National identity and corporate social irresponsibility: The role of sympathy and moral outrage in explaining retaliatory behaviours

Past research suggests that stakeholders are more likely to retaliate against corporate social irresponsibility which affects victims having their same national identity (Lange & Washburn, 2012). Existing research, however,... [ view full abstract ]

Past research suggests that stakeholders are more likely to retaliate against corporate social irresponsibility which affects victims having their same national identity (Lange & Washburn, 2012). Existing research, however, does not offer a systematic explanation of this bias. The exploratory model presented in this paper suggests that the influence of the perceived similarity of the victims on emotions of sympathy and moral outrage explains differences in individual reactions. Individuals are more likely to feel sympathy when corporate social irresponsibility affects people who are perceived as closer to them. Higher sympathy, however, also increases moral outrage because it reinforces feelings of anger against the corporation. The joint role played by these two emotions partly explains why individuals are more likely to retaliate against companies that harm members of the in-group. Our research also suggests that individual bias is moderated by the perceived severity of irresponsible behaviour. When severity is high the influence of perceived similarity is reduced and observers are less biased in their perception of the victims. Findings from three studies support our exploratory framework and its implications for further research on corporate social irresponsibility are discussed in the paper.