The role of environmental management in consumers preferences for corporate social responsibility

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Journal Article
Environmental and Resource Economics, 2009, 44 (4), pp. 495 - 506
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Consumers in modern societies are increasingly sensitive to environmental per- formance by large and small corporations, making it a crucial issue in the overall policy of corporatesocialresponsibility.The objective of this paper is to study the role of environmental performance in the profile of corporate social responsibility as perceived by consumers. We utilize a stated preference approach to the study of consumers preferences. This approach allows for the evaluation in monetary terms of the trade-offs that individuals can make between various aspects of corporate policy decisions, including the extent of environmental performance. The data is modelled by means of a mixture heuristics approach that allows us to study the utilization of various decision rules in the choice of products with various degrees of environmental performance. The results show that the linear compensatory heuristic is the most extended across individuals and these subjects value most the policies concerned with environmental management. Those subjects opting for the non-compensatory decision rule tend to focus on the attribute of good labour relations as the most salient factor defining corporate social responsibility. In addition, policy measures are relatively more valued for some products rather than for others, suggesting that consumers discriminate between products when valuing companies environmental profiles.
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