CSR Under Fire: Can Corporate Responsibility Defuse Consumer Anger Over Product Failures in Controversial and Uncontroversial Industries?

This study explores how corporate social responsibility (CSR) can reduce consumers' vindictive behavior following product failures, comparing its effects in controversial (tobacco) and non‐controversial (healthcare) industries. We surveyed 591 Indonesian consumers—287 evaluating tobacco companies and 304 healthcare companies. The findings show that when consumers see product failures as stable, they are more likely to act vindictively. Society‐serving CSR motivates consumers to engage with CSR activities and increases their willingness to purchase. CSR engagement builds consumer gratitude, which in turn lessens vindictive behavior and boosts purchase intentions. These effects differ across industries. Our findings suggest that CSR can buffer companies against negative reactions after product failures, and that tailoring CSR strategies to the specific industry context helps manage reputational risks.