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The effects of corporate social responsibility on brand equity and firm performance
Abstract
Over the last decade, educators, administrators, and policy makers increasingly focus on corporate social responsibility. However, no studies examine the relationships among corporate social responsibility, brand equity, and firm performance. This study uses quantile regression and structural equation modeling to explore the causal linkages among these factors in Taiwanese high-tech companies over the period 2010–2013.
The results of quantile regression analysis show that the economic dimension of corporate social responsibility and the prestige driver of brand equity are positive and significant for all the quantiles. The brand extension driver provides a significant positive effect at the higher quantiles of firm performance. However, the findings indicate a significant negative effect on firm performance for the brand loyalty driver. The findings of structural equation modeling suggest that corporate social responsibility and brand equity positively affect firm performance. This study provides useful insights on brand equity and corporate social responsibility.
... On the other hand, some scholars have shown that corporate social responsibility efforts could potentially diminish the brand equity of the company (Araújo et al., 2023). Several studies have been conducted to investigate whether or not there is a positive correlation between brand equity and the financial performance of a company (Wang et al., 2015;Zhukova & Melikova, 2021). ...
... Brand equity has been shown to have a positive correlation with financial performance, as measured by Tobin's Q (Wang et al., 2015) Sales revenue (Zhukova & Melikova, 2021), and the book value of capital (Oppong et al., 2022). Additionally, brand equity has been associated with financial performance. ...
... This is in line with the stakeholder theory, which asserts that organizations can achieve high performance when they manage well their relationships with various stakeholders (Freeman, 2010). The mediators involve CL and brandbased mediators that are consistent with emerging studies noting the role of stakeholder perceptions in spurring organizational value (Wang et al., 2015). The research also expands the RBV since it shows how the CSR initiatives develop intangible resources in the form of brand equity and customer loyalty that are valuable, rare, and inimitable resources. ...
The study examines the way CSR affects the bank’s financial performance in Pakistan and investigates whether customer loyalty and brand equity mediating role. For this study, data were gathered through a quantitative design, involving 300 bank customers, including i.e. ABL, Meezan & MCB, customers via a questionnaire, and the past five years of CSR outlays each bank released (2019 to 2024). To collect information, measurement Scales from established works on CSR, financial performance, customer loyalty, and brand equity, and the results were analyzed using SEM. The findings revealed that CSR influenced financial performance (β = 0.42). Moreover, brand equity (β = 0.48) is the stronger mediator, followed by customer loyalty (β = 0.31). These findings reveal that CSR helps a business make more money, not just by boosting its earnings, but also by improving how customers look at the company’s brand and making them more loyal. As a result of this study, banking executives and policymakers should focus CSR efforts on what stakeholders want and incorporate them into the company’s main business approaches. Putting attention on global CSR guidelines, community-based events, and clear reviews by independent auditors encourages customers to trust the brand and keep the company financially stable. The study adds knowledge to existing research by showing that stakeholder and resource-based view theories are useful in a new market, and CSR can truly benefit business.
... Previous studies have shown a positive linkage between CSR and a firm's performance (Lin et al., 2009;Saurage-Altenloh, 2017). Companies perform their CSR obligations to enhance their corporate image or reputation, which has a positive impact on the brand/firm's performance (Torres et al., 2012;Wang et al., 2015). CSR helps to attract highly qualified employees from the labour market who prefer to work for companies with high reputation. ...
... Aupperle et al. (1985) investigated the connection between CSR and profitability. Several prior studies (see, for example, Kao et al., 2018;Lai et al., 2010;Wang et al., 2015) depicted that more socially responsible firms can develop an efficient managerial system, supporting firms to improve their performance. Based on the discussion mentioned above, the following hypothesis has been proposed: ...
... In other words, employees who perceive their bank as socially responsible tend to be more engaged and motivated, resulting in an overall better performance. This outcome is in line with prior studies (e.g., Kao et al., 2018;Lai et al., 2010;Wang et al., 2015), which showed that CSR is one of the major factors influencing organisations' performance. ...
Many studies have explored corporate social responsibility (CSR) outcomes in different contexts, but few empirically examine its effects on brand reputation, employer branding, and performance, considering employees' perspectives, particularly in banking. Consequently, this study aims to examine how employees' perceptions of CSR influence brand reputation, employer branding, and performance in the banking sector, highlighting the mediating role of brand reputation. A quantitative approach was applied using a questionnaire to collect data from employees working in different banks in Pakistan. 254 responses were collected and analysed using PLS-SEM. The findings indicated that CRS positively and significantly impacts brand reputation, employer branding, and performance. Both employer branding and performance are significantly affected by brand reputation, which in turn has a substantial intervening role in the connections between CRS and employer branding and performance. This study contributes to the extant literature on CRS within the banking sector. It provides practical contributions for managers and concerned stakeholders to better understand the consequences of CSR. Limitations and directions for further research are also provided.
... Beyond internal operations, a comprehensive climate action strategy involves active engagement with suppliers to promote sustainable supply chain practices, reduce emissions, enhance resource efficiency, and ensure responsible sourcing. This not only helps retailers mitigate climate risks, but it also enhances their brand image as responsible corporate citizens [41][42][43]. ...
... Instances of environmental irresponsibility, pollution issues, or failure to meet sustainability obligations can tarnish a company's reputation, triggering public outrage, boycotts, and legal consequences. The repercussions of such incidents may have enduring effects on a company's brand value, and consequently, its overall asset portfolio [37,43,45,75]. ...
We examined the impact of climate action on the financial performance of eleven food, grocery, and supermarket retailers listed on the London Stock Exchange from 2013 to 2022. Our findings reveal a positive association between the climate mitigation efforts of these businesses and financial performance, particularly in terms of returns on assets (ROA). Through Ordinary Least Squares estimation, we identified that climate action practices such as renewable energy usage, waste reduction, adoption of energy-efficient technologies, eco-friendly packaging, and optimized transportation are significantly associated with the ROA of UK-based food, grocery, and supermarket retailers. This study is significant as these retailers often have extensive operations and supply chains that contribute to greenhouse gas emissions. It demonstrates that engaging in climate mitigation measures can still lead to a positive ROA.
... Prior studies found that CSR affects positive financial performance, and they indicate that this result provides an impressive management, integrated with the strategy of the business, renewing their philosophy from the traditional profit-oriented approach to the social response approach (Maqbool & Zameer, 2018). As well as Wang et al., (2015) pointed out that CSR positively affects firm performance. Moreover, Kraus et al., (2020) pointed out that CSR has no direct significant effect on EP but is positively associated with green innovation and environmental strategy, which again improves EP. ...
... The interest of universities in CSR leads universities to considering the environmental impacts of their products, services and operations, and the exploitation of resources in a manner consistent with environmental standards. The results of our study in proportion to the results of (Long, 2020;Kraus et al, 2015;Maqbool & Zameer, 2018;Wang et al, 2015) who demonstrate that CSR influence positively EP, and they indicate that this influence provides an impressive management, integrated with the strategic of the business, renewing their attitude from the outdated profit-oriented approach to the social response style. Moreover, the study tests the moderating effect of GC and GHR in the relationship between CSR and EP. ...
Universities seek out of its keenness to preserve the environment and to enhance its environmental performance, by paying attention to social responsibility, to enhance its reputation in society. The current study examines the relationship between corporate social responsibility (CSR) and environmental performance (EP) through the moderating role of green human resources (GHR) and green climate (GC). The study collected data from 270 employees in private universities in Jordan. PLS4 was applied to analyze data and test the hypotheses. The results showed that CSR has a positive impact on EP. Also, the results showed that GHR and GC moderate the relationship between CSR and EP. Future research recommendations and study limitations are also provided.
... Scholars contend that fulfilling CSR obligations represents an investment in achieving social responsibility, thereby propelling overall firm performance (Sanclemente-Téllez, 2017;Sen et al., 2006). (Wang et al., 2015) have found the positive and significant relationship between the economic dimension of corporate social responsibility and the brand equity prestige driver holds true across all quantiles. Numerous studies highlight the connection between CSR and the enhancement of a firm's corporate image, contributing to improved overall performance. ...
