Effectively Communicating CSR Activities: the Role of Emotional Empathy in CSR Communication

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Effectively Communicating CSR Activities: the Role of

Emotional Empathy in CSR Communication

Master thesis

Presented for:

MSc. Marketing Management Faculty of Economics & Business

University of Groningen

Written by:

Gerwin Hooghoudt (S2712830)

Lead supervisor: dr. Marijke Leliveld Second supervisor: dr. Outi Lundahl

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Abstract

In today’s socially conscious market environment, companies are increasingly devoting resources towards activities of doing good (Du et al., 2010). However, when important stakeholders are not aware of the companies’ actions of doing good, it may not reap the full potential benefits (Hawn & Ioannou, 2016). For companies, communicating CSR seems to be a complex task. Consumers easily see CSR initiatives as tactics to win public acceptance and legitimacy. The current research aimed to acquire a better understanding in effective CSR communication. Hereby, it investigated how inducing emotional empathy could increase favorable business outcomes for companies that are taking responsibility for social- and environmental causes. Also, the study examined the mediating role of perceived personal relevance and the moderating role of social value orientation. Using a 2 (emotional empathy induction: high vs. low) x 2 (social value orientation: prosocial vs proself) between-subjects design, the results showed, that inducement of emotional empathy did not significantly increase brand attitude, CSR image, and purchase intention. Also, the findings rejected a potential mediating effect of personal relevance and a moderating effect of social value orientation. Thus, the effects of induced emotional empathy contradicted the expected effects based on literature. However, the current research replicated prior research on the role of personal relevance. Higher levels of personal relevance within CSR communication will positively increase brand attitude, CSR image, and purchase intention. I discuss the implications of the findings and offer several possibilities for future research.

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Preface

Are companies participating in Corporate Social Responsibility hypocritical? In recent years I gained interest in how companies could not only make money, but also contribute to a better world. However, I noticed that several companies trying to ‘do good’ faced criticism, and consumers blaming them with terms like ‘hypocritical’ and ‘greenwashing’. Do companies deserve this? I believe, in some cases, definitely yes. However, I believe there is a substantial amount of companies that are genuinely trying to make the world a better place. Therefore, my motivation is to acquire a better understanding of companies’ CSR activities, and thereby in particular, discover how companies could communicate their CSR activities more effectively.

I undertook this thesis within my MSc. Marketing Management at the University of Groningen. During the process I received much support and specific feedback from my supervisor, Dr. Marijke Leliveld, which helped me a lot. The guidance I experienced was very pleasant and enjoyable, which motivated me during the process. Therefore, I would really like to thank Dr. Marijke Leliveld for all her efforts. Besides that, I would like to thank my family and friends who supported me, showed interest in my thesis, and motivated me during the process.

I hope you enjoy your reading.

Gerwin Hooghoudt

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Introduction

Companies are getting more attentive to their social responsibilities. In today’s socially conscious market environment, companies are increasingly devoting resources towards activities of doing good (Du et al., 2010). To give two well-known examples: Tony Chocolonely commits to its mission towards a distribution chain for their chocolate bars that are completely slave free (Tony Chocolony, 2020). Another example is Ben&Jerry’s: besides making ice cream Ben&Jerry’s embraces a social mission to make the world a better place by investing in renewable energy. To reduce CO2-emissions Ben&Jerry’s now fuels their factory in the Netherlands with green energy. Besides that, they transform residual-ice resulting from the production of their ice cream into biogas. Being socially responsible becomes increasingly important for companies, but also consumers. There is a growing concern among consumers of the ethical considerations they make in their everyday purchase decisions (Lee, 2016). According to Ellis (2010 in Kim, 2019), companies in Western countries are expected to share responsibility with governments to tackle certain societal issues.

One can refer to companies’ commitment to solve certain societal issues as Corporate Social Responsibility (CSR). The definition of CSR is ‘the commitment to improve (societal) well-being through discretionary business practices and contributions of corporate resources’ (Kotler and Lee 2005 in Du et al., 2010, p. 8). Jayachandran et al. (2013 in Lee, 2016) add to this definition that CSR should also allow the company to satisfy its financial objectives. Participating in CSR initiatives can create substantial business benefits for companies (Du et al., 2010). Prior research confirms the positive link between CSR activities and financial performance (Margolis et al., 2007; Eccles et al., 2014 in Hawn & Ioannou, 2016).

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Communicating CSR seems to be a complex task for companies. For instance, consumers' attitudes and purchase intentions are less favorable when they suspect firms of engaging in CSR for commercial reasons (Lee, Park, Moon, Yang, & Kim, 2009 in Van Rekom et al., 2014). Since consumers see CSR initiatives easily as tactics to win public acceptance and legitimacy, CSR communication became an important factor in determining whether consumers will perceive CSR actions as purely commercial and hypocritical (Fassin & Buelens, 2011). Also, Du et al. (2010) confirm that unfavorable attributions towards companies’ CSR activities are obstacles for companies to maximize their business benefits from CSR. Therefore, to be rewarded for their efforts, companies must learn to effectively communicate their CSR activities.

Focusing on the effectiveness of CSR communication, Kim & Ferguson (2014) stated that measuring effective CSR communication should be distinguished from the measurement of effective CSR activities. Meaning that the communication itself should be emphasized, not the CSR activities. We consider CSR communication effective when favorable business outcomes for the company are maximized (Du et al., 2010). Examples of favorable business outcomes are increased corporate reputation (Kim, 2019), brand attitude (Mitchell & Olson, 1981), brand loyalty (Pérez, 2019; Du et al., 2010), customer equity (Lee, 2016), willingness to pay (Lee, 2016), CSR image (Thomassen et al., 2020) and purchase intention (Pérez, 2019; Yen & Yang, 2018; Du et al., 2010).

