Influence of Corporate Social Responsibity
1. INTRODUCTION
1.1 Background of the Study Corporate social responsibility (CSR) initiatives are becoming increasingly important for organisations to succeed themselves in the business world (Visser, 2010). European Commission (2011) defines CSR as “the responsibility of enterprises for their impacts on society". However, it should be noted that the CSR definition remains elusive (Jamali, 2007). According to Porter’s generic theory, organisations may establish competitive advantages through differentiation strategies (Magretta, 2012). Berg and Engstrand (2011) mentioned that organisation can differentiate itself by associating CSR values in the brand, which may help in enhancing positive brand image and eventually result in positive purchase intention. However, the important role of CSR plays in an organisation has always been questioned since 1950’s, particularly when Friedman (1970) argues that corporate should focus only on the marketing strategies that lead to profit maximisation. Thus, this paper aims to understand the influence of CSR in helping to create positive brand association and brand image that may affect the consumer’s purchase intention.
1.2 Research Question How corporate social responsibility helps in developing positive brand association and brand image that eventually influences purchase intention towards a particular brand?
1.3 Objectives To understand the impact of brand association, that build upon corporate social responsibility, on purchase intention To investigate the relationship between corporate social responsibility, brand image and purchase intention
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1.4 Research Framework
Brand Association Corporate Social Responsibility Brand Image Purchase Intention
Figure 1.0: Relationship between CSR and Purchase Intention Conceptual Framework
Figure 1.0 introduces the conceptual framework for this paper, outlining how importance of CSR as a variable, helps in developing positive brand association and brand image
1.1 Background of the Study Corporate social responsibility (CSR) initiatives are becoming increasingly important for organisations to succeed themselves in the business world (Visser, 2010). European Commission (2011) defines CSR as “the responsibility of enterprises for their impacts on society". However, it should be noted that the CSR definition remains elusive (Jamali, 2007). According to Porter’s generic theory, organisations may establish competitive advantages through differentiation strategies (Magretta, 2012). Berg and Engstrand (2011) mentioned that organisation can differentiate itself by associating CSR values in the brand, which may help in enhancing positive brand image and eventually result in positive purchase intention. However, the important role of CSR plays in an organisation has always been questioned since 1950’s, particularly when Friedman (1970) argues that corporate should focus only on the marketing strategies that lead to profit maximisation. Thus, this paper aims to understand the influence of CSR in helping to create positive brand association and brand image that may affect the consumer’s purchase intention.
1.2 Research Question How corporate social responsibility helps in developing positive brand association and brand image that eventually influences purchase intention towards a particular brand?
1.3 Objectives To understand the impact of brand association, that build upon corporate social responsibility, on purchase intention To investigate the relationship between corporate social responsibility, brand image and purchase intention
1
1.4 Research Framework
Brand Association Corporate Social Responsibility Brand Image Purchase Intention
Figure 1.0: Relationship between CSR and Purchase Intention Conceptual Framework
Figure 1.0 introduces the conceptual framework for this paper, outlining how importance of CSR as a variable, helps in developing positive brand association and brand image