Strategic corporate social responsibility as global brand insurance

When the competitive strategies of multinationals rely on global brands, corporate social responsibility (CSR) offers insurance against management lapses. The practical need for CSR as brand insurance comes from changing social expectations, affluence, and globalization. Corporate actions that violate societal expectations damage, even destroy, brand image among networked stakeholders who are affluent enough to buy branded products and services. The premiums for CSR brand insurance are paid by leaders who create an organization-wide commitment to CSR as a means of redefining ‘profit maximization.’ By integrating a stakeholder perspective, management is best placed to optimize stockholder returns over the longer term.     

Understanding customer participation in CSR activities: The impact of perceptions of CSR,affective commitment,brand equity,and corporate reputation

This study investigates the mediating role of affective commitment in the link between perceptions of corporate social responsibility (CSR) and the intention to participate in CSR activities. We also examine the moderating role of firms' brand equity and corporate reputation in the relationship between perceived CSR and affective commitment. The data were collected from two online surveys and analyzed using Hayes' PROCESS macro. The results indicate a partial mediating effect of affective commitment and a significant moderating effect of brand equity. However, the moderating effect of corporate reputation is not significant. This study contributes to uncovering the process of enhancing CSR performance.     

Corporate social responsibility before CSR: Practices at Aluminium du Cameroun (Alucam) from the 1950s to the 1980s

Abstract

Aluminium du Cameroun (Alucam) was set up in 1957 as a subsidiary of the French aluminium group Pechiney. Since its creation, the Alucam plant has systematically applied policies that simultaneously integrate economic, social and environmental aspects. The originality of our contribution is that we describe a case where the three elements that make up corporate social responsibility (economic, social and environmental) are intertwined. Although this combination of elements had not formally materialised at the time, the case examined shows early awareness – comparatively ahead of its time and relatively well combined between the 1950s and the 1980s – of the three dimensions of corporate social responsibility.     

Designing transformative learning experiences for managerial transition to integrative CSR

Business leaders have increasingly committed to redefining corporate purpose in terms of corporate social responsibility (CSR). The challenge now is to enact this commitment. This article argues that to do so, managers must adopt a new cognitive frame (or mental lens). Specifically, managers must disengage from their existing instrumental frames, under which they consider CSR only instrumentally as a means to drive profit and pay only peripheral attention to external stakeholder goals, and instead engage with an integrative frame, in which CSR goals are intrinsic to business plans and are considered equivalent to, and simultaneously with, the firm’s financial goals. To enable managerial transition from the established instrumental frame to a novel, challenging, integrative frame, this article presents a transformative learning experience (TLE). In the TLE, managers first are immersed in a business initiative explicitly designed to expose the inadequacies of the instrumental frame for the redefined corporate purpose. This activates disorienting dilemmas in which the instrumental frame no longer applies but a new frame is not yet apparent. In the second phase, firms provide managers with heuristics such as metaphorical reasoning to enable experimentation with an integrative frame. This article provides guidelines for the structure in which this process should be embedded, how this process can be activated, and the process and learning outcomes to measure.     

Dealing with poor online ratings in the hospitality service industry: The mitigating power of corporate social responsibility activities

Hospitality service providers' reputation and sales can be strongly damaged by low ratings on platforms such as Tripadvisor, Booking, or Yelp. In this research, we investigate how the potential damaging effects of poor ratings of a hospitality service providers' can be mitigated by corporate social responsibility (CSR) activities. Building on the self-affirmation theory, we suggest and provide evidence for the notion that CSR (vs. non-CSR) cues affect more positively guests’ evaluation of a service provider when online ratings are low. When the ratings increase, CSR cues are not better than other cues to improve evaluations. Further, we detail the underlying mechanism whereby guests allocate more weight to CSR (vs. non-CSR) cues when they form an evaluation of a low-rated (vs. higher-rated) service provider, which increases the warm-glow feelings that they anticipate and, eventually, their evaluation. We test our model with two experiments on two different samples (US and European), involving different CSR cues (environmental and social) and different types of service provider (hotel and restaurant). We then discuss the theoretical and managerial implications of our research for hospitality professionals, as well as for policy makers.     

