaviour and social marketing. She has published in the European Journal of Marketing, Journal of Business Ethics.

Francesca Bergianti

Francesca Bergianti, is a PhD student in at the University of Modena and Reggio Emilia, Marco Biagi Foundation (Italy). She obtained her degree in 2019 and she is now involved with a research contract for an interdisciplinary study funded by the Italian Government. Her research interests focus on ethical consumption and CSR activities.