Luxury Brands and Sustainability: The Differential Role of CSR Dimensions and Consumers’ Traits

The pressure for luxury firms to devote more attention to sustainability initiatives has increased in the last decade. Many luxury companies have made Corporate Social Responsibility (CSR) a prominent component of their marketing strategies. However, some studies suggest that CSR might decrease luxury brand image. This research examines whether and under what conditions consumers might react positively to different kinds of CSR initiatives undertaken by luxury companies. Extending the well-established multidimensional model of CSR, we categorize the four CSR dimensions as internal versus external. In three studies, we find evidence that, since luxury products are mainly instrumental to signal one’s status in social contexts, external CSR initiatives are more likely to increase consumers’ willingness to buy (WTB) luxury products than internal ones. Moreover, we demonstrate that this effect is particularly strong for consumers with a status- and conspicuous-oriented luxury approach.