Abstract

The circular economy addresses pressing environmental concerns by encouraging firms to operate transparently and transition toward sustainable business models that minimize waste and maximize resource efficiency. This transformation raises important questions about consumers' willingness to purchase sustainable products and the psychological factors that shape their decision-making processes. Our research examines the relationships among individual social responsibility, awareness, perceived value, and ethical purchase behavior in the context of sustainable consumption. The study is grounded in the value-belief-norm theory, which posits that pro-environmental behavior originates from personal values and beliefs about environmental consequences, leading to a sense of moral obligation and ethical responsibility. Using covariance-based structural equation modelling, we analyze data collected from 450 valid responses from consumers who have previously engaged in ethical purchasing of sustainable products. The empirical findings indicate that individual social responsibility positively influences both awareness and perceived value. In turn, perceived value significantly affects ethical purchase behavior in circular economy contexts. Moreover, the direct relationships between individual social responsibility and other constructs highlight its foundational role in shaping sustainable consumption decisions. These findings emphasize that strengthening individuals’ sense of responsibility can effectively stimulate ethical purchasing practices and support the broader goals of circular economic development. However, the research reveals no statistically significant relationship between ethical product awareness and ethical purchase behavior. The rationale is that many Vietnamese consumers remain highly price-sensitive and tend to prioritize affordability over sustainability attributes when making purchasing decisions. Furthermore, this study contributes to the literature by identifying theoretical and managerial implications, confirming the positive impact of individual social responsibility on ethical purchase behavior. The results suggest that managers should design effective environmental policies and strategic marketing initiatives to enhance perceived value, reinforce corporate image, and foster long-term sustainable consumer engagement.