The impact of corporate social responsibility on customer attitudes and retention—the moderating role of brand success indicators

Although many studies report positive effects of corporate social responsibility (CSR) on customer attitudes, recent literature shows that the effectiveness of CSR initiatives critically varies among consumers, brands, and companies. Using 1375 customer responses about 93 brands in 18 industries, we examine how perceived CSR relates to customer attitudes and actual retention 2 years later, and specifically how this relationship may be contingent on brand characteristics. Our results indicate that perceived CSR can indeed compensate for the absence of a strong brand or smaller advertising budgets, but not for lack of innovativeness. Companies that simultaneously do good and innovate are rewarded with more positive customer attitudes and higher levels of customer retention.     

Consumers’ forgiveness after brand transgression: the effect of the firm’s corporate social responsibility and response

Abstract

In this article we examine the interplay between the severity of a brand transgression, consumers’ prior awareness of the firm’s corporate social responsibility (CSR) initiatives, and the firm’s response (apology vs. apologia) on the rates of forgiveness among consumers. Results of two experiments show that consumers’ prior awareness of the firm’s CSR initiatives significantly differentiates apologia from apology, with the effect of apology on consumer forgiveness being more apparent when brand transgression severity is mild. Results also show that consumer forgiveness mediates the effect of brand transgression severity, firm response, and consumer awareness on repurchase intentions. In this way, the study enables managers to determine whether or not an apology or apologia will be sufficient to solicit consumer forgiveness, using information about the levels of awareness of CSR among consumers.     

How firm communication affects the impact of layoff announcements on brand strength over time

Firms usually undertake layoffs to improve financial performance. However, layoffs often have negative effects on various stakeholders, including consumers. In this paper, we examine the magnitude and duration of the potential negative effect of layoff announcements on brand strength. We also examine how a firm's communication accompanying a layoff can potentially counteract the observed negative effect of layoff announcements on brand strength. We compare how advertising communication intensity, social media communication (i.e., brand-initiated tweets), public relation (PR) communication, and communication of CSR initiatives moderate the main effect of layoff announcements on brand strength. Using an error correction model and drawing on 366 announcements of layoff events in Germany, this study identifies the magnitude and duration of the main effect. An examination of five years of weekly consumer brand perception data across multiple industries and domestic and foreign firms shows that advertising communication intensity and social media communication amplify the negative impact of layoff announcements on brand strength. Conversely, PR communication and communication of CSR initiatives help mitigate the negative effect. These findings provide guidance on the best way for firms to design firm communication in the context of layoff announcements.     

Doing Right Leads to Doing Well: When the Type of CSR and Reputation Interact to Affect Consumer Evaluations of the Firm

This study investigates the efficacy of three corporate social responsibility (CSR) initiatives—sponsorship, cause-related marketing (CRM), and philanthropy—on consumer–company identification (C–C identification) and brand attitude and, in turn, consumer citizenship behaviors. CSR reputation is proposed as the moderating variable that affects the relationship between CSR initiatives, C–C identification, and brand attitude. A conceptual model that integrates the hypothesized relationships and the moderating effect of CSR reputation is used to frame the study. Using a between-subjects factorial designed experiment, the results showed that all three CSR initiatives have a significant effect on C–C identification and brand attitude. The level of that influence, however, varied according to a firm’s CSR reputation. Managerial implications of these findings are also discussed.     

公司形象对消费者信任和购买意向的影响机制

公司品牌形象是影响消费者信任的重要前因变量,但现有研究并未揭示出公司形象的不同维度对消费者信任影响的差异性以及公司形象通过信任进而影响购买意向的机制和过程。文章将消费者对品牌的信任划分为可信性和善意,探讨了公司形象的能力和社会责任两个重要维度通过信任对购买意向的影响机制。研究发现,公司能力和企业社会责任都能通过可信性和善意影响消费者对产品的购买意向;除间接影响外,公司能力可以直接影响消费者购买意向,但企业社会责任对购买意向没有直接影响;公司能力偏重于影响信任的可信性,企业社会责任偏重于影响信任的善意。     

The Role of Self-Definitional Principles in Consumer Identification with a Socially Responsible Company

This research analyses the influence of the perception of Corporate Social Responsibility (CSR image) on consumer–company identification (C–C identification). This analysis involves an examination of the influence of CSR image on brand identity characteristics which provide consumers with an instrument to satisfy their self-definitional needs, thereby perceiving the brand as more attractive. Also, the direct and mediated influences (through their effect on brand attitude), of CSR-based C–C identification on purchase intention are analysed. The results offer empirical evidence that CSR generates more C–C identification because it improves brand prestige and distinctiveness; brand coherence is also a powerful antecedent of brand attractiveness in the context of CSR communication. Finally, CSR-based C–C identification is able to generate directly better attitude towards the brand and greater purchase intention.     

