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Influence of Corporate Green Reputation on Sustainable Consumer Buying Behaviour Are consumers affected by the sustainability practices of companies? AUTHOR: JANNE-KINA POSTMUS BACHELORTHESIS MANAGEMENT AND CONSUMER STUDIES DATE: MARCH 2017 SUPERVISOR: DR. R WESSELINK SECOND READER: V.C. MATERIA Green Store design of the Body Shop (source: https://goo.gl/images/sQDkul)

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Page 1: 20170315 Influence of Corporate Green Reputation on

InfluenceofCorporateGreenReputationonSustainableConsumerBuyingBehaviour

Areconsumersaffectedbythesustainabilitypracticesofcompanies?

AUTHOR:JANNE-KINAPOSTMUS

BACHELORTHESISMANAGEMENTANDCONSUMERSTUDIES

DATE:MARCH2017

SUPERVISOR:DR.RWESSELINK

SECONDREADER:V.C.MATERIA

GreenStoredesignoftheBodyShop(source:https://goo.gl/images/sQDkul)

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ABSTRACT

The influenceof aCorporateGreenReputationonConsumers’GreenBuyingBehaviour is researched in thispaper.OnetheonehandthefactorsthatinfluenceaCorporateGreenReputationareresearchedandonetheotherhandthefactorsthatinfluenceConsumers’GreenBuyingBehaviour.Furthermore,fourcompanieshavebeentakenasacasestudytodeterminethesustainablepracticesandactivitiesofcompaniesonthismoment.These activities and practices of companies on sustainability are connected to the factors that influence aCorporateGreenReputation and the factors that influenceConsumers’GreenBuyingBehaviour. In order tofindoutifthereisaninfluenceofCorporateGreenReputationonConsumers’GreenBuyingBehaviourandalsoto see whether those factors already arise in practice. There can be concluded that a Corporate GreenReputation is needed to make a green purchase. When consumers’ do not believe in or know about thesustainablepractices,abilitiesandproductsofacompanyandthereforetheCorporateGreenReputationofacompany.Thentheconsumerwillnotchoosethiscompanyoverothersonmakingagreenpurchase.

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CONTENT

1.INTRODUCTION...................................................................................................................................................6

1.1AIM.............................................................................................................................................................7

1.2RESEARCHQUESTIONS...............................................................................................................................8

1.3METHODOLOGY.........................................................................................................................................8

2.LITERATUREREVIEWONCORPORATEGREENREPUTATION(CGR)...................................................................10

2.1ValueSystem(InsideaCompany)............................................................................................................10

2.2Consumers’perceptionsonCompanies...................................................................................................10

2.3StakeholderEnvironment........................................................................................................................11

2.4GreenBranding........................................................................................................................................11

2.5FactorsthatPositivelyInfluenceCorporateGreenReputation...............................................................12

3.FACTORSINFLUENCINGCONSUMERS’GREENBUYINGBEHAVIOUR(CGBB)....................................................14

3.1GreenBuyingModel................................................................................................................................14

3.1.1ConsumerValues..................................................................................................................................15

3.1.2ConsumerKnowledge..........................................................................................................................16

3.2GreenStoreDesign..................................................................................................................................16

3.3BackgroundProfilesofGreenConsumers................................................................................................16

3.4MotivatorsforBuyingGreen....................................................................................................................17

3.5ProductAttributesofGreenProducts......................................................................................................17

3.6Trust.........................................................................................................................................................18

3.7FactorsinfluencingConsumers’GreenBuyingBehaviour.......................................................................18

4.ACTIVITIESONSUSTAINABILITYOFCOMPANIES..............................................................................................20

4.1IKEA..........................................................................................................................................................20

4.2Unilever....................................................................................................................................................21

4.3L’orealandTheBodyShop.......................................................................................................................23

4.4SustainabilityPracticesofCompanies......................................................................................................25

5.FACTORSCGR&CGBBCONNECTEDTOACTIVITIESONSUSTAINABILITYBYCOMPANIES................................27

5.1IKEA..........................................................................................................................................................27

5.2Unilever....................................................................................................................................................29

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5.3TheBodyShop&L’Oréal..........................................................................................................................30

5.4Differencesbetweenthecompanies.......................................................................................................33

6.CONCLUSION.....................................................................................................................................................34

7.DISCUSSION.......................................................................................................................................................36

REFERENCES..........................................................................................................................................................38

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1.INTRODUCTION

Inaworldwithincreasingnumbersofconsciousbuyersandsustainablecompanies,itisinterestingtofindoutifthereisarelationbetweenGreenBuyingBehaviourofconsumersandacompany’sreputation,whichcanbemoreor less sustainable.TheCorporateReputationofacompanybecomes increasingly important.FombrunandShanley (1990)define theconceptofCorporateReputationas ‘asetofperceptionsofpeople insideandoutside the company’.Acorporate reputation isbasedon theabilities thata companyhas inproducinganddeliveringproductsandservices(Brown&Dacin,1997).

Theimportanceofsuchacompany’sreputationisillustratedbyHenardandDacin(2010).Theydescribehowthe reputation for product innovation (RPI) has an impact on consumers’ behaviour. In their article, it isassumed that the perception a consumer has towards a company and its reputation for product innovation(RPI)haveadirectandpositive impactonconsumer involvement levels. Aconsumer involvement level is inthis same article described as playing a mediating role in the relationship between the perception of acompany’sRPIandtheconsumers’interestandexcitementtowardsthecompany(Henard&Dacin,2010).Thisconsumer involvement leveldependsontheexcitementor interestaconsumerhastowardsthefirm,overallfirmimage,propensitytopaypricepremiums,loyaltytothefirmandtoleranceforoccasionalfailure(Henard&Dacin, 2010). Furthermore, consumers who are more involved in a company, may be satisfied by theexpectationofaproductevenbeforeactualproductconsumptionandbesidesthattheyaremorepositiveandexcitedtowardstheinnovativecompany(Henard&Dacin,2010).Therefore,inthefieldofproductinnovation,there is a clear relation between consumers’ involvement and their buying behaviour in the context ofinnovation.

However,itisinterestingtoresearchhowsustainabilityandbuyingbehaviourofconsumerscanbeinfluencedby a corporate reputation on sustainability instead of RPI. Furthermore, to what extent this sustainablereputationcansupportconsumerstobuymoregreenproducts.ItisinterestingtoresearchtowhatextentthefindingsbyHenardandDacin (2010)aboutproduct innovationandbuyingbehaviourare transferable to theConsumers’GreenBuyingBehaviour.

In 1987 theWorld Commission on Environment and Development published the Brundtland Report, whichincluded the following definition of sustainable development: ‘Development which meets the needs of thepresentwithout compromising the ability of future generations tomeet their own needs’ (Brundtland et al.,1987).Thisdefinitionisbasedonthreepillars:economicgrowth,environmentalprotectionandsocialequality(Brundtlandetal.,1987).So,aCorporateGreenReputationisdefinedinthisthesisas:‘asetofperceptionsofpeopleinsideandoutsidethecompanyonmeetingtheneedsofthepresentwithoutcompromisingtheabilityoffuturegenerationstomeettheirownneeds’.Companiesthat try tomeetthissustainabilitydefinitionare forexample theGreenGiants. TheseGreenGiants include Tesla, Chipotle, Ikea,Unilever, Nike, Toyota,Natura,Whole Foods and GE’s Ecomagination (Williams, 2015, 2016). These companies generate at least a billiondollars each from products or services that have sustainability at their core. Together, they generate overhundredbilliondollarsayear(Williams,2015,2016).

However, in an article byMohr et al. (2001) the impact of Corporate Social Responsibility (CSR) on buyingbehaviourisexplored.Theresultsofthisstudyshowthatconsumersarepositivetowardssociallyresponsiblecompanies,whichmayresultinbuyingbehaviour(Mohretal.,2001).However,theaimofthispaperistofindoutifthereisarelationbetweenreputationandbuyingbehaviour(andnottoCSR).Nevertheless,thestudybyMohr et al. (2001) shows that acting sustainable can be positive for a company. Therefore, the relationshipbetweenCSRandacorporatereputationhastobemadeclearastheseconceptsarecloselyrelated.CSRcanbedefined as ‘a concept whereby companies integrate social and environmental concerns in their businessoperations and in their interaction with their stakeholders on a voluntary basis’ (European Commission.Directorate-GeneralforEmploymentSocialAffairs,2002).Therelationshipbetweenthesetwoconceptscanbe

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explained by a study of Gardberg and Fombrun (2006). In this study, it is stated that a positive corporatereputation canbe seenasa relevantoutcomeofCSRactivities.Activities related toCSR includeactivitiesofsustainability (both integrate social and environmental concerns) and as stated byMohr et al. (2001) actingsustainable canbepositive for a company. In conclusion,beinga social responsible company can result in abetter corporate reputation andmay result in green buying behaviour. Therefore, it is interesting towhatextentCorporateGreenReputationcanbeof influenceonConsumers’GreenBuyingBehaviourandhowCSRactivitiesstrengthenthesetwoconcepts.

Besides working on a Corporate Green Reputation as a company, it is also a challenge to transform thebelieves,values,consumptionpatternsandlifestyleofconsumersfromgreytogreenconsumers(whoprefergreenproducts and services that support anddo lessharm to theenvironment (Younget al., 2010)). In thistransition,theattitudebehaviourgapplaysanimportantrole.Thisgapillustratesthegapbetweenthevaluesandbehaviour.Althoughpeoplehavegreenvalues,thesevaluesarenotreflectedintheirbehaviour(Kollmuss&Agyeman,2002).IncaseofConsumerGreenBuyingBehaviour,itcanbedescribedasbeingpositivetowardssustainable products and services but not willing to pay for green products and services. Furthermore, thereasonedactiontheoryplaysaroleincompletingagreenpurchase,whichisthebehaviourofconsumersthatisdependentontheattitudetheyhavetowardsthatbehaviour(Fishbein&Ajzen,1977).Whenconsumersdonothaveapositiveattitudetowardsgreenproductsandbuyinggreenproducts,theywillnotshowgreenbuyingbehaviour. So, in order to create a greener lifestyle among consumers, inwhich green products are boughtprovidedbygreencompanies, thegapbetweenvaluesandbehavioursof consumers shouldbeclosed.Also,creatingpositiveattitudestowardsbuyinggreenproductsamongconsumers.

Overall, it is thus interesting for companies to know to what extent a Corporate Green Reputation has aninfluenceonConsumers’GreenBuyingBehaviour.Forexample,theGreenGiantsgenerateabilliondollarseachyear. Does this also lead to increasing consumption of their green products compared to their non-greenproducts? Furthermore, it is interesting to findouthowCorporateGreenReputationandConsumers’GreenBuying Behaviour can be influenced. By finding out if Corporate Green Reputation and Consumers’ GreenBuyingBehaviour is related, companies should start toactmore sustainableand thereby createa corporategreenreputationwhichcaninfluenceconsumerstomakemoregreenpurchasesandwillresult ingeneratingrevenueasisseenbytheGreenGiants.

