The immediate effect of corporate social responsibility on consumer-based brand equity

2019 ◽  
Vol 28 (7) ◽  
pp. 864-879 ◽  
Author(s):  
Fernanda Muniz ◽  
Francisco Guzmán ◽  
Audhesh K. Paswan ◽  
Heather J. Crawford
Keyword(s):  
Corporate Social Responsibility ◽  
Brand Equity ◽  
Brand Loyalty ◽  
Consumer Perception ◽  
Brand Awareness ◽  
Socially Responsible ◽  
Content Type ◽  
Brand Building ◽  
Brand Quality ◽  
Corporate Social

Purpose In response to consumer and society demands for firms to be socially responsible, brands have been taking a strategic approach to corporate social responsibility (CSR) by integrating socially responsible activities into their brands’ core value propositions to strengthen brand equity. Thus, from a brand building perspective, this paper aims to investigate the immediate effect that brand CSR communications have on the change in brand awareness, perceived quality and loyalty, to provide a deeper understanding of how each dimension affects the overall change in brand equity. Design/methodology/approach With evidence from an experiment conducted in three different countries (Australia, United States and Spain), based on an actual brand CSR program, this paper explores the different immediate effects of change in brand awareness, perceived brand quality and brand loyalty, after the exposure to a CSR message, on the overall immediate change in value that consumers give to a brand. Furthermore, it examines the role of brand-cause fit and the influence that differences in cultural, economic and political environments have on this effect. Findings The change in brand loyalty due to CSR communication is the key dimension driving the immediate positive change in overall brand equity. In addition, change in brand awareness has an inverted U-shape relationship with change in overall brand equity, whereas the change in perceived brand quality does not have an influence. Finally, the results indicate that this immediate effect holds regardless of the level of brand-cause fit, but is greater in countries where firms are expected to participate and CSR reporting is not mandatory, making such practices be seen as voluntary. Practical implications The findings of this study offer research implications for academics, and practical considerations for brand managers, interested in how to rapidly generate changes in consumer perception by leveraging CSR activities for brand building in global settings. Specifically, it indicates that when the aim is to quickly build brand equity, the goal of communicating CSR activities must be to increase the level of attachment that consumers have to the brand since loyalty is the main driver of the immediate change in overall brand equity. Originality/value Although many scholars have demonstrated the impact of CSR on various consumer behavior outcomes (e.g., brand attitude, purchase intention, loyalty), from a brand build perspective the implications of the immediate effect of a brand communication of CSR practices on consumer-based brand equity remain less clear. This study addresses this gap to gain a deeper understanding of how to rapidly generate changes in consumer perception to build strong brands while leveraging CSR practices.

Measuring the impact of corporate social responsibility practices on brand equity in the banking industry in Bangladesh

2018 ◽  
Vol 36 (5) ◽  
pp. 806-822 ◽  
Author(s):  
Md. Hafez
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Brand Equity ◽  
Banking Industry ◽  
Corporate Image ◽  
Brand Awareness ◽  
Content Type ◽  
Corporate Social ◽  
The Impact ◽  
The Relationship

PurposeThe banking industry in Bangladesh is now conducting business under the growing pressure to conform to every aspect of corporate social responsibility (CSR) for the welfare of their clients and society. The value of CSR practices is attributed to the relationship between corporate image, brand awareness, brand equity (BE), competitive advantage and financial result. The purpose of this paper is to measure the impact of CSR on BE and to establish the moderating impact of corporate image and brand awareness.Design/methodology/approachStructural equation modeling was used to test the proposed hypotheses using a sample of 200 public and private bank customers in Bangladesh.FindingsThe results of this study demonstrated that CSR has a significant direct effect on the corporate image, brand awareness and BE. The results also confirm that corporate image and brand awareness partially mediate the relationship between CSR and BE.Practical implicationsThe findings indicate that successfully CSR practices will enhance a bank’s image in the mind of customers. Customers will feel that they are contributing to social causes because they are receiving services from socially responsible organizations. CSR practices also create customer awareness regarding the financial services provided by a bank. Consequently, good reputation and brand awareness contribute to building strong BE for banks.Originality/valueThis research shows the mediating role of brand awareness and corporate image with CSR and BE in the context of the banking industry in Bangladesh which is rarely studied. Therefore, the findings of this study will add value to the existing literature.

