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Purpose

The research seeks to evaluate stakeholder perceptions of firms, the extent these assessments impact trust in firms and possible implications for sustainability communications.

Design/methodology/approach

Three studies were undertaken involving two experiments (n = 436, n = 393) and one survey (n = 217). Analyses of variance was used in all three studies and in studies 2 and 3—to test for possible mediators—each variable was tested using Hayes' PROCESS macro (Hayes, 2013) with bootstrapping of 5,000 samples.

Findings

Results demonstrate significant favouring of sustainability-minded firms. Some differences between consumers and investors were found but also notable commonalities such as a general propensity to favour purpose-oriented firms and similar determinations of trust in firms.

Practical implications

Findings could support more effective sustainability communications and firm decisions regarding investments in purpose- and sustainability-oriented initiatives. The results may also support designs to pursue and promote designations (e.g. B Corp) that legitimize sustainability claims.

Originality/value

This research was unique in its evaluation of two stakeholder types in the same context. Further, it provides new insights into how a firm’s profit-purpose orientation affects stakeholder perceptions and assessments of trustworthiness.

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