... We obtained results that align with previous studies, revealing a consistent pattern. Researchers have consistently found that the role of CSR practices is crucial in influencing consumer perceptions of a firm, ultimately contributing to superior firm performances (Waheed & Zhang, 2022;Wang et al., 2015). Likewise, research indicates that the impact of consumer attitude and emotional contagion can contribute to fostering a positive perception of a firm (Allen et al., 2018). ...
This study investigates the relationship between corporate social responsibility (CSR) and brand perception. It specifically examines how negative attitudes toward CSR activities and emotional contagion influence brand perception. The research focuses on young consumers as the sample population. The findings underscore the significance of CSR in shaping consumer attitudes and emotions toward brands. The results indicate that negative attitudes toward a company's CSR initiatives can exacerbate negative brand perception. Therefore, the study emphasizes the importance of companies demonstrating their dedication to sustainability and environmental stewardship to appeal to environmentally conscious customers. However, the research also acknowledges certain limitations include the geographical sampling size and sampling techniques, which should be taken into consideration.
... Scholars contend that fulfilling CSR obligations represents an investment in achieving social responsibility, thereby propelling overall firm performance (Sanclemente-Téllez, 2017;Sen et al., 2006). (Wang et al., 2015) have found the positive and significant relationship between the economic dimension of corporate social responsibility and the brand equity prestige driver holds true across all quantiles. Numerous studies highlight the connection between CSR and the enhancement of a firm's corporate image, contributing to improved overall performance. ...
... We obtained results that align with previous studies, revealing a consistent pattern. Researchers have consistently found that the role of CSR practices is crucial in influencing consumer perceptions of a firm, ultimately contributing to superior firm performances (Waheed & Zhang, 2022;Wang et al., 2015). Likewise, research indicates that the impact of consumer attitude and emotional contagion can contribute to fostering a positive perception of a firm (Allen et al., 2018). ...
Corporate social responsibility (CSR) significantly bolsters brand loyalty by demonstrating a company's commitment to societal and environmental well‐being. This article investigates the link between brand loyalty based on consumer perception and CSR. The study looks at the effects of unfavorable perceptions of CSR initiatives and how emotional contagion affects brand loyalty. The results emphasize the importance of CSR and how it influences consumer attitudes toward brands. To this end, this study particularly targeted young consumers for adopting a sample of this study. The findings reveal that brand disloyalty can be caused by negative attitudes toward a company's CSR initiatives, and brand perception can amplify this effect. The study emphasizes how crucial it for businesses is to demonstrate dedication to sustainability and environmental stewardship to sustainable environmentally conscious clients. However, the geographical sampling size and sampling methods are the research's limitations, which should be considered by the researchers in the future for additional validation and contribution.
... The simulation study was utilized by Fatemi et al. (2015) to show how CSR increases corporate value. Quantile regression was also used by Wang et al. (2015) to find positive impacts of CSR and brand equity on business performance. According to Wang and Sarkis' (2017) analysis of the top 500 green United States (U.S.) companies' overall ESG scores, CSR governance improves financial results by boosting CSR performance. ...
The growing emphasis on sustainability has positioned environmental, social, and governance (ESG) practices as a key driver for businesses seeking long-term value creation. While existing research has extensively analysed the impact of ESG performance (ESGP) on corporate financial performance (CFP), slack resource theory suggests that strong CFP can also enhance ESGP, indicating a two-way relationship (Miralles-Quirós et al., 2019). This study explores this bidirectional dynamic — specifically, the “CFP-ESGP-CFP” link — using a panel dataset of 304 firm-year observations from Indian companies listed on the Nifty100 ESG Index between 2018 and 2022. ESGP is assessed using ESG disclosure scores from the Bloomberg database, while CFP is evaluated through return on assets (ROA) as an accounting-based metric and Tobin’s Q as a market-based measure. Applying correlation analysis and fixed-effect regression models, the findings reveal a positive relationship between CFP and ESGP for market-based measures. However, ESGP negatively affects CFP across both accounting and market metrics. These insights underscore the complex interplay between ESGP and financial outcomes, enriching the discourse on sustainable business practices (Debnath et al., 2024). A key limitation of this study is its focus on Indian firms within the Nifty100 ESG Index, suggesting opportunities for future research to expand into other geographic regions and market indices for broader applicability.
... The competitive advantage of CSR has been extensively discussed in the literature. Numerous studies (Awaysheh et al. 2020;Porter and Kramer 2002;Wang et al. 2015;Godfrey et al. 2009;Jones et al. 2000;Boubaker et al. 2022;Rais and Goedegebuure 2009) suggest that CSR enhances corporate reputation and reduces risk during financial crises. CSR-practicing firms are also noted for their higher levels of transparency, which reduces information asymmetry and attracts socially conscious investors (Ananzeh et al. 2023), thereby broadening the investor base (Halme and Laurila 2009;McWilliams and Siegel 2000;Lamont et al. 2001;Dhaliwal et al. 2011;El Ghoul et al. 2011;Cheng et al. 2014). ...
This study attempts to analyze the relationships between corporate sustainability performance and market value. We employ 2018–2022 annual data obtained from Refinitiv ESG Database comprising 5450 companies. We utilize Hayes Process Modeling to investigate this relationship and also the mediating role of revenue and the moderating role of profitability in this relationship. Our findings show that all corporate sustainability performance measures (overall ESG, environmental pillar, social pillar, and governance pillar scores) have a significant relationship with the market value of firms. Total revenues seem to mediate the relationship between corporate sustainability performance and market value. The direct effect of corporate sustainability performance measures on the market value as well the indirect effect of corporate sustainability performance on market value through revenues is moderated by profitability (Return on Assets). Our findings may provide valuable insights for companies seeking to leverage corporate sustainability performance to improve market value.
... A brand should establish its position in the market and create a good product that satisfies the consumer to gain its reputation and trustworthiness to bring out value from a consumer perspective (Wang et al., 2015). The intangible concepts of consumers' beliefs, attitudes, perceptions, and impressions are the main factors that create the brand identity (Fombrun & Shanley, 1990;Boyd et al., 2009). ...
Aims: This study examines POP MART's rapid growth in China's blind box sector. By integrating the insights and strategies from a systematic review, the industry can successfully interact with customers, create loyalty, and produce unforgettable experiences. Study Design: A qualitative approach is used in this research, using secondary data, content analysis, social media, and other news-related articles relating to the success of the blind box industry Methodology: This research investigates and describes the design elements, brand and marketing strategies, and consumer psychology of successful blind box firms. This study systematically examines POP MART's unique circumstances using the blind box business model. Conclusion: This research will aid other companies that want to enter or grow their blind box market or adopt a similar business approach. This study applied the POP MART and blind box brand case studies, specifically the theoretical and applied marketing implications.
... It has been changing over the years, depending on the place of implementation and the beneficiaries of CSR initiatives. Most studies on CSR deal with the role of CSR in financial performance (Barauskaite and Streimikiene, 2021), gaining competitive advantage (Abubakar et al., 2022;Du et al., 2011; Shah and Khan, 2019) or enhancing the company's brand equity (Kim et al., 2023;Wang et al., 2015). In this contemporary era, most recently, researchers have also been paying attention to other aspects such as CSR's role in achieving sustainable livelihood creation (Fordham et al., 2018), CSR in environmental conservation and restoration (Bohnett et al., 2022;Wolff et al., 2017), and the role of the board of directors in CSR implementation (Mohy-ud-Din and Raza, 2023) and impact gender diversity in the board on implementation of CSR initiatives (Yarram and Adapa, 2021;Yasser et al., 2017) are also explored. ...
Purpose
This study aims to understand the relationship between social audit (SA) and sustainable corporate social responsibility (SCSR). Furthermore, this study will investigate the mediating effect of corporate social innovation (CSI) on the relationship between SA and SCSR and the moderating impact of community participation (CP) on the relationship between CSI and SCSR.
