Impact of Corporate Social Responsibility on Consumer Trust

2008 ◽  
Vol 23 (4) ◽  
pp. 7-34 ◽  
Author(s):  
Valérie Swaen ◽  
Ruben C. Chumpitaz
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Questionnaire Survey ◽  
Consumer Satisfaction ◽  
Positive Influence ◽  
Consumer Trust ◽  
Underlying Mechanisms ◽  
Corporate Social ◽  
The Impact

This research aims at analyzing the impact of consumers' perceptions of Corporate Social Responsibility (CSR) activities on their trust toward the company and at highlighting the underlying mechanisms and conditions of this impact. This paper is based on a questionnaire survey administered to a sample of 618 consumers about cosmetics and sportswear. Results show that consumers' perceptions of CSR activities have a positive influence on their trust toward the company, directly and indirectly through the influence on perceived quality of the products offered and consumer satisfaction.

scholarly journals Building Brand Equity through the Influence of Corporate Social Responsibility (CSR): A Case Study of Hollard Insurance- Kumasi

2017 ◽  
Vol 9 (1) ◽  
pp. 145 ◽  
Author(s):  
Daniels Reese Mensah ◽  
Joseph Yensu ◽  
Daniel Abayaakadina Atuilik
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Brand Equity ◽  
Positive Influence ◽  
Descriptive Statistics ◽  
Insurance Company ◽  
Brand Association ◽  
Corporate Social

Corporate Social Responsibility (CSR) is an important part of every business entity and as such has been described as a tool to build the brand equity of a business. Thus, understanding its implications help firms to build their brand equity. Therefore, this study investigates into building brand equity through the influence of CSR in Hollard Insurance Company, Kumasi. Questionnaires were designed and administered to a sample of 373 employees and customers of the Hollard Insurance Company. The data collected were analysed using descriptive statistics, cronbach alpha and multiple regression. The study shows that all CSR variables influence Brand Equity. However, Legal, Ethical, Voluntary and aggregated Corporate Social Responsibility significantly influence Brand Equity, with positive relationships. Ethical Responsibility was found not to be significant, but had a positive influence on Brand equity. The findings suggest that with Hollard Insurance commitments to legal, ethical and voluntary responsibility; they can present better view of their services by considering the CSR and include a positive brand association of their name in people's minds. It was further suggested that Hollard Insurance Company should review its CSR to assess the quality of legal, ethical and voluntary responsibilities to determine whether they are effectively carried out.

scholarly journals Market Responsiveness to Corporate Social Responsibility

2019 ◽  
Vol 8 (4) ◽  
pp. 114
Author(s):  
Zev Fried
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Reporting ◽  
Perceived Quality ◽  
Financial Information ◽  
Factors Affecting ◽  
Earnings Response Coefficients ◽  
Corporate Social ◽  
The Impact

Market reaction to surprises in earnings announcements has long been used to measure the quality of the information content of the announcement, and studies have explored various factors affecting the response. This study adds to this body of research by factoring in the level of corporate social responsibility (CSR) exhibited by the firm and employs a relatively new measure of a company’s level of CSR, rankings published by JUST Capital. I hypothesize that financial information reported by higher ranked companies is weighed more heavily by investors than those reported by non-ranked or lower-ranked companies. Using earnings response coefficients as a measure of the perceived quality of the financial information reported by the firms, my results provide direct support of the hypothesis, indicating that the market reacts more strongly to earnings surprises for firms with high JUST rankings than for unranked firms or firms with lower rankings. This result contributes new insights into the impact of a firm’s CSR in terms of the perceived quality of a firm’s financial reporting.

scholarly journals The impact of Corporate Social Responsibility on brand loyalty in the process of globalization

2020 ◽  
Vol 74 ◽  
pp. 04017
Author(s):  
Margareta Nadanyiova ◽  
Lubica Gajanova
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Brand Loyalty ◽  
Questionnaire Survey ◽  
Triple Bottom Line ◽  
Sustainable Growth ◽  
Customer Relationships ◽  
Bottom Line ◽  
Corporate Social ◽  
The Impact