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social claims (Lee, 2016). Therefore, the current research argues that companies’ CSR messages should aim to induce empathy. A study by Basil et al. (2008) showed that empathy can successfully be induced on part of viewers. In the charity domain, they found that empathy induced in the message positively influenced the willingness to donate. Also, Verhaert & Van den Poel (2011) found that empathic concern positively affects the donation decision. However, while researchers devoted substantial attention to charity donations, little research has focused on whether induced emotional empathy in CSR communication increases its effectiveness. Therefore, the current research investigates the potential process in which inducing emotional empathy in CSR communication impacts the favorable business outcomes generated by the company. The research question of the current research is the following:

RQ Does induction of emotional empathy increases the effectiveness of CSR communication? Adding to existing literature, the current research investigates the mediating role of personal relevance. In the field of charity, inducing empathy is used to create a sense of personal relevance for donors (Basil et al., 2008). Kim & Ferguson (2014) argue that personal relevance in CSR communication is an important factor to increase its effectiveness. Thus, personal relevance in CSR communication might mediate the effect of induced emotional empathy in CSR communication on favorable business outcomes.

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Literature review

Corporate Social Responsibility

Literature has widely discussed CSR’s impact on firm performance. Prior research has reported positive (Margolis et al., 2007; Eccles et al., 2014 in Hawn & Ioannou, 2016; Choi et al., 2010 in Lee, 2016), negative (Luo & Bhattacharya, 2006 in Lee, 2016) and neutral impact of CSR on firm performance (McWilliams & Siegel, 2000 in Lee, 2016). A literature review by Van Beurden & Gössling (2008) acknowledges that literature discussed the topic extensively, but lacks providing clear answers. However, they argue that there is clear empirical evidence for a positive correlation between CSR and financial performance. In their opinion, prior research stating a negative correlation refers to outdated material. Since the beginning of the debate, societies have changed, therefore they nowadays argue that ‘’Good Ethics Is Good Business’’ (van Beurden & Gössling, 2008, p. 407). Also, Chernev & Blair (2015) showed that CSR can positively influence consumers’ perceptions of companies’ products and therefore make positive assumptions about the performance of the products. Thus, the current research accepts that CSR is relevant and impacts several business-related components like organizational reputation, firm value, corporate identity, financial performance, and environmental performance (Islam et al., 2019). Also, Chaisurivirat (2009) argues that CSR can positively influence brand attitude and purchase intention. According to Du et al. (2010), engaging in CSR will generate favorable stakeholder attitudes and support behaviors like purchase intention for companies, and will contribute to a strengthened corporate image. However, negative consumer responses towards companies’ CSR activities are problematic for companies. Du et al. (2010) found that consumers may become skeptical when they read about companies’ CSR activities. Therefore, effectively communicating CSR has become essential to maximize business benefits (Du et al., 2010).

Factors of Effective CSR Communication

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communication. While those aspects are significant, research devoted little attention to another important factor in predicting effective CSR communication, which is the role of empathy. Lee (2016) shed light on the concept of empathy in the CSR communication context by arguing that empathy increases the urge for people to make moral and caring choices. This has implications for consumers’ evaluation of companies participating in CSR activities. Consumers may attribute more positive feelings towards companies’ products related to CSR when they feel empathy. However, Lee’s (2016) findings regarding empathy relate to the charity domain. Literature lacks further explanation of the role of empathy within the context of CSR communication. Furthermore, research acknowledges (Kim & Ferguson, 2014) the relationship between personal relevance and effective CSR communication, but lacks explanation of how empathy and personal relevance may be related in this context. Therefore, the current research will further explain the role of emotional empathy, and its effects through personal relevance on the effectiveness of CSR communication.

Induced Emotional Empathy in CSR Communication

Empathy

Literature has studied the comprehensive concept of empathy extensively. The broad and commonly used definition of empathy refers to ‘’viewing another person’s situation from the perspective of that person, and understanding how the situation appears to that person and how that person is reacting cognitively and emotionally to the situation’’ (Granzin & Olsen, 1991 in Basil et al., 2008, p. 4). According to Lazarus (1991 in Yen & Yang, 2018), empathy involves the ability to process or share the emotions of others. Batson (2007, in Müller 2016) associates empathy with an other-directed emotion resulting from the need of others. Empathy is therefore found to elicit caretaking behaviour and one can associate empathy with feelings like compassion, sympathy, tenderness, and softheartedness (Batson et al., 2007 in Muller et al., 2014).

Emotional Empathy vs. Cognitive Empathy

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others are lying’’ (Smith, 2006, p. 4). Thus, cognitive empathy captures an individual’s ability to take the perspective of those in need (Batson and Shaw 1991 in Tian & Robertson, 2019). One can define Emotional empathy as ‘’an other-oriented emotional response elicited by and congruent with the perceived welfare of someone in need’’ (Batson 2008 in Tian & Robertson, 2019, p. 402). Therefore, we associate emotional empathy with the vicarious sharing of emotions (Smith, 2006). A vicarious affective response to another person, which emphasizes putting oneself in the position of another and experiencing that person’s emotion (Lazarus 1991 in Yen & Yang, 2018).