Design/methodology/approach
This research was conducted in Odisha, a state in India, with 448 respondents and a response rate of 89%. The convenience sampling technique was used, and questionnaires were prepared in English and translated into regional languages during data collection. Psychological separation and Harman’s single-factor test were used to avoid common method bias. Exploratory factor analysis and confirmatory factor analysis were performed step by step to validate the proposed model.
Findings
The current study indicates that SA positively impacts SCSR. Findings from the analysis show that CSI partially mediates the relationship between SA and SCSR. Furthermore, this study indicates that CP moderates the relationship between CSI and SCSR.
Originality/value
This study is one of its kind concerning the variables considered, and it can work as a stepping stone for upgrading the delivery mechanism for corporate social responsibility (CSR) programs, which can solve the fundamental problems faced in society more effectively. It will provide new paths for future researchers to study in the area of audit and CSR.
... The items were created in a unidimensional manner as presented by related studies. For example, brand equity was modified and created to be a subjective construct by Wang et al. (2015). This was further confirmed by Bakshi and Mishra (2016) where the build up of the measure items represented the value of the product the objective wanted to measure. in this study's case, competition, brand image, offers, and up-to-date overall design was considered adapting related studies (Bakshi & Mishra, 2016; hashem & Al-Zyoud, 2020) ...
This study investigated the impact of brand equity and the decoy effect on the purchase of insulated water flasks. This was done in order to address a gap in understanding the decoy effect’s effectiveness across sustainable alternatives like insulated water flasks and their influence on consumer purchasing behavior. The research involved 405 participants who completed an internet survey, distributed among different social media platforms. Findings analyzed using higher-order partial least square structural equation modeling with SMART PLS v3.0, revealed that both the marketing mix and the decoy effect significantly influenced actual purchase behavior. Promotion has the most substantial impact within the marketing mix factors while price has the least effect, suggesting that consumers are willing to invest in reusable insulated water flasks due to long-term savings and benefits. Additionally, attitude significantly influences purchasing intentions, highlighting consumers’ role in decision-making. The study underscored the importance of individual attitudes and perceived behavioral control in driving purchasing decisions.
... Hence, marketing teams, management, and decision-makers, in tech entities, need to define the target audience and aim the signals accordingly. That way the signals can effectively reinforce "firm values" in their eyes (Wang et al., 2015(Wang et al., : 2236, during routine (Lawal et al., 2017), and during a crisis (Chang et al., 2021). As previously mentioned, the promotion efforts of individual companies can ultimately yield benefits at the national level. ...
This article delves into how factors within the high-tech industry can shape a nation’s image, exploring the intricate dynamics between tech corporate diplomacy and the public diplomacy of the state. It presents a strategic approach for tech companies to fortify their image, with a particular focus on highlighting the importance of Corporate Social Responsibility (CSR) narratives. It discusses how such initiatives not only have the potential to enhance the reputation of tech companies on a micro level but also offer industrial and diplomatic advantages for the nation on a macro scale.
... The study uses the Tobin's Q ratio as the measure of firm's performance. According to (Li et al., 2018 andWang et al, 2015), Tobin's Q reflects the firm's past and future financial performance. ...
The current study aimed to find the impact of environmental, societal, and governmental factors on the firm's performance. Additionally, the study tried to build knowledge about the importance of the mentioned factors as one of the trends towards the value of the green Topin's Q. Using the data of 70 Egyptian firms listed on the Egyptian Stock Exchange during the period from 2017 to 2022, the study results showed a significant impact of all the tested factors on the firms' Tobin'q. Based on the study findings, it is suggested that firms included in the Egyptian Sustainability Index should prioritize various initiatives aimed at empowering women and youth, donations, establishment of reward systems, greater attention to healthcare, involve individuals with special needs, support artistic initiatives and civic participation towards education and scholarships, community relief efforts, establish sustainability committees, and adopt more environmentally friendly manufacturing protocols specifically related to packaging and waste disposal.
... the personality of a brand, which can dictate consumer affinity towards a brand, has been explored by su and tong (2015) and luffarelli et al. (2019). additionally, corporate social responsibility (csr) initiatives, which Wang et al. (2015) describe, play a critical role in enhancing brand equity by improving public goodwill and trust. the country-of-origin effect, studied by Yasin et al. (2007), also impacts brand perception, especially in markets sensitive to the geographical origins of products. ...
The online food delivery (OFD) industry has experienced significant growth and transformation, enabling businesses to operate in a dual-channel manner and diversify their revenue sources. The paper aims to investigate the impact of service marketing mixes on brand equity of Online Food Delivery Applications in an emerging economy, Bangladesh. Through the application of the positivist research philosophy, the study employs regression analysis to ascertain the influence of the 7 Ps of the service marketing mix on brand equity. The results empirically demonstrate the important contribution of the three 3 Ps to brand equity. Place, Promotion and Physical evidence have been found to significantly impact the brand equity of OFD platforms. The influences of other predictors (product, price, people and process) are weak and are not making a significant contribution to the prediction of brand loyalty towards online food delivery service. By fully embracing the potential of the services marketing mix, managers and enterprises can maximize the advantages offered by this expanding industry, foster a competitive advantage, and contribute to the development of a sustainable OFD market, which in turn benefits the broader business, society, and economy. This study is one of the first studies measuring the impact of service marketing mixes on brand equity in the growing food delivery marketplace.
... It is also important that such activities are associated with the brands that launch them. If so, these companies are not only doing a good deed: these activities will also boost consumer brand equity (Wang et al., 2015). This study supports organizations' belief in medium and long-term charitable responsibility regarding CSR (legal, ethical, economic, and charitable responsibility) because charitable performances carry the brand's equity. ...
... Cũng thuộc nhóm những nghiên cứu đưa ra tác động hỗn hợp thì sau khi thực hiện nghiên cứu Nollet Joscha và nhóm nghiên cứu của mình đã đi đến kết luận rằng kết quả của mô hình tuyến tính cho thấy có mối quan hệ tiêu cực đáng kể giữa CSR và tỷ suất lợi nhuận trên vốn (ROC) tuy nhiên, các mô hình phi tuyến tính lại cung cấp bằng chứng về mối quan hệ hình chữ U giữa CSR và các thước đo về hiệu quả tài chính [14]. Do vậy, đáp án chính xác cho những nghi vấn về mối quan hệ giữa trách nhiệm xã hội và hiệu quả của doanh nghiệp vẫn còn là dấu chấm hỏi [15]. Lời giải thích được đa số các nhà nghiên cứu chấp nhận cho sự không đồng nhất trong các kết quả nghiên cứu trên đó là do sự khác biệt trong thang đo được sử dụng để đo lường trách nhiệm xã hội và hiệu quả doanh nghiệp [16], lĩnh vực hoạt động của doanh nghiệp được sử dụng trong nghiên cứu, quy mô doanh nghiệp, khu vực địa lý, lý thuyết sử dụng [17] phương pháp xây dựng và đo lường mô hình nghiên cứu đề xuất, và đặc biệt đó là bỏ qua tác động trung gian của các khái niệm khác. ...
Trách nhiệm xã hội và hiệu quả của doanh nghiệp (CSR-FP) là chủ đề nhận được sự quan tâm rất lớn không chỉ của các doanh nghiệp mà còn cả giới học thuật những năm gần đây do tình trạng biến đổi khí hậu, nóng lên toàn cầu và suy thoái môi trường ngày càng trở nên trầm trọng. Bài báo tập trung vào hệ thống hóa các nghiên cứu về tác động của trách nhiệm xã hội tới hiệu quả hoạt động của doanh nghiệp. Dựa trên việc thống kê mô tả nội dung 291 tài liệu từ cơ sở dữ liệu Scopus, nghiên cứu chỉ ra khu vực địa lý thực hiện nghiên cứu, lĩnh vực hoạt động của doanh nghiệp, phương pháp nghiên cứu sử dụng và kết quả nghiên cứu đạt được từ các nghiên cứu trước. Kết quả nghiên cứu chỉ ra quy mô của doanh nghiệp điều tiết mối liên hệ giữa CSR-FP, đồng thời các mối quan hệ CSR-FP chủ yếu tập trung vào hiệu quả tài chính và thiếu vắng sự tập trung cho từng ngành và lĩnh vực cụ thể với sự tham gia tác động của các nhân tố trung gian trong mối quan hệ CSR-FP. Kết quả nghiên cứu là cơ sở khoa học để các nhà quản trị doanh nghiệp trong lĩnh vực xây dựng đưa ra chiến lược và chính sách phù hợp nhằm mang lại hiệu quả bền vững cho doanh nghiệp. Đồng thời, kết quả nghiên cứu giúp các học giả nhìn thấy khoảng trống nghiên cứu liên quan đến mối quan hệ CSR-FP của từng lĩnh vực cụ thể trong mối quan hệ với trách nhiệm xã hội của tổ chức.
