Doing well by doing good: A quantitative investigation of the litter effect

Corporate social responsibility can prove challenging for traditional businesses as a profit-making agenda may well be in conflict with the wishes and expectations of other stakeholders. Nevertheless, if organizations can align the incentive of better business performance with beneficial outcomes on a wider social and/or environmental level, so called doing well by doing good, conflict ceases between the two aims. This paper investigates a particular global problem within the context of the fast-food industry. Discarded fast-food packaging is the fastest growing type of litter in many Western countries. The paper establishes, by using a quasi-experimental method (n = 1000), that multiple levels of a brand's evaluation are negatively affected when that brand's packaging is seen as litter. This paper also quantifies the financial impact of the litter effect on a company.