Academic journal article Global Business and Management Research: An International Journal

The Impact of Corporate Social Responsibility and Image on Brand Equity

Academic journal article Global Business and Management Research: An International Journal

The Impact of Corporate Social Responsibility and Image on Brand Equity

Article excerpt

Abstract

Background: Corporate social responsibility is an important issue for most organizations and their managers. Corporate social responsibility is a crucial issue and has strategic implications for companies in all industries in general. One of the most valuable assets of any company is its brand. The brand equity is an asset which in its light the company can obtain many benefits and maintains the value of the company.

Objective: The aim of this study is to investigate the influence of social responsibility and corporate image on their brand equity.

Design/methodology/approach: The present study is an applied research in terms of aim and descriptive-explorative in terms of data collection. The study population consists of all consumers of Morghab food industry (Yekoyek) in Bushehr. The sample size is estimated to be 384. The available sampling method is used.

Findings: The results show that corporate social responsibility has a significant positive impact on corporate image and brand equity. In addition, corporate image positively influences brand equity.

Research limitations: Also in this study, in the context of the questionnaire Morghab food industry (Yek & Yek) has been named. But consumers often may make mistakes in reminding the social responsibility activities of the company rather than other companies. This can be contributed in completing the questionnaire.

Originality/value: Corporate social responsibility efforts are more related strategically with product differentiation and brand differentiation. This relation is very important especially in case of competitive markets and differentiated products.

Keywords: corporate social responsibility, moral responsibility, corporate image, brand loyalty, brand equity.

Introduction

In the past, companies aimed offer products with maximum value and benefits to customers. But with the emergence of the concept of social responsibility, the traditional definition of a small company had been changed and a socio-economic dimension was added to it (Sen et al., 2006). These days mutual relation between business and society has been disclosed more than ever. Success in business and social welfare are interdependent. As a result, business is faced with one of the challenges of the modern world which is called corporate social responsibility (Naami et al., 2011). One of the most valuable assets of every company is the company's brand. The higher value of the brand in consumers' minds results in more benefit for companies from consumers (Karbasivar & Yardel, 2011). In today's competitive business environment, one of the significant and important issues is to obtaining an appropriate position in consumers' minds so as to gain the consumer loyalty. Among factors which are effective in this process are company's brand and brand equity (Aaker, 1991).

The key objective of the organizations is to sustain it to achieve the competitive advantage in the economic market (Aguilera et al., 2007). The mechanism of corporate social responsibility is necessary for the company's survival and productivity, as well as the essential competitive success (Porter and Kramer, 2006). Willingness to invest in corporate social responsibility is not a cost or constraint, but a source of competitive advantage (Yoo, 2015). Effective use of corporate social responsibility and brand management can distinguish a company from its competitors and create competitive advantage (Craig, 2003). Corporate social responsibility can reflect corporate's social features for distinguishing its product (Rajan Varadarajan and Menon, 1998). In other words, corporate social responsibility efforts are more related strategically with product differentiation and brand differentiation. This relation is very important especially in case of competitive markets and differentiated products (Hsu, 2012).

Corporate social responsibility measures help that company to distinguish their products and services by creating a positive brand image and to maintain corporate reputation. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.