... The employees under ethical leadership are anticipated to identify cost-saving methods to achieve a solid triple bottom line, including people, planet, and profit (Roeck & Farooq, 2018). Additionally, firms governed by ethical leadership are expected to attain more external legitimacy and a positive brand image based on their responsible and sustainable business practices (Wang et al., 2015). ...
... CSR can be defined as the business commitment in order to bring economic development in the region and improves the standard of living of their employees and community (Aguilera-Caracuel et al., 2015). CSR is a behavior that is concerned with business ethics; it means the firm has an obligation to social and environmental concerns (Patari et al., 2014;Wang et al., 2015). It is obligatory under the law that companies conduct their social responsibilities but CSR is a practice through which they show more social responsibilities towards society (Yu and Choi, 2014). ...
... Brand loyalty is a view of the extent to which a consumer can still get a positive impression, which will trigger their commitment to continue to be loyal in using products of the same brand over and over again, accompanied by feelings of satisfaction and pleasure after being consumed repeatedly and there will be an intention to continue making more transactions in the future (Ebrahim, 2020). Brand loyalty has an important role for a service-based organization where satisfied customers will be more loyal to use services and this has a constant effect on current and future revenue streams (Wang, Chen, Yu, & Hsiao, 2015). Brand loyalty is also defined as customers who get a high level of satisfaction, involvement and experience with a particular product which will increase their sense of loyalty to the product brand compared to other product brand alternatives (He & Lai, 2014). ...
... 2.2 | Corporate violations, CSR, and bank loans CSR has been considered a key factor in attaining economic goals and wealth generation (Garriga & Mele, 2004). Therefore, many studies mainly focused on the impact of CSR on reputation and corporate performance (Bhardwaj et al., 2018;Brammer & Millington, 2008;Chen et al., 2018;Park et al., 2014;Wang et al., 2015), earnings management (Liu et al., 2017), market value (Nekhili et al., 2017), shareholder value (Erhemjamts & Huang, 2019), stakeholder influence (Kima et al., 2018), brand attitudes (Cowan & Guzman, 2018;Ferrell et al., 2019;Robinson & Wood, 2018). Brammer and Millington (2008) claimed that the cost of CSR would not be offset by economic benefits to stakeholders or increased market share; the extra demand on resources might even hurt the firm's competitiveness. ...
In enhancing oversight within China's capital markets, it has become imperative to investigate the economic ramifications of corporate transgressions in the banking sector. This study applied the tenets of the insurance effect theory to scrutinize the transmission mechanism delineating the impact of corporate violations on bank debt costs, with a specific focus on the ameliorative role played by corporate social responsibility (CSR). The findings underscored a positive correlation between corporate violations and bank debt costs, while CSR emerged as a mitigating factor in this relationship. Notably, organizations demonstrating proactive engagement in CSR activities exhibited a capacity to attenuate the adverse influence of violations on bank debt costs. However, it was discerned that the insurance effect of CSR diminished when companies recurrently breached regulatory norms. These outcomes contribute substantively to fortifying capital market supervision, urging enterprises to conscientiously fulfill their social responsibilities to engender a more cautious approach from financial institutions.
... Owing to the nature of our dataset and dependent variables, we first employ Ordinary Least Squares (OLS) panel estimation techniques to examine the impact of CSR investments on financial performance of firms (e.g. Lee et al., 2016;Wang et al., 2015). We choose random effects estimation over fixed effects estimation for our primary analysis due to two reasons. ...
... Corporate Social Responsibility CSR can be defined as a corporation's involvement and investment of its resources for the betterment of society and the public that has supported the organization (Frederick, 1994). Wang et al., (2015), demonstrating positive relationships among CSR, brand equity, and firm performance, suggest that CSR, as an intangible corporate asset, positively affects firm performance. The important role of CSR awareness is for a firm to take advantage of its CSR efforts to increase its firm value (Servaes & Tamayo, 2013). ...
Waroeng Special Sambal (SS) Indonesia is a restaurant trademark that has 98 branches in Indonesia and Malaysia. Waroeng SS was founded in 2002 and continues to exist today. The restaurant business management model which is centralized in one management makes the director's policies the most important thing in the running of the business. There is an interesting motive from the Director of Waroeng SS in the company's CSR policy, namely 1% of turnover every month. Seeing the importance of business having an impact on the surrounding environment, researchers tried to look at several motives behind this. The research approach used is descriptive qualitative with in-depth interviews and observations. The results of this research show that (1) the motive of altruism is the main basis for the Director of Waroeng SS in his business policies, and (2) the motive of altruism supports the sustainability of Waroeng SS's business for more than 20 years.
... Investor kemungkinan besar akan menyukai saham perusahaan yang berkinerja baik di bidang sosial dan lingkungan dan tidak akan menuntut tingkat pengembalian (premium) yang tinggi dari saham tersebut (el Ghoul et al., 2011;Wang et al., 2015) . Konsisten ...
Tujuan penelitian ini adalah untuk menjelaskan bagaimana praktik pengungkapan perusahaan mengenai perbudakan modern berhubungan dengan biaya ekuitas mereka, yang merupakan faktor penting dalam membentuk strategi pembiayaan perusahaan dan persepsi investor. Penelitian ini menggali potensi implikasi pengungkapan perbudakan modern di perusahaan-perusahaan G20 terhadap biaya modal melalui biaya ekuitas, dengan menggunakan sampel sebanyak 3.108 entitas dalam 6.303 tahun data mulai dari 2015 hingga 2020. Menggunakan analisis regresi data panel dan mengambil data sekunder yang bersumber dari Eikon, temuan ini mengungkapkan tren penting: pengungkapan perbudakan modern dan biaya ekuitas memiliki hubungan negatif di antara keduanya. Hasil ini menggarisbawahi keuntungan strategis dari penerapan transparansi dalam mengatasi permasalahan perbudakan modern. Perusahaan yang mengungkapkan apa yang mereka ketahui akan memperoleh keuntungan dari biaya ekuitas yang lebih rendah dan berkontribusi pada praktik bisnis yang etis. Hal ini berarti peningkatan kinerja keuangan dan peningkatan daya tarik bagi calon investor, yang berpotensi meningkatkan profitabilitas bagi perusahaan-perusahaan tersebut. Penelitian ini memberikan kontribusi terhadap adanya pengetahuan tentang pengaruh pengungkapan perbudakan modern terhadap biaya ekuitas. Para pengambil kebijakan, investor, dan dunia usaha mungkin menganggap data ini berguna dalam memahami pentingnya pengungkapan perbudakan modern dan bagaimana hal itu mempengaruhi biaya ekuitas.
... Therefore, brand social responsibility is how a brand is responding to the social public surrounding of the business by their related CSR activities for the society's welfare, including meeting legal regulations, meeting social expectations and commitment to the society. A firm is usually socially responsible when the brand successfully implemented and created social responsibility activities that is accepted by the society and therefore affects the firm's performance in terms of enhancing corporate identity (Wang, Chen, Yu, & Hsiao, 2015). ...
... The following hypotheses were set forth: Demand has increased for business actions that serve society's best interests while also serving business stakeholders. Existing research associates CSR with profitability, brand performance, trust, shared values, retention, and brand loyalty (Eveland et al., 2018;Wang et al., 2015). This study proposes that consumers will be more likely to buycott a company engaging in CSR activities relevant to Covid-19. ...
