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Resistance against corporate misconduct: an analysis of ethical ideologies’ direct and moderating effects on different forms of active rebellion

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Abstract

Consumer resistance against corporate wrongdoing is of growing relevance for business research, as well as for firms and non-governmental organizations (NGOs). Considering Fournier’s (1998) classification of consumer resistance, this study focuses on boycotting, negative word-of-mouth (WOM), and protest behavior, and these behavioral patterns can be assigned to the so-called “active rebellion” subtype of consumer resistance. Existing literature has investigated the underlying motives for rebellious actions such as boycotting. However, research offers little insight into the extent to which motivational processes are regulated by individual ethical ideology. To fill this gap in existing research, this study investigates how resistance motives and ethical ideology jointly influence individual willingness to engage in rebellion against unethical firm behavior. Based on a sample of German residents, PLS path analyses reveal direct effects of resistance motives, counterarguments, and ethical ideologies as well as moderating effects of ethical ideologies, which vary across different forms of rebellion. First, the results indicate that relativism (idealism) is more relevant in the context of boycott participation and protest behavior (negative WOM). Second and contrary to previous findings, this study reveals a positive effect of relativism on behavioral intentions. Third, individuals’ ethical ideologies do not moderate the effect of motivation to and arguments against engaging in negative WOM. On the contrary, the empirical analysis reveals significant moderating effects of relativism and idealism with regard to the effects of resistance motives and counterarguments on boycott and protest intention. Directions for future research and practical implications are discussed based on the study results.

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Notes

  1. Firms can also serve as substitute targets in so-called secondary boycotts (Schrempf-Stirling et al. 2013). For example, Chinese nationalists called for a boycott of the French retail group Carrefour and the French luxury brand Louis Vuitton after activists advocating for Tibetan independence disturbed the 2008 Summer Olympics torch relay in Paris (Pál 2009).

  2. A confirmatory factor analysis conducted with SPSS AMOS that considered one covariance between two error terms showed an acceptable global fit for the three dependent variables’ measurement models (χ2 = 123.30, p < 0.01; χ2/df = 3.08; Hoelter’s N = 217; GFI = 0.95; AGFI = 0.92; NFI = 0.95; TLI = 0.95; CFI = 0.96; RMSEA = 0.07).

  3. The authors evaluated the quality of measurement considering a confirmatory factor analysis conducted with SPSS AMOS. The global fit for the refined measurement of ethical ideologies can be regarded good to very good (χ2 = 42.88, p < 0.05; χ2/df = 1.72; Hoelter’s N = 434; GFI = 0.98; AGFI = 0.96; NFI = 0.97; TLI = 0.98; CFI = 0.99; RMSEA = 0.04).

  4. In order to see whether the differences in path coefficients are significant, we performed a “virtual” multi-group analysis based on the Welch-Satterthwaite test (Chin 2000). Each of the tests considers our sample twice as virtual subgroups. The analysis revealed that the difference in consumer motives’ path coefficients between the boycott model and the WOM model is significant (t value = 2.687, df = 838, p < 0.01). The same holds true for the difference between the boycott model and the protest model (t value = 3.960, df = 838, p < 0.01).

  5. The Welch–Satterthwaite test reveals significant differences in counterarguments’ path coefficients between the boycott model and the WOM model (t value = −2.263, df = 838, p < 0.05) as well as between the boycott model and the protest model (t-value = –1.980, df = 838, p < 0.05).

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Correspondence to Jörg Lindenmeier.

Appendices

Appendix 1

Question items and factor loadings (in parentheses)

Idealism (VIF = 1.58/1.56/1.64)

 ID_1

The dignity and welfare of people should be the most important concern in any society. (0.78/0.77/0.83)

 ID_2

One should never psychologically or physically harm another person. (0.78/0.78/0.75)

 ID_3

If an action could harm an innocent other, then it should not be done. (0.82/0.82/0.77)

 ID_4

One should not perform an action which might in any way threaten the dignity and welfare of another individual. (0.85/0.85/0.85)

 ID_5

A person should make certain that their actions never intentionally harm another, even to a small degree. (0.83/0.82/0.81)

Relativism (VIF = 1.20/1.23/1.23)

 R_1

Moral standards should be seen as being individualistic; what one person considers to be moral may be judged to be immoral by another person. (0.66/0.68/0.45)

 R_2

Rigidly codifying an ethical position that prevents certain types of actions could stand in the way of better human relations and adjustment. (0.83/0.72/0.91)

 R_3

Moral standards are simply personal rules which that indicate how a person should behave, and are not to be applied in making judgments of others. (0.68/0.89/0.63)

 R_4

Questions of what is ethical for everyone can never be resolved since as what is moral or immoral is up to the individual. (0.86/0.80/0.80)

Instrumental motives (VIF = 2.32/2.32/2.32)

 

