Does corporate social responsibility cushion unethical brand behavior? Insights from chocolate confectionery

Food and agribusiness companies face increasing scrutiny of their corporate social responsibilities (CSRs) due to the impacts of their business activities on the environment and in society. In particular, the procurement practices of some companies in the commercial food industry have been linked to unsustainable farming, deforestation, and loss of biodiversity. This study investigates the extent to which a positive CSR reputation influences consumers' evaluations of a company and its new products following brand misconduct involving unethical procurement of palm oil. The results of an experiment revealed that a positive CSR reputation prior to the misconduct enhanced consumers' evaluations of the company and their support for its new products, thereby facilitating its recovery. These findings extend understanding of the potential insurance afforded by a positive CSR reputation and its halo effect in situations of brand misconduct in the food industry, in this case where a brand has failed to meet consumers' expectations of its obligations to avoid commercial activities that threaten the natural environment.