... Consequently, both Portuguese and Chinese leaders allocate available resources towards long-term sustainability objectives rather than short-term outcomes. Wang et al. (2015) argue that these leaders face growing pressure to proactively address environmental issues by identifying solutions that simultaneously enhance sustainability performance and economic competitiveness. ...
Purpose
This study aims to investigate the role of green strategic alliances (GSAs) in fostering a green shared vision (GSVis) and green shared value (GSV) and their impact on green organizational identity (GOI) and sustainability.
Design/methodology/approach
The authors employed structural equation modeling to analyze data collected through a 60-item questionnaire administered in Portugal and China, allowing the authors to test their theoretical model.
Findings
The findings of the authors' study indicate that green strategic alliances have a positive influence on the development of a GSVis and GSV in both countries. This, in turn, contributes to improved sustainability and the establishment of a GOI. Furthermore, the authors' results demonstrate that these alliances enhance GSV, resulting in enhanced sustainability performance and a stronger green identity, with a notable increase in awareness of environmental and social practices.
Originality/value
This article is innovative as it applies organizational learning and value creation theories to gain a deeper understanding of how alliances can shape the green identity of companies and contribute to their overall sustainability.
... Ertz et al. (2022) szerint ennek érdekében a szervezetek jelentős erőforrásokat fordítanak a munkáltatói márka fejlesztésére, javítására, fenntartására és védelmére, hiszen egy elfogadott márka jelentős vonzerőt jelenthet az álláspályázók számára (Brunner, & Baum, 2020). A szervezeti teljesítményt is stabilizálhatja, sőt az erősebb márka magasabb árbevétel és profit eléréséhez segítheti a szervezeteket (Wang et al., 2015). Ennek a két fontos adatnak az alakulása a juttatási rendszereket és a karrierutakat is befolyásolhatja, amely Garibaldi és Alicia (2014) eredményei alapján a munkaerő megtartására nagy hatást gyakorolhat. ...
A dolgozói elégedettség a felértékelődő munkaerő miatt különösen foglalkoztatja az akadémiai és az üzleti szféra szereplőit, így igen aktuális kérdéskört jelent a vizsgálata. Tanulmányunk újszerűségét ezen az erősen kutatott területen belül az adja, hogy az eddigi vizsgálatok nem tértek ki a dolgozói elégedettségnek a Balanced Scorecard (továbbiakban: BSC) összetett mutatószámrendszer elemeivel való összefüggésének elemzésére. A szervezet árbevétele és profitja a múltról szolgáltat információkat. A BSC alkalmazásával viszont teljesebbé válik a szervezet elemzése az olyan jelenorientált mutatókkal, mint a vevői/dolgozói elégedettség, a tanulás és a munkafolyamatok optimalizáltsága, valamint a jövőorientáltakkal, mint a fejlődés igénye és a változásképesség. Célul tűztük ki a dolgozói elégedettség és a BSC egyéb dimenziói közötti összefüggés vizsgálatát regresszióanalízis végrehajtásával. Részcéljaink között szerepelt annak feltárása, hogy a BSC múlt-, jelen-, vagy jövőorientált elemeivel van-e a legszorosabb összefüggés. Kérdőíves primer kutatást végeztünk az észak-alföldi régió KKV kategóriába tartozó szervezeteinek körében. Az eredmények alapján a magasabb dolgozói elégedettség elérése érdekében a vezetőknek különösen indokolt a jelenbeli vevői elégedettségre, a szervezetnél működő munkafolyamatokra, valamint a tanulás szintjére is nagyobb hangsúlyt helyezni, amely a munkavállalók bevonzására és megtartására is pozitív hatást gyakorolhat.
Corporate Social Responsibility (CSR) messaging on social media has become a key strategy for companies to engage the public. However, limited research has investigated how specific CSR communication strategies influence public online engagement, particularly in the Chinese context. This study analyzed the effects of three dependent variables: (1) CSR message themes (aligned with ISO 26000 standards), (2) relationship cultivation strategies (Openness, Information Dissemination, Interactivity and Involvement, and Sharing Tasks), and (3) multimodal message types (text with emoticons, picutures, and videos) on social media users’ engagement behaviors (likes, shares, and comments). A quantitative content analysis was conducted on 421 CSR-related posts from the Weibo accounts of the top ten automotive brands in China, using Negative Binomial Regression (NB2) to examine the associations between CSR factors and user engagement. The findings revealed that consumer-related CSR themes significantly increased likes, shares, and comments. Relationship cultivation strategies, particularly Interactivity and Involvement, positively impacted engagement, especially in posts that encouraged commenting or sharing. Additionally, posts incorporating text with emoticons were found to significantly boost comments. Theoretically, this study integrates Stimuli-Response Theory’s focus on external stimuli with Uses and Gratifications Theory’s emphasis on users’ active motivations, offering a more comprehensive framework for understanding user engagement. Practically, it provides clear, actionable recommendations for automotive companies: prioritize consumer-focused CSR topics, adopt interactive strategies, simplify technical content, and utilize.
Firms' motivation for implementing environmental innovation and the mechanisms behind the impact of environmental innovation on long‐term performance are topics of interest in the context of sustainable development. This study analyzed data from 600 Chinese manufacturing listed firms from 2016 to 2022, using multiple regression and inter‐group difference analyses based on the attribution theory and resource‐based view. The findings indicate that environmental innovation enhances firms' long‐term performance. Environmental innovation driven by altruistic and strategic motivations results in a greater improvement in firms' long‐term performance than environmental innovation driven by egoistic motivations. Government subsidies play a mediating role between environmental innovation and long‐term performance; however, customer relationships do not. This study provides guidance for firms to implement environmental innovation, achieve sustainable development, and shape their value orientation.
Purpose
Previous corporate social responsibility (CSR) research often finds conflicting results regarding firm outcomes. This study aims to examine a firm’s relative amount of CSR compared to both peer firms and high CSR firms as one source of those inconsistent findings.
Design/methodology/approach
This study creates a data set of financial and compensation variables using the Newsweek America’s Most Responsible Companies list (with accompanying ESG scores) and a matched set of firms not recognized for their CSR efforts. Comparisons are made on various firm outcomes between CSR-recognized firms and firms not recognized for their CSR efforts, as well as within recognized firms (using the Newsweek ESG score).
Findings
Results indicate that while financial performance is higher both for recognized CSR firms (in comparison to non-recognized peers) and for firms with higher ESG scores within recognized CSR firms, compensation results differ. Specifically, CSR recognized firms have higher median employee pay and a lower CEO pay ratio than do non-recognized firms. However, among CSR-recognized firms, higher ESG scores are associated with increased CEO compensation, no relationship to median employee pay and an increased CEO pay ratio.
Originality/value
The results offer an intriguing explanation for previous mixed results on CSR’s impact on firm outcomes and invite consideration as to whether continued investment in CSR actions once a firm has been recognized for its CSR leads to outcomes in line with the philosophy of CSR.
Bu çalışmada, Borsa İstanbul’da işlem gören bilgi ve iletişim sektörlerinde yer alan şirketlerin marka değerlerini ölçmek için Hirose yöntemi kullanılmıştır. Hirose yöntemi, marka değerini belirleyen sadakat, prestij ve genişleme gibi değişkenleri ayrıntılı bir şekilde analiz etme yeteneği nedeniyle tercih edilmiştir. Ayrıca Hirose yöntemi, sadece mevcut güncel marka değerlerini analiz etmekle kalmamaktadır. Bu yöntem aynı zamanda bu değerlerin beş yıllık bir zaman içindeki değişimlerini de izleme kapasitesine sahiptir. Çalışma, bilgi ve iletişim sektörlerindeki farklı şirketlerin marka değerlerini yıllara karşılaştırmalı olarak incelemekte ve bu değerlerin nasıl şekillendiğini ortaya koymaktadır. Çalışmanın sonuçlarına göre, Turkcell İletişim Hizmetleri A.Ş. en yüksek marka değerine sahip şirket olarak öne çıkmaktadır. Turkcell'in başarısının yüksek sadakat, prestijli marka ve başarılı genişleme değişkenlerine dayandığı ifade edilebilir. Doğan Burda Dergi Yayıncılık ve Pazarlama A.Ş., genişleme değişkeni yüksek bir marka olarak ikinci sırada yer almaktadır. Hürriyet Gazetecilik ve Matbaacılık A.Ş., en yüksek sadakat değişkenine sahip şirket olarak öne çıkmaktadır ama genel sıralamada üçüncü sırada yer almaktadır. Bu şirket de prestij ve özellikle genişleme değişkenleri açısından düşük performans göstermiştir. Türk Telekomünikasyon A.Ş., sadakat ve prestij değişkenlerindeki sınırlı ve yeterli olmayan başarıları nedeniyle dördüncü sırada yer almıştır. İhlas Gazetecilik A.Ş. ve İhlas Haber Ajansı A.Ş. şirketleri genel olarak düşük performans sergilemiştir.