scholarly journals Dual pillars of hotel restaurant food quality satisfaction and brand loyalty

2017 ◽  
Vol 119 (12) ◽  
pp. 2597-2609 ◽  
Author(s):  
Hassan Bihamta ◽  
Sreenivasan Jayashree ◽  
Sajad Rezaei ◽  
Fevzi Okumus ◽  
Roya Rahimi
Keyword(s):  
Service Quality ◽  
Brand Equity ◽  
Food Quality ◽  
Brand Loyalty ◽  
Brand Image ◽  
Brand Awareness ◽  
Physical Quality ◽  
Content Type ◽  
Brand Quality ◽  
The Impact

Purpose The purpose of this paper is to investigate the impact of service quality (physical quality and staff behaviour) and brand equity (brand quality, brand awareness and brand image) on hotel restaurant food quality satisfaction and brand loyalty among international and local travellers in Malaysia. Design/methodology/approach A total of 354 valid questionnaires were collected to assess the measurement and structural model for reflective latent constructs using the two steps of covariance-based structural equation modelling. Findings The research findings suggest that while travellers’ nationality moderates the path between physical quality, staff behaviour and brand image on food quality satisfaction, it does not moderate the relationship between brand quality and brand awareness on food quality satisfaction. This finding further suggests that towards enhancing service quality and brand equity on food quality satisfaction and brand loyalty, managers should understand the important distinctions between international and local travellers. Originality/value Previous studies have mostly examined the impact of brand equity and service quality towards tourist satisfaction and very few studies have examined the impact of restaurant service quality and brand equity on consumer satisfaction and brand loyalty specifically among international and local travellers. This is one of the first few studies providing empirical evidence and discussions in this area.

Corporate social responsibility in the wake of COVID-19: multiple cases of social responsibility as an organizational value

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jashim Uddin Ahmed ◽  
Quazi Tafsirul Islam ◽  
Asma Ahmed ◽  
Anisur R. Faroque ◽  
Mohammad Jasim Uddin
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Online Communication ◽  
Socially Responsible ◽  
Content Type ◽  
Internal Resources ◽  
Study Approach ◽  
The Face ◽  
Corporate Social ◽  
Organizational Value

Purpose Although corporate social responsibility is a well-researched concept, very few studies have studied organizational social responsibility in the face of internal/external crises. Therefore, this paper aims to examine various firms' organizational social responses to COVID-19 as an external crisis, particularly in terms of the way organizations use their resources to address social problems and the real intention behind these, and the changing organizational drivers influencing such behaviors. Design/methodology/approach The authors explore the initiatives of seven organizations from three different industries in several countries and their actions in the wake of the COVID-19 pandemic. A case study approach was taken to collect data and reach a conclusion. A combination of interviews, online communication using semi-structured questionnaires and documentary information available in the public domain was used to collect data and analyze and triangulate the events. Findings Similar internal resources and capacities of the seven organizations resulted in similar responses as they launched proactive initiatives to prepare sanitizers. This research indicates that these organizations pursued other goals besides economic one. When society needed help, these organizations responded quickly, using and reorganizing their resources to assist communities in need. Different organizations from different sectors all behaved in a similar manner, making genuine contributions to the pandemic as each was uniquely capable of doing. These organizations also used their unique capabilities to offer their resources to local communities and governments. Originality/value During the COVID-19 pandemic, efforts by corporate entities to facilitate social reform and recovery have been seen around the globe. The findings could help in understanding the responses of organizations engaging in socially responsible behaviors to overcome external crises. This paper also identifies changing organizational values and their possible impact on society and overall industry philanthropy practices in the future.