Support for corporate social responsibility among generation Y consumers in advanced versus emerging markets

Corporate social responsibility (CSR) has received increased attention in academia and business practice given the growing environmental awareness in the global marketplace. Especially generation Y can be characterized by a high level of interest in ethical consumption. While many studies have adopted managerial perspectives on CSR, we focus on consumer response to CSR among the millennial group. To do so, we employ a quantitative, survey-based approach with data collected in the advanced European market of Austria and the emerging Asian market of China. With a sample of 441 responses, we test our hypotheses using structural equation modeling. The findings both show that CSR support plays a central role in mediating purchase intention and reveal significant country differences. Thus, this study contributes to the literature by investigating responses to CSR among generation Y consumers from a cross-cultural perspective.     

Corruption and social trust: The role of corporate social responsibility

The importance and benefits of social trust have widely been recognized in the literature. However, there has been increasing concern about corruption in relation to a decline in social trust, and the role of business in this relationship remains largely unknown. This study aims to examine the linkages among corruption, corporate social responsibility (CSR), and social trust. Using a large sample of 6892 corporations from 33 countries over the period 2010–2014, the results demonstrate that corruption generates a highly eroding effect on social trust, whereas CSR has important implications for promoting trust among people in society. The results further suggest the potential role of CSR in mitigating the eroding effect of corruption on social trust. These results are robust across various methods of estimation, falsification tests, and in a different time period (2017–2020). This study makes several contributions to the literature both theoretically and empirically, and offers meaningful implications for businesses and policymakers.     

Corporate social responsibility research in international business journals: An author co-citation analysis

This paper aims to describe the development of research on corporate social responsibility in international business (IB) journals and to suggest future research directions. We conducted a bibliometric study of articles published in twelve leading international business journals over three decades in a longer time frame (1996–2015). Five research trends were found in IB journals: business ethics, integration of stakeholder management, the evolution of the CSR concept, the political and social demands of CSR, and the financial implications of CSR. Our results thus have several implications and suggest numerous opportunities for future research.     

Rethinking corporate social responsibility under contemporary capitalism: Five ways to reinvent CSR

Skepticism toward CSR is increasing. Management research on CSR tends to focus on positive outcomes from the practice of CSR, such as enhanced financial performance and best practice business cases. Less attention is devoted to why CSR is under siege. This paper argues that CSR is intimately connected with the way that capitalism is practiced, and that poor CSR outcomes are often the result of five “shortcomings” of contemporary capitalism: runaway self-interest, quarterly focus, elite orientation, volume orientation, and one-pattern capitalism. To evidence this, I employ a two-stage approach: a “diagnostic” stage that investigates current challenges facing capitalism and how they affect CSR, and a “clinical” stage that identifies potential solutions based on a qualitative data set collected in Asian business contexts. The proposed solutions suggest ways that researchers, practitioners, and policymakers can conceptualize, design, and implement CSR programs that better fulfill CSR’s promise to business and society. Based on these results, I conclude with ideas on how CSR research can be strengthened by exploring the under-researched linkages among CSR, modern capitalism, and global institutional contexts.     

The influence of a retailer's corporate social responsibility program on re-conceptualizing store image

The construct of retail store image is typically built based on a variety of the store's functional attributes. This conceptualization fails to consider the role of corporate social responsibility (CSR) polices and practices in forming store image. Results from a study of 460 consumers indicate CSR influences consumer store image. CSR is particularly effective at influencing store image when the retailer experiences a positive performance perception among its customers. Consumers shopping at such stores are more receptive to CSR programs, and experience significant increases in their level of satisfaction and loyalty to the store through the addition of these programs.     