Purpose
This paper aims to assess whether environmental (carbon) damage costs affect firm value and ownership.
Design/methodology/approach
This paper uses fixed-effects panel models and difference-in-differences design to tease out essential effects based on 69,352 sampled firm-year observations from 2004 to 2022. It uses Trucost data on the dollar cost of environmental damage at the firm level.
Findings
Using proprietary environmental damage costs data on US firms from Trucost, this paper finds that firm value is negatively associated with environmental (carbon) damage costs, with additional tests suggesting that the association is causal. Institutional investors increase their relative holdings following environmental shocks that reveal financial benefits to internalizing or reducing these costs.
Originality/value
Knowing the significance of the cost of environmental damage at the firm level is important for corporate managers, regulators and investors’ decision-making. However, this has yet to be researched. This paper contributes to the understanding of financial economics.
This research aims to assess the impact of social responsibility disclosure on the financial performance of banks, specifically measured by return on equity (ROE). To achieve this objective, the study analyzed data from all eight banks listed on the Saudi Stock Exchange during the period 2014–2016. The findings reveal statistically significant differences in the levels of social responsibility disclosure across various dimensions among the selected banks. Additionally, the disclosure of publicly available information on social responsibility positively influenced the financial performance of banks in terms of ROE. The study also identified a positive ethical impact of such disclosures across the selected banks. However, the research found no significant effect of environmental and energy protection declarations on the financial performance of banks as measured by ROE.
Purpose
This study aims to investigate the relationship between environmental, social and governance (ESG) strategies and corporate financial performance in energy and renewable energy industries in the USA between 2013 and 2023.
Design/methodology/approach
The system generalised method of moments technique analyses the annual panel data at the given period. LSEG Asset 4 Database (formerly Thompson and Reuters) scores were used to measure ESG and corporate financial performance scores via accounting and market-based performance.
Findings
The results show that energy and renewable energy companies cannot be categorised as individual industries and that there is no difference between the two. Energy industry findings reveal that ESG strategies were positively associated with accounting performance and negatively related to market performance. Both environmental and governance pillars had insignificant and social pillar had positive effects on accounting performance, whereas only the environmental pillar negatively affected market performance.
Originality/value
The findings have unique implications for companies investing in ESG strategies in the US energy industry. They also suggest a direction for formulating compulsory regulations in the US energy industry, which can be valuable for policymakers, governments and financial regulators in shaping the industry’s future and potentially influencing its trajectory.
This research paper aims to clarify the nature of corporate social responsibility and discuss some issues related to this concept. In the first issue, we review the motives for companies to adopt social responsibility, whether it is an inevitable necessity or a strategic choice. The second issue relates to models of corporate social responsibility and the problem of measuring them. The third issue focuses on the future of corporate social responsibility, as we concluded that social responsibility emerged and developed with the motive of achieving profit. We also emphasized the need to build a comprehensive Islamic model that is measurable and takes into account the the characteristics of each industry, especially since companies are still covering up their unethical practices by marketing themselves as socially responsible. On the other hand, the COVID-19 pandemic played a major role in reshaping social responsibility, which tends to involve stakeholders to build a good reputation and achieve sustainability.
Using the data of non-financial firms from India, the paper finds that firms with large advertising budget tend to receive more trade credit from their suppliers than firms with low advertising budget. The findings are consistent with the assumption that advertising reduces information asymmetries, builds brand image, and improves firm performance. All of these factors facilitate the access to trade credit. The findings of this paper hold after numerous sensitivity checks.
Studying microbial communities through a socio-economic lens, this paper draws parallels with human economic transactions and microbes’ race for resources. Extending the ‘Market Economy’ concept of social science to microbial ecosystems, the paper aims to contribute to comprehending the collaborative and competitive dynamics among microorganisms. Created by a multidisciplinary team of an economist, microbiologists, and mathematicians, the paper also highlights the risks involved in employing a socio-economic perspective to explain the complexities of natural ecosystems. Navigating through microbial markets offers insights into the implications of these interactions while emphasizing the need for cautious interpretation within the broader ecological context. We hope that this paper will be a fruitful source of inspiration for future studies on microbial communities.
Despite its potential for economic growth and sustainable development, Nigeria faces social challenges including poverty, environmental degradation, and economic decline. In 2023, it ranked 146th out of 166 on the SDG index, with a poverty headcount of $2.15/day. Over the past two decades, Nigerian oil and gas companies have faced sustainability criticism, emphasizing the importance of CSR initiatives for triple bottom line sustainability. This study examines how the CSR initiatives of Nigerian energy companies impact the sustainability and resilience of the Niger Delta region. By using an explorative research design guided by positivism philosophy, 460 survey responses were collected from Niger Delta community members via Google Form and analyzed using PLS-SEM since the research framework of the CSR and COM-R model comprises five primary dimensions each. The study discovered that CSR initiatives have a significant impact on sustainability and resilience in the Niger Delta. This underscores that integrating socially responsible initiatives not only enhances the ethical standing of these businesses but also generates high strategic value, bolstering their sustainability and resilience. The research recommendations include reassessing CSR initiatives, increasing community engagement, and collaborating with regulatory bodies. This will foster community cohesion, adaptability, and voluntary compliance with industry standards and social norms within the community. The research's descriptive value lies in its empirical demonstration of the connection between CSR and sustainability resilience. Firms can use these findings to enhance their CSR efforts and improve sustainability and resilience in future business practices. The research acknowledges potential biases in data collection stemming from unequal online access among the members of Niger Delta communities, resulting in a partial representation of the diverse range of respondent behaviours across the continent, as various cultural, economic, and social factors can influence their survey responses.
This editorial delves into the evolving context of doing business in Africa, tracing its journey from being dubbed the "hopeless continent" to becoming a beacon of hope and opportunity. Drawing on a wealth of scholarly research, it highlights Africa's increasing attractiveness for global investments, underscored by rising FDI inflows and the emergence of a vibrant middle class. Despite these promising trends, the editorial also sheds light on the persistent challenges, including institutional fragility and political instability, coupled with limited representation in the existing international business discourse. We advance a more nuanced understanding of Africa's business environment, emphasizing the need for responsible growth, improved governance, and sustainable development. Thus, the Special Issue offers insights into the complexities and challenges of doing business in Africa, as well as the paradoxes and potential for fostering competitiveness and inclusive growth on the global stage.
Purpose
Attracting resources (financial and non-financial), supporters and the community’s attention to sports and physical activity has become essential for local sports associations (LSAs). Corporate social responsibility (CSR) initiatives are innovative and less imitable tools for strengthening relationships with customers (Lim et al. , 2018), and there needs to be relevant research on CSR and the variables discussed in this study at the level of small sports organizations. Moreover, past research has focused on professional sports organizations in developed and non-Islamic countries. So, the following research questions are: What is the influence of CSR initiatives on the organizational reputation, brand equity and customer satisfaction of LSAs operating in the context of recreational sports, particularly in Islamic developing countries, and how does this relationship evolve within the framework of small sports organizations?
Design/methodology/approach
Participants ( n = 290) consisted of all customers who used the services of LSAs in the Islamic Republic of Iran). This research seeks to measure the relationship between variables within a causal model based on structural equation modeling.
Findings
This study critically examines the connection between CSR, customer satisfaction, organizational reputation and brand equity in LSAs. This study presents a model that explores how CSR influences customer satisfaction, reputation and brand equity in LSAs in developing countries.
