Reinforcing Intangible Assets through CSR in a Globalized World

Abstract

One of the most important intangible assets for firm's competitiveness is brand image, reflecting all that which leads to the firm. In the current competitive scenario, the brand must be able to meet stakeholder's expectations not only regarding visible components of the marketing mix, but also the firm's value system, including both economical and social values. Thus, corporate social responsibility is an important driver of brand image and equity, because the brand image reflects also what the firm does for the society. On the basis of these premises, this paper provides conceptual insights on the relationships between globalisation, intangible assets and corporate social responsibility. In particular, this paper is aimed to discuss the best CSR approach for a global firm, in the light of the global inter-stakeholder communication, and the way in which CSR strategy can reinforce the intangible assets (trust, reputation, credibility) included in the brand image.

The Future of Corporate Social Responsibility

“…CSR initiatives can be used to enhance a brand's image and likeability. Papoli (2015) reinforces and expands upon the above statement by sharing that: "the brand must be able to meet stakeholders' expectations not only regarding visible components of the marketing mix (product/service, price, place, promotion), but also the "value system", including both economical and social values, with which they identify" (Hildebrand, Sen and Bhattacharya, 2011;Peloza and Shang, 2011;Russell and Russel, 2010). The importance of brand image leads to the second research question of: Can CSR be used to gain trust from consumers?…”

“…Globalization can be explained as the increased interaction and connectedness of the world as people, goods, and concepts are spread with the Internet as their catalyst. Papoli (2015) Globalization means that firms must address the judgements of their stakeholders from a global level. The increased connectivity of the world can be good for firms who choose to act in ways that would be seen favorably by consumers and bad for firms who act negligently.…”

“…Corporations must analyze their strategies from a global viewpoint because of how connected the world is. Papoli (2015) demonstrates this idea when he states that: "a concrete example of this vision of stakeholders on a global, rather than, local level is provided by the Sony Group, which has eliminated some chemical substances from its products all over the world even though those specific substances are banned only in Europe (Sony CSR Report 2006)". Papoli (2015) also goes on to share that the action taken by Sony demonstrates that they were fully aware that Kron 4 they were being judged by the entire world and rejecting a more "selective" means of conducting CSR.…”

“…A continuing theme in the articles is how CSR positively impacts a firm's brand and therefore its competitiveness and likeability in the market. Papoli (2015) sums this up by stating that: "[o]ne of the most important intangible assets for firm's competitiveness is brand image, reflecting all that which leads to the firm". CSR initiatives can be used to enhance a brand's image and likeability.…”

“…The growing need for firms to use and promote CSR actions in order to gain business and loyalty from consumers is noted by Auger et al (2008) as they note an "ethical consumerism" phenomenon exists that attributes to the growing importance of the social components of the product and business process. In particular, there is an increasing need for companies to legitimize themselves, from a social as well as economical point of view, as contributing cells of the environmental system to which they belong and, through their actions, help to define (Papoli, 2015). Corporations are now being seen as part of society by consumers.…”