1.1AIM

ThispaperattemptstoexploretowhatextentthereisarelationshipbetweenCorporateGreenReputationandConsumers’ Green Buying behaviour. Therefore, factors that influence a Corporate Green Reputation andfactorsthatinfluenceConsumers’GreenBuyingBehaviourwillbeexamined,inordertocontrastandcomparethesefactors.Also,lookingattherecentactivitiesandpracticesofcompaniesonsustainabilityandconnectingthesewiththefactors that influenceaCorporateGreenReputationandConsumers’GreenBuyingBehaviourwill help to explore the possible relation. This factors that influence a Corporate Green Reputation andConsumers’GreenBuyingBehaviour canprovide guidelines to companies in the future onhow to actmoresustainable. Also, how to translate their activities and practices on sustainability to consumers and whichactivitiesandpracticesaremosteffectiveinordertoactandbemoresustainable

This paper is of relevancebecause there is, tomy knowledgeno literature yet on the effect of a CorporateGreenReputationonConsumers’GreenBuyingBehaviour.Inthefollowingsectiontheresearchquestionsaredescribed to explore if there is a relationship between the concepts Corporate Green Reputation andConsumers’GreenBuyingBehaviour.

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1.2RESEARCHQUESTIONSGeneralResearchquestion:TowhatextentdoesCorporateGreenReputationInfluenceConsumers’GreenBuyingBehaviour?Subresearchquestions:

- WhatarethefactorsthatinfluenceaCorporateGreenReputation?

- WhatfactorsdoinfluenceConsumers’GreenBuyingBehaviour?

- Whatarethesustainabilitypracticesandactivitiesofcompanies?

- Towhat extent is possible to connect the activities and practices of companies on sustainability asfactorsthatinfluencetheCorporateGreenReputation?

- Towhatextent is itpossible toconnect theactivitiesandpracticesofcompaniesonsustainabilityasfactorsthatinfluenceConsumers’GreenBuyingBehaviour?

1.3METHODOLOGY

Thefirstthreesubresearchquestionsasdescribedaboveareansweredbyreviewingliterature.Byansweringthese three sub research questions, three lists are composed: a list of factors thatwill influence CorporateGreenReputation(CGR),alistoffactorsthatinfluenceConsumers’GreenBuyingBehaviour(CGBB)andalistofsustainableactivitiesandpracticesasexecutedbytheselectedcompanies.Thecompaniesselectedare:IKEA,Unilever, The Body Shop and parent company L’Oréal. These companies are selected through snowballsampling.TheInformationabouttheactivitiesandpracticesonsustainabilityareextractedfromsustainabilityreportspublishedbycompaniesthemselves,articlesappearedintheMediaandreportspublishedbyNGO’s.

Bycomparingtheseactivitiesandpracticesandconnectingthesetothefactorsasretrievedfromliterature,thiswill give insight into how sustainability is embedded in a company and how this can be of influence on aCorporateGreenReputationandConsumers’GreenBuyingBehaviour (seeFigure1).The factorsofCGRandCGBBarethuscomparedtothesustainableactivitiesandpracticesofthecompanies.Inthisway,eachseparatesub-research questionwill be answered in order to find out to what extent Corporate Green Reputation isrelatedtoConsumers’GreenBuyingBehaviour.

Figure1–TheoreticalFramework

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The second chapter describes the various factors that influence CGR, extracted from literature. The thirdchapter describes factors that influenceCGBB. The fourth chapterwill give an insight into the activities andpracticesofcompaniesonsustainability.Inthefifthchapter,thefactorsonCGRandCGBBasdescribedintheprevious chapterswill be compared to the activities andpractices of companieson sustainability,which aredescribedinthefourthchapter.

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2CORPORATEGREENREPUTATION(CGR)

Inthischapter, thefollowingresearchquestion isanswered: ‘Whatarethefactorsthatpositively influenceaCorporateGreenReputationaccordingtoliterature?’.TheconceptCorporateGreenreputationandfactorsthatinfluencethisconceptareanalysed.ThesefactorsarepresentedbyanarticlebyFombrun&Shanley(1990)asstartingpointandcomplementedbyfactorsthataroseinotherarticles.Thefirstfactorthatwillbementionedare the perceptions of people inside a company on how the company is performing, these perceptions areformed in the value system of a company (see section 2.1). In addition, consumer perceptions have aninfluenceonacompany’sreputation(seesection2.2).Furthermore,therelationalcapitalacompanyhas isafactor that will influence the perceptions of people outside the company (see section 2.3). Green brandingstrategywillinfluencetheperceptionsonthesustainableactivitiesofcompanies(seesection2.4).

2.1VALUESYSTEM(INSIDEACOMPANY)

Asstatedbefore,CGRisformedbytheperceptionsofpeopleinsideacompanyandtheseperceptionsshouldbetakenintoaccount.Avaluesystemisafactorthatinfluencestheperceptionsofpeopleinsidethecompany.The Value System in a company is a way of conceptualizing reality and contains a consistent set of values,beliefs and correspondingbehaviours towards the values andbeliefs by thepeoplewhoare connected to acompany(Beck&Cowan,2014).Incasethevaluesystemonsustainabilityispresent,peopleinsideacompanycancreatecorrespondingbehaviour towards thecompany’svaluesandbeliefsonsustainability. Further, thevaluesystemthatispresentinacompany,togetherwiththeexternalenvironmentalconditionswilldeterminethepotentiallevelofcorporatesustainability(VanMarrewijk&Werre,2003).Thus,acompany’ssustainabilityvaluesystemisafactorthatinfluencesCorporateGreenReputationinsidethecompany.

2.2CONSUMERS’PERCEPTIONSONCOMPANIES

The perceptions of people outside the company are of relevance, these perceptions include those ofstakeholdersandconsumers.Therefore,howconsumersperceivethecompanyisafactorthatcontributestoaCorporate Reputation. The results of three studies conducted by Brown and Dacin (1997) showed that theperceptions of consumers on companies in general are based on theknowledge that consumers have of acompany’spracticesandactivities.Thiscaninfluencetheirbeliefsaboutandattitudetowardsproductsofthatcompany.Knowledgeisespeciallyimportantfornewproducts,asconsumersdonotknowtheseproducts,theyuse their perceptions and the reputation of the company to create perceptions and expectations for newproducts of the company. Furthermore, associations on company abilitiesmay have a greater impact onspecific product perceptions and the overall corporate evaluation than a reputation for social responsibility.Associationsoncompanyabilitiesmeanswhatapersonorconsumerknowsaboutthecompany’sabilities,e.g.theabilityofacompanytoactsustainable.Also,evaluationsontheperformanceofacompanyinfluencetheperceptionsofaconsumeronacompany.Theseevaluationsonnewproductscandifferdependingonthetypeofassociationsoncompanyabilitiesthatareheldbyconsumersonacompany.Thelastcomponentthatwillinfluence the perceptions of consumers on a company are theactual abilities on producing and deliveringproductsandservicesofacompany.

Theresultsdescribedaboveareestablishedonperceptionsofcompaniesingeneral,sonotnecessarilygreencompanies. Besides, it is stated, in a study by Miller and Merrilees (2013), that there is a link betweenassociations on a company’s corporate brand and consumers’ perceptions on sustainability activities andpracticesofacompany.

Knowledgeof consumers canbedivided into twodifferent typesof knowledge; knowledgeon sustainabilityandknowledgeonacompanyanditsproductsandservices.InanarticlebyKianpouretal.(2014)itisdiscussedthatknowledgeaboutenvironmental issuesandproblems isamotivator forconsumers tobuygreen.This is

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furtherdescribedinChapter2,inwhichthefactorsthatinfluenceGreenBuyingBehaviourofConsumerswillbediscussed(Kianpouretal.,2014;Miller&Merrilees,2013;Youngetal.,2010).Knowledgecanalsobebasedonthe knowledge that consumers have on the reputation a company has and the products it produces. Theknowledgethatconsumershaveofacompanyingeneral,sonotspecificagreenone,caninfluencetheirbeliefsaboutandattitudetowardsproductsofthatcompany(Brown&Dacin,1997).

Aboveisdescribedofwhichcomponentsperceptionsconsist(knowledge,associationsonabilities,evaluationsandactualabilities). It isalsoimportanthowtheseperceptionsareformed.AstudybyFombrunandShanley(1990)describeshowperceptionsofconsumersareformedandonwhichcomponents.Onecomponentthatforms consumers’ perceptions is resource allocation. Another component that forms perceptions is thequestionwhetheracompanyactssociallyresponsible,becauseactivitiesonCSRwillcreateperceptionsaboutthe company. The practices and activities done by a company should be highlighted to consumers throughmedia exposure. Consumers’ Perceptions are formed by, resource allocations, social responsiveness,institutionalownership,mediaexposure,andcorporatediversification(Fombrun&Shanley,1990).

2.3STAKEHOLDERENVIRONMENT

Besidesconsumersandemployees, therearealsootherstakeholders thatshouldbe taken intoaccountasafactorabletoinfluenceCorporateGreenReputation(deLeaniz&delBosque,2013).Aconceptthatcanexplaintheserelationships isRelationalCapital. It isbasedontheviewthatacompanyisnotanisolatedsystembutpartof itsenvironmentanddependentontherelationswith itsenvironment (Kaleetal.,2000).TherelationbetweensustainabilityandCorporateReputationisacomponentofrelationcapital.Incaseacompanyisclosertoitsenvironment(thisconsistsofallrelevantstakeholders,customers,suppliers,shareholders),thecompanyisbetterabletounderstand,analyseandmakedecisionsaboutitsindustry(deLeaniz&delBosque,2013).Forexample,supplierscouldhelpdevelopmoresustainableproductsbysupplyingrawmaterialsandsemi-finishedproductswhichareproducedandextractedinasustainableway.

Byprovidingrelevant informationaboutsustainabilitytostakeholders,thecompanywillobtainanadvantagebasedongoodreputationingeneral,sonotspecificallyagreenreputation(deLeaniz&delBosque,2013).Itisimportant that theenvironmentofa companyknowsabout thepracticesandproducts thecompanyadoptsandproduces and these practices should be communicatedwell in order to generate thedesired consumerbehaviour(Pivatoetal.,2008).Communicationwillcreateabetterreputationonthecompany’ssustainabilitylevelamongthestakeholders(deLeaniz&delBosque,2013).TheLegitimacytheorybySuchman(1995,p.574)considers that: ‘legitimacy is a generalized perception that the actions of an individual are desirable withinsomesocially constructedsystemofnorms,values,beliefsanddefinitions’.This theoryapplied toacompanymeans that how a company responds to societal-environmental issues and behaves in a sustainable way isdependedontheviewofthestakeholders(becausetheyaretheenvironmentofacompany(Suchman,1995)).

Therefore, the legitimacy theory supports in this case the importance of communicating and responding toinfluential stakeholders. Inconclusion, it is important foragreencompanytohaveanduserelationalcapitalbecausethiswillcreatebetteracknowledgmentofthecompany’ssustainabilitypracticesamongstakeholders.ThiswillhelptogetaGreenReputationaswellasrespondinginagoodwaytoitsenvironment.

