Does Ethical Ideology Really Matter in Consumer Responses to Corporate Wrongdoing? The Effects on Trust and Word-of-Mouth Recommendations

The purpose of this study is to better understand how the ethical ideologies of consumers influence their responses to perceived corporate social irresponsibility (CSI), focusing on trust and word-of-mouth (WOM) recommendations. Data were collected through a survey involving 627 car owners in Poland, using a real-life case of CSI concerning a major car manufacturer fined for misleading consumers about diesel emissions. The analysis employed partial least squares structural equation modelling (PLS-SEM). The results indicate that moral idealism amplifies the negative effects of CSI on WOM, while moral relativism produces neutrality towards CSI. Specifically, it appears that highly idealistic individuals are more reluctant to make positive comments about a firm accused of irresponsible behaviour. However, individuals who are more relativistic do not appear to be more sympathetic towards or tolerant of firms that act irresponsibly. The study contributes to the literature by highlighting the role of individual ethical ideologies in shaping consumer reactions to corporate misconduct and offers insights for firms and organizations addressing CSI-related challenges.