In the process of globalization, the topic of sustainable development is among the most up-to-date and discussed issues. Companies applying the principles of social responsibility are focused not only on profit, but above all on sustainable growth and development. And just the triple bottom line concept represents a tool that enables CSR put into practice and points out that economic interests may not be in conflict with social and environmental issues. The aim of this article includes providing a literature review on the issue from the perspective of several foreign and domestic authors. By using methods of description, comparison, deduction, induction, it discusses the essence of corporate social responsibility, the concept of triple bottom line and also analyses its practical use in the case of the particular company. The secondary data for the analysis were obtained from annual company reports, statistical tables and published professional publications. In order to determine the impact of corporate social responsibility on brand loyalty in the process of globalization, a questionnaire survey was conducted among Slovak consumers. General scientific methods were applied for the processing of the data, as well as mathematical methods to evaluate the data collated from the results of the questionnaire survey. Based on this, benefits of using CSR principles are highlighted, that includes, in particular, building customer relationships, increasing the brand value and gaining brand loyalty. Finally, proposals are put forward for the effective implementation of corporate social responsibility principles in the process of globalization.

Consumer responses to corporate social responsibility programs

2015 ◽  
Vol 6 (4) ◽  
pp. 364-380 ◽  
Author(s):  
Tim Lu ◽  
Xia Wei ◽  
Kungchi Li
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Consumer Satisfaction ◽  
Positive Influence ◽  
Corporate Image ◽  
Consumer Involvement ◽  
Content Type ◽  
Consumer Evaluation ◽  
Corporate Associations ◽  
Corporate Social

Purpose – The paper aims to establish a causal relationship model that helps to realize how consumer involvement with the cause moderates the effect of company-cause fit on consumers’ corporate associations, and how their corporate associations regarding a company’s social responsibility programs influence their satisfaction with the company and the company’s corporate image, in the backdrop that the use of corporate social responsibility initiatives to affect consumers’ preference has become a common strategy. Design/methodology/approach – In the main study, the authors conducted a between-subjects factorial design to test the research model. A total of 400 questionnaires were distributed, and a valid sample of 389 participants was obtained. Findings – The results show that high-fit programs have a positive influence on the perceived corporate ability (CA) and corporate social responsibility (CSR) associations. CA associations directly influence corporate image and consumer satisfaction, while CSR associations indirectly impact consumer satisfaction through corporate image. Furthermore, consumers’ involvement with the cause increases the relationship between company-cause fit and CA associations. Originality/value – These conclusions have important implications for a better understanding of consumer evaluation of CSR initiatives. Theoretically, this research increases understanding of the interaction effects of perceived company-cause fit and consumer involvement with the cause on consumer evaluation of a company engaged in CSR, and a richer insight into the role of CA and CSR associations in consumer evaluations of companies engaged in CSR campaigns. Managerially, this research shows how managers can choose CSR programs causes that are most likely to promote favorable customer CA and CSR associations, thereby improving the company’s corporate image and customer satisfaction.

scholarly journals The strategic value of corporate social responsibility CSR: the present and future of its management

2021 ◽  
Author(s):  
Estrella Barrio-Fraile ◽  
Ana-María Enrique-Jiménez
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Main Challenge ◽  
Strategic Value ◽  
The Future ◽  
Corporate Social ◽  
Social Entities ◽  
The Impact

Corporate social responsibility (CSR) has become the central theme of many debates on the role of organizations in society in recent years. The voluntary incorporation of strategies that influence economic profitability and in turn social and environmental issues is already a reality in companies. This article has several aims: (1) to analyse whether CSR is strategic and cross-cutting for companies and whether there exists a true dialogue between companies and stakeholders; (2) to identify the functions, relationships and quality of CSR or sustainability directors; (3) to determine the main challenges for the future; (4) to reflect on the impact that Covid-19 has had on the development of CSR in businesses. The study was based on the Delphi method and employed a sample of 20 experts: 10 academics (lecturers and researchers) and 10 professionals (communication and CSR directors, and CSR and reputation consultants). The results reveal that: (1) with the exception of SMEs, CSR management in companies is strategic and cross-cutting; (2) there is no reciprocal dialogue between companies and stakeholders; (3) the functions carried out by CSR directors can be classified as analytical, strategic, tactical and communicative; (4) the most outstanding qualities of the CSR director are communication skills, deep knowledge of the company and a willingness to work as part of a team; (5) the main challenge for senior management for the future is to be more strategic; (6) Covid-19 has changed the focus in CSR areas of action and in the prioritization of stakeholders. In short, we conclude that CSR management is well rooted in companies and represents a true transformation for businesses as social entities.

scholarly journals How executive turnover influences the quality of corporate social responsibility disclosure? Moderating role of political embeddedness: evidence from China