2.4GREENBRANDING

Green branding allows companies creating more knowledge of their products and practices for beingsustainableinthemindsofpotentialcustomers.GreenBrandingisthereforeaninfluentialfactoronCorporateGreenReputation.InastudybyMillerandMerrilees(2013)itisstatedthatthereisalinkbetweenassociationsonacompany’scorporatebrandandtheperceptionsofconsumersonthesustainabilityactivitiesandpracticesof a company. Also, a study by Lai et al. (2010) mentioned that customers’ perceptions of company’s CSRactivities positively enhance the company’s reputation. Furthermore, CSR activities have an effect on brand

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performance (within this study brand performance is defined as financial performance) and this is partiallythrough brand equity and the effects of Corporate Reputation (Aaker, 1996). The termbrand equity can bedescribedasthevaluethatfivecomponentsgivetotheproduct,therebyaproductwithhighbrandequity isperceivedbetterbyconsumersthanaproductwithoutahighbrandequity.Thesefivecomponentsarebrand-name awareness, brand loyalty, brand associations, perceived quality and other proprietary brand assets(Aaker,1996).Thesefivecomponentsshouldbetakenintoaccountforeveryproduct.Thisisvalidalsowhenacompanyplaces a ‘green’ brandon its products. The companywants to generate value for consumers for acertainproduct. In this case, the companywants to createvalueamongconsumers forproducingandbeinggreen.Also,CSRandCorporateReputationprovokeconsumers’emotionalperceptionsofcompaniesandthisleadstoanassociationbetweentheirperceptionsandthebrandstheypurchase(Laietal.,2010).Thus,bothdevelopingbrandequity aswell as enhancingCorporateReputationof companieswho supply thesebrands,resultinbetterfinancialperformance.

With regard to sustainability and brands; a green brand identity can be defined as a specific set of brandattributes and benefits, linked to a reduced environmental effect of the brand and the perception of it(Hartmannetal.,2005).Therefore,itisimportanttopositionthebrand,asa‘greenbrand’,thatentailsactivecommunication and differentiation of the brand through its environmental attributes in order to serve thegreenmarket.Consumerswanttobeawareofthebenefitsoftheproductsandhowsustainabletheproductsare;thisissupportedbythefactthateffectivecommunicationwillmotivateconsumerstobuyagreenproduct(Pickett-Baker&Ozaki,2008).Informationcanbecommunicatedbasedonproductionprocesses,productuseorproductrejectioncomparedtoconventionalproductsincaseofgreenproducts(Peattie,1995;Pickettetal.,1995).AstudybyHartmannetal.(2005)discussedemotionalversusfunctionalpositioningstrategiesforgreenpositioningofbrands.Intheexperimentconducted,threedifferentexperimentaladvertisementsonacarwerepresented.The firstwasa functionalbrandpositioning strategywithdetailed technical features.The secondonewasanemotionalpositioningstrategybyshowingthebrandinapleasantimageryscenerytocreatefeelingofbreathingfreshmountainairandfeelingasfreeasaneagle.As last,acombinationofbothstrategieswasconducted.Theresultsof thestudyshowedthat in thecaseofgreenpositioning, there isanoverallpositiveinfluenceonbrandattitude.Further,themosteffectivebrandingstrategyisacombinationofbothfunctionalandemotional positioning strategy (Hartmannet al., 2005). Thus, a greenbranding strategy is an influentialfactorforaCGRbecauseitwillcreatepositiveperceptionsandbetterknowledgeamongpotentialcustomers.

2.5FACTORSTHATPOSITIVELYINFLUENCECORPORATEGREENREPUTATION

Thischapterprovidedanansweronthesub-researchquestion‘WhatarethefactorsthatpositivelyinfluenceaCorporateGreenReputationaccordingtoliterature?’.ItismadeclearwhatCorporateGreenReputationisandwhichfactorsarepositivelyinfluencingthereputationonsustainabilityforaconsumer(seeFigure2forallthefactors). It is shaped by people inside a company to create abilities to act more sustainable and shapeperceptionsabouttheircompany.Besides,alsoforpeopleoutsidethecompanywhichwillcreateperceptionsaboutthecompanywhichresultsinareputation.

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In short, the factor value systems are important for a CGR because in order to have a green reputation, acompanyshouldholdgreenvalues.Otherwisetherewouldbenoperceptionsofpeopleinsideacompanyonthefactorgreen.Perceptionsofconsumersarethesameforcompaniesingeneralasforgreencompanies,butknowledgeisanimportantfactorincaseofsustainability.Thefactorswhichwillformconsumers’perceptionsarenotdifferentforagreencompanycomparedtoacompanyingeneral.RelationalcapitalisofinfluenceonaCGR because it will create better acknowledgment of the company’s sustainability practices amongstakeholders, aswell as responding to its environment. An influential stakeholder could help a company toproduce greener and being perceived as greener by granting for example a certification for a sustainablepracticeitisadopting.AgreenbrandingstrategyisaninfluentialfactorforaCGRbecauseitwillcreatepositiveperceptions and better knowledge among potential customers about the green products and services it isproducing.Greenbrandingstrategywilllinkactualperformancesandperceptionsaboutacompany’spracticesonsustainability.

Inthenextchapter,whatfactorsinfluenceConsumerGreenBuyingBehaviourwillbedescribed.

• ValueSystem• Perceptionsofconsumers

(consistof:1.Knowledge,2.Associations,3.Evaluationsoncompanyabilitiesand4.Actualabilitiesofacompany)areformedby:

o ResourceAllocationso SocialResponsiveness/CorporateSocialResponsibility

activitieso Institutionalownershipo MediaExposureo CorporateDiversification

• Relationalcapital(stakeholderenvironment)

• GreenBranding

Figure2-FactorsforaCorporateGreenReputation

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3.FACTORSINFLUENCINGCONSUMERS’GREENBUYINGBEHAVIOUR(CGBB)

In this chapter, the second sub-research question will be answered ‘What factors do influence Consumers’GreenBuyingBehaviour?’.This sub-researchquestion relates to theattitude-behaviourgap, inwhichpeoplemayhave values towards buying green.However, these values are not always reflected inGreenConsumerBuyingBehaviour(Kollmuss&Agyeman,2002).Theattitude-behaviourgapisthedifferencebetweenwantingtobuygreenproducts,butintheendnotbuyingthem.Furthermore,thetheoryofreasonedactionplaysaroleinGreenBuyingBehaviour;thistheoryreferstothebehaviourofconsumersthatisdependentontheattitudetheyhave towards that behaviour (Fishbein&Ajzen, 1977). Sowhendefining the factors thatwill influenceConsumers’GreenBuyingBehaviour, it isofrelevancetotakethesetwotheories intoaccount.Furthermore,thesetwotheoriesdescribetheinfluenceonthepurchaseofagreenproduct.

To complete a green purchase, consumers should take steps tomake this purchase that are described andexplainedintheGreenBuyingModel(seeSection3.1).Thismodelisusedtodefinefactorsthatinfluencethegreenbuyingbehaviourof a consumer. Further, other articles areused in addition to thismodel. Importantfactorsofthisbuyingprocessareconsumptionvalues(seeSection3.1.1)andknowledgeaboutGreenproductsand buying Green (see Section 3.1.2.). The environment in which the green purchase is made is also ofinfluenceonthegreenpurchase.Furthermore,agreendesignwithinthestorewillinfluencethepurchase(seeSection3.2).ThedecisiontobuyGreenornotcanbeindicatedbythebackgroundprofileaconsumerhas(seeSection3.3).InordertocompleteaGreenpurchase,consumershavetobemotivatedandthereforemotivatorsingreenbuyingbehaviourhavetobetakenintoaccountasafactorthatisofinfluence(seeSection3.4).Theproductattributesareofrelevancebecausetheproducthastobegreeninordertobuygreen,butmustalsoincludequalitybecauseproductsthatdonotservetheconsumerwell,willnotbesold(seeSection3.5).Intheend,itwillallcomedowntotrust.Whenpotentialcustomersdonottrustthecompanyanditsproductstheywillnotbuygreen,eveniftheyhavetheintentiontobuygreen(seeSection3.6).ThesestepsandfactorsthatinfluencetheCGBBaredescribedandexplainedbelow.

3.1GREENBUYINGMODEL

When consumers are trying to be green consumers, they are struggling to transfer their environmentalconcerned attitude into green purchasing behaviour. A model of green consumer buying behaviour wasdeveloped by Young et al. (2010). The first element of this model (see Figure 3) are the values of greenconsumersand theknowledge theyhaveongreenproducts ingeneral.Values are important,because thesewill frame the buying behaviour in terms of holding on to this behaviour. Besides, values are important topursue the green criteria. These values are influenced by the knowledge of relevant issues and previouspurchaseexperienceof theconsumer.Thenextstep is thepickingofgreencriteria for thegreenpurchasingprocess. The green criteria influencing the purchase can hold strong barriers which influence the purchase.Thesebarriersincludelackoftimeforresearch,highprices,lackofinformation,thecognitiveeffortneededforeach purchase and strong non-green criteria. Furthermore, thesebarriers can explain partially the attitude-behaviourgap,becausetheycanbehighanddominatethepositivecriteriatowardsbuyinggreen.Therefore,barriersareafactorthatinfluencestheCGBB.Though,thesebarriersarepartofthepurchasingcriteriaformedbythegreenconsumer.Ontheotherside,facilitators(greenlabels,specialistinformation,availabilityofgreenproductsinmainstreamretails,andguilt)caninfluencethegreenconsumerpositivelytowardsgreenpurchase.So,facilitatorsareafactorthatinfluencesCGBBandwillbediscussedfurtherbyusingthetermmotivatorsinSection3.4.Instepfour,theactualpurchaseismadeandafterwardstheconsumerwillevaluatehispurchaseandwillusethisfeedbackinthenextgreenpurchaseprocess.

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Thefollowingcriteria(steptwoofthegreenbuyingmodel)areimportanttohelptheconsumerstocompleteorpreventagreenpurchaseandinfluenceConsumers’GreenBuyingBehaviour(Youngetal.,2010):

• Theconsumer’svalueisstrong• Theconsumerhaspurchaseexperience• Theconsumerhasplentyoftimeforresearchanddecision-making• Theconsumerhasgoodknowledgeoftherelevantenvironmentalissues• Greenproductsarereasonablyavailable• Theconsumercanaffordandispreparedforthefinancialcost• Barriers(lackoftimeforresearch,highprices,lackofinformation,thecognitiveeffortneededfor

eachpurchase,andstrongnon-greencriteria)• Facilitators (green labels, specialist information, availability of green products in mainstream

retails,andguilt)

Ifoneofthesefactorsisweakorabarrierishigh,thisfactor/barrierwillhaveanegativeeffectontheinfluenceofgreencriteriaforthefinalpurchase(Youngetal.,2010).Itissuggestedinthispaperthatcompaniesshouldtake these factors into account when trying to influence their consumers in buying green and attempt tostrengthenthesefactors.

Thefirstelement/stepoftheGreenBuyingModelisgreenvalues&knowledgeandwillbeexploredinSection3.1.1 and Section 3.1.2 respectively. These are the foundations of theBuyingModel andwill determine thefurtherstepstakeninmakingaGreenPurchase.

3.1.1CONSUMERVALUES

ThetheoryofShethetal. (1991)explainsthatvalues inactualgreenbuyingbehaviourcanbedivided in fiveconsumption values influencingCGBB. This theory explainswhich values consumers canhave in choosing tobuyornottobuyaspecificproduct.Thefiveconsumptionvaluesare:

• Functionalvalue:theperceivedutilityfromanalternative’scapacityforfunctional,utilitarianorphysicalperformance.

• Socialvalue:theperceivedutilityfromanalternative’sassociationwithoneormorespecificsocialgroups

• Emotional value: the perceived utility acquired from an alternative’s capacity to arousefeelingsoraffectivestates.

Figure3-GreenPurchaseModel(Youngetal.,2010)

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• Epistemic value: the perceived utility acquired from an alternative’s capacity to arousecuriosity,providenoveltyorsatisfyadesireforknowledge.

• Conditionalvalue:theperceivedqualityacquiredbyanalternativeastheresultofthespecificsituationfacingthedecisionmaker.