A new model of how celebrity endorsements work: attitude toward the endorsement as a mediator of celebrity source and endorsement effects

This research introduces attitude towards the endorsement as a mediating variable in the relationships between celebrity source and endorsement factors and brand attitude. It also includes perceived celebrity motive, a variable rarely studied in the previous literature, as an endorsement factor. In a survey study, respondents evaluated four celebrity endorsement campaigns. Mediation analyses show that attitude towards the endorsement mediates the effects of three variables on brand attitude; these variables are celebrity expertise, celebrity–brand fit, and perceived celebrity motive. Moreover, results show that if consumers perceive that the celebrity was motivated to do the endorsement not only by money but also by product quality, this has a significant positive effect on attitude towards the brand.     

The Advertising Effects of Corporate Social Responsibility on Corporate Reputation and Brand Equity: Evidence from the Life Insurance Industry in Taiwan

This study investigates the persuasive advertising and informative advertising effects of CSR initiatives on corporate reputation and brand equity based on the evidence from the life insurance industry in Taiwan. The study finds, first, policyholders?? perceptions concerning the CSR initiatives of life insurance companies have positive effects on customer satisfaction, corporate reputation, and brand equity. Second, the advertising effects of the CSR initiatives on corporate reputation are only informative. Third, the impacts of CSR initiatives on brand equity include informative advertising and persuasive advertising effects. This study contributes the literature by explicit defining the advertising effects of CSR initiatives. Following the first step made by McWilliams et al. (Journal of Management Studies 43(1):1?C18, 2006), the hypotheses of this study crystallize their conceptual framework. The obtained results in this research first identify the informative advertising effects and persuasive advertising effects of CSR initiatives.     

The Emergence of Corporate Social Responsibility in Chile: The Importance of Authenticity and Social Networks

Little is known about how and why corporate social responsibility (CSR) emerged in lesser developed countries. In order to address this knowledge gap, we used Chile as a test case and conducted a series of in-depth interviews with leaders of CSR initiatives. We also did an Internet and literature search to help provide support for the findings that emerged from our data. We discovered that while there are similarities in the drivers of CSR in developed countries, there are distinct differences as well. In particular, we found that different sectors drive CSR in Chile. In contrast to other geographies where consumer demand and government regulation provided the impetus for CSR efforts, multinational companies (MNCs) and non-governmental organizations (NGOs) are key actors in Chile. MNCs imported their CSR beliefs, skills, and processes into Chile. Their efforts resulted in a virtuous cycle. Once large domestic firms felt pressured by their MNC rivals, they too adopted CSR initiatives. The ability to manage relationships with multiple stakeholders and perceptions of authenticity were also critical to the success of CSR in Chile. Using network theory as a lens, we suggest that network density and centrality largely determine whether CSR efforts will be authentic. Based on these contentions, we suggest avenues for future research.     

Corporate Support for Employee Volunteerism Within Canada: A Cross-Cultural Perspective

Company support for employee volunteerism (CSEV) is one mechanism whereby businesses meet the escalating expectation for corporate social responsibility (CSR). Institutional theory is applied to examine patterns of convergence and divergence in CSR programs cross culturally, with a particular focus on intra-country cultural differences. Using a national (Canada) survey of businesses, we examine cross-cultural differences regarding CSEV in two regions of Canada—French Canada (Quebec) and English Canada. Our results suggest that cultural differences, rooted in historical conditions, may shape CSEV program implementation in Canada. Quebec companies are less likely to engage in CSEV. If they do encourage employee volunteerism, they may exclude certain cause types from support and appear to focus more on the external benefits of CSEV, such as community perception, than do firms in English Canada. Recognizing that no nation is culturally homogenous, our study illustrates that CSR and CSEV may vary significantly whenever or wherever cultural differences occur. Businesses and nonprofit organizations need to consider culture as an important variable when implementing corporate volunteer programs.     

The Impact of Familiarity and Perceived Trustworthiness and Influence on Donations to Nonprofits: An Unaided Recall Study

What affects donations? Is it all in “the ask,” or does brand image matter? In the nonprofit brands literature perceived trustworthiness and influence of the organization are important factors that increase constituents’ willingness to support an organization. We examined the association between a nonprofit organization’s familiarity, trustworthiness, and influence and the propensity of donations it receives. To this end, we used a questionnaire on attitudes toward nonprofit organizations and unaided recall of nonprofit organizations collected from a nationally representative sample. The attitudes data revealed that perceptions of nonprofits’ effectiveness and trustworthiness in Israel are not particularly positive. A multivariate fractional polynomial regression on the unaided recall results shows that while familiarity and perceived effectiveness are positively associated with the propensity of donations to nonprofit organizations, trustworthiness is not. We explain this surprising result by changes in Israeli social policy, political culture, and trust in institutions. We suggest different efforts that organizations can make to enhance their brand image and consequently increase donations.     

