The CSR Imperative: How CSR Influences Word-of-Mouth Considering the Roles of Authenticity and Alternative Attractiveness

Abstract

Customers are increasingly talking positively about brands that are socially responsible and authentic. However, little empirical research has related corporate social responsibility (CSR) to brand authenticity and brand authenticity to customers’ positive word-of-mouth. Moreover, although highly attractive alternative brands are increasingly appearing in the marketplace, there is a lack of research examining the role of alternative attractiveness in the relationship between CSR and brand authenticity. We address these shortcomings in the literature drawing on data from 1,101 customers of insurance services brands and analyze them using structural equation modeling. The findings show that CSR is positively related to customers’ positive word-of-mouth, both directly and indirectly, through brand authenticity. Moreover, alternative attractiveness positively moderates the effect of CSR on brand authenticity. This implies that CSR can act as a differentiation mechanism to further enhance the focal brand’s authenticity, when an alternative brand is perceived as highly attractive.

Corporate Social Responsibility on Twitter: A Review of Topics and Digital Communication Strategies’ Success Factors

“…Results are in line with Markovic et al (2021) that demonstrate the positive affect of CSR topics on customers' positive WOM through brand authenticity [41]. Especially environmental and social CSR engagement act as safeguards in reducing online negative WOM about the company; while economic CSR engagement has only a small effect [41,66]. Especially companies following long-term consistency in approaching for example diversity topics on Twitter receive more positive sentiments and higher engagement than companies that made swift changes in the aftermath of increased pressure from activist groups [10].…”

“…Further, for industries that are the focus of public attention due to their per se environmentally harmful products and services such as aviation, digital CSR engagement on Twitter is a driver of positive WOM which aligns with the concept, that customers are concerned about issues other than service quality and value for money [86]. Results are in line with Markovic et al (2021) that demonstrate the positive affect of CSR topics on customers' positive WOM through brand authenticity [41]. Especially environmental and social CSR engagement act as safeguards in reducing online negative WOM about the company; while economic CSR engagement has only a small effect [41,66].…”

“…When stakeholders engage with each other including the exchange of marketing relevant information on a service or brand, to shape most likely consumers behavior and attitudes towards products or the company itself, it is referred to as Word of Mouth (WOM) [31,39] As for Twitter, CSR topics are found to be a socialization agent that facilitate electronic Word of Mouth (eWOM).. Adding the analysis of stakeholder sentiments and thus a directional (positive or negative) association to the eWOM activities [32,40] CSR topics in general are related to customers' positive WOM [41], which is thus another indicator of (digital communication strategy) success.…”

The SDGs: A change agenda shaping the future of business and humanity at large

“…To summarize, the SDGs represent a new normative agenda and require new ways of thinking. In many ways, however, with the SDGs, we encounter the same obstacles that CSR and related concepts had faced (Markovic et al, 2021), and we need to learn from past experiences and avoid repeating the same mistakes.…”

BEER Spotlight Editorial Series I: Ethics, the environment and responsibility in family businesses

“…Corporate social responsibility (CSR), whether towards internal stakeholders or the environment (Cruz et al, 2014), is an application of ethics and sustainable development values. More specifically, CSR can be defined as the activities a firm undertakes, that go beyond its legal responsibilities, to benefit its internal and external stakeholders, translating into contributions to the wellbeing of their employees and in taking measures that protect the environment and that contribute to the broader socioeconomic context (Markovic et al, 2021; Samara et al, 2018; Wood, 2010).…”