Research limitations/implications
Consequently, customers are likely to feel more satisfied with LSAs that demonstrate a commitment to CSR, and this leads to evaluations of the organization’s reputation and brand equity, ultimately resulting in outcomes for them.
Originality/value
This research presents a comprehensive theoretical model that examines the relationship between CSR, customer satisfaction, reputation and brand equity of LSAs in developing Islamic countries. LSAs must understand and recognize customer interests in social issues and their response to various CSR programs.
Financial performance is one of the performance evaluation criteria of companies, which evaluates the company based on the amount of profit earned by the company in a financial period. The aim of the present study is to investigate the impact of corporate social performance (CSP) on the financial performance of companies listed on the Tehran Stock Exchange, emphasizing the moderating role of investor sentiments. For this purpos, 121 companies were selected as the final sample of the research using the systematic elimination method, and the required data were collected from these companies during the years 2014 to 2021. This study is applied research and the type of statistical analysis is descriptive-correlational. The results Indicates investor sentiments have a positive and significant effect on financial performance. Also, the impact of CSP on financial performance has been directly and significantly observed. Finally, the findings of the research showed that investor sentiments have strengthened the impact of CSP on the financial performance of companies listed on the Tehran Stock Exchange.
This research addresses consumers' willingness-to-punish the corporate brand for corporate social irresponsibility (CSI). It is supported by the extant literature on consumer stakeholders, corporate brands, brand personality, regulatory fit, and psychological contract, as well as by punishment in psychology and philosophy, which are new to the marketing literature. Using an experimental design with a control group, this research examines consumers' willingness-to-reward and its converse willingness-to-punish a corporate brand under three treatment conditions of socially responsible, socially irresponsible, and environmentally friendly. Data were collected on four outcome variables of willingness-to-punish, willingness-to-reward, brand attitude, and purchase intention for each treatment group. MANOVA results indicated that there were systematic differences in the levels of outcomes among the four groups. Discriminant function analysis found the socially irresponsible group was statistically significantly different from the other three experimental groups for all four outcome variables. Consumers dealing with socially irresponsible corporate brands were more likely to punish and less likely to reward than consumers in the other three treatment conditions. This study illustrates the latent negative impact from CSI activities on four important dimensions of consumer response. The findings indicate there is a pragmatic need for corporate brand strategists to recognize consumers' willingness-to-punish the corporate brand and the subsequent necessity to avoid activities that consumers may perceive to be socially irresponsible.
Purpose
To provide a comprehensive managerial framework to understand and provide a well balanced and integrated stakeholder orientation for implementing corporate social responsibility in marketing.
Design/methodology/approach
Many published articles provide significant findings related to narrow dimensions of stakeholder orientation in marketing. This article utilizes existing knowledge on this topic to support a methodology to implement a well‐integrated corporate social responsibility program that encompasses marketing.
Findings
The findings provide a grounded framework based on previous research that provides a step‐by‐step approach for implementing corporate social responsibility from a marketing perspective.
Research limitations/implications
The framework developed in this paper provides an opportunity to examine to what extent the step‐by‐step methodology has been implemented in organizations as well as alternative approaches for implementation.
Practical implications
This is a managerial guide for using a stakeholder model for implementing social responsibility in marketing.
Originality/value
This paper fulfils a need for advancing knowledge on implementing social responsibility in marketing and provides a practical framework for managers who desire to implement social responsibility.
This article extends earlier research concerning the relationship between corporate social performance and corporate financial performance, with particular emphasis on methodological inconsistencies. Research in this area is extended in three critical areas. First, it focuses on a particular industry, the chemical industry. Second, it uses multiple sources of data-two that are perceptual based (KLD Index and Fortune reputation survey), and two that are performance based (TRI database and corporate philanthropy) in order to triangulate toward assessing corporate social performance. Third, it uses the five most commonly applied accounting measures in the corporate social performance and corporate financial performance (CSP/CFP) literature to assess corporate financial performance. The results indicate that the a priori use of measures may actually predetermine the CSP/CFP relationship outcome. Surprisingly, Fortune and KLD indices very closely track one another, whereas TRI and corporate philanthropy differentiate between high and low social performers and do not correlate to the firm's financial performance.
Firm spending on innovation and marketing, as measured by research and development (R&D) and advertising expenses, respectively, are expected to yield positive returns in terms of share price performance. Given resource limitations, firms prioritize the quantum of their investments in R&D and advertising vis-a`-vis other investments. We examine the relationship between firm performance and the intensity of their investments in R&D and advertising over an extended period covering 40 years and 15 039 firm-years. Our findings are consistent with the resource-based literature. Specifically, we find that intensive investment in R&D contributes positively to the one-year stock market performances of manufacturing firms but not for nonmanufacturing firms. We also find that intensive investment in advertising contributes positively to the one-year stock market performances of nonmanufacturing firms. For the three-year stock market performance, in addition to the findings of the one-year period, we find inconclusive evidence that manufacturing firms benefit from investment in advertising. The interactions of R&D and advertising intensities are insignificant in explaining the stock market performance of the firms except for the three-year horizon for nonmanufacturing firms, which is significantly negative. Consistent with the resource-based literature, this implies that firm performances are diluted when they invest their resources in activities outside their core competence.
This study empirically examines the relationship between a firm's fulfilling of corporate social responsibility (CSR) and performance. We developed a CSR index (CSRI) to quantitatively evaluate CSR, which consists of four dimensions measuring a firm's contributions to the economy, society, environment, and corporate governance, respectively. With data from publicly-listed firms in Taiwan during the period of 2004-2009, results of quantile regression show that fulfilling CSR has a significantly positive impact on firm performance, and that the impact in a more profitable firm tends to be significantly greater than that in a less profitable firm. Specifically, when a firm is more profitable, its management would be more willing to implement CSR. The implication is that a firm could pursue better performance while serving as a good corporate citizen.
Empirical evidence has suggested that R&D investment is positively related to economic growth. This paper extends prior research by further examining the heterogeneous effects of R&D expenditures in the high-tech sector on economic growth. This study adopts a quantile regression approach to explore the marginal effect of R&D expenditures in the high-tech sector across different quantiles of the conditional GDP distribution for 23 OECD countries and Taiwan during 1991-2006. Empirical evidences show that the impacts of R&D expenditures in the high-tech sector are heterogeneous across levels of per capita income. High-tech industrial R&D spending has a strong positive effect on GDP per capita at the highest quantile of the distribution. However, all sectors' R&D spending relative to GDP is subject to significant negative returns only when considering the middle income countries. The study provides a more comprehensive understanding of the correlation between R&D investment and economic growth.
Considerable prior research argues that time to death, not population aging, explains the growth of healthcare expenditures. The objective of this study is to shed light on this debate by presenting new evidence on the red herring hypothesis. This study adopts quantile regression analysis to reexamine variations of the red herring effect on healthcare expenditures in Taiwan over the period 2005–2009. Findings show that population aging estimates decrease from positive to negative along quantiles for the whole sample and become insignificant across most quantiles for the subsample of people aged 65 and over. For whole sample and subsample of people aged 65 and over, proximity-to-death coefficients are significantly positive in most quantiles. Moreover, time-to-death estimates show a substantial upward trend towards date of death. In particular, quarters one and two prior to death produce a significant positive impact on healthcare expenditures at the highest healthcare expenditure quantiles. The new empirical evidence from this study provides a more complete picture of the red herring effect on healthcare expenditures.
Numerous studies focus on the analysis of the effects of different factors on global information and communication technology (ICT) adoption. Due to the limitations of the least squares method in showing the impact of the estimated coefficients on the mean, this study applies quantile regression to examine the heterogeneous effects of various factors on global ICT adoption. This study finds that the impacts on the tail quantiles can be very different from the impacts on the conditional means. The empirical results show that the effects at different quantile levels are very different from those at their counterpart conditional means. We also provide relevant explanations for the effects.
This research note analyzes the relationship between indicators of corporate social and financial performance within a comprehensive theoretical framework. The results, based on data for 67 large U.S. corporations for 1982-1992, reveal no significant negative social-financial performance relationships and strong positive correlations in both contemporaneous and lead-lag formulations.