The impact of corporate social responsibility on financial distress: evidence from developing economy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Farooq ◽  
Amna Noor
Keyword(s):  
Corporate Social Responsibility ◽  
Financial Distress ◽  
Z Score ◽  
Socially Responsible ◽  
Content Type ◽  
Financial Firms ◽  
Responsible Behavior ◽  
Corporate Social ◽  
The Impact ◽  
Practical Implications

Purpose This study aims to explore the role of corporate social responsibility (CSR) on the likelihood of financial distress for a sample of 139 Pakistan Stock Exchange (PSX) listed firms throughout 2008–2019. Design/methodology/approach The dynamic generalized method of moments (GMM) estimator is used to examine the impact of CSR on financial distress. The investment in CSR is measured through a multidimensional financial approach which comprises the sum of the contribution made by the company in the form of charitable donation, employees’ welfare and research and development, while the Altman Z-score is used as an indicator of financial distress. The higher the Z-score, the lower will be the probability of financial distress. Findings The authors find a significant positive impact of CSR on financial distress in GMM model. This finding is consistent with the shareholder view and over-investment hypothesis of CSR as management makes an investment in CSR to get personal benefits, which resultantly leads the firm toward financial distress state. Further, this positive relationship remains present for firms having strong involvement in foreign business through exports. Research limitations/implications Like other studies, the present study is not free from limitations. First, financial firms are skipped from the sample, although literature witnesses a lot of studies highlight the financial firms’ commitment to achieving CSR goals. Second, financial distress occurs in different stages, and this study fails to establish a linkage between CSR engagement at different stages of financial distress. In the future, researchers can make valuable addition by covering these missing links in present studies. Practical implications Findings suggest several practical implications. For policymakers, they should encourage firms to adopt more socially responsible behavior as it not only prevents them from distress but also comes with better investment behavior, minimize bankruptcies and make economies more strong and stable. Second, results suggest corporate managers emphasize socially responsible behavior as its benefits are beyond the “societal benefits” as it lessens financial distress through lower cost of debt, lesser financial constraints and reduced cost of information asymmetry, and it minimizes the cost of capital. Lastly, investors make risk premium assessments related to future earnings by determining the likelihood of financial distress in the future. Originality/value The study extends the body of existing literature on CSR and the likelihood of financial distress in Pakistan, which is according to the best knowledge of the authors, not yet studied before. The results suggest that policymakers may pay special attention to the quality of CSR while predicting corporate financial distress.

To B or not to B: Etsy’s decision whether to re-incorporate as a public benefit corporation and maintain its B Lab certification

2019 ◽  
Vol 15 (6) ◽  
pp. 510-527
Author(s):  
Gabriele Lingenfelter ◽  
Ronnie Cohen
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Regulatory System ◽  
Business Law ◽  
Publicly Traded ◽  
Socially Responsible ◽  
Content Type ◽  
Benefit Corporation ◽  
Academic Level ◽  
Corporate Social

Theoretical basis As the regulatory system begins to recognize the role of social responsibility reporting, reliable disclosure measures will be required. Issues of transparency, reliability and assurance are likely to arise as securities regulators consider whether and how to require disclosure of non-financial information. Various reporting models are presented in the case to illustrate different ways that these issues can be addressed by privately held and publicly traded corporations. Research methodology The case uses the company, Etsy, Inc., which has established itself as a publicly traded, socially responsible corporation. Etsy must decide whether it will re-incorporate as a benefit corporation in order to maintain its B Lab certification. This decision introduces students to the various measures of corporate social responsibility, the interests of the stakeholders of a corporation and the regulatory environment in which socially responsible, publicly traded corporations operate. The case uses only publicly available information. Case overview/synopsis This teaching case addresses the decision faced by Etsy, Inc. when it became a publicly traded corporation. In order to maintain its certification as a socially responsible corporation by B Lab, it would have to re-incorporate as a Delaware Benefit Corporation. In making this decision, the company had to consider various measures used for corporate social responsibility reporting and transparency and how these might affect Etsy’s stakeholders. Complexity academic level Undergraduate or masters level case that could be used in a business law, commercial law, legal environment or auditing course.