Corporate Social Responsibility (CSR): Theory and Practice in a Developing Country Context

After providing an overview of Corporate Social Responsibility (CSR) research in different contexts, and noting the varied methodologies adopted, two robust CSR conceptualizations – one by Carroll (1979, ‘A Three-Dimensional Conceptual Model of Corporate Performance’, The Academy of Management Review 4(4), 497–505) and the other by Wood (1991, ‘Corporate Social Performance Revisited’, The Academy of Management Review 16(4), 691–717) – have been adopted for this research and their integration explored. Using this newly synthesized framework, the research critically examines the CSR approach and philosophy of eight companies that are considered active in CSR in the Lebanese context. The findings suggest the lack of a systematic, focused, and institutionalized approach to CSR and that the understanding and practice of CSR in Lebanon are still grounded in the context of philanthropic action. The findings are qualified within the framework of existing contextual realities and relevant implications drawn accordingly. Dr. Jamali is Assistant Professor of Management at the Olayan School of Business, American University of Beirut. She holds a BA in Public Administartion from the American University of Beirut, and a Ph.D. in Social Policy and Administration, from the University of Kent at Canterbury, UK. Her research interests encompass corporate social responsibility, public private partnerships, learning organizations and women issues. She worked as an expert consultant on projects funded by the World Bank, the US Agency for International Development, NGOs, and other regional and local public and private firms. She is the author of numerous studies and international peer reviewed publications in various international journals, including the Journal of Management Development, the International Journal of Public Sector Management, the International Journal of Quality and Reliability Management, Business Process Management Journal, Public Works, Management and Policy and Women in Management Review. Ramez Mirshak Graduated with honors from the American University in Cairo (AUC) with a Bachelor of Arts in Business Administration in February 2001, then worked for two years in Egypt in the field of marketing and management. In 2004–2005, pursued his Masters of Business Administration at the American University of Beirut (AUB), researching primarily issues relating to change management and corporate social responsibility under the supervision of Dr. Dima Jamali, then joined a leading international financial institution as a regional Management Associate, while maintaining links with AUB and working on several research based projects.     

Using consumer perceived ethicality as a guideline for corporate social responsibility strategy: A commentary essay

“Consumer Perceived Ethicality” presents a framework of perceived consumer ethicality as summarized from in-depth interviews with 20 citizens of the United Kingdom and Germany. The framework identifies six broad domains and 36 sub-items (6 for each domain) that serve as examples of consumer-generated “unethical corporate behaviors.” This commentary highlights the contributions, discusses the limitations and presents an alternative perspective on the study of consumer perceived ethicality.     

Consumers' perception of corporate social responsibility in a developing country

Corporate social responsibility (CSR) increasingly receives attention from managers and researchers, especially in the area of consumer perception and response of CSR. However, most of this research was conducted in the context of developed countries. It shows that research on consumer perception towards CSR in developing countries needs to be developed. This paper will examine consumer perception in the developing country of Indonesia. This research produced mixed results, suggesting that CSR is still a concept waiting to be applied in the developing country. Consumers are often unaware and unsupportive towards CSR. This is the opposite finding of consumer perception in developed countries, where most consumers are willing to support CSR launched by corporations. Nevertheless, there is an interesting finding: When consumers have to buy similar products with the same price and quality, CSR could be the determining factor. They would buy from the firm that has a socially responsible reputation.     

The social responsibility of international business: From ethics and the environment to CSR and sustainable development

This article examines how the international business (IB) literature has addressed social responsibility issues in the past 50 years, highlighting key developments and implications from a historical perspective. Specific attention is paid to the Journal of World Business (JWB), which has covered the whole period and published relevant articles related to these issues, in comparison to the Journal of International Business Studies (JIBS), the other long-standing IB journal. The article outlines that they illustrate different conceptualizations of IB and social responsibility. The 50-year review shows three subthemes: the (green) environment; ethics, rights and responsibilities; poverty and (sustainable) development. These are discussed consecutively, including main contributions and promising areas to further the field.     

The influence of the corporate social responsibility disclosures on consumer brand attitudes under the impact of COVID-19

This study focuses on the use of we-media by small- and medium-sized enterprises (SMEs) to disclose internal corporate social responsibility (ICSR) under the impact of the 2019 novel coronavirus disease (COVID-19). Study 1 interprets the catalyst effect of COVID-19 on the externalization of SMEs’ ICSR. The fuzzy grading evaluation method is initially verified. Under the impact of COVID-19, SMEs fulfilling their ICSR can enhance consumer brand attitudes. Study 2 uses a structural equation model and empirical analysis of 946 effective samples and finds that consumers perceive the self-sacrifice of corporations during the coronavirus disease period. SMEs can fulfill their ICSR to enhance the internal explanation mechanism of consumer brand attitudes and the moderating role of enterprise losses.     

