TOO MORAL TOO BE TRUE

TOO MORAL TOO BE TRUE

THE EFFECTS OF CORPORATE MORAL HYPOCRISY ON MORAL OUTRAGE AND

RETRIBUTIVE BEHAVIOUR IN DIFFERENT INDUSTRIES

Bouwman, Tim

INTRODUCTION (1)

➔ 

Companies are increasingly using CSR to enhance financial and reputational

benefits

➔ 

However, media are constantly informing consumers about corporate misdonduct

and wrongdoing

➔ 

Leading to an increase in scepticism towards CSR

◆  Decreasing equity

◆  Negative word-of-mouth

INTRODUCTION (2)

➔ 

Hypocrisy arises when there is perceived inconsitency between the perception of a

company and the way a company frame their actions

➔  Company perception:

◆  Companies are judged alonside the dimensions of competence and morality

➔  Company framing

DIFFERENT TYPES OF HYPOCRISY

Campaign Framing

Pragmatic Moral

Company Perception Moral 2. Non-moral hypocrisy 3. No hypocrisy

Competent 3. No hypocrisy 1. Moral hypocrisy

RQ: “What will be the effects of different types of hypocrisy on moral outrage and

HYPOTHESIS 1:

Inconsistencies between the framing of a company and the perception of a company by consumers (hypocrisy) will lead to moral outrage with a stronger effect for moral hypocrisy than non-moral hypocrisy on moral outrage.

HYPOTHESIS 2:

Inconsistencies between the framing of a company and the perception of a company by consumers (hypocrisy) will lead to retributive behaviour with a stronger effect for moral hypocrisy t h a n n o n - m o r a l h y p o c r i s y o n retributive behaviour.

➔  Existing literature found that consumers will feel negative emotions when confronted with norm-violating behaviour and hypocrisy → moral outrage

◆  Angry ◆  Disgusted ◆  Annoyed

➔  Consumers who feel mistreated want retaliation i.e. they want to get back at the company

◆  Retributive behaviour

➔  Hypocritical crimes are punished harder

HYPOTHESIS 3:

Except for the direct effect of hypocrisy on retributive behaviour we also expect an indirect effect of hypocrisy on retributive behaviour through moral outrage

HYPOTHESIS 4:

The effects of different kinds of hypocrisy on retributive behaviour and moral outrage will be stronger for c o m p a n i e s c o m p e t i n g i n t h e environmental sensitive industries compared to companies competing in non-environmental sensitive industries

➔  Moral outrage and negative emotions will also lead to an increase in punishment (retributive behaviour)

➔  Therefore, we also expect an indirect effect of hypocrisy on retributive behaviour through moral outrage

➔  Companies can be perceived differently, but could industries also be perceived differently?

RESULTS

HYPOTHESIS 1:

PARTIALLY SUPPORTED

HYPOTHESIS 2:

PARTIALLY SUPPORTED

➔  As expected no effect for the consisstent conditions ➔  Moral hypocrisy did lead to an increase in moral outrage

◆  F(1, 347) = 37.143, p = 0.000, η2 _{= 0.097}

➔  However, also no effect for non-moral hypocrisy

◆  F(1, 347) = 0.247, p = 0.619, η2 _{= 0.001}

➔  As expected no effect for the consisstent conditions ➔  Moral hypocrisy did lead to an increase in retributive

behaviour

◆  F(1, 347) = 61.757, p = 0.000, η2 _{= 0.151}

➔  However, also no effect for non-moral hypocrisy

HYPOTHESIS 3:

PARTIALLY SUPPORTED

HYPOTHESIS 4:

NOT SUPPORTED

➔  Direct effect was significant

◆  Moral behaviour, t = 2.8412, p = 0.0048, CI [0.1232, 0.6777] and competent behaviour, t = -4.7123, p = 0.0000, CI [-0.9711, -0.3991]

➔  Also, significant effect of the interaction on the mediator (moral outrage)

◆  b = -0.8930, t(347) = -3.8731, p = 0.0001, CI [-1.3465, -0.4395].

➔  Also significant effect of moral outrage on retributive behaviour

◆  b = 0.5173, t(346) = 11.2930, p = 0.0000, CI [0.4272, 0.6074]

➔  However, only a significant indirect effect for moral hypocrisy CI [-0.7319,

-0.3709], not for non-moral hypocrisy CI [-0.2399, 0.0591].

➔  Total interaction effects were not significant at all ◆  Moral outrage: F(1, 343) = 0.20, p = 0.888

DISCUSSION

➔  Companies will suffer from moral windowdressing

◆  Consumers will feel moral outrage and participate in retributive behaviour

◆  Also through the indirect effect

➔  However, there is no effect for non-moral hypocrisy

CONTRIBUTION

➔  Our results show companies are perceived differently and will therefore face different

consequences for their actions

➔  We have taken moral hypocrisy from a personal level to a corporate level