By participating in this campaign…

 I_1

…I will help put pressure on the chocolate manufacturers to change their behavior. (0.85/0.85/0.85)

 I_2

…I can help change the chocolate manufacturers’ behavior. (0.84/0.84/0.84)

 I_3

My participation in this campaign is an effective means to make the chocolate manufacturers change their behavior. (0.86/0.86/0.86)

 I_4

I am obliged to participate in this campaign against the chocolate industry because every contribution – no matter how small – is important for the plantation workers in Africa. (0.84/0.84/0.84)

 I_5

I am obliged to use my freedom of choice and sovereignty as a consumer to help the plantation workers in Africa. (0.82/0.82/0.82)

 I_6

I want to participate in a campaign against criticized chocolate manufacturers because I am keen on being part of a successful action. (0.86/0.86/0.86)

Non-instrumental motives (VIF = 2.32/2.32/2.32)

 

By participating in this campaign, I could:

 NI_1

…express my anger toward the chocolate industry. (0.80/0.80/0.80)

 NI_2

…vent my accumulated rage against the chocolate industry. (0.83/0.83/0.83)

 NI_3

…reduce my anger toward the chocolate manufacturers. (0.78/0.78/0.78)

 NI_4

…punish the chocolate manufacturers criticized. (0.79/0.79/0.79)

 NI_5

…damage the chocolate manufacturers. (0.69/0.69/0.69)

 

I would:

 NI_6

…feel guilty if I did not participate in the campaign against the chocolate industry. (0.79/0.79/0.79)

 NI_7

…feel bad if other people who support the campaign saw me buying or eating products of the chocolate manufacturers criticized. (0.76/0.76/0.76)

 NI_8

…feel good if I supported the campaign against the chocolate industry. (0.82/0.82/0.82)

 NI_9

…feel good when participating because my friends/family are encouraging me to support the campaign against the chocolate industry. (0.76/0.76/0.76)

Social dilemma-related costs (VIF = 1.43/1.43/1.43)

 SD_1

I do not need to participate in this campaign; enough other consumers are doing so/will do so. (0.85/0.85/0.85)

 SD_2

I do not buy enough chocolate for it to be worthwhile participating; it would not even be noticed. (0.82/0.82/0.82)

 SD_3

I would not participate in this campaign because it would put people in danger who make a living from their work on the plantations. (0.83/0.82/0.83)

Product preference-related costs (VIF = 1.43/1.43/1.43)

 

I would not participate in this campaign because:

 PP_1

…fair trade chocolate is too expensive for me. (0.81/0.81/.81)

 PP_2

…the selection of fairly produced confectionary is very limited. (0.89/0.89/0.89)

 PP_3

…there is not enough fair trade cocoa available to meet the demand for chocolate in Germany. (0.86/0.86/.86)

Boycott intention

 

I can well imagine:

 B_1

…completely avoiding chocolate from the manufacturers criticized during Christmas time. (0.83)

 B_2

…substantially reducing the amount of chocolate I usually buy from the manufacturers criticized during Christmas time. (0.85)

 B_3

…switching to fair trade chocolate, produced with fair trade cocoa, during Christmas time. (0.82)

WOM intention

 

I can well imagine:

 W_1

…saying negative things about the chocolate manufacturers criticized to friends, relatives, and other people. (0.90)

 W_2

…recommending that my friends, relatives, and other people do not buy products of the chocolate manufacturers criticized during Christmas time. (0.92)

 W_3

…discrediting the chocolate manufacturers criticized with my friends, relatives, and other people. (0.89)

Protest intention

 

I can well imagine:

 P_1

…directly complaining to the chocolate manufacturers criticized (e.g., via e-mail). (0.80)

 P_2

…participating in actions of resistance on the internet against the chocolate manufacturers criticized (e.g., blogging or posting on social networks). (0.83)

 P_3

…participating in “real actions” against the chocolate manufacturers criticized (e.g., demonstrations, flash mobs, distribution of flyers). (0.83)

 P_4

…signing an online petition directed toward the chocolate manufacturers criticized, addressed to political decision makers in Berlin and Brussels. (0.73)

 P_5

…sending money to an organization that devoted itself to fighting abusive labor conditions and child work on cocoa plantations in West Africa. (0.74)

  1. The factor loadings are reported in an ordered sequence and, in each case, refer to the boycott model, the negative WOM model, and the protest behavior model

Appendix 2

Tests of hypotheses—PLS path analyses

  1. Levels of significance are based on 1000 bootstrapping runs
  2. ns not significant
  3. *** p < 0.01, ** p < 0.05, * p < 0.10

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Andersch, H., Lindenmeier, J., Liberatore, F. et al. Resistance against corporate misconduct: an analysis of ethical ideologies’ direct and moderating effects on different forms of active rebellion. J Bus Econ 88, 695–730 (2018). https://doi.org/10.1007/s11573-017-0876-2

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