Communicating a companyʹs positive impact on society—Can plausible explanations secure authenticity?

Organizations could prosper by delivering products and services that make society a better place. However, they face the challenge of successfully communicating what they contribute to society, especially if their contributions are closely related to their core business activities. The thin line between genuine societal engagement and the pursuit of profitability may feed societyʹs increasing skepticism about the genuineness of organizationsʹ care for societal issues. This study addresses the question of how a for-profit organization can successfully communicate what it intends to contribute to society while still coming across as authentic. If customers can explain the organizationʹs envisaged societal contributions in terms of characteristics of the organization, they can see more clearly how its contributions fit the organization and will perceive the organization as more authentic. Perceived authenticity, in turn, increases customer loyalty and perceived fit enhances stakeholdersʹ attitudes toward the organizationʹs societal engagement.