Corporate social responsibility in the retailing industry: a trust-based model of its effects on consumer behaviour with regard to organic food

Corporate Social Responsibility (CSR) is an important issue for retailers, because of consumer growing concern for the environment, the safety of products and the supply-chain conditions. Many studies have been trying to show that CSR impacts a variety of customer-related outcomes, but no research exists on the effects of CSR on consumer trust. We argue that socially oriented retailers can achieve competitive advantage in the product lines where trust is crucial in determining consumer choices. We tested this idea through a survey on a sample of Italian organic food purchasers and found evidence that when consumers believe that a retailer is committed to respect consumers’ rights and the environment, they are more likely to develop brand loyalty and a willingness to pay a premium price.