Corporate social responsibility, product innovation, and product line

2020 ◽  
Vol 11 (2) ◽  
pp. 171-190
Author(s):  
Heng Xu
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Transportation Cost ◽  
Policy Formulation ◽  
Product Line ◽  
Responsible Innovation ◽  
Socially Responsible ◽  
Basic Product ◽  
Content Type ◽  
Corporate Social

Purpose This paper aims to investigate a firm’s incentive to innovate its basic product to be socially responsible and its decision on the product line. By constructing a competition model, the paper examines the factors that affect the firm’s choice on its product line with the socially responsible innovation in the presence of altruistic consumers. Such factors include the proportion of the altruistic consumers, the firm’s coordination cost with the basic and innovative products, as well as the consumer’s transportation cost. Design/methodology/approach In a model of differentiated products with the competition, the author assumes that a portion of consumers has a strong preference for the socially responsible product (e.g. altruistic consumers). A firm is able to attract altruistic consumers with a socially responsible innovation but it may incur a coordination cost when both the basic and the innovated products are manufactured and sold. In a framework of a sequential game, the firms make a decision on the prices, innovation inputs, as well as the choice on its product line to achieve the expected profit maximization. Findings The firm has the incentive to engage in socially responsible innovation to better compete with its rivals. More importantly, the results of the paper explain why some firms wish to manufacture and sell the basic product even though the innovation is successful. The main factors that affect such a firm’s decision include the proportion of the altruistic consumers, the aggregate benefit to all the consumers who purchase the innovative product, the firm’s potential coordination cost and the consumer’s transportation cost. Originality/value The paper sheds light on a firm’s corporate social responsibility innovation and its product line determination. The results of this paper can be widely applied in the firm’s strategy of engaging in corporate social responsibility with eco-friendly elements that can attract altruistic consumers in the market. In addition, the findings of the paper can also contribute to policy formulation in terms of innovation. Such a result enables the policymakers to understand the factors that affect the firm’s motivation on innovation and helps them to better guide the firms efficiently participate in the research and development activities.

Clinical governance, corporate social responsibility, health service quality, and brand equity

2014 ◽  
Vol 19 (3) ◽  
pp. 215-234 ◽  
Author(s):  
Luu Trong Tuan
Keyword(s):  
Corporate Social Responsibility ◽  
Service Quality ◽  
Patient Care ◽  
Brand Equity ◽  
Care Service ◽  
Clinical Governance ◽  
Content Type ◽  
Patient Care Service ◽  
Governance Effectiveness ◽  
Corporate Social

Purpose – Brand equity of hospitals is built on patient care service quality. Through the testing of the hypotheses on the relationships between brand equity and its precursors, the purpose of this paper is to examine if clinical governance effectiveness is driven by corporate social responsibility (CSR), and if clinical governance effectiveness influences patient care service quality which in turn influences brand equity. Design/methodology/approach – In total, 417 responses in completed form returned from self-administered structured questionnaires relayed to 835 clinical staff members underwent the structural equation modeling-based analysis. Findings – CSR, as the data divulges, is a strong predictor of clinical governance effectiveness which yields high patient care quality and brand equity of the hospital. Originality/value – The expedition to test research hypotheses constructed layer by layer of CSR-based model of hospital brand equity in which high levels of CSR among clinical members in the hospital activates clinical governance mechanism, without which, initiatives to improve patient care service quality may not be successfully implemented to augment brand equity of Vietnam-based hospitals.

Improving brand equity

2015 ◽  
Vol 31 (10) ◽  
pp. 9-11
Keyword(s):  
Brand Equity ◽  
Brand Loyalty ◽  
Design Methodology ◽  
Reading Time ◽  
Brand Awareness ◽  
Brand Associations ◽  
Content Type ◽  
Pertinent Information ◽  
Quality Dimensions ◽  
Practical Implications

Purpose – This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach – This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings – A growing perception among many consumers is that brands and products are becoming increasingly more homogenous. Firms thus face an even greater challenge in the quest to make their offerings stand out from the crowd. Given the fiercely competitive landscape, the importance of brand equity cannot be overstated. High levels of equity indicate a strong brand that will be able to make its presence felt in the marketplace. Brand equity is often conceptualized as incorporating brand associations, brand loyalty, brand awareness and perceived quality dimensions. Brand associations are regarded as particularly influential. Consumers form these associations based on their knowledge and experience of the brand. Practical implications – The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value – The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Under pressure: exploring pressures for corporate social responsibility in mutual funds