ThesevaluescontributetotheunderstandingofGreenconsumerdecisionmakingandcouldplayaroleforagreenconsumer.Forexample,consumerscouldbuygreenbecauseoffeelinggoodaboutconsuminggreen;inthiscase,anemotionalvalueplaysanimportantroleintheGreenBuyingBehaviourofaConsumer.Companiescould respond to these valuesof consumers, for example anemotional positioning strategy, as described inSection1.4.ConsumervaluesareafactorthatwillinfluencetheGreenBuyingBehaviour.

3.1.2CONSUMERKNOWLEDGE

KnowledgeisanimportantfactorinCGBB.Consumerknowledgecanbeformedbydoingresearchonmakingaproductchoicebutalsobypreviouspurchaseexperiences.Theknowledgeaconsumerhasonsustainabilityandenvironmentalconcernsandissuesisanimportantmotivatorinbuyinggreenproducts(Kianpouretal.,2014).

A study byMiller &Merrilees (2013) showed that 60% of the participants could not give an answer to thequestion‘whattheretailersdotohelptheenvironment’.Thoughparticipantsidentifiedthatacertainretailerusedrecycledbagsforpackaging.However,theusageofrecycledbagsisdoneindustrywideandthereforenotverydistinctiveinbeingmoresustainablethananotherretailer.TheresultsofthestudybyMillerandMerrilees(2013)showedthatthereisalinkbetweenconsumerperceptionsofthecompany’ssustainabilitypracticesandtheconsumerbrandattitudes towards thecompany’scorporatebrand.This isaconcern forcompanieswhoproduce green products, because consumerswhowant to buy green do not knowwheter the products aregreenorproduced inagreen/sustainableway. In that case theywillnot choose theproductsof this certaingreen company over other companies. This shows that consumers’ knowledge is an influential factor in theconsumers’greenbuyingprocess.

3.2GREENSTOREDESIGN

The environment in which a purchase is made can influence the consumer perceptions and it thereforeinfluencesthegreenbuyingbehaviour.Theconsumers’perceptionscanbeinfluencedbythestoredesignofacompanyandthiscanchangetheperceptionsonstorebrands(Nguyen&Leblanc,2001).AsstatedinSection1.2, consumerperceptionswill determine the company’s reputation.Other studies also suggest that a storedesign is a factor that influences the consumerperceptions and greenbuyingbehaviour.A favourable storedesign can create customer satisfaction which results in store loyalty (Barnett et al., 2006; Bloemer & DeRuyter,1998).InastudydonebyChoietal.(2012)thedifferencebetweenProduct-relatedattributes(PRA)ofeco-fashion (e.g. product design, quality and price) and Store-related attributes (SRA) (e.g. store design andenvironment, ethicalpracticesof the storeand shopconvenience)wasexamined. It showed thatPRA isnotrelatedtothebuyingbehaviourofconsumers.However,SRAisofinfluenceonbuyingbehaviourofconsumers.Thiscanbesubscribedtotheenvironmentalstimulithatcanbeappliedwithinastore.Thesestimulicanaffectconsumer’sstatesofpleasureandarousal(Grewaletal.,2003).

3.3BACKGROUNDPROFILESOFGREENCONSUMERS

Knowledgeandvaluesasdescribedaboveaswellastheotherfactors intheGreenBuyingModelarepartofthebackgroundprofile of a consumer. This background profile influences the Green Buying Behaviour. In astudybyLarocheetal.(2001)fivefactorsareclassifiedthatinfluencethewillingnesstopayforgreenproducts.Of these five factors, demographics (age, gender, income, education level, employment status, family size)knowledge (eco-literacy),values (individualism,collectivism,security,andenjoyment).Further,attitudes (e.g.

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severity of environmental problems) and behaviour (recycling, considering environmental problems whenbuying, and the actual purchase) have an influence on the consumers’ willingness to pay more for greenproducts.Thefactorsdescribedabovecaninfluencethebackgroundofa(green)consumer.Thebackgroundofa(green)consumerwill influencethegreenbuyingbehaviour,forexampleasocietalvalueorvaluebasedoncollectivism(asstated in3.1.1.) thatapersonhastowardssustainabilitywill influencethebuyingdecisionofthatconsumer.

3.4MOTIVATORSFORBUYINGGREEN

Asdescribedabove,peoplemayhavepositivevaluestowardsgreenproducts.However,thisdoesnotindicatethat consumers will actually transform these values into actual behaviour. Therefore, people should bemotivated to translate certain values into actual Green Buying Behaviour. This could be comparedwith the‘facilitators’fromtheGreenBuyingModel(seeSection3.1),bothwillpushtowardsmakingthegreenpurchaseandbeingagreenconsumer.Withinthispaper,thetermMotivatorswillbefurtherused.ThesemotivatorsforGreen Buying Behaviour are investigated in a study by Kianpour et al. (2014) The followingmotivators areproposed:

• CustomerhasaconcernforbuyingGreenproducts.• Customerknowledge:havingknowledgeandbeawareoftheenvironmentwillmotivatetobuyGreen

asstatedalsoin3.1.1.(Larocheetal.,2001).• CustomerEffectiveness:potentialcustomershavetofeelthatitiseffectivetobuyGreenproductsand

thatithelpstosolvetheproblem.• Environmental Laws & Regulations: these Laws & Regulations can influence consumers to use

environmentallyandsociallyfriendlyproductsandcompaniestoprovidetheseproductsandservices.• Promotional Tools: aimed to notify customers because communication around Green products is

difficultsincethewholesupplychainhastobecommunicated.• Referencegroup: influencedby social norms, customerswill feel influencedbya specific group into

buyingGreenproducts.

TheresultsofthestudybyKianpouretal.(2014)indicatesthatConsumerKnowledge,ConsumerEffectivenessandConsumerConcernarethemostimportantmotivatorsforbuyingGreen.Furthermore,Promotionaltoolsand Laws & Regulation are as well important motivators. Though, reference groups are not mentioned asmotivators, since the respondents believed that co-workers and other groups are not of influence for theirGreenBuyingBehaviour,butfriendsare.Thiscould indicatewhythismotivator isnotseenas influential.So,themotivatorsdescribedaboveplayeach,moreor less, a role in influencingpotential customers intobeinggreenconsumers.

3.5PRODUCTATTRIBUTESOFGREENPRODUCTS

MotivatorsareofgreatimportanceinthebuyingprocessofGreenproducts.Nevertheless,theGreenproductitselfshouldbealsotakenintoaccount.TheproducthastofulfilcertainGreenproductattributes.ThefindingsofasurveyamongMillennialssuggestthatproductattributesthatholdastrongrelationshipwithbuyingGreenare:recyclabilityorre-usability,biodegradableness,andpositivehealtheffects.Theseproductattributesshouldbetakenintoaccountandbehighlightedinthemarketingstrategies.ThefindingsofthesurveyproposethatthereisapositivecorrelationbetweenbrandassociationandpurchaseintentofGreenProducts.Furthermore,availabilityplaysaroleinwhetherornottobuyaGreenproduct(Luetal.,2013).However,aproductthathasno quality will not be bought even if it is green, consumers will not buy products that do not fit to theirexpectations. According to Vermillion and Peart (2010), green products will not be bought only for being‘Green’ but the products must also include other beneficial product attributes, e.g. safety, health or cost

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efficiency. Inconclusion,productattributesplayanimportantrole inthedecisionofbuyingGreen,aswellasbrandassociationandavailability.

3.6TRUST

AnotherfactorthatshouldbetakenintoaccountontheinfluenceofCGBBistheextenttowhichconsumerstrust a company.When a consumer identifies itselfwith the company that acts sustainable, thismay causebrandaffect(Moon,2007).

Tobuildaconsumer-companyrelationship,thisrelationshouldbebasedontrust.Theconsumers’beliefthatacompanyactsinthebestinterestoftheconsumersandkeepsitpromises,resultsintrust.Trustworthinessonabrandhasagreaterimpactonconsiderationofconsumerstobuyaproductorservicethanperceivedcorporateexpertise (Erdem&Swait, 2004). Therefore, trust is very important in thedecisionwhether or not tobuy aproduct.

Trustandattitudestowardsacompanyaredirectlyaffectedbyconsumers’perceptionsaboutthepracticesofacompany.Theseperceptionsarebasedonthecompany’stransparencyinproductionandlabourconditionsandbeing social responsible. Also, trust affects indirectly the intentions to purchase and spreadword-of-mouth(WOM)aboutthecompany(Kang&Hustvedt,2014).Consumertrustisthereforeaveryimportantelementinthebuyingbehaviourof(potential)customersforacompany.

In addition, the study by Castaldo et al. (2009) states that trust is necessary in the success or failure of acompany. In thestudyby itwas found that there isa linkbetweenacompany that is social responsibleandconsumerperceptionstobuyproductsorservicesfromthatcompany.Thisisdominatedbytwoconditions:1.productsorservicesofacompanyareethicalorsocialoriented,2.Thecompanyhasacommitmenttoprotectconsumer interests. The results showed that trust plays a key factor in the success or failure of a sociallyresponsible company.Trust is crucial indeterminingconsumer interests, companieswhichhave trustwillbeexpected todeliverwhat itpromisesby respecting consumers’needsand satisfying those.Thiswill result inCGBB.

3.7FACTORSINFLUENCINGCONSUMERS’GREENBUYINGBEHAVIOUR

Thischapterprovidedananswerontheresearchquestion:‘Whatfactorsdoinfluenceconsumers’Greenbuyingbehaviour?’, itisdiscussedwhichfactorsareinfluencingtheconsumers’greenbuyingbehaviourandhowthereen purchase process works (see Figure 4 for the factors that will influence Consumers’ Green BuyingBehaviour).

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• Barriers(includelackoftimeforresearch/information,highprices,thecognitiveeffortneededforeachpurchase,andstrongnon-greencriteria)

• ConsumerValues(functional,social,emotional,epistemic,conditional)

• Knowledge(consistof:researchandpreviousexperiences)

• GreenStoredesign• Backgroundprofiles

(demographics,values,knowledge,attitudes,behaviour)

• Motivatorso Concern(availabilityofgreenproductsinmainstreamretails&guilt)o Knowledge(fromspecialistinformation)o Effectivenesso Laws&regulationso Promotionaltools(greenlabels)

• ProductAttributes(availability,brandassociation,quality)• Trust(brandaffect,consumer-companyrelationship,consumerperceptions)

Thefactorbarriersisespeciallyrelevantinmakingagreenpurchase,becausewhenaconsumerhastodoalotofresearchtomakeagreenpurchasethiswillcostalotofenergyandtime.Thismaybeareasonnottomakeagreenpurchase.Furthermore,whenmakingagreenpurchasethevaluesthataconsumerhastowardsactingsustainable are of relevance. Because in order tomake a green purchase, the consumer has to have greenvalues towards the actual green buying behaviour in order to complete a green purchase. Additionally, theknowledge thata consumerhasongreenproducts is important inmakingagreenpurchase.Otherwise, theconsumerdoesnotknowwhichproduct isgreencomparedtoothergreyproducts.Agreenstoredesigncanmake people notice the green products and encourage them. Being in a green environmentmay affect theconsumertobehavegreenaswell,bybuyingagreenproduct.ThebackgroundprofileofagreenconsumerisrelevantasafactorforCGBB,knowledgeaboutandattitudesandvaluestowardsgreenhavetobepresenttomakeadecisiontobuygreen.Motivatorscanpositivelyinfluenceaconsumertobuygreen.Agreenlabelcanmake a consumer notice a green product by making the consumer aware of the special green productattributesaproducthas.Trustis importantbecauseinordertomakeagreenpurchase,theconsumerhastotrust the company which produces this green product, to believe that this product is really green and notmarketedasbeinggreen.

