Abstract

The study examines the role of different Corporate Social Responsibility (CSR) initiatives on trust drop and restoration following a data breach and a subsequent CEO apology. The study uses four scenarios: website with recognition for genuine environmental CSR (W1), a website with environmental CSR for profit-motive (W2), a website with ethical CSR (W3), and a control website with no specific CSR initiative (W4). The data was collected from 500 Amazon MTurk workers and analyzed using ordinary least squares regression and multivariate tests. The results provide several significant findings confirming the role of CSR (vs. no CSR) and also the underlying motives (profit-motive vs. genuine environmental CSR) on trust drop and restoration. The results show that the role of privacy concern is moderated by the underlying CSR context. The paper concludes by discussing the managerial and theoretical implications.

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