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Caddie Putnam Rankin
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Mutual Funds ◽  
Mutual Fund ◽  
Socially Responsible ◽  
Content Type ◽  
Responsible Investment ◽  
Industry Standards ◽  
Corporate Social ◽  
Depth Interviews

PurposeThis empirical study seeks to understand how mutual fund firms interpret conflicting pressures to conform or differentiate in the context of corporate social responsibility (CSR). Research suggests that organizations engage in practices that conform to industry standards in order to be seen as legitimate members of their industry. Other studies suggest that organizations differentiate themselves in order to compete and outperform their rivals. Pressures for organizational conformity and differentiation are explored in two types of organizations in the mutual fund industry: socially responsible investment (SRI) and non-SRI firms.Design/methodology/approachThe research is based on qualitative in-depth interviews with twenty-six mutual funds.FindingsThe analysis revealed that pressures for conformity and differentiation were salient among mutual fund executives but emphasized differently for the two types of mutual funds.Originality/valueThe study concluded by suggesting SRI firms use both strategies of conformity and differentiation to amplify the message that they adhere to the values of CSR.

The third-person effects in the investment decision making: a case of corporate social responsibility

2018 ◽  
Vol 23 (3) ◽  
pp. 456-468
Author(s):  
Alexander V. Laskin
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Investor Relations ◽  
Socially Responsible ◽  
Content Type ◽  
The Third ◽  
Third Person ◽  
Corporate Social ◽  
Responsible Behaviors ◽  
The Third Person

Purpose The purpose of this paper is to apply a third-person effects theory to the study of corporate social responsibility communications. Previous studies have asked what importance investors assign to the socially responsible activities of corporations. However, in the context of publicly-traded companies, it becomes important not only to calculate the effects of available information on an individual investor, but also to estimate the effects of every piece of information on the investor’s perception of the investment community at large. Design/methodology/approach The study uses a survey methodology in order to evaluate what value respondents assign to socially responsible behaviors as well as to identify a presence of third-person effects in the corporate social responsibility evaluations. Using an online survey, the respondents were asked to read a modified news article and the respond to a series of questions. In total, 96 completed surveys were collected and analyzed. Findings The research finds the presence of third-person effects incorporate socially responsibility message processing. The results of the study show that, while individually people are supportive of the socially responsible behaviors of corporations, they perceive others to be less supportive of such behaviors; they also see others as less likely to encourage such behaviors through action. As a result, people are less likely to act on their own views of corporate socially responsibility as they perceive themselves to be outliers. These findings lead to important consequences for investor communications, which are discussed in light of the efficient market hypothesis. Research limitations/implications From an academic standpoint, the study proposed that in investor and financial communication, third-person effects could play a significant role. Yet, third-person effects research in investor relations literature simply does not exists. Thus, the study’s main contribution is expanding third-person effects theory into the field of the investor relations research. Practical implications From practical standpoint, expectations and perception of corporate social responsibility have a significant effect on corporate reputation and, thus, communication about corporate social responsibility become important as they shape these perceptions and expectations. Yet, such corporate social responsibility issues may include a variety of matters, such as governance, responsibility, and the quality of social and economic choices, sometimes even contradictory to each other. It becomes a job of investor relations managers to study, analyze, and respond to these competing demands. Social implications From societal standpoint, the study advances the debate on the role of corporations in the society. With such concepts as social license to operate and creating shared value, and the growing expectations about corporate behavior, understanding the stakeholders perceptions of socially responsible behavior of corporations as a function of their perceptions of other stakeholders’ viewpoints, creates a better understanding of the complexities involved in the issue of corporate social responsibility reporting. Originality/value Since investors and other financial publics are not homogenous and may have different perspectives, opinions, values, etc., they may react to the same information differently. Furthermore, they may expect others to behave differently and such perceptions, whether accurate or not, may, in fact, influence their own behavior, as third-person effects theory would suggest. Investor relations, then, becomes a function of managing these expectations. The presence of the third-person effects in investor communications can have a strong effect on market behavior and, thus, must become an important part of the investor relations professionals’ job – how the messages are crafted, communications, and measured. Yet, third-person effects is non-existent in the investor relations literature. Thus, the study provides an original contribution by applying a third-person effects theory in the investor relations research.

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