How corporate social irresponsibility erodes consumer trust and shapes consumer responses: a mediation analysis

Purpose The purpose of this study is to contribute to the emerging corpus of research on corporate social irresponsibility (CSI) and consumer behavior. To this end, this study explores a structural model on the impact of CSI on consumer trust erosion and the subsequent behaviors. It specifically investigates the extent to which CSI impairs consumer trust and addresses the mediating influence of this loss of trust on adverse behaviors, such as boycotting and complaining. Design/methodology/approach This study uses a sample of 204 consumers who have experienced a CSI incident with a brand (in the fashion industry) and uses structural equation modeling to explore relationship pathways and assess significant mediation effects. Findings The results reveal a significant effect between CSI and declining brand trust, increasing consumer complaints. However, this study did not support the expected direct links between CSI and boycotts, as well as between erosion of brand trust and complaints, suggesting that trust erosion facilitates boycott intentions. In contrast, CSI perception fosters complaints. Erosion of brand trust fully mediates the relationship between CSI and boycotts. Research limitations/implications Although this study tackles unexplored areas of consumer behavior, its limitations could offer valuable direction for further research. This study is limited to examining CSI and its impact on trust erosion, complaints and boycotts in the French context. This conceptual framework used can be examined in other contexts to strengthen the findings’ generalizability. Moreover, the model is based on individual responses to CSI by assuming that the dynamics of groups – anti-consumption or resistant communities – have not been included in the comprehensive model (e.g. Dessart et al., 2020; Valor et al., 2022). In addition, it excludes the cultural impact on the mediating construct, namely, trust erosion. Practical implications This study provides actionable guidance for brands to prevent or repair trust erosion following a CSI incident. This guidance comprises prompt public acknowledgment, transparent corrective action and monitoring trust independently of complaint volume, because low complaint levels do not necessarily indicate contained damage. Social implications This study applies psychological contract violation theory to the field of corporate social responsibility (CSR), viewing CSR as an underlying psychological contract between brands, consumers and society, and shows that perceived breaches of this contract as perceived through companies’ wrongdoing can lead to downward spiral in the relationship and result in brand boycott. Originality/value Even though extensive research on brand responsibility is available, the psychological mechanisms underlying consumer responses to CSI remain constrained. This study demonstrates the importance of trust erosion in post-crisis consumer relationships and the need for proactive strategies to attenuate its adverse impacts on consumer behavior.