Inthenextchapterisdiscussedwhichactivitiesandpracticesaredonebycompaniesonsustainability.

Figure4-FactorsinfluencingConsumers'GreenBuyingBehaviour

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4.ACTIVITIESONSUSTAINABILITYOFCOMPANIES

Inthischapter,thedifferentsustainabilitypracticesofcompanieswillbeexamined.Thisisdonebyansweringthefollowingsub-researchquestion:Whatarethesustainabilitypracticesandactivitiesofcompanies?’.ItwillbedescribedwhatthedifferentpracticesonsustainabilityofcompaniesareandhowtheseimprovetheGreenBuying Behaviour of Consumers. These activities and practices on sustainability are extracted from thesustainability reportsof the companiesandmedia reports. The first companyand its activities andpracticesthatisdescribedisIKEA(seeSection4.1).Furthermore,Unilever(seeSection4.2)andTheBodyShop&L’Oréal(see Section 4.3) and their activities and practices are described. These activities and practices of thesecompanieswillresultinalistofgreenactivitiesandpracticesdonebycompanies(seeSection4.4).

4.1IKEA

ThefirstcompanydiscussedisIKEA,thiscompanyisdoingalotinordertobesustainable.Since2012theyarefollowing theirPeople&Planetsustainability strategy. In this strategy, IKEAwants toachieveveryambitiousgoals on sustainability before 2020, in order to conquer the climate change, growing population, poverty,deforestation and water scarcity. These goals are e.g. using 75% or more from sustainable sources (wood,paper,cardboardandcotton(Thorpe,2015)).Forcotton IKEAalreadyachieveda100%score,byteamingupwiththeNGO,theBetterCottonInitiative,IKEAtransformednotonlytheirowncottonsupplychainbutaswelltriestotransformthewholemarket(BetterCottonInitative,2015).Also, IKEAtriestomaintain itsbusinessbyusing renewable energy asmuch as is consumed by IKEA’s business processes. These goals are in linewithIKEA’sbusinessidea,whichis:‘tocombinegoodform,functionandqualitywithbuilt-insustainability,atpricessolowthatasmanypeopleaspossiblecanaffordthem’(IKEA,2012).

In order to fulfil the sustainability strategy, drivers are formed. One of these drives is: Inspire and enablemillions of customers to live amore sustainable life at home.By taking a lead in developing and promotingproducts and solutions that help the customer saveor generate energy, reduce/sortwaste, use less/recyclewater: at the lowestpossibleprice.Byaugust2020, IKEAwants toachievemore thana fourfold increase insales fromproducts and solutions inspiring and enabling consumers to live amore sustainable life at home(IKEA,2012).IKEAalsowantstotakealeadinmoresustainablefoodbyenablingandencouragingabalancedand environmentally friendly diet (IKEA, 2012; IKEA, 2015). This last target is controversial because of thescandalinthemeatindustryin2013,inwhichtheIKEAmeatballscontainedhorsemeat(Meikle,2013).

IKEA is takingsteps inactingmoresustainable,byhaving forexampleonlysustainableefficientLEDs in theirlighting range. IKEA encourages its consumers to actmore sustainable and tomake environmental friendlychoices by organising sustainability events for its IKEA FAMILYmembers. Thesemembers are part of IKEA’sstrong customer base called IKEA FAMILY (78millionmembers in 2015).Members are encouraged throughproducts,(sustainability)eventsandservicestoliveamoresustainablelifeathome.AsstatedbySteveHoward(Chief sustainability officer IKEA), in an interviewwith Forbes, IKEA should let their customers see and buythose products that help towards sustainable consumer behaviour (Kelly-Detwiler, 2014). By changing theentire lightingrangetoLEDby2020,anamountofelectricity,whichequals theneedsofeveryhousehold inLondonandParistogether,willbesaved(Howard,2016).InIKEAlightingrangetheonlyoptionistobuyGreen,sointhiscaseconsumersarebuyinggreenwithouthavingtomakethedecisiontobuygreenthemselves.

IKEA’ssustainabilitypracticesandactivitiesgetalotofdesirablemediaexposure.Fortheirgoaltoproduceandactfor100%onrenewableelectricityin2020,theygotaGuardianSustainableBusinessawardinthecategoryNet Positive (The Guardian, 2016). Besides, the Guardian published an article on how the Green Giants, ofwhichIKEAispart,generateatleastabilliondollarseachfromproductsorservicesthathavesustainabilityorsocialgoodattheircore.TogethertheseGreenGiantsgenerateover100billiondollarsayearfromtheirgreenbusiness lines alone (Williams, 2015, 2016). It is clear that IKEAwants to enable its consumers tobuymore

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sustainable and thereby live more sustainable. Sales of products for a moresustainablelifealreadyincreasedby1.3billionlastyearsasshowninFigure5).

In conclusion, IKEA does a lot on sustainability and is engaged in being moresustainable.This isreflectedby increasingsalesofgreenproducts,seeFigure5(IKEA, 2015). IKEA’s sustainability practices exist of encouraging their IKEAmembers to live more sustainable lives at home. Further they provide moreenvironmentally friendly produced products (using sustainable resources andrenewable energy). IKEA works together with Stakeholders to provide moresustainable products, for example the collaboration with the Better CottonInitiative.Byprovidingonlygreenproducts,IKEAmakessurethattheircustomerslivemore sustainable lifestyles. IKEA gets a lot of positivemedia exposure onbeingGreene.g.awardsandbeingnamedasaGreenGiant.AlsoUnileverisaGreenGiantandwillbediscussedbelow.

4.2UNILEVER

SincerecentyearsUnileverisdoingalotonsustainability, likeIKEA,Unileverhasalsothegoaltooperatefor100%onrenewableenergy. IKEAhasthe intentiontogeneratemoreenergythan isnecessaryandmakethesurplusavailable tomarkets inwhichUnileveroperates (Unilever,2015b).Theirviewonsustainability isalsomade clear in the vision of Unilever: ‘Unilever has a simple but clear purpose – to make sustainable livingcommonplace.Webelievethisisthebestlong-termwayforourbusinesstogrow’(Unilever,2016a).

SomeofthebrandsofUnileverareclassifiedasbeing‘SustainableLivingBrands’,thesebrandsaredefinedasbeingcontributingtowardsthegoalofdoublingbusinesswhilereducingenvironmental impactandpositivelyinfluencesocialimpact.ItissaidbyUnileverthatthe‘SustainableLivingBrands’arecontributingtohalfofthebusinessoverallgrowthandaregrowingtwiceasfastasanotherbrandintheportfolioofUnilever("Unileversays'brandswithpurpose'aregrowingattwicethespeedofothersinportfolio,"2015).

Acampaign thatUnilever started is theOmo#1RinseIsEnoughcampaign.At theendof2014,Brazil sufferedfromabigwaterscarcity,therefore,householdshadonlylimitedsuppliesofrunningwaterformanyweeks,sotheyhadtocutdownthenumberoflaundryloads.Mostpeopleweredoingmorethanonelaundryrinseeventhough each rinse uses up to sixty litres ofwater. Unilever helped people become aware of the amount ofwater used by extra rinsing. The sales of theOmo brand grew by 15% because of this campaign, this is anexample of encouraging consumers to be more sustainable and thereby increasing own profit as being asustainablecompany(Unilever,2015b).

OxfamNovibdevelopedthe‘BehindtheBrandsScorecard’,inwhichthetenbiggestFoodproducingCompaniesareevaluatedbasedonsevendifferentfactors(transparency,women,workers,farmers,land,water,climate)withinthesesevenfactorstheindicatorsaregroupedintofourcategories:

- Awarenessandprojectsrelatingtoworkersintheagriculturalsupplychain.- Knowledgeanddisclosureofcompanyimpactinagriculturalsupplychains.- Commitmentsrelatedtogoodpracticesonlabour.- Supplychainmanagement.Furthermore, Transparency is also taken into account through those four categories (BehindtheBrands,2016).

Unileverhasthehighestoverallscorecomparedtotheothercompanieswith74%,whichisillustratedinFigure6.However,therearesomepointsthatstillhavetobeimproved,forexamplepositionsofwomen, landuse,transparencyandwateruse.ThoughtheCEOofOxfamNovib,TomvanderLeestatesthatcompaniesshould

Figure5-IKEAincreasingsustainabilitysales(IKEA,2015)

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domore on theworking conditions formillions of small-scale farmers, though, Unilever scoreswell on thisaspect(OxfamNovib,2015).

In the past, Unilever is being criticised a lot for the use of the rawmaterial PalmOil in their products. Theproductionofpalmoil isassociatedwithdeforestation (WWF,2016).Unilevercommitted their sustainabilitypolicy to theprinciplesof theRSPO (RoundtableonSustainablePalmOil). In2015,Unileverwas thebiggestuserofallcompaniesthatusedcertifiedpalmoil.However,only19%oftheirtotaluseofpalmoil iscertifiedand produced in amore sustainableway. The goal is set on achieving 100%, in usingmore sustainable andcertifiedpalmoil in2019(Unilever,2016b).Inconclusion,theuseofpalmoilcausedbadmediaexposureforUnileverinthepast.Bysettinggoalsonusingmoresustainablepalmoilittriestobehavemoresustainable.

Tosumup,Unilevertriestoactmoreandmoresustainablebytheirsustainablelivingbrandsandputtingthoseproductsinthemarketasbeinggreener.Thisisdonebyproducingwithsustainableresources.Unilevertriestochange for thebetter andhas set a goal to useonly sustainablepalmoil in 2019.Although there are somepointsthatneedtobeimproved,UnilevergetspositiveexposurefromOxfamNovibandtheBehindtheBrandsscorecardthatisinventedbyOxfamNovib.ByusingsustainableresourcesandproducingsustainableproductsUnileverwantstheirconsumerstobegreenconsumers.

Figure6-BehindtheBrandsScorecard(BehindtheBrands,2016)

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4.3L’OREALANDTHEBODYSHOP

LikeIKEAandUnilever,TheBodyShophasveryambitioussustainablegoalstoachievebefore2020aswell.Thecampaignthattheyarecurrentlyfollowing, ‘EnrichnotExploit’(seeFigure7), issetuptosustaintheirvaluessystem. By 2020 the Body Shop is committed to build bio-bridges, protecting and regenerating 75 millionsquare meters of habitat helping communities to live more sustainably. Besides, they want to reduce theenvironmentalfootprintoftheBodyShopstoresanddevelopthreenewsustainablepackaginginnovationsandsustaintheirbusinesson100%renewableenergy.Furthermore,thecompanyattemptstoensurethat‘100%ofournatural ingredientsare traceableandsustainablysourced,protecting10,000hectaresof forestandotherhabitat’(TheBodyShop,2016c).

ThesegoalsareveryambitiousandgofurtherthanjustbeingagainstanimaltestingwhichwasoneofthecorevaluesoftheBodyShop,whenthecompanywasfoundedin1976(TheBodyShop,2016a).ThereputationandimageoftheBodyShopwerestronglyharmedwhenthecompanywastakenoverbytheL’Oréalgroup.Animalactivists called for boycotting theBody ShopandNaturewatch Foundation still calls for boycotting theBodyShop because of its mother company L’Oréal. The Body Shop takeover gave the company itself an imagesetback, as L’Oréal is been criticised on testing their products on animals (Booth, 2006;NaturewatchFoundation,2016).FounderoftheBodyShopAnitaRoddickreactedonthisbyensuringthattheprinciples of the Body Shopwere protected under the terms of the takeover. Besides, she insisted that thetakeover could be a ‘Trojan horse’ in which the Body Shop would be able to influence their new parentcompanyintoadoptingsomeethicalideas(Butler,2016).