Situational Empathy vs. Dispositional Empathy

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situation and how that person feels as a result. And, the imagine self: someone can imagine how it would perceive the situation itself in the other’s position and how that would feel as a result (Batson et al., 1997). For instance, when someone is hurt, someone can imagine how it feels for that person. But, someone can also imagine how it feels to be like that person. Interestingly, the imagine other will produce empathy, which will evoke altruistic motivation and helping behavior (Batson et al., 1987). However, the imagine self will produce empathy, but also personal distress. Personal distress evokes sadness and egoistic motivation to reduce one’s aversive arousal (Batson et al., 1987; Batson et., 1997). Thus, the outcome for the imagine self negatively influences someone’s helping behavior. Therefore, CSR communication should aim to avoid inducing personal distress, but only empathy to increase favorable business outcomes. The current research focuses on imagining how the other feels (imagine other) to evoke empathy and not personal distress.

The Positive Effects of Empathy

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Emotional Empathy in CSR Communication

Research devoted limited attention to the relationship between emotional empathy and favorable business outcomes. Lee (2016) investigated the role of emotional empathy in this process and argued that emotional empathy can motivate consumers to behave altruistically towards products with social claims (Smith, 2006 in Lee, 2016). Human motives, such as moral and emotional drivers, compel those altruistic consumer choices. As a result, emotional empathy can increase the willingness to pay for products with social causes (Lee, 2016). In this context, empathy reduces price sensitivity to prosocial products. Therefore, consumers are more likely to buy products associated with social claims. According to Yen & Yang (2018), empathy positively influences purchase intention, indicating that CSR activities generated a halo effect. However, in their study, they measured dispositional empathy and viewed empathy as a stable personality trait. The current research will induce empathy, and therefore manipulates situational empathy. Thus, according to the literature, CSR activities might impact consumers overall evaluation of companies’ products. And for prosocial brands, CSR activities can positively influence customer equity focusing on consumer empathy in the CSR communication (Lee, 2016).

Dependent Variables

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H1 Induced emotional empathy in CSR communication increases brand attitude, CSR image, and purchase intention compared to no empathy induced in CSR communication.

Personal Relevance in CSR Communication

To gain an understanding in the underlying effect of emotional empathy on favorable business outcomes, the current research examines the role of personal relevance. Personal relevance in CSR communication refers to ‘’communication messages that are either connected to people’s personal life experiences or applicable to personal interests’’ (Kim & Ferguson, 2018, p. 553).

Induced Emotional Empathy on Personal Relevance in CSR Communication

In the field of charity donations, research has shown that individuals tend to value identifiable victims higher compared to statistical victims (Small et al., 2007). Since empathy can create sympathy of a donor towards a specific donation recipient, this leads to increased donation efforts (Verhaert & Van den Poel, 2011). Therefore, different charitable activities prompt empathy among consumers, and thus, produce different response behaviors (Yen, Yan, 2018). Empathy enables people to view a situation from the perspective of another, and thereby feel what the other feels. Through the process of empathy, the situation now affects oneself, therefore it becomes more personally relevant. Higher levels of personal relevance due to empathy eventually lead to a need to act. The cultural norm to help the less, motivates this helping behavior since it reduces feelings of guilt (Basil et al., 2008). In this way, empathy leads to higher levels of personal relevance in the field of charity. Since charity and CSR communication relate to each other (Yen & Yang, 2018), the current research expects that empathy will also increase personal relevance in the context of CSR communication.

Personal Relevance in CSR Communication on Favorable Business Outcomes

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relevance in CSR communication are important predictors of effective CSR communication. How to communicate includes transparency, consistency, and self-promotional message tone.

Literature confirms the importance of personal relevance in CSR communication (Kim & Ferguson, 2014 & Kim, 2018). Ensuring that CSR communication messages are personally relevant to stakeholders is important in terms of what to communicate regarding CSR (Maignan and Ferrell 2004; Morsing and Schultz, 2006 in Kim, 2019). Garcia-Marques and Mackie (2001) suggested that when people find personal relevance in persuasive messages, they are more likely to accept the messages. As a result, people are more likely to change their behaviors accordingly. Therefore, relating to stakeholders in CSR communication by including personally relevant examples can increase public acceptance of CSR communication. CSR communication includes communicating abstract and intangible characteristics of an organization. When people are willing to accept those messages, only then CSR communication can be successful (Schlegelmilch & Pollach, 2005). To make CSR communication accessible and clear, CSR communication should therefore, include examples and concrete events people can personally relate to (Spickett-Jones et al. 2003 in Schlegelmilch & Pollach, 2005).

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H2 Induced emotional empathy in CSR communication increases personal relevance in CSR communication compared to no empathy induced in CSR communication.

H3 Personal relevance in CSR communication increases brand attitude, CSR image, and purchase intention compared to no personal relevance in CSR communication.

H4 Personal relevance in CSR communication mediates the main effect of induced emotional empathy on brand attitude, CSR image, and purchase intention.

Social Value Orientation

The degree to which people take each other into account differs among individuals. People differently care about others’ feelings and wellbeing (Declerck & Bogaert, 2008). To distinguish certain types of people, Van Lange et al. (1997) referred to social value orientation (SVO) as an individual’s ‘stable preferences for certain patterns of outcomes for oneself and others’ (Van Lange et al., 1997, p. 733). The current research uses Pletzer et al. (2018, p. 63) definition to describe social value orientation in terms of ‘’the dispositional weights individuals attach to their own and another person’s outcome and predicts expectations of cooperation in social dilemmas’’

There are three types of social value orientation: prosocials, individualists, and competitors (Van Lange et al. 1997). When cooperating, prosocials focus on maximizing the outcome for both themselves and others. Also, prosocials try to minimize differences between each other in other to secure equality. Opposed to prosocials, individualists tend to maximize the outcomes for themselves. The outcome for others does not influence an individualist’s decision. Lastly, competitors focus on maximizing the difference between the outcome for themselves and others. Hereby competitors create relative advantage over others (Van Lange et al., 1997).