A model of the process of brand equity is proposed that depicts brand reputation as a mediator of the effect of brand advertising, brand familiarity, and brand uniqueness on brand equity outcomes. Brands are used as the unit of analysis in determining the relationships between consumer-level perceptions of brands and market-level data on brand advertising and brand equity outcomes such as market share and relative price. Path analysis of the brand-level data strongly validates the model. It is also shown that brand reputation is a separate construct from brand attitudes and that it performs better than brand attitudes in explaining the effect of brand advertising on brand equity outcomes.
A number of studies have tested the relationship between a corporation's social and ethical performance and its financial performance. In contrast, this is the first study to demonstrate a link between overall financial performance and an emphasis on ethics as an aspect of corporate governance. It identifies the 26.8 percent of the 500 largest U.S. public corporations that, in their annual report to shareholders, commit to ethical behavior toward their stakeholders or emphasize compliance with their code of conduct. The financial performance of these corporations ranks higher than that of those who do not at a significance level of p = < 0.005, using the 1997 Business Week ranking which averages eight publicly-reported measures of historical financial performance. These findings should motivate more corporations to utilize the principles of Social and Ethical Accounting, Auditing and Reporting (SEAAR).
Firms allocate their limited resources between two fundamental processes of creating value (i.e., innovating, pro- ducing, and delivering products to the market) and appropriating value (i.e., extracting profits in the marketplace). Although both value creation and value appropriation are required for achieving sustained competitive advantage, a firm has significant latitude in deciding the extent to which it emphasizes one over the other. What effect does strategic emphasis (i.e., emphasis on value creation versus value appropriation) have on firm's financial perfor- mance? The authors address this issue by examining the effect that shifts in strategic emphasis have on stock return. They find that the stock market reacts favorably when a firm increases its emphasis on value appropriation relative to value creation. This effect, however, is moderated by firm and industry characteristics, in particular, finan- cial performance, the past level of strategic emphasis of the firm, and the technological environment in which the firm operates. These results do not negate the importance of value creation capabilities, but rather highlight the importance of isolating mechanisms that enable the firm to appropriate some of the value it has created.
In this paper we argue that corporate social responsibility (CSR) to various stakeholders (customers, shareholders, employees, suppliers, and community) has a positive effect on global brand equity (BE). In addition, policies aimed at satisfying community interests help reinforce credibility to social responsible polices with other stakeholders. We test these theoretical contentions using panel data comprised of 57 global brands originating from 10 countries (USA, Japan, South Korea, France, UK, Italy, Germany, Finland, Switzerland and the Netherlands) for the period 2002 to 2008. Our findings show that CSR to each of the stakeholder groups has a positive impact on global BE. In addition, global brands that follow local social responsibility policies over communities obtain strong positive benefits in terms of the generation of BE, as it enhances the positive effects of CSR to other stakeholders, particularly to customers. Therefore, for managers of global brands it is particularly productive for generating brand value to combine global strategies with the satisfaction of the interests of local communities.
High-technology markets are characterized by rapid evolution that alters the emphasis existing in some traditional marketing decisions. This article examines the nature of these markets and suggests certain factors for special consideration in the pricing decision. First, it relates the economic, technological, and competitive factors that affect the firm's objectives. Then, it examines these factors and offers alternative strategies in view of high-technology dynamics.
A simple minimization problem yielding the ordinary sample quantiles in the location model is shown to generalize naturally to the linear model generating a new class of statistics we term "regression quantiles." The estimator which minimizes the sum of absolute residuals is an important special case. Some equivariance properties and the joint aymptotic distribution of regression quantiles are established. These results permit a natural generalization to the linear model of certain well-known robust estimators of location. Estimators are suggested, which have comparable efficiency to least squares for Gaussian linear models while substantially out-performing the least-squares estimator over a wide class of non-Gaussian error distributions.
In several markets, consumers can gain further information regarding how well a product fits their preferences only by experiencing it after purchase. This could then generate loyalty for the products tried first. This paper considers a model in which consumers learn in the first period about the product they buy and then make choices in the second period about the competing products, given what they learned in the first period. The paper finds that if the distribution of valuations for each product is negatively (positively) skewed, a firm benefits (is hurt) in the future from having a greater market share today—the brand loyalty characteristic. With negative skewness, two effects are identified: On one hand, marginal forward-looking consumers are less price sensitive than myopic consumers, and this is a force toward higher prices. On the other hand, forward-looking firms realize that they gain in the future from having a higher market share in the current period and compete more aggressively in prices. For similar discount factors for consumers and firms, the latter effect dominates. The paper also characterizes the importance of consumer learning effects on the market outcome.
In this article, the researchers explore the following question. Can corporate social responsibility (CSR) and the corporate
reputation of a firm lead to its brand equity in business-to-business (B2B) markets? This study discusses CSR from customers’
viewpoints by taking the sample of industrial purchasers from Taiwan small-medium enterprises. The aims of this study are
to investigate: first, the effects of CSR and corporate reputation on industrial brand equity; second, the effects of CSR,
corporate reputation, and brand equity on brand performance; and third, the mediating effects of corporate reputation and
industrial brand equity on the relationship between CSR and brand performance. Empirical results support the study’s hypotheses
and indicate that CSR and corporate reputation have positive effects on industrial brand equity and brand performance. In
addition, corporate reputation and industrial brand equity partially mediate the relationship between CSR and brand performance.
Keywordscorporate social responsibility-industrial brand equity-corporate reputation-brand performance
This article introduces a conceptualization of corporate social responsibility (CSR) that emphasizes the role and potential
contribution of the marketing discipline. The proposed framework first depicts CSR initiatives as the actions undertaken to
display conformity to both organizational and stakeholder norms. Then, the article discusses the managerial processes needed
to monitor, meet, and even exceed, stakeholder norms. Finally, the analysis explains how CSR initiatives can generate increased
stakeholder support.
Brand value has become an important corporate performance metric, as can be observed from the close following of the annual
Top 100 Brand Values ranked by brand consultancy firm Interbrand and reported in Business Week. In this study, we employ a simultaneous equations model to examine the non-linear influence of lagged advertising, marketing
promotions and R&D expenses on brand value after controlling for net income and lagged brand valuation. We infer that these
lagged expenses yield diminishing returns to brand value. The effect of R&D expense is the weakest, possibly because it is
confounded with the advertising and promotional effects. Differences across industry segments or country base are not statistically
significant.
This paper begins by examining several potentially unethical recent marketing practices. Since most marketing managers face ethical dilemmas during their careers, it is essential to study the moral consequences of these decisions. A typology of ways that managers might confront ethical issues is proposed. The significant organizational, personal and societal costs emanting from unethical behavior are also discussed. Both relatively simple frameworks and more comprehensive models for evaluating ethical decisions in marketing are summarized. Finally, the fact that organizational commitment to fostering ethical marketing decisions can be accomplished by top management leadership, codes of ethics, ethics seminars/programs and ethical audits is examined.
This study examines the influence of ethical fit on employee attitudes and intentions to turnover. The results of this investigation provides support for the conjecture that ethical work climate is an important variable in the study of person-organization fit. Ethical fit was found to be significantly related to turnover intentions, continuance commitment, and affective commitment, but not to job satisfaction. Results are discussed in regard to some of the affective and cognitive distinctions among satisfaction, commitment, and behavioral intentions. [ABSTRACT FROM AUTHOR] Copyright of Journal of Business Ethics is the property of Springer Science & Business Media B.V. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
This article introduces techniques to empirically distinguish different effects of brand advertising in nondurable, experience goods markets. I argue that advertisements that give consumers product information should primarily affect consumers who have never tried the brand, whereas advertisements that create prestige or image effects should affect both inexperienced and experienced users. I apply this empirical argument to consumer-level data on purchases of a newly introduced brand of yogurt. Empirical results indicate that the advertisements for this brand primarily affect inexperienced users of the brand. I conclude that the primary effect of these advertisements was that of informing consumers. Copyright 2001 by the RAND Corporation.