ABSTRACT

The aim of this paper is to explore the effects of social proximity (defined by national and global identities) and geographic proximity (one’s own nation or foreign nations) on the moral recognition of corporate social responsibility (CSR). To achieve this objective we draw upon moral decision-making and social identity theory. We test our hypotheses using a homogeneous (in terms of age and education) sample from China and France (Study 1, N = 369) and replicate the study with a demographically heterogeneous sample from the United Kingdom (Study 2, N = 207). The results suggest that (1) national and global identities positively affect citizens’ moral recognition of CSR; and (2) global identity offsets the negative effect of geographic distance on moral recognition of CSR. These results indicate that global identity makes individuals care more about CSR abroad than they would without this identity.

Introduction

Individuals’ responses to different corporate social responsibility (CSR) initiatives are frequently attributed to the perceived personal benefit of the actions (Becker-Olsen, Cudmore, & Hill, 2006; Bhattacharya & Sen, 2003; Du, Bhattacharya, & Sen, 2010). Within this stream of research work, the effectiveness of CSR strategies tends to be evaluated from the perspective of reciprocity suggesting that stakeholders will support companies who engage in actions that directly or indirectly contribute to the stakeholders’ own well-being (Bhattacharya & Sen, 2003; Jones, Willness, & Madey, 2014; Vitell, 2015). In comparison, studies of sustainable citizenship argue that individuals may take a citizenship perspective to their behavior as consumers, employees, or investors and value CSR for its benefits to others (Crane, Matten, & Moon, 2004; Shah et al., 2012). For example, driven by their sense of responsibility as local citizens, stakeholders may consider the welfare of their own country in their consumer behavior (Balabanis, Diamantopoulos, Mueller, & Melewar, 2001; Shankarmahesh, 2006), or, as global citizens, they may take into account global social and environmental welfare (Castaldo, Perrini, Misani, & Tencati, 2009; Grinstein & Riefler, 2015; Shah et al., 2012). These insights highlight the importance of the citizenship role in supporting stakeholders’ appreciation of organizational actions that benefit other groups. This work also points to potential spatial differences in the citizens’ perspective on CSR where the groups of concern are local or global citizens (Shah et al., 2012). However, empirical research on this matter is scant and relies on untested assumptions such as the notion that greater geographic proximity to a group will increase moral concern for the implications of one’s actions on that group (Carlson, Kacmar, & Wadsworth, 2009; Jones, 1991; Mencl & May, 2009). The study of the citizens’ concern for people impacted by CSR actions is increasingly important in the current context of political calls for greater corporate responsibility to national, rather than global, social welfare (BBC, 11 January, 2017). The role of proximity to local and global beneficiaries in shaping the level of citizens’ recognition of corporate responsibility is of strategic importance for companies operating across multiple countries, where the notion of CSR has both a local and an international dimension.