AlthoughtheBodyShopgotasetbackintheirreputationasbeinggreenandanimal-friendly,theyteamedupwithPETA(animalrightsorganisation).TheBodyShophelpedPETAfundscientifictestingoftheEpiDermtest,which can replace the skin irritation test in which rabbits were used to test cosmetics and other products.

Figure7-EnrichNotExploitcampaignoftheBodyShop(source:www.thebodyshop.nl)

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Besidesthis,theBodyShopagreedtodonate10%fromtheirUKonlinestoretoPETA(PETA,2011).Inrecentyears the Body Shop is not only campaigning against animal testing, but also campaigning against sexualexploitationof youngpeople,HIV, domestic violence, and campaigning for sustainable energy togetherwithGreenpeace(TheBodyShop,2016b).

It is the question whether the Body Shop, as stated by Roddick before, is a Trojan horse for L’Oréal.Sustainability activities and practices from L’Oréal are mostly reported and written by the company itself.However,inthelastyearsthecompanyistakingstepsforwardinactingandproducingmoresustainable,whichmightbeduetothetakeoveroftheBodyShop.L’OréaljoinedtheRSPO,ofwhichtheBodyShopwasoneofthe foundingmembers (RSPO-Factsheet,2016;RSPO,2007).However,manyotherbig companies joined theRSPOaswell.Forexample,Procter&GambleandNestléjoinedthemovementtostopdeforestation,whichiscausedby theproductionof non-sustainablepalmoil (Greenpeace, 2014).However, as described in Section4.2,itcanbedoubtedhoweffectivetheRSPOis.

It is, therefore, the question whether sustainability is really embedded within the values of L’Oréal, orsomethingthathastobedoneinordertosustainbusinessandisimposedbylawsandregulations.Besides,itisthe question if the core strategy and values of the Body Shop ‘in being a green pioneer’ remainwithin thecompanyafterthetakeoverbyL’Oréal(TheEconomist,2007).Ifwetakealookatthepracticesandactivitiesontheuseofsources,waterandontheemissionofCO2attheirsitesandstores,thereisintherecentyearsnotmuchimprovementorevendeclineinthereductionofwater.AswellforthereductionofCO2

atthestoresandproductionsiteoftheBodyShop,seeFigure8(TheBodyShop,2014-2015).

BecauseofthetakeoveroftheBodyShopbytheL’Oréalgroupitmaybethatthecorevaluesofbeinggreenare not as stronglymaintained as before. The reputation of being a green pioneer, by introducing cosmeticproducts that are not tested on animals may still be used for a green branding strategy (their ‘Enrich notExploit’strategy,seeFigure7).Thisisasuggestionandmaybeanexplanationforthefactthat,basedonFigure8,therenothavebeenmade(big)achievementsonsustainabilitywhenlookingatreducingCO2emissionsandtheuseofresources(TheBodyShop,2014-2015).

By presenting green plants as ingredients of the products that are sold by the Body Shop in their stores,consumers can be influenced by the store design of a company and this can change the perceptions ofconsumers on store brands. Consumers may perceive the brand the Body Shop as green and sustainablebecauseofthegreenstoredesignasshowedinFigure9(Nguyen&Leblanc,2001).

Figure8-ActivitiesofTheBodyShoponCO2emissionsanduseofsources(TheBodyShop,2014-2015)

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Inconclusion,thecorevaluesoftheBodyShopwhenthecompanywasfoundedwererevolutionarytowardsanimalwelfareand theBodyShopwas foundedasagreenpioneerbecauseof this strategy.TheBodyShoptriestomaintainitsstrategybyteamingupwithPETAandbyfundingtheEpiDermtest. Inthisway,thecorevalues and strategy aremaintained. However, the takeover of the Body Shop by L’Oréal harmed theGreenReputation of the Body Shop strongly as well as their core values. Nevertheless, for L’Oréal it could be astrategy towards amore sustainable direction for the company and therefore a greener reputation. L’Oréalbecame amember of the RSPO for sustainable palm oil, of which the Body Shopwas one of the foundingmembers. Although in the last years the Body Shop did not act as sustainable and pioneering towardssustainabilityasinthetimethecompanywasfounded,stilltheBodyShopkeepsitsgreenreputationthroughgreenbrandingandagreenstoredesign.

4.4SUSTAINABILITYPRACTICESOFCOMPANIES

This chapter provided an answer on the sustainability activities and practices of companies. This is done byanswering the following researchquestion:Whatare the sustainability practices andactivities of companiesthat improve their Consumers’ Green Buying Behaviour?’. The sustainability practices and activities of IKEA,UnileverandtheBodyShop&L’Oréalwereexaminedandthepositiveandnegativepracticeswereillustrated(seeFigure10forallthesustainableactivitiesandpracticesofthecompanies).

Figure9-StoredesignoftheBodyShop(source:https://goo.gl/images/sQDkul)

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IKEA has a strong business idea of how they want to achieve sustainability within their company. This isimplementedintheirstrategy.Theirstrategyistomakeallproductsmoresustainable(the‘All-in’strategy).Aswell as providing only green products (the LED range). Furthermore, the IKEA Family card can provideknowledgeaboutthesustainablepracticesandactivitiesofIKEAtoitscustomers.IKEAhaswonasustainabilityaward,thisisanachievementforalltheworkthathasalreadybeendoneonsustainability.Thankstoalltheiractivitiesonsustainability,IKEAisseenasoneoftheGreenGiants.

LikeIKEA,UnileverhasstrongvaluesonsustainabilityandthisisrepresentedinthevisionofUnilever.Aswellas in being part of the RSPO and using more sustainable palm oil. Furthermore, Unilever provides moresustainableproductstocustomersbyitssustainablelivingbrands.OxfamNovibcreatedthebehindthebrand'sscorecardinwhichUnileverscoredthebestinbeingsustainabilitycomparedtootherbigfoodcompanies.

The last company thathasbeendescribed in this chapter is TheBody Shopand its takeoverby l’Oréal. TheBody Shop is being one of the founding members of the RSPO and therefore using like Unilever moresustainable palm oil. Not only using more sustainable palm oil but also using natural sustainable sourcedingredientsispartoftheEnrichnotexploitcampaign.TheBodyShophelpedPETAfundtheEpiDermtestwhichreplacestheneedforskin irritationtestsonrabbits.Beingagainstanimaltesting issincethefoundingoftheBodyShoponeofthecorevaluesandbecauseofthat,theBodyShopcanbeseenasagreenpioneer.TheBodyShoprepresentsitselfinbeinggreenbyagreenbrandingstrategyandgreenstoredesign.

Inthenextchapter,itwillbeexaminedhowtheseactivities,asdescribedabove,areconnectedtothefactorsthatwillinfluencetheConsumers’GreenBuyingBehaviour.

Figure10-Sustainableactivities&practicesofCompanies

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5.FACTORSCGR&CGBBCONNECTEDTOACTIVITIESONSUSTAINABILITYBYCOMPANIES

Inthischapter,thefactorsthatinfluenceCorporateGreenReputationasdescribedinChapter2andthefactorsthat will influence Consumers’ Green Buying Behaviour as described in Chapter 3 will be compared to thecurrentactivitiesandpracticesofeachcompanyasdescribedinChapter4.Inthisway,itispossibletoanswerthefourthandfifthresearchquestions:

- Towhatextent is itpossible toconnect theactivitiesandpracticesofcompaniesonsustainabilityasfactorsthatinfluenceConsumers’GreenBuyingBehaviour?

- Towhatextent is itpossible toconnect theactivitiesandpracticesofcompaniesonsustainabilityasfactorsthatinfluencetheCorporateGreenReputation?

Theactivitiesandpracticesofeachcompany(IKEA,Unilever,L’OréalandTheBodyShop)willbeconnectedtothe factors of CGR and CGBB per company below. Then it is possible to conclude if a company takes theirsustainabledecisionsinactingandbehavingsustainablebasedon:Greenreputationbuilding,greenconsumerperspectiveorboth.

5.1IKEA

IKEAisthefirstcompanythatwillbeconnectedtothefactorsofCGRandCGBB(seeFigure11).IKEAattemptstomake their productsmore andmore sustainable. By having very strong core values on sustainability (tocombine good form, function and quality with built-in sustainability and Inspire and enable millions ofcustomerstoliveamoresustainablelifeathome),thecorevaluesofIKEAareexpectedtoinfluencetheValuesystem (inside a company). The value system in a company is indeed a way of conceptualizing reality andcontains a consistent set of values, beliefs and corresponding behaviour towards those values and beliefswithin a company (Beck & Cowan, 2014). Therefore, the core values of IKEA are expected to influence theemployeesandtheirvalues,beliefsandcorrespondingbehaviour,whichcontributetothesustainablestrategyandbusinessideaofIKEA.

IKEA aims to use more sustainable sources such as better cotton, wood, paper, cardboard as well usingrenewable energy as much as is consumed by IKEA’s business processes and provides in this way moreenvironmentalfriendlyproducedproductsandpackaging.ThisactivitycanbeconnectedtofactorsofbothCGRaswellCGBB.The factorConsumerPerceptionsofCGRcanbeconnected to theuseof sustainable sources.ConsumerscancreateperceptionsbasedonhowIKEAallocatesitssources,theseperceptionsarebasedontheevaluation of the companies abilities, practices, and how it allocates its sources (Brown & Dacin, 1997;Fombrun & Shanley, 1990). Furthermore, the use of sustainable sources of IKEA can be connected to theproduct attributes factor that influence CGBB. Companies which are using more sustainable sources andproducinggreenerproductswillprovidemoresustainableproductsonthemarket. IKEAworkstogetherwithstakeholders,suchastheBetterCottonInitiativewhichincreasestherelationalcapital.

Thesustainableproductrange(LEDlights)thatIKEAprovidestoitscustomerscanbeconnectedtothebarriersfactorofCGBB.Barrierswillbetakenawaywhenaconsumerdoesnothavetomakeadecisiontobuygreenproductsthemselves.Therefore,consumerswillexcludeproblemsoflackoftimetoresearchandtheefforttomakethegreenpurchase.Consumersdonothavetochangetheirattitudesintoactualbehaviourbecauseitisalready done for them and they will make a green purchase without these barriers and thereby the greenpurchase ismade. So, the barriers become lower inmaking a green purchase by providing an entire greenproductrange.

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Anotheractivityonsustainabilityby IKEA isencouragingtheir IKEAmembersto livemoresustainable livesathomebyhavingtheirIKEAmembercard.ThisactivitycanbeconnectedtothefactormotivatorofCGBB.IKEAFamilycardisapromotionaltoolthatcancreateknowledgeaboutenvironmentallyfriendlyproductsof IKEAand how these products are producedwith sustainable sources. Furthermore, amember cardwill create aconsumer-companyrelationshipand this relationshipshouldbebasedon trust.Theconsumers’belief thatacompanyacts inthebest interestoftheconsumersandkeepsitspromises,willeventuallyresult intrustandtrustworthiness on a brand. The fact thatwhen a brand ismore trustablewill be of greater impact on theconsiderationsofconsumerstobuyaproductorservice,thantheperceivedcorporateexpertisebyaconsumer(Erdem&Swait,2004).ThefactorConsumerperceptionsofCGRcreatesknowledge(whichisaswellafactorof CGBB) of the activities and products of a company and knowledge is created within the minds of theconsumer.AmembercardcanremindconsumersoftheirpreviouspurchasesandmayencouragethemtobuythegreenproductsofthecompanyasdonebyIKEA.