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affective responses towards other people are stronger, and this leads to higher levels of affective empathy (De Cremer et al. in Declerck & Bogaert, 2008). Therefore, the current research expects that being prosocial increases the effectiveness of the induction of emotional empathy. As a result, prosocials’ attributions towards products related to CSR might increase since prosocials attach more value to another person’s outcome in a social dilemma. Thus, prosocial value orientation increases the effect of induced emotional empathy (situational empathy) on personal relevance and favorable business outcomes. The hypotheses are the following:

H5 The effect of induced empathy in CSR communication on personal relevance in CSR communication will be stronger when the consumer is predominantly prosocial compared to proself.

H6 The effect of induced empathy in CSR communication on brand attitude, CSR image, and purchase intention through personal relevance will be stronger when the consumer is predominantly prosocial compared to proself.

H7 The effect of induced empathy in CSR communication on brand attitude, CSR image, and purchase intention will be stronger when the consumer is predominantly prosocial compared to proself.

Conceptual Model

In Figure 1 the set of hypotheses is given in a conceptual model.

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Methodology

Participants & Design

To collect data I used an online survey with a sample from the Netherlands. I recruited respondents using social media in my own social network. Participants had a chance to win €20,- when they finished the survey. The total number of participants was 243, (42.7% female, M age = 39.26, SD = 17.17). A large portion of the participants hold a master’s degree (39.9%), followed by a bachelor’s degree (27.1%). Regarding occupation, the majority did have a full- or parttime job (67%) followed by students (22.5%). The current research used a 2 (emotional empathy induction: high vs. low) x 2 (social value orientation: prosocial vs proself) between-subjects design.

Manipulation and Measurement of Variables

Manipulation: Emotional Empathy

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domain, Leliveld et al. (2020) found that using a happy or a sad facial expression on a charity advertisement elicited different consumer responses. They found that for the observer a sad face did not evoke empathy, but only distress because the sad facial expression made participants feel miserable and sad. Since personal distress evokes egoistic motivation to reduce one’s aversive arousal (Batson et al. 1987), the current study motivated participants to feel for the subject, and not like the subject, to only evoke empathy.

A same statement regarding the actions taken by the brand followed up the high- and low empathy conditions: ‘’To contribute to the solution of the problem ice cream brand Beckon is taking action to reduce CO2-emissions. The whole Beckon Ice Cream factory now runs on green energy, and besides that, residual ice is transformed into biogas’’. Figure 2 shows the full text of the CSR communication as participants read it in the survey. In Appendix I & II both the Dutch and the translated English version of the CSR communication are presented.

• Low induced emotional empathy in CSR message

In de toekomst zullen mensen met de gevolgen van de opwarming van de aarde geconfronteerd worden.

Mensen zullen bijvoorbeeld steeds vaker natuurrampen gaan meemaken. Ook zullen door grote

migratiestromen en voedseltekorten de spanningen in de wereldpolitiek op scherp komen te staan. Om bij te dragen aan de oplossing van deze problemen onderneemt het

ijscomerk Beckon actie om de CO2-uitstoot te beperken. De volledige fabriek van Beckon Ice Cream draait nu op groene stroom en daarnaast wordt restijs omgezet in biogas. De uitstoot die niet voorkomen kan worden wordt gecompenseerd door investeringen in herbebossingsprojecten met lokale NGOs.

• High induced emotional empathy in CSR message

Stel je eens voor hoe het voor jouw kleinkind zal zijn om met de gevolgen van de opwarming van de

aarde geconfronteerd te worden. Stel je voor hoe het voor je kleinkind zal voelen om bijvoorbeeld steeds vaker natuurrampen mee te maken. Of in een wereld te leven waar door grote migratiestromen en voedseltekorten, de spanningen in de wereldpolitiek op scherp komen te staan.

Om bij te dragen aan de oplossing van deze problemen onderneemt het ijscomerk Beckon actie om de CO2-uitstoot te beperken. De volledige fabriek van Beckon Ice Cream draait nu op groene stroom en daarnaast wordt restijs omgezet in biogas. De uitstoot die niet voorkomen kan worden wordt gecompenseerd door investeringen in herbebossingsprojecten met lokale NGOs.

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Manipulation Check: Emotional Empathy

A manipulation check adapted and adjusted from Lee (2016) determined the effectiveness of the manipulation of emotional empathy in the CSR messages. Five statements (e.g., ‘’This message rapidly and intuitively tunes me in how someone else feels’’) measured the participant’s emotional responses resulting from empathy-inducing manipulation. A correlation analysis showed that all four questions regarding the manipulation check correlated significantly (r’s > 0.261, p’s < 0.001). A reliability analysis showed a sufficient value of Cronbach’s Alpha, α = 0.762. Therefore, I calculated a new scale indicating the average score of the four items with higher values indicating more perceived empathy.

Measurement: Purchase Intention

Two items (e.g. I intend to purchase Beckon Ice Cream) derived from Leliveld et al. (2020) measured purchase intention using 7 point Likert-scales. A correlation analysis showed that all four questions regarding purchase intention correlated (r’s > 0.630, p’s < 0.001). The reliability analysis on the four questions measuring purchase intention showed a sufficient value of Cronbach’s Alpha, α = 0.773 (> 0,6). Therefore, I calculated a new scale indicating the average score of the two items with higher values indicating higher purchase intention.

Measurement: Brand Attitude

Four evaluative scales (eg. dislike very much vs. like very much) derived from Mitchell & Olson (1981) measured brand attitude using 7 point Likert-scales. A correlation analysis showed that all four questions regarding brand attitude correlated (r’s > 0.490, p’s < 0.001). The reliability analysis on the four questions measuring brand attitude showed a sufficient value of Cronbach’s Alpha, α = 0.880 (> 0,6). Therefore, I calculated a new scale indicating the average score of the four items with higher values indicating higher brand attitude.