2021 ◽  
Author(s):  
Fawad Rauf ◽  
Cosmina L. Voinea ◽  
Nadine Roijakkers ◽  
Khwaja Naveed ◽  
Hammad Bin Azam Hashmi ◽  
...  
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Executive Turnover ◽  
Firm Level ◽  
Corporate Social Responsibility Disclosure ◽  
Corporate Social ◽  
The Impact ◽  
The Relationship

AbstractThis study investigated the relationship between executive turnover (ET) and quality of corporate social responsibility disclosure (CSRD) at the firm level. The role of political embeddedness (PE) in the association between ET and CSRD quality in Chinese listed A-share firms is also inspected. We employed 20,850 firm’s/year observations between 2010 and 2016. An inverse relationship was found between ET and CSRD quality as well as PE and CSRD quality. In addition, the study findings disclose that corporate PE moderates the relationship between ET and a firm’s CSRD quality whilst the impact of ET on a company's CSRD quality was found more pronounced for firms with a low level of corporate PE. This examination adds to the literature on CSRD quality under the premise of normative stakeholder theory and leads to the conclusion that the political link of departing executives is an active participant in the exacerbation of CSRD quality in PE firms of China. This implies a reinvigoration of the roles of decision-makers for sustainable CSR assurance.

scholarly journals Consumers’ Perspectives and Behaviors towards Corporate Social Responsibility—A Cross-Cultural Study

2022 ◽  
Vol 14 (2) ◽  
pp. 615
Author(s):  
Yi Hsu ◽  
Thi Hong Gam Bui
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Purchase Intention ◽  
Structural Model ◽  
Positive Influence ◽  
Brand Reputation ◽  
Cross Cultural Study ◽  
And Behaviors ◽  
Corporate Social ◽  
The Impact

This study measured consumers’ perspectives and behaviors with respect to corporate social responsibility (CSR). Specifically, we explored the components of CSR, including CSR aimed towards the environment, society, customers, employees, suppliers, and shareholders. We also examined the impact of CSR practices on brand attitude and purchase intention. The study surveyed 616 consumers across three locations, with detailed questionnaires in four languages. A total of 564 samples (186 from Vietnam, 189 from Indonesia, and 189 from Taiwan) qualified for data analysis. Additionally, statistics software including LISREL 8.8, STATISTICA 10, and MINITAB 19 were utilized to evaluate our hypotheses and construct a structural model. The results indicated that the consumers across the three areas were not concerned about CSR aimed towards shareholders, while all consumers considered CSR aimed towards themselves. Vietnamese customers prioritized a company’s care for its employees, while both Indonesian and Taiwanese consumers concentrated on the environment and society. In addition, suppliers’ benefits and rights attracted Indonesians’ attention. Furthermore, CSR had a positive significant impact on brand reputation in all three cultures. However, while CSR had a positive influence on customer purchase intention in Indonesia and Taiwan, it did not in Vietnam.

The impact of corporate social responsibility on financial distress: empirical evidence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Farooq ◽  
Amna Noor ◽  
Shahzadah Fahad Qureshi
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Distress ◽  
Generalized Method Of Moments ◽  
Z Score ◽  
Content Type ◽  
Financial Firms ◽  
Corporate Social ◽  
The Impact

Purpose The present 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 Panel logistic regression (PLR) and the dynamic generalized method of moments (GMM) estimator are used to examine the impact of CSR on financial distress. The investment in CSR measures 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, whereas the Altman Z-score and ZM-Score are used as an indicator of financial distress. The higher the Z-score lower will be the probability of financial distress, whereas the higher ZM score shows a greater probability of financial distress risk. Findings The authors find a significant negative impact of CSR on financial distress in both PLR and GMM models. This finding is consistent with the stakeholder view of CSR, as an investment in CSR not only aligns the interest between shareholders and stakeholders but also mitigates the risk of financial distress as well. Research limitations/implications Like other studies, the present study is not free from limitations. First, financial firms 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, the authors fail to establish linkage CSR engagements at different stages of CSR. In the future, researchers can make a valuable addition by covering these missing links in present studies. Practical implications The findings of this study provide more insight to corporate managers and investors about the association between the quality of investment in CSR and the degree of financial distress, concerning Pakistani firms. Furthermore, this study contributes to the existing literature by adding new evidence from developing countries such as Pakistan which are helpful for regulatory bodies and policymakers in the formulation of long-term CSR strategies to manage financial distress. Originality/value The study extends the body of existing literature on CSR and the likelihood of financial distress in Pakistan. The results suggest that policymakers may pay special attention to the quality of CSR while predicting corporate financial distress.

Sign in / Sign up

Export Citation Format

Share Document