Why do environmental wrongdoers avoid reputational penalties? The mediating role of moral disengagement and the effects of green values

Abstract

Given that social regulation of corporate environmental irresponsibility is not always effective, firms can maintain a good reputation despite engaging in irresponsible behaviour. However, relatively little is known about social inaction in this context. To help fill this important research gap, a conceptual model was developed by drawing on the social cognitive theory of morality. In the empirical context of cheating on emissions by a major car manufacturer, survey research was conducted, and data were collected. The findings of this study reveal that moral disengagement acts as a shield that partially protects a firm’s reputation for sympathy against news about environmental transgressions. Green consumption values serve as a boundary condition of this effect. Specifically, consumers who exhibit a green value orientation are less likely to justify environmental irresponsibility; however, the effect of moral disengagement is stronger in this group than among those who attach less importance to green values.