Measurement: CSR Image

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Cronbach’s Alpha, α = 0.858 (> 0,6). Therefore, I calculated a new scale indicating the average score of the four items with higher values indicating higher CSR image.

Measurement: Personal Relevance

Three questions (e.g., ‘’This message is personally relevant to me’’) derived from Kim & Ferguson (2014) & Kim (2019) measured personal relevance using 7 point Likert-scales. A correlation analysis showed that all four questions regarding personal relevance correlated (r’s > 0.535, p’s < 0.001). The reliability analysis on the three questions measuring personal relevance showed a sufficient value of Cronbach’s Alpha, α = 0.840 (> 0,6). Therefore, I calculated a new scale indicating the average score of the three items with higher values indicating more perceived personal relevance.

Measurement: Social Value Orientation

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Results

Manipulation Check

To measure whether the manipulation of the CSR communication successfully induced empathy, I conducted a 2 (empathy induction) x 2 (social value orientation) ANOVA analysis. The analysis included social value orientation to make sure that the effect of the manipulation of empathy (high vs. low) on the manipulation check was significant regardless of social value orientation. According to the results, this indeed was the case. The interaction effect in the analysis was insignificant, F (1,189) = 0.007, p = 0.933. The main effects of social value orientation on the manipulation was insignificant, F (1,189) = 0.027, p = 0.870. There were no significant differences for a proself value orientation (M = 3.45) and prosocial value orientation (M = 3.52). As expected, only the main effect of the manipulation of empathy on the manipulation check was significant, F (1,189) = 7.042, p = 0,009. Participants in the high induced empathy condition (M = 3.73) perceived more emotional empathy, as a result of the CSR communication compared to the low induced empathy condition (M = 3.19).

Main ANOVA Analyses

To measure whether the high inducement of empathy increases brand attitude, CSR image, and purchase intention compared to no low inducement of empathy in CSR communication (cf. H1), I performed 2 (empathy manipulation: high vs. low) x 2 (social value orientation: proself vs. prosocial) ANOVA analyses. These analyses accounted for the possible moderation of social value orientation (cf. H5).

Brand Attitude

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significant, F (1,187) = 0.048, p = 0,826: a prosocial value orientation (M = 4.83) did not significantly increase brand attitude compared to a proself value orientation (M = 4.88).

CSR Image

For CSR image, the results of the 2 x 2 ANOVA on CSR image showed an insignificant interaction effect, F (1,191) = 0.137, p = 0.712 rejecting H7. The main effect of empathy inducement was also not significant, F (1,191) = 0.180, p = 0.671. High inducement (M = 5.16) did not significantly increase brand attitude compared to low inducement of empathy (M = 5.12). These findings reject H1. Finally, the main effect of social value orientation was also not significant, F (1,191) = 0.031, p = 0.859: a prosocial value orientation (M = 5.14) did not significantly increase brand attitude compared to a proself value orientation (M = 5.17).

Purchase Intention

For purchase intention, the results of the 2 x 2 ANOVA on purchase intention showed an insignificant interaction effect, F (1,191) = 0.447, p = 0.505 rejecting H7. The main effect of empathy inducement was also not significant, F (1,191) = 0.244, p = 0.622. High inducement (M = 4.07) did not significantly increase brand attitude compared to low inducement of empathy (M = 3.88). These findings reject H1. Finally, the main effect of social value orientation was also not significant, F (1,191) = 0.092, p = 0.763: a prosocial value orientation (M = 3.98) did not significantly increase brand attitude compared to a proself value orientation (M = 4.02).

Personal Relevance

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Mediation Analyses

To study the hypothesized mediation path, I conducted several analyses. First, a regression analysis analyzed whether the relation between personal relevance and brand attitude, CSR image, and purchase intention. After that, a simple mediation analysis tested whether there is an indirect effect of empathy inducement on brand attitude, CSR image, and purchase intention through personal relevance. Finally, the moderated mediation explained whether social value orientation moderated the indirect effect of empathy inducement on brand attitude, CSR image, and purchase intention through personal relevance.

To analyze whether personal relevance in CSR communication increases brand attitude, CSR image, and purchase intention, compared to no personal relevance in CSR communication, I performed a regression analysis. For all dependent variables, the regression analysis showed a significant outcome (see Table 1). Thus, I conclude that personal relevance in CSR communication increases brand attitude, CSR image, and purchase intention. Therefore hypothesis H3 is supported.

B R² p

Brand attitude 0.424 0.255 0.000

CSR Image 0.315 0.130 0.000

Purchase intention 0.500 0.195 0.000

Simple Mediation

Using a PROCESS analysis (model 4), I tested whether personal relevance mediated the effect of empathy inducement in CSR communication on brand attitude, CSR image, and purchase intention. The PROCESS analysis used 5000 bootstrap samples for 95% percentile bootstrap confidence intervals.

The results revealed that the empathy inducement did not significantly affected personal relevance, β = 0.14, CI = [-0.20; 0.49]. The main effect of personal relevance on brand attitude, β = 0.42, CI = [0.33; 0.52], CSR image, β = 0.31, CI = [0.21; 0.42], purchase intention, β = 0.50, CI = [0.36;

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0.63] were significant. Thus, personal relevance did positively increase brand attitude, CSR image and purchase intention. These findings are in line with the regression analyses presented above. The direct effect of the empathy inducement on brand attitude, β = -0.07, CI = [-0.32; 0.18], CSR image, β = -0.04, CI = [-0.31; 0.24] and, purchase intention, β = 0.06, CI = [-0.29; 0.41] were not significant. Finally, the index of the mediation analysis indicated that personal relevance did not significantly mediate the indirect effect of the empathy inducement on brand attitude, CI = [-0.10; 0.19], CSR image, CI = [-0.31; 0.24] and, purchase intention, CI = [-0.10; 0.26].

