Why Gen Z cares about information sources on social media: the ways they share corporate misbehavior and good behavior

Abstract Generation Z (Gen Z) has emerged as a dominant force in the digital landscape, actively reshaping corporate reputation through their sensitivity to authenticity and ethical standards. Issues arising from corporate social irresponsibility (CSIR) have historically elicited negative consumer responses, whereas corporate social responsibility (CSR) seeks to build favor. However, in some cases, prompt and transparent responses to missteps have elicited favorable reactions, a trend predominantly influenced by Gen Z. Accordingly, this study employs the Persuasion Knowledge Model (PKM) to identify the specific conditions and mechanisms through which Gen Z disseminates ethical information. Two experiments involving 551 participants (Study 1: 277 Gen Z individuals; Study 2: 274 participants across generations) reveal that for Gen Z, perceived CSR (CSIR) leads to higher positive electronic word of mouth when the source is external (internal). Self-presentation motives drive this effect and appear only in Gen Z. This study broadens the theoretical application of PKM to ethical information diffusion context and provides strategic guidelines for companies to communicate effectively with Gen Z on social media.