The pivotal roles of product knowledge and corporate social responsibility in event sponsorship effectiveness

The authors apply consumer theories of cognition to event marketing specifically in relation to corporate sponsorships. Upon conducting field surveys with attendees (n = 1636) at an international sporting event with a multinational sponsor, the authors demonstrate the pivotal roles that 1) attendees' knowledge regarding the sponsor's product, and 2) perception of the sponsor's commitment to corporate social responsibility have on successful event sponsorship. Specifically, structural model results show how attendees' knowledge of the event sponsor's products and perceptions of the sponsor as socially responsible enhance attendees' commitment to the sponsor and intentions to purchase the sponsor's products. These results provide scholars and managers with means of improving event marketing communications.     

Effects of social responsibility labelling and brand on willingness to pay for apparel

This study examined changes in consumer willingness to pay (WTP) for apparel products as labour‐related information and brand were added. Tobit analysis of auction bids from 121 university students for t‐shirts showed men, Hispanics and consumers who believe in social responsibility and fair trade had significantly higher WTP once labour‐related labelling was added. The amount and complexity of information did not matter, leaving substantial leeway to companies in crafting their message. Adding brand significantly increased WTP for two better‐known brands while not changing WTP for the social responsibility messages. Results suggested brands can benefit from stressing social responsibility‐related attributes of products.     

The link between corporate social responsibility and customer loyalty: Empirical evidence from the Islamic banking industry

Increased support from customers for Islamic financial services is very important to create resilience and competitiveness in the Islamic banking industry. By highlighting certain social activities, this paper estimates the role of Islamic banks’ CSR in influencing customer loyalty, both individually and through the integrated roles of image, trust, satisfaction, and reputation. These paths explore how CSR makes customers impressed, convinced, satisfied, amazed, and ultimately loyal to Islamic banks. The empirical analysis of partial least square structural equation modeling (n = 283) has shown that CSR directly and positively impacts loyalty. Indirectly, these two aspects have an insignificant relationship through the serial roles of image-reputation and satisfaction-reputation, but significant through the single role of reputation and the serial role of trust-reputation. This study has resulted in an updated prediction model of Islamic banking customer loyalty. The practical implication lies in the importance of developing CSR to generate trust and reputation which ultimately increase customer loyalty toward Islamic banks.     

Designing corporate brand experience in an online context: A qualitative insight

This study explores the dimensions and components of corporate brand experience in an Internet setting. Corporate brand experience (CBE), which is a source of a company's added value, could be an effective way to position a corporate brand in relation to the overall corporate marketing strategy. However, the concept of CBE has attracted very little attention from previous research, thereby our understanding of what the concept is and how to operationalize it is limited. Previous brand experience research is mainly focused on the conceptual understanding of brand experience itself, and/or the product brand level (rather than at corporation level). Understanding CBE is important because corporate brand equity (e.g. corporate image, brand loyalty) is dependent not only on how one is satisfied with the product (mostly addressed by functional/performance values of product), but also through the values of the corporation (corporate brand values). This study thus contributes theoretically to the corporate and online branding literature by proposing underlying new dimensions and components of CBE in an online environment. A series of focus group discussions (FGDs) with 32 online banking respondents informs the study. We identify five main themes and 26 sub-themes of corporate brand experience — corporate visual identity, functionality, emotional, lifestyle and corporate/self-identity. Financial service providers can address these dimensionalities during the process of brand positioning and when designing their corporate marketing in an online setting.     

The impact of formal and informal institutional distances on MNE corporate social performance

Can host country selection affect the corporate social performance (CSP) of multinational enterprises (MNEs)? Using institutional distance as our theoretical lens, we propose and empirically examine the notion that greater institutional diversity can have disparate influences on the social performance of different types of MNEs. We conceptualize each MNE as a unique portfolio of locations and use that “footprint” to examine the impact of formal and informal institutional distances on CSP. We hypothesize and find (1) a moderating influence of greater formal institutional distance in the MNE portfolio that slows the rate of increased benefits associated with greater international scope; and (2) a direct influence of greater informal institutional distance that lowers the overall levels of CSP independent of the international scope of the MNE. Managerial implications for international location selection are discussed.