Exploring the Relationship Between Corporate Social Responsibility, Trust, Corporate Reputation, and Brand Equity

Abstract

The purpose of this study is to investigate the relationship between corporate social responsibility (CSR), corporate reputation (CR), and brand equity (BE). Building on the resource-based theory of the firm, this study proposes a theoretical framework. In this framework, CSR is theorized to strengthen CR and brand equity, directly and indirectly, through consumer trust. We used a questionnaire survey approach. In the questionnaire, 17 items were used with a 5-point Likert-Scale (1 stands for “strongly disagree,” and 5 stands for “strongly agree”). Data were collected from the consumers of the banking sector in the vicinity of Lahore, Pakistan. To estimate the proposed relationships in the conceptual model, we use structural equation modeling (SEM) through Smart PLS 3.2. The outcomes of this study confirm that CSR significantly impacts CR and brand equity. It is also demonstrated that trust mediates positively and significantly in the relationship between CSR, CR, and BE. Results of the present study have several implications for the senior management, marketing expert, administrators, and policymakers. This study expresses how CSR boosts BE and CR. Moreover, this study also indicates that trust is an important factor that enhances BE and CR.

Chief Executive Officer Tenacity and Employee Intrapreneurial Behavior: The Mediating Role of Corporate Social Responsibility

“…In accordance with this result, previous studies have demonstrated the importance of CSR in improving corporate sustainability performance and promoting organizational development (Crișan-Mitra et al, 2020;May et al, 2021;Vătămănescu et al, 2021). Besides, the study extends understanding of the antecedents and consequences of CSR (Pasricha et al, 2018;Memon et al, 2021;Shen et al, 2021;Zhao et al, 2021). Furthermore, it is very interesting that the mediating role of CSR connects upper echelons theory and SIP theory.…”

“…Upper echelons theory states that CEO characteristics determine strategic choices and performance consequences of enterprises ( Hambrick and Mason, 1984 ). As a key strategic choice, CSR is the integration of social welfare, business models, and investment patterns ( Barnett, 2007 ; Zhao et al, 2021 ). The business objective of a company is to maximize shareholder wealth.…”

“…The business objective of a company is to maximize shareholder wealth. In contrast, CSR activities seek to build or maintain a corporate reputation image in the long term ( Zhao et al, 2021 ), which is conducive to the long-term value goals and sustainable organizational performance ( Luu, 2020 ; May et al, 2021 ; Vătămănescu et al, 2021 ). However, this may be at odds with the short-term profit goals of the firm.…”

“…Moreover, this paper explicates the role of CSR in bridging the interface between CEO and employee relationships by examining the mediation of CSR between CEO tenacity and employee intrapreneurial behavior. Most of the previous studies have considered the antecedents or consequences within the organization of CSR but have not linked them together to form a logical chain ( Pasricha et al, 2018 ; Giang and Dung, 2021 ; Memon et al, 2021 ; Zhao et al, 2021 ). Eventually, this paper will help us understand the possible mediating role of CSR as more than a performance-driven antecedent ( Luu, 2020 ; May et al, 2021 ) or a consequence of CEOs’ decisions ( Manner, 2010 ; Yuan et al, 2019 ).…”

Linkages Between Knowledge Management Process and Corporate Sustainable Performance of Chinese Small and Medium Enterprises: Mediating Role of Frugal Innovation

“…In recent years, numerous scholars have identified major factors that impact FI, such as stakeholder expectations, competitive forces and consumer desires, business ethics, and environmental awareness. In order for a company to survive, FI assessment and its aspects are considered essential ( Shibin et al, 2018 ; Zhao et al, 2021 ). A competitive advantage is not the only advantage FI offers today.…”