The implications of brand hypocrisy for corporate social responsibility (CSR) at the brand level of analysis remain largely unexplored. Drawing on attribution theory and the sense making perspective of CSR, this paper aims to develop a conceptual framework that highlights the negative effects of advertising skepticism on brand distance, as mediated by perceptions of brand hypocrisy. Furthermore, the study seeks to examine whether a brand’s commitment toward sustainability, consumers’ desire for exclusivity and brand trust have any impact on perceived brand hypocrisy and distance. As the effect of CSR skepticism and brand hypocrisy bears heavily on consumers’ attitudes and behaviour, this paper draws from several socio-psychological theories to identify how it can be pre-emptively abated. Findings will enrich the understanding of negative consumer inferences related to brands and provide a conceptualization of an understudied but increasingly relevant form of brand judgment.

The twenty-first century has been shaped by various catastrophes and scandals of companies which negatively influence the consumers’ perception of the firm. As a result, consumers nowadays are more skeptic and expect transparent information from companies such as details on product origin, labor standards and environmental aspects. Companies can profit from greater transparency on an organizational level through the improved interaction with their employees and business partners (Parris et al., 2016). Hultman and Axelsson (2007) propose that increased transparency by a company could have not only positive, but also negative results. Furthermore, consumers, too, are expected to participate in change towards more societal responsibility (Vitell, 2015). Thus, the purpose of this research is to investigate the influence of a) relevant types of corporate transparency and b) potential consequences on consumer attitudes and behavior such as perceived credibility, skepticism and purchase intention that can lead to consumer responsibility. This research applied a mixed-methods design in the context of the fashion industry. The findings of Study 1 (in-depth interviews) indicate that the two most relevant types of corporate transparency are supply chain transparency and cost transparency. In Study 2 (scenario-based experiment), these two types of transparency were tested for their effects on credibility and skepticism. Building on Information Processing Theory of Consumer Choice, the experiment showed that corporate transparency has a positive influence on the perceived credibility of a company and thereby decreases consumer skepticism. In contrast, it doesn’t have an influence on the consumer’s felt responsibility. Moreover, corporate transparency has a positive influence on the consumer’s responsible purchase intention. It is important to note, though, that the two types of transparency do not yield different results. In other words, as long as a company provides more infor-mation than commonly expected, e.g. on the production sites or on labor costs, perceived credibility of the company and, thus, consumers’ purchase intentions can be increased.