Full Moderate Mediation

Using a PROCESS analysis (model 7), I tested whether personal relevance mediated the effect of empathy inducement in CSR communication on brand attitude, CSR image, and purchase intention. Also, I investigated whether social value orientation (proself vs. prosocial) moderated the effect of the inducement of empathy on personal relevance in a moderated mediation analysis. The PROCESS analysis used 5000 bootstrap samples for percentile bootstrap confidence intervals. Figures 3, 4, and 5 show an overview of the findings.

Similar to the ANOVA analyses, the results revealed that the empathy inducement did not significantly affected personal relevance, β = 0.42, CI = [-1.08; 1.91]. Also, the interaction effect of the empathy inducement and social value orientation on personal relevance was insignificant, β = -0.20, CI = [-1.04; 0.63]. Thus, contrary to H5, social value orientation did not moderate the relationship between the empathy inducement and personal relevance.

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Figure 3: Moderated Mediation Analysis on Brand attitude

(Mediator: Cause Importance)

Figure 4: Moderated Mediation Analysis on CSR Image

(Mediator: Cause Importance)

Figure 5: Moderated Mediation Analysis on Purchase intention

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Discussion

General Conclusions

Being socially responsible becomes increasingly important for companies, but also consumers. Companies in Western countries are increasingly expected to share responsibility with governments to tackle certain societal issues (Ellis, 2010 in Kim, 2019). One can refer to companies’ commitment to solve certain societal issues as Corporate Social Responsibility (CSR). For companies, effectively communicating CSR activities is important to create awareness among consumers and realize potential benefits from it. Prior research confirms that CSR activities could positively influence firm performance (Beurden & Gössling, 2008), brand attitude (Pérez, 2019), CSR image (Thomassen et al., 2020) and, purchase intention (Pérez, 2019; Yen & Yang, 2018; Du et al., 2010).

The current research aimed to acquire a better understanding of the way induced emotional empathy influences the effectiveness of CSR communication and generates favorable business outcomes. Thereby, it examined the mediating effect of personal relevance between inducement of emotional empathy and favorable business outcomes. In the current research favorable business outcomes included brand attitude, CSR image, and purchase intention. Next to that, the current research investigated whether social value orientation acted as a potential moderator. In the design of the study, I manipulated emotional empathy within a CSR message (high vs. low empathy inducement).

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The findings of the current research contradict with Yen & Yang’s (2018) finding that emotional empathy could increase purchase intention. However, in their study, they refer to empathy as a personality trait. The current research manipulated situational empathy, which is distinctive from dispositional empathy. Thus, Yen & Yang’s (2018) findings may apply to the current research, however, it is important to consider that dispositional empathy and situational empathy are two different concepts. Furthermore, the current research rejects a finding by Lee (2016). Lee (2016) found that emotional empathy can motivate consumers to behave altruistically toward products with social claims. In the charity domain, Basil et al. (2008) found that empathy induced in the message positively influenced the willingness to donate. Also, those findings are contradictory to the findings of the current research. A potential explanation could be that the length of the message influences the effect. Although the manipulation of empathy was successful, a shorter version of the manipulation could potentially increase its effectiveness. For instance, Basil et al. (2008) used only one sentence to manipulate empathy.

Regarding personal relevance, the current research’ findings are in line with prior literature, stating that personal relevance increases favorable business outcomes (Du et al., 2010; Kim & Ferguson, 2014; 2018, Kim, 2017). Schmeltz (2012) argued that, consumers favor personally relevant information in CSR communication, and will therefore positively evaluated the brand associated with the CSR communication. Similar findings by Venger & Pormirleanu (2018) confirm prior statement, they also found that perceived personal relevance of the CSR activity positively influences the consumer’s evaluation of the company’s brand and products.

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Limitations and Future Research

To interpret the results, it is important to mention several limitations of the current research. First, in the survey the participants did only read the CSR communication text one time. As a result, participants, that were not fully aware of this, might not have thoroughly read the CSR communication presented in the survey. This might negatively influenced the results of the study. Therefore, future research should provide clear instructions for the participants by highlighting the importance of reading the text closely. Furthermore, the survey could include a mandatory timer for the CSR communication to make sure the participants attentively read the text. Second, future research could improve the quality of responses by including an attention check. The current research lacks an attention check. As a consequence, potential data of poor quality is kept into the analysis which might negatively influenced the results of the research.

Prior research acknowledged a positive influence of empathy on prosocial products (Lee, 2016), purchase intention (Yen & Yang 2018), and on donation behavior (Basil et al. 2008). However, the current research could not confirm previous findings as the results of the manipulation of emotional empathy in the CSR communication did not significantly increase brand attitude, CSR image, and purchase intention. Prior research regarding empathy, often focuses on dispositional empathy. However, limited research investigated the effect of situational empathy on favorable business outcomes in the context of CSR communication. Therefore, future research should further investigate the process in which situational empathy might contribute to favorable business outcomes. Acquiring a better understanding in how to frame CSR communication in order to evoke situational empathy. For instance by, adjusting the perceived distance to the topic of the CSR message (e.g. neighborhood problems vs. world problems), adjusting the amount of information in the message (e.g. high transparency vs. low transparency), including a personal quote of the subject in the CSR message, presenting a picture or video within the CSR communication, or adjusting the length of the message content. When research finds an effective way, evoking situational empathy may become an important instrument of effective CSR communication.