IKEAgetsa lotofpositivemediaexposureonbeingGreene.g.awards (anexample iswinningasustainablebusinessawardfortheirgoaltoproduceandactfor100%onrenewableenergy)andbeingnamedasagreengiant,whichincludesUnileveraswellandwillbediscussedbelow.Beingagreengiantandachievinganawardonbeingsustainablecreatesknowledge(afactorofCGBB)amongconsumersaboutthesustainableproducts

Figure11-ActivitiesIKEAlinkedtofactorsCGRandCGBB

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andpracticesofIKEA.Aswellbyexposingtheseactivitiesinthemediawillcreateknowledgeandcanchangetheconsumerperceptions(afactorofCGR).

Inconclusion,therearefivesustainableactivitiesandpracticesofIKEAinthispaperdescribed(seeFigure11).These activities and practices of IKEA are of positive influence on the CGR and CGBB, except for the factorbarriers,byprovidinganentiresustainablerangeofproducts(LEDlightingrange)barrierswillgodowntobuyagreen product so a negative influence. These can be connected to the factors: Value System, ConsumerperceptionsandRelationalCapitalthatwill influenceCorporateGreenReputation(asdescribedinChapter2)and the factors: ProductAttributes, Barriers,Motivator, Knowledge and trust thatwill influenceConsumers’GreenBuyingBehaviour(asdescribedinChapter3).

5.2UNILEVER

The activities and practices of Unilever can be connected to factors that will influence CGR and CGBB (seeFigure12)aswell.LikeIKEA,Unileverhasstrongcorevalues,whichareembeddedwithintheirvisiontoactand‘makingsustainablelivingcommonplace’(Unilever,2016a).ThefactorsValuesystemofCGRcanbeconnectedtocorevaluesforthesamereasonsasforIKEAdescribedabove.WhenemployeesareengagedwiththevaluesofUnilever,theywillcreateperceptionsaboutthepracticesandactivitiesthatUnilever isdoingandwillalsopropagatethesevalues,whichwillcontributetoabetterCGR.

Unileverusesmoresustainablesources.ItattemptstouseonlysustainablePalmOilbefore/in2019.ThefactorproductattributesofCGBBcanbeconnectedtothisgoal,forthesamereasonsasdescribedaboveinthecaseofIKEA.However,Unileverhasbeencriticisedbythemediainthepastforusingnon-sustainablepalmoil.Thiscausednegativemedia exposure and influenced the consumers’ perceptions: one of the factors that formsConsumerperceptionsismediaexposure(afactorofCGR).

Thesustainable livingbrands isasustainablepracticeofUnilever.TheproductattributesfactorofCGBBcanbe attributed to this activity of Unilever. These brands are produced in a more sustainable way than the‘normal’productsofUnileverwithgreensources.Inordertolettheconsumer,buygreenproductsthesehavetobeavailableandmustcontainacertainqualityprovidedbyacompany.Alsobynamingtheproductsasbeingmore sustainable, this can be amotivator for consumers to buy the sustainable living products ofUnilever.Furthermore,thefactorGreenBrandingofCGRcanbeconnectedtosustainablelivingbrands.Thebrandsarepresentedasbeingsustainabletowardstheconsumerandthereforegreenbranded.

ApracticeofOxfamNovibthat is in favourofUnilever is theBehind theBrandsScorecard.Thescorecard ispositive about how sustainable Unilever acts. Therefore, Oxfam Novib is a very important and influentialstakeholderforUnileverandconnectstorelationalcapital,whichisafactorthatinfluencesCGR.Acompanyisdependent on its relational capital. In addition, relational capital can help a company to understand theenvironmentbetterandmakebetterdecisions.IncaseofUnilever,theBehindtheBrandsScorecardcanhelpgivebetterunderstandingwhichpracticeandactivitiescouldbedonebetterorhavetobedoneinthefuturetoact more sustainable. Furthermore, consumers’ perceptions can be influenced by the behind the brand’sscorecard. When the scorecard getsmedia exposure, Unilever will be perceived as more sustainable andchosenover another company; it createsbetterunderstandingandknowledge among consumersabout thesustainabilityactivitiesandpracticesofUnileverandthereforecreateperceptions.

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In conclusion, four sustainable activities and practices of Unilever are described in this paper and can beattributed to seven factors that influenceCorporateGreenReputation (asdescribed inChapter2)and threeactivitiesthatinfluenceConsumers’GreenBuyingBehaviour(asdescribedinChapter3)(seeFigure12).TheseactivitiesandpracticesofUnileverwillallpositivelyinfluenceaCGRandCGBB.Exceptfortheuseofpalmoilinthepast,bynotusingasustainablesourcefortheirproducts,mediawouldwriteaboutthispracticeandthiscausedbadmediaexposurewhichinfluencedtheconsumers’perceptions.

5.3THEBODYSHOP&L’ORÉAL

TheBodyShopand the relationwith itsmothercompanyL’Oréalaredescribed in this section.Theactivitiesandpracticesof theBodyShopand l’OréalareconnectedtothefactorsofCGR&CGBB(seeFigure13).TheBodyShop isseenasagreenpioneerforbeingthefirstcompany inthecosmetic industrywithproductsnottested on animals ("Activists call Body Shop boycott," 2006). However, by the takeover of L’Oréal, thereputationoftheBodyShopisharmedanditisdoubtedifthecorevaluesoftheBodyShopwillbemaintained.However, theBodyShop setup the ‘EnrichnotExploit campaign inwhich theyhavegoalson creatingmoresustainability within and outside the company. These values will influence the value System (inside thecompany) and influence the employees of the Body Shop, which also contribute to achieving these goals

Figure12-ActivitiesofUnileverlinkedtofactorsCGRandCGBB

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becausetheemployeesoftheBodyShopwillalsocreateperceptionsonthecorevaluesoftheBodyShopandmaintainthesevalueswhiledoingtheirworkorintheireverydaylives.

AnotheractivityoftheBodyShopisbeingafoundingmemberoftheRSPOwhichattemptstomakethepalmoil sector more sustainable and makes, therefore, use of more sustainable sources. Also, the ‘Enrich notexploit’ campaign inwhich theBodyShopattempts to ‘ensure100%ofournatural ingredientsare traceableandsustainablysourced,protecting10,000hectaresofforestandotherhabitat’ is in linewiththepracticeofusingmoresustainablesources intheproductsoftheBodyShop (TheBodyShop,2016c).Thispracticecanbeconnected to the factor consumer perceptions of CGR because consumers will create perceptions on thecompany based on the evaluation of its abilities and how it uses and allocates its sources (Brown&Dacin,1997). Inorder to letconsumers,buyagreenproduct, theproductshavetobegreenthereforetheproductattributes&packagingfactorofCGBBcanbeconnectedtotheuseofsustainablesources.

WhenL’OréaltookovertheBodyShopitwasstatedthattheBodyShopcouldbeaTrojanhorse.Thetakeovercan be connected to consumer perceptions factor of CGR. One of the factors that influence consumerperceptionsisinstitutionalownership.ThisisalsoseeninastudyconductedbyMohr(2001).Itwasstatedthatsocially irresponsible companies are boycotted and consumersmay evendecide to not buy products of thiscompanyanymore.Aswell thatpotentialcustomersaremore likely toboycott irresponsiblecompaniesthensupportresponsiblecompanies(Mohretal.,2001).ThishappenedalsofortheBodyShopasAnimalactivistscalled for boycotting the Body Shop and Naturewatch Foundation still calls for boycotting the Body Shopbecause of its mother company L’Oréal ("Activists call Body Shop boycott," 2006; NaturewatchFoundation,2016). Therefore, consumer perceptions on the activities and practices are influenced by institutionalownership.

The collaboration between PETA and the Body Shop in funding the EpiDerm test can be connected to thefactormotivatorofCGBB.WhenconsumersaresupportingPETA, theymayfeelmotivatedbythis influentialstakeholdertosupportandbuyproductsfromtheBodyShopaswellbysupportingthisstakeholderandhelpfundtheEpiDermtest.Furthermore,thefundingoftheEpiDermtestandthecollaborationwithPETAcanbeconnectedtothefactorrelationalcapitalofCGR.

ThereputationoftheBodyShopasbeingagreenpioneerforintroducingcosmeticproductsthatarenottestedon animals is stillmaintained by the ‘Enrich not Exploit’ campaign. It can be concluded that the Body Shopbrandsitsproductsasgreen.TheGreenBrandingstrategy/EnrichnotExploitcampaignoftheBodyShopcan,therefore,beconnectedtothefactorGreenBrandingofaCGR.

ThelastactivityoftheBodyShop;aGreenStoredesigncanbeconnectedtotheGreenStoredesignfactorofCGBB.Whenacompanyhasagreenstoredesign,consumersmayperceivethebrandtheBodyShopasgreenandsustainablebythegreenstoredesign(Nguyen&Leblanc,2001).

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Figure13-ActivitiesoftheBodyShopconnectedtofactorsCGRandCGBB

Inconclusion,sixsustainableactivitiesandpracticesoftheBodyShoparedescribedinthispaperandcanbeconnectedtofourfactorsofaCorporateGreenReputation(asdescribedinChapter2)andthreefactorsthatinfluenceConsumers’GreenBuyingBehaviour(asdescribedinChapter3)(seeFigure13).AlltheactivitiesandpracticesdonebytheBodyShopaspicturedinFigure13haveapositiverelationwiththefactorsofCGRandCGBB. However, the takeover by L’Oréal as being the parent company of the Body Shop was of negativeinfluenceonconsumers’perceptions.

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5.4DIFFERENCESBETWEENTHECOMPANIES

Inconclusion,fivesustainableactivitiesandpracticesofIKEAaredescribed(seeFigure11).TheseactivitiesandpracticesofIKEAareofpositiveinfluenceontheCGRandCGBBexceptforthefactorbarriers.Byprovidinganentire sustainable rangeof products (LED lighting range) barrierswill godown tobuy a greenproduct, so anegativeinfluence.Thesecanbeconnectedtothefactors:ValueSystem,ConsumerperceptionsandRelationalCapital thatwill influence Corporate Green Reputation (as described in Chapter 2) and the factors: ProductAttributes,Barriers,Motivator,KnowledgeandtrustthatwillinfluenceConsumers’GreenBuyingBehaviour(asdescribedinChapter3).

ForUnilever, fouractivitiesaredescribed in thispaperandcanbeattributed to seven factors that influenceCorporateGreenReputation(asdescribedinChapter2)andthreeactivitiesthat influenceConsumers’GreenBuyingBehaviour(asdescribedinChapter3)(seeFigure12).TheseactivitiesandpracticesofUnileverwillallpositivelyinfluenceaCGRandCGBB.Exceptfortheuseofpalmoilinthepast,bynotusinganunsustainablesourcefortheirproducts,mediawillwriteaboutthispracticeandthiswillcausebadmediaexposurewhichwillinfluencetheconsumers’perceptions.