Is Publicity Always Better than Advertising? The Role of Brand Reputation in Communicating Corporate Social Responsibility

Previous studies on corporate social responsibility (CSR) communication suggest that firms’ social initiatives should be communicated through third-party, non-corporate sources because they are perceived as unbiased and therefore reduce consumer skepticism. In this article, we extend existing research by showing that source effects in the communication of social sponsorships are contingent on the brand’s pre-existing reputation. We argue that the congruence between the credibility and trustworthiness of the message source and the brand helps predict consumer responses to a social sponsorship. The results show that a non-corporate source (publicity) generates more positive brand evaluations than a corporate source (advertising) when the sponsor has a positive reputation. However, the converse effect occurs when brand reputation is low: when the sponsor has a poor reputation, a corporate source generates more positive brand evaluations than a non-corporate source. Mediation analyses show that the interaction effect between CSR information source and brand reputation can be explained by sponsorship attitude, persuasion knowledge, and perceived fit between the brand and the cause.     

Congruence Effects in Post-crisis CSR Communication: The Mediating Role of Attribution of Corporate Motives

Corporate social responsibility (CSR) has grown on the corporate agenda and is at the heart of today’s corporate culture. While much research has examined CSR strategies and effects, the effects of post-crisis CSR communication have received relatively little academic attention. Therefore, this paper uses two experimental studies to examine several key contingency factors that influence consumers’ responses to post-crisis CSR initiatives. Results suggest that consumers demonstrate more favorable responses when a company launches a CSR initiative congruent with the crisis issue, or when the crisis is the result of an accident rather than a transgression. Further, the congruence between the crisis issue and the pre-crisis CSR initiative moderates the consistency effects between pre- and post-crisis initiatives. Such findings should be understood by considering the mediating role of corporate CSR motives’ consumer attributions, which was evidenced in this study. This study theoretically contributes to an improved understanding of the underlying mechanism of the post-crisis CSR information process and managerially contributes to the strategic development of effective post-crisis CSR initiatives given a particular situation.     

The ‘Catch 22’ of communicating CSR: Findings from a Danish study

This research explored the apparent ‘Catch 22’ of communicating Corporate Social Responsibility (CSR). Although companies are regularly encouraged to engage in CSR, they are simultaneously discouraged to communicate about this engagement. We contribute with two models that may help to explain how companies can best communicate about their CSR initiatives. Based on a reputation survey and two case studies of Danish corporate CSR frontrunners, first we develop an ‘inside‐out approach’ to suggest how managers can manage their CSR activities to achieve favourable CSR reputation in a ‘Catch 22’ context. Employees appear as a key component in building trustworthiness as CSR communication is shown to evolve when taking an ‘inside‐out approach’. Second, we develop a CSR communication model with two CSR communication processes targeting different stakeholder groups: ‘the expert CSR communication process’ and ‘the endorsed CSR communication process’. Integrating these models and processes may help companies strategically capture reputational advantage from their CSR initiatives.     

Conceptualization of CSR Among Muslim Consumers in Dubai: Evolving from Philanthropy to Ethical and Economic Orientations

Many existing studies postulate that in developing economies philanthropy tends to dominate in the CSR orientation delivered by organizations and expected by local populations. To assess this in the emerging economy of Dubai in the United Arab Emirates, we conducted a preliminary investigation of how locals are responding to the growing number of CSR initiatives that are being implemented in the Emirate. Moreover, given that scholars have argued that Islamic principles of philanthropy should guide CSR initiatives in Muslim countries, we also consider if our Emirati respondents connect CSR with Islamic philanthropy. Results from our survey of 267 local Muslim consumers in Dubai indicate that CSR is not typically equated with philanthropy. In addition, respondents displayed an appreciation of the economic benefits that CSR can generate. The implication is that organizations in Dubai no longer need to base their CSR on the platform of Islamic philanthropy as many scholars have argued. Our findings are significant for the wider Gulf region in that they suggest that in wealthy emerging nations, CSR may not be predominantly interpreted as the corporate philanthropy which is needed in poorer developing economies for the provision of infrastructure, schools, hospitals, and housing, and which in some Muslim contexts is also implemented because of local religious values.     

Does having women managers lead to increased gender equality practices in corporate social responsibility?

