The Facts Panel on Corporate Social and Environmental Behavior (CSEB Facts Panel): A Remedy for Corporate Irresponsibility?

This research focuses on the information asymmetries between producers and consumers with regard to corporate social and environmental behavior. Similar to the nutrition facts Panel, the authors propose a facts panel on Corporate Social and Corporate Environmental Behavior (CSEB facts Panel) and test its effects on consumer response. Based on the results of a qualitative pre-study, findings of an experimental study demonstrate that when the CSEB facts Panel indicates responsible (vs. irresponsible) corporate behavior, companies can benefit from consumers’ increased willingness to pay a price premium. The authors discuss managerial, public policy, and theoretical implications.