Managerial Implications

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relevance in CSR communication is an important contributor to favorable business outcomes. According to this finding, I recommend companies participating in CSR to make very clear why their CSR activities are personally relevant to consumers. Personal relevance elicits voluntary attention (Petty et al.1981 in Du et al., 2010), and it increases the likelihood that consumers accept the message and their attitudes (Garcia-Marques and Mackie 2001). In this way, personal relevance in CSR communication increases brand attitude, CSR image, and purchase intention.

Conclusion

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Appendices

Appendix I - CSR Communication in English (translated)

In the future people will be confronted with the effects of global warming due to CO2-emissions. For instance, people will experience more natural disasters. Besides that, because of huge streams of migration and food shortages, the tension in world politics will heat up.

To contribute to the solution of the problem ice cream brand Beckon is taking action to reduce CO2-emissions. The whole Beckon Ice Cream factory now runs on green energy, and besides that, residual ice is transformed into biogas.

Imagine how it would be for your future grandchild to be confronted with the effects of global warming

due to CO2-emissions. For instance, imagine how it would feel for your grandchild to experience more natural disasters. Besides that, because of huge streams of migration and food shortages, the tension in world politics will heat up.

To contribute to the solution of the problem ice cream brand Beckon is taking action to reduce CO2-emissions. The whole Beckon Ice Cream factory now runs on green energy, and besides that, residual ice is transformed into biogas.

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Appendix II – Original CSR Communication in Dutch

In de toekomst zullen mensen met de gevolgen van de opwarming van de aarde geconfronteerd worden.

Mensen zullen bijvoorbeeld steeds vaker natuurrampen gaan meemaken. Ook zullen door grote

migratiestromen en voedseltekorten de spanningen in de wereldpolitiek op scherp komen te staan. Om bij te dragen aan de oplossing van deze problemen onderneemt het

ijscomerk Beckon actie om de CO2-uitstoot te beperken. De volledige fabriek van Beckon Ice Cream draait nu op groene stroom en daarnaast wordt restijs omgezet in biogas. De uitstoot die niet voorkomen kan worden wordt gecompenseerd door investeringen in herbebossingsprojecten met lokale NGOs.

Stel je eens voor hoe het voor jouw kleinkind zal zijn om met de gevolgen van de opwarming van de

aarde geconfronteerd te worden. Stel je voor hoe het voor je kleinkind zal voelen om bijvoorbeeld steeds vaker natuurrampen mee te maken. Of in een wereld te leven waar door grote migratiestromen en voedseltekorten, de spanningen in de wereldpolitiek op scherp komen te staan.

Om bij te dragen aan de oplossing van deze problemen onderneemt het ijscomerk Beckon actie om de CO2-uitstoot te beperken. De volledige fabriek van Beckon Ice Cream draait nu op groene stroom en daarnaast wordt restijs omgezet in biogas. De uitstoot die niet voorkomen kan worden wordt gecompenseerd door investeringen in herbebossingsprojecten met lokale NGOs.

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Appendix III - Original Survey in Dutch

In dit onderzoek wordt onderzocht hoe de consument informatie beoordeelt die bedrijven op hun websites zetten. Het onderzoek zal ongeveer 7 minuten in beslag nemen. De antwoorden van de respondent worden vertrouwelijk en anoniem verwerkt, en worden niet gedeeld met andere partijen dan de scriptiestudent en de begeleider. U maakt kans op één van de twee waardebonnen van Bol.com t.w.v. €20,- door aan het einde van het onderzoek uw e-mailadres achter te laten. Eventuele vragen en/of opmerkingen kunnen gestuurd worden naar

g.s.hooghoudt@student.rug.nl.

Hierbij verklaar ik dat:

- Ik de informatie en het doel van dit onderzoek heb begrepen - Ik de mogelijkheid heb om vragen te stellen

- Ik vrijwillig deelneem aan dit onderzoek - Ik ben geïnformeerd over mijn rechten

- Ik begrijp dat ik op elk moment de kan stoppen zonder het geven van een reden. - Ik begrijp hoe de data wordt verwerkt en beschermd

- Ik 18 jaar of ouder ben

JA, ik ga akkoord

Nee, ik ga NIET akkoord

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Lees het onderstaande bericht goed door. We zullen hier zo dadelijk enkele vragen over stellen. U kunt het bericht maar 1 keer lezen.

Bron: Beckon Ice Cream website

In de toekomst zullen mensen met de gevolgen van de opwarming van de aarde geconfronteerd worden. Mensen zullen bijvoorbeeld steeds vaker natuurrampen gaan meemaken. Ook zullen door grote migratiestromen en voedseltekorten de spanningen in de wereldpolitiek op scherp komen te staan. Om bij te dragen aan de oplossing van deze problemen onderneemt het

ijscomerk Beckon actie om de CO2-uitstoot te beperken. De volledige fabriek van Beckon Ice Cream draait nu op groene stroom en daarnaast wordt restijs omgezet in biogas. De uitstoot die niet voorkomen kan worden wordt gecompenseerd door investeringen in herbebossingsprojecten met lokale non-profit organisaties.

Stel je eens voor hoe het voor jouw kleinkind zal zijn om met de gevolgen van de opwarming van de aarde geconfronteerd te worden. Stel je voor hoe het voor je kleinkind zal voelen om bijvoorbeeld steeds vaker natuurrampen mee te maken. Of in een wereld te leven waar door grote migratiestromen en voedseltekorten, de spanningen in de wereldpolitiek op scherp komen te staan.