Inthispaper,sixsustainableactivitiesandpracticesoftheBodyShoparedescribed inthispaperandcanbeconnectedtofourfactorsofaCorporateGreenReputation(asdescribedinChapter2)andthreefactorsthatinfluenceConsumers’GreenBuyingBehaviour(asdescribedinChapter3)(seeFigure13).AlltheactivitiesandpracticesdonebytheBodyShopaspicturedinFigure13haveapositiverelationwiththefactorsofCGRandCGBB.Except,thetakeoverbyL’OréalasbeingtheparentcompanyoftheBodyShopwasofnegativeinfluenceonconsumers’perceptions

However,when lookingatwhyand forwhomacompany isactingsustainable itmaybemore interesting tolookatwhichcompanyhasmoreactivitiesandpracticesthatcanbeconnectedtothefactorsinfluencingCGBBthanCGR.BecausewhenlookingatthefactorsofCGBBinsteadofCGRthenacompanyisnotnecessarydoingit for its own looking good but wants to influence its consumers and their sustainable behaviour as well.Furthermore,itisbeyondthescopeofthispapertodiscussallpossibleactivitiesandpracticesonsustainabilityforthesecompanies.

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6.CONCLUSION

Inthispaper,ithasbeenmadeclearwhataCorporateGreenReputationisandwhichthefactorsarethatwillinfluence this reputation. The definition of a Corporate Green Reputation can be described as: ‘a setperceptions by people inside and outside the company on meeting the needs of the present withoutcompromisingtheabilityoffuturegenerationtomeettheirownneeds’.Itisshapedbypeopleinsideacompanytocreateabilitiestoactmoresustainableandshapeperceptionsabouttheircompany,aswellasforthepeopleoutsidewhowillcreateperceptionsaboutthecompanywhichresultsinareputation.

The first factor thatwill influence theCorporateGreenReputation is theValueSystemofa company.Thesevalue systems are influential because they will influence the perceptions of people inside a company andstrengthenthebelief in thesustainabilitypracticesof thecompanyfromthe inside.Another factor that isofinfluence on the Corporate Green Reputation is the consumers’ perceptions, these consists of knowledge,associations, evaluations and the actual abilities of the company. The perceptions are formed by resourceallocation, social responsiveness/CSR activities, media exposure and corporate diversification. Moreover,CorporateGreenReputationwillpositivelybe influencedbyRelationalCapital.This isofrelevancebecauseacompany should have good relationships with its environment in order to communicate its sustainabilitypractices to create a Corporate Green Reputation. The last factor that is influential on Corporate GreenReputationisGreenBranding.PractisingGreenBrandingwilllinkactualperformanceandperceptionsaboutacompanyonsustainability.

Furthermore, the factors thatwill influence Consumers’ Sustainable Buying Behaviour are composed. Thesefactors areof influenceon thegreenpurchaseprocess.Oneof these factors areBarriers, thesewill provideargumentsagainstbuyinggreenbutcanalsoprovideargumentsagainstbuyinggreyproducts.Anotherfactoristhe values that consumers have, these will influence their buying behaviour and so their intentions to buygreenornoknowledgeisanotherfactorforconsumerstobuygreenandisbuiltontheresearchaconsumerdoes and the previous purchasing experiences. The background profile of a consumer will influence thesustainable buying.When people are surrounded in an environmentwheremost people buy green thiswillinfluencethepotentialtobeagreenconsumer. Inorderto letpeople,succeedintranslatingtheir intentionsinto actual behaviour, they should bemotivated and therefore,motivators are of relevance. Of course, thebuyingprocessisimportantingreenbuyingbehaviourofconsumersbuttheywillneverbuyaproductthatisofbadquality,evenifitisgreen.Thus,productattributesshouldbetakenintoaccountinbuyinggreen.Thelastfactor that influences consumers is trust;whenpeopledo trust, or believe the company and its products inbeingsustainable,thismaycausebrandaffect.

Theactivitiesandpracticesonthesustainabilityofthreecompaniesaredescribedinthispaper(IKEA,Unileverand The Body Shop). All three companies have values about sustainability. As well trying to act moresustainable by usingmore sustainable sources. The core values of the companies can be connected to thefactor value systemofCGR.Theuseofmore sustainable sources canbeconnected to the factors consumerperceptionsandrelationcapitalofCGRandthefactorproductareattributesofCGBB.TheseactivitiescanbeconnectedtothefactorsthatinfluenceCorporateGreenReputationandConsumers’GreenBuyingBehaviour.IKEAisthecompanythathasthemostactivitiesandpracticesonsustainabilitythatcanbeconnectedtothefactorsthatwillinfluenceconsumers’greenbuyingbehaviour(fivefactors).Theactivitiesonthesustainabilityof Unilever can be connected tomost factors of a CorporateGreen Reputation (seven factors). In total thecompanytowhichmostfactorsbothCGRandCGBBcanbeconnectedtoisUnilever(tenfactors).UnileverhasthemostfactorsofCGRandCGBBthatcanbeconnectedtotheseactivities.

TheexpectationfortheoutcomeofthispaperwasthattherelationbetweenCorporateGreenReputationandtheConsumers’GreenBuyingbehaviourwouldbe thatCorporateGreenReputation isdirectly influentialonConsumers’ Green Buying Behaviour. However, a better conclusion for this paper and an answer to the

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research question is that the Corporate Green Reputation is needed to make a green purchase. Whenconsumers’donotbelieveinorknowaboutthesustainablepractices,abilitiesandproductsofacompanyandtherefore the CorporateGreen Reputation of a company. Then the consumerwill not choose this companyoverothersonmakingagreenpurchase.

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7.DISCUSSION

ThispaperattemptstogiveaninsightintohowCorporateGreenReputationisbuiltupandhowthisconceptcaninfluenceConsumers’GreenBuyingBehaviour.ThefactorsthatinfluenceCorporateGreenreputationaredescribed.However,theconceptofCorporateGreenReputationisverybroad,thereforeitisbeyondthescopeofthispapertodescribeall factorsthat influencetheCorporateGreenReputation.Asthesetofperceptionsheld by people inside and outside the company can differ per person as formulated in the definition of aCorporateGreenReputation.Furthermore,CorporateGreenReputationandthefactorsthatwillinfluencethisconceptarebasedonreviewingliterature.Therefore,itisnotexaminedamongstakeholders,whichfactorswillinfluencethemincreatingaGreenReputationaboutacompanyintheirminds.

AsfortheconceptConsumers’GreenBuyingBehaviourandthefactorsthataredescribedinthispaper,theremaybefactorsexcludedbecauseofthefactthatthispaperisonlybasedonreviewingliterature.Therehasnotbeenareal-lifeexperimenttofindoutwhetherthefactorsabstractedfromliteraturereallyinfluenceagreenpurchaseamongconsumersandarethusconnectedwithaCGR.

FurtherresearchisneededtogiveanindicationifthetheoryonCorporateGreenReputationanditsinfluenceon consumers’ green buying behaviour as stated in this paper will be the same in practice as described intheory.Theexpectationisthatthesefactorsforbothconceptsthatarealreadyexaminedinliteraturewillworkout in practice aswell. These concepts and the factorsdescribed in this paper arebasedon various studiesamongstakeholdersofcompaniesandconsumersandareconnectedinthispapertoactivitiesandpracticesofcompanies.However, it isstillbasedonpsychologicalconceptsandthereforedifficulttosayifthefindingsinthispaperbasedontheorywillworkinpracticeaswell.

Looking at the sustainable activities and practices by companies, sources on the sustainable activities andpracticesofcompaniesarescarce.Sometimestheonlyactivitiesonsustainabilityarepublishedbythecompanyitself. It is, therefore, thequestion if thecompany issustainableor tries togreenwash itself?Therefore,alsoreports bymedia are evaluated and taken into account. However, it could also be that themedia does notexposethesustainablepracticesandactivitiesofacompanybutonlythebadpractices.AsstatedinastudybyMohr(2001)manyrespondentsreportthat it isdifficulttouseCSRintheirbuyingdecisionsbecausetheydonot have enough information to make a decision in buying a socially responsible product. Nonetheless,consumers would not know how sustainable a company is if this is not reported. Therefore, it could be ofinterestforfurtherresearchtofindouthowbigtheroleofthemediaisinhowconsumersperceiveacompanyasbeingmoreorlesssustainable.

Also,apointofdiscussionmaybethefactthatwhenlookedatthedifferentcompaniesthatareresearchedinthis paper (IKEA, Unilever and L’Oréal & Body Shop), there are some differences between companies. Thebiggestdifferencebetween thesecompanies is thatUnileverhasnophysical storescompared to theothers.However,Unileverhas its sustainable livingbrands to compensate for the fact that it hasnophysical storescompared to IKEA, The Body Shop and L’Oréal. Further these companies show also similarities, IKEA andUnileverarebothpartofthegreengiants.Additionally,thebusinessmodeloftheBodyShopisbasedonbeinggreenandhavinggreenvalues.

One of the activities on sustainability is the core values in a company. However, it is difficult to see fromoutsidethecompanyhowstrongthesevaluesare.Itisthequestioniftheseareonlyextrinsicallyforacompanyto the environment and not much intrinsically embedded. It is not only the problem of core values ofcompanies that are unclear to the outside but aswell for other practices. In general sustainability and howmuchthisisofinfluenceontheconsumersofthatparticularcompany.Thereisnotaclearviewwhichpracticesand activities on sustainability are direct influencing consumers’ green buying behaviour. So, there are nonumbers on sustainability activities put out by companies. However, this could be a research topic to

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investigatewhichfactorsofcorporategreenreputationaredirectlyofinfluenceonthegreenbuyingbehaviourofaconsumer.

Another point of discussion is theuseof palmoil byUnilever and theBody Shop, on the 30th ofNovemberAmnestyInternationalreportedthatUnileverwasdoingbusinesswithWilmar,acompanythatisamemberoftheRSPO.Aswellas,Kellogs,NestléandProcterandGamblearedoingbusinesswiththiscompany.Thepalmoil thatWilmar produces is beingmarketed as sustainable.HoweverAmnesty International reports that thepalmoilproducedbyWilmarisproducedbyusingchildandforcedlabour(AmnestyInternational,2016;ANP,2016).ItmaythereforebedoubtedhoweffectivetheRSPOisoncombattingtheproductionofnon-sustainablepalm oil. This example illustrates furthermore that it is almost impossible to monitor all the activities of acompany.Althoughacompanymay looksustainable, lesssustainablepracticescanstill takeplacewithinthesamecompany.Thismakesithardtosayforsurehowsustainablecompaniesare.Becauseofthisuncertaintyandthese‘business-secrets’itishardtogeneralizeconclusionsaboutsustainability.

Inthispaper,differentactivitiesandpracticesofcompaniesaredescribedbutitisthequestionhoweffectivethese are. Therefore, this could be a topic for further research to set up a measurement system on howeffectiveacertainactivityorpractice is increatingabetterreputation. Inthispaper, there is lookedatbothfactorsonCGRandCGBB.However,whenlookingatforwhichreasonsacompanyactssustainableitmaybemore interesting to look atwhich company hasmore activities and practices that can be connected to thefactors influencing CGBB than CGR. Because when looking at the factors of CGBB instead of CGR then acompany is not necessary doing it for its own reputation but wants to influence its consumers and theirsustainable behaviour. So really try to make a change by keeping the Brundtland report on sustainabledevelopmentinmind,whichis:‘Developmentwhichmeetstheneedsofthepresentwithoutcompromisingtheabilityoffuturegenerationtomeettheirownneeds’(Brundtlandetal.,1987).

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