There is increasing interest in determining what impact having women in management positions may have on corporate social responsibility (CSR) initiatives. Various authors suggest that gender equality practices should be factored into the broader framework of CSR. This paper examines how the presence of women on corporate boards, in top and middle management and as heads of CSR departments, influences gender equality practices in the field of CSR. Using information collected from companies that have signed up to Women's Empowerment Principles in Spain, we show that the presence of women in the aforesaid posts has a positive impact on CSR activities with gender equality objectives. We thus supplement the justice, business and moral arguments with further arguments in support of the incorporation of women into not only corporate boards but all management positions. Finally, we provide a view of how gender equality can be included in the broader framework of CSR.     

品牌组合代言溢出效应研究——名人崇拜的调节作用

文章采用心理学实验法,基于拟社会互动关系视角的研究发现：不同水平的名人崇拜对名人多品牌组合代言的消费者评价有正向影响;名人崇拜对品牌代言组合的消费者影响有调节作用,即高崇拜消费者对品牌代言组合的消费者影响不敏感,且保持在一个相对稳定的较高水平;而低崇拜消费者对品牌代言组合的消费者影响大致成倒“U”型曲线结构。文章开拓性地将“名人崇拜”这一社会心理现象与市场中的消费者行为联系起来,揭示了名人崇拜对多品牌组合代言效应的调节作用,为名人多品牌组合代言活动提供了理论依据与实践指导。     

Assessing the Prerequisite of Successful CSR Implementation: Are Consumers Aware of CSR Initiatives?

As a reflection of the values and ethics of firms, corporate social responsibility (CSR) has received a large amount of research attention over the last decade. A growing area of this research is the CSR–consumer relationship. Results of experimental studies indicate that consumer attitudes and purchase intentions are influenced by CSR initiatives – if consumers are aware of them. In order to create this awareness, business is increasingly turning to ‹pro-social’ marketing communications, but such campaigns is met with scepticism and their effectiveness are therefore uncertain. Consequently, researchers in the field (for example, Maignan, 2001; Mohr et al., 2001) have called for empirical studies to determine the level of actual consumer awareness of CSR initiatives. This study examines the Australian banking sector, which engages in and promotes its CSR activities, to help fill this gap. Results from our qualitative study with bank managers, and our quantitative study with consumers, indicate low consumer CSR awareness levels. Consumer understanding of many of the social issues banks engage with is also low. While CSR is effective in eliciting favourable consumer attitudes and behaviour in theory, CSR has not proven its general effectiveness in the marketplace. The low consumer awareness of the various social issues in which firms engage with their CSR programs suggests that firms may need to educate consumers, so they may better contextualise CSR initiatives communicated. However, better context may amount to little if claimed CSR initiatives are perceived as inconsistent with other facets of the business that reflect its values and ethics.     

Values,Authenticity, and Responsible Leadership

Of the many ethical corporate marketing practices, many firms use corporate social responsibility (CSR) communication to enhance their corporate image. Yet, consumers, overwhelmed by these more or less well-founded CSR claims, often have trouble identifying truly responsible firms. This confusion encourages ‘greenwashing’ and may make CSR initiatives less effective. On the basis of attribution theory, this study investigates the role of independent sustainability ratings on consumers’ responses to companies’ CSR communication. Experimental results indicate the negative effect of a poor sustainability rating for corporate brand evaluations in the case of CSR communication, because consumers infer less intrinsic motives by the brand. Sustainability ratings thus could act to deter ‘greenwashing’ and encourage virtuous firms to persevere in their CSR practices.     

Corporate Social Responsibility and the Social Enterprise

In this article, we contend that due to their size and emphasis upon addressing external social concerns, the corporate relationship between social enterprises, social awareness and action is more complex than whether or not these organisations engage in corporate social responsibility (CSR). This includes organisations that place less emphasis on CSR as well as other organisations that may be very proficient in CSR initiatives, but are less successful in recording practices. In this context, we identify a number of internal CSR markers that may be applied to measuring the extent to which internal CSR practices are being observed. These considerations may be contrasted with the evidence that community based CSR activities is often well developed in private sector small to medium sized enterprises (SMEs) (Observatory of European SMEs, 2002), a situation which may be replicated in social enterprises especially those that have grown from micro-enterprises embedded in local communities. We place particular emphasis upon the implications for employee management. Underpinning our position is the Aristotelian-informed capabilities approach, a theory of human development and quality of life, developed by Sen (1992; 1999) and Nussbaum (1999) which has been developed further, in an organisational context, (e.g., Cornelius, 2002); Cornelius and Gagnon, 2004; Gagnon and Cornelius, 1999; Vogt, 2005. We contend that the capabilities approach offers additional insights into CSR in social enterprises in general and internal CSR activity in particular. Our article concludes with proposals for future research initiatives and reflections upon social enterprise development from a capabilities perspective.