Om bij te dragen aan de oplossing van deze problemen onderneemt het ijscomerk Beckon actie om de CO2-uitstoot te beperken. De volledige fabriek van Beckon Ice Cream draait nu op groene stroom en daarnaast wordt restijs omgezet in biogas. De uitstoot die niet voorkomen kan worden wordt gecompenseerd door investeringen in herbebossingsprojecten met lokale non-profit organisaties.

Manipulation check (derived from Lee, 2016)

1. Allereerst willen we u vragen in hoeverre u het eens bent met onderstaande stellingen. ○ Dit bericht laat mij snel en intuïtief voelen hoe de persoon in de tekst zich voelt ○ Dit bericht zorgt ervoor dat ik me zorgen maak over de persoon in de tekst ○ Dit bericht maakt me emotioneel verbonden met de persoon in de tekst ○ Dit bericht maakt me emotioneel betrokken

(1= volledig mee oneens, 7= volledig mee eens)

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Dependent variable: purchase intention (derived from Leliveld et al., 2020)

2. Geef aan in hoeverre u bereid bent om producten te kopen van het ijscomerk Beckon Ice Cream.

○ Ik ben van plan om Beckon Ice Cream te kopen ○ Er is een kans dat ik Beckon Ice Cream ga kopen (1= volledig mee oneens, 7= volledig mee eens)

Dependent variable: brand attitude (derived from Mitchell & Olson, 2014)

3. Wat vindt u van het ijscomerk Beckon Ice Cream?

○ Slecht → Goed

○ Hou ik niet van → Hou ik van ○ Onprettig → Prettig

○ Negatief → Positief

Dependent variable: CSR image (derived from Thomassen et al., 2018)

4. Geef aan in hoeverre u het eens bent met onderstaande stellingen.

○ Het ijscomerk Beckon Ice Cream is een maatschappelijk verantwoorde onderneming.

○ Het ijscomerk Beckon Ice Cream is bezorgd over het maatschappelijk welzijn. ○ Het ijscomerk Beckon Ice Cream heeft legitieme belangen bij het verbeteren van

de maatschappij.

○ Een bijdrage leveren aan de maatschappij is belangrijk voor het ijscomerk Beckon Ice Cream.

(1= volledig mee oneens, 7= volledig mee eens)

---page break---

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5. Denk nu nog even goed terug aan het bericht op de website van Beckon Ice Cream. In hoeverre bent u het eens met onderstaande stellingen.

○ Dit bericht is relevant voor mij

○ Dit bericht is persoonlijk relevant voor mij ○ Dit bericht beïnvloed mijn persoonlijke leven (1= volledig mee oneens, 7= volledig mee eens)

Dit was het eerste deel van het onderzoek. Als u nog opmerkingen heeft kunt u die hieronder schrijven. U mag de tekstbox ook leeg laten.

• Mogelijkheid voor opmerkingen/vragen

---page break---

Het tweede en laatste deel van het onderzoek bestaat uit algemenere vragen en een serie vragen over uw voorkeur voor het verdelen van waardevolle punten.

Demographic questions

1. Wat is uw geslacht?

a. Man b. Vrouw c. Anders

d. Wil ik niet zeggen

2. Wat is uw leeftijd? a. Getal

3. Wat is het hoogste opleidingsniveau dat u hebt voltooid? a. Middelbareschooldiploma of vergelijkbaar b. MBO

c. HBO of universiteit maar geen diploma d. Bachelor degree

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f. Anders, namelijk:

4. Wat doet u in het dagelijks leven? a. Ik werk (part-/fulltime)

b. Geen werk, werkzoekend (zonder studie) c. Geen werk, niet werkzoekend (zonder studie) d. Student

e. Anders, namelijk: ---page break---

Dit is het laatste onderdeel van het onderzoek.

Moderator: Social value orientation (derived from Van Lange, 1997)

In dit keuzespel wordt u gevraagd om u zich voor te stellen dat u willekeurig bent gekoppeld met een andere persoon. Deze persoon kent u niet, en deze persoon zal u ook niet ontmoeten in de toekomst. In dit keuzespel krijgt u steeds drie opties waaruit u een keuze gaat maken. Uw keuzes resulteren in punten voor uzelf en voor de andere persoon. Elk punt heeft waarde: Hoe meer punten u ontvangt, des te beter voor u, en hoe meer de andere persoon ontvangt, des te beter voor diegene. Hier is een voorbeeld:

A B C U krijgt 500 500 550 De ander krijgt 100 500 300

In dit voorbeeld, als u bijvoorbeeld kiest voor A dan ontvangt u 500 punten en de andere persoon ontvangt 100. U ziet, dat uw keuzes het aantal punten van zowel uzelf als de andere persoon beïnvloedt.

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A B C A B C (1) U krijgt 480 540 480 (6) U krijgt 500 500 570

De ander krijgt 80 280 480 De ander krijgt 500 100 300

A B C A B C

(2) U krijgt 560 500 500 (7) U krijgt 510 560 510 De ander krijgt 300 500 100 De ander krijgt 510 300 110

A B C A B C

A B C (5) U krijgt 560 500 490

De ander krijgt 300 500 90

Het onderzoek is afgerond. Deze studie richt zich op de effectiviteit van CSR (Corporate Social Responsibility) communicatie, in Nederland ook wel bekend als Maatschappelijk Verantwoord Ondernemen. In het onderzoek krijgen deelnemers verschillende versies van de communicatie van het ijscomerk Beckon Ice Cream te zien om te achterhalen welke factoren de effectiviteit van de CSR communicatie vergroten.

Bedankt voor uw deelname aan het onderzoek. Hieronder heeft u nog mogelijkheid voor eventuele opmerkingen.

Effectively Communicating CSR Activities: the Role of Emotional Empathy in CSR Communication