The Impact of Corporate Social Responsibility on Brand Sales: An Accountability Perspective

Abstract

Consumers are increasingly mindful of corporate social responsibility (CSR) when making purchase and consumption decisions, but evidence of the impact of CSR initiatives on actual purchase decisions is lacking. This article introduces a novel brand accountability–based framework of consumer response to CSR initiatives, which categorizes CSR efforts as “corrective,” “compensating,” or “cultivating goodwill.” Leveraging a database of CSR press releases by leading consumer packaged goods brands, the authors examine the effect of the different types of CSR announcements on brand sales. The findings suggest that CSR initiatives that genuinely aim to reduce a brand's negative externalities (“corrective” and “compensating”) lift sales, whereas CSR actions focused on philanthropy (“cultivating goodwill”) can hurt sales. The authors propose two moderators—CSR reputation and CSR focus on environmental or social causes—and a mechanism for these effects, which they examine under controlled experimental settings. The experimental results show that, conditional on CSR reputation, consumers perceive varying degrees of sincerity in the different CSR types and that sincerity mediates the effect of CSR type on purchase intentions. Overall, the results suggest that consumers are more inclined to reward firms that directly reduce the negative by-products of their own business practices than to be impressed by public goodwill gestures.

Environmental, Social and Governance (ESG) metrics do not serve services customers: a missing link between sustainability metrics and customer perceptions of social innovation

“…For example, the shift in the automotive industry from gasoline powered engines to hybrid and electric vehicles is obvious to customers, whereas a service firm's transition to being carbon neutral may not reflect directly in the delivery of the service. This aligns with the findings of Nickerson et al. (2021) showing that firms that are perceived as unsustainable reap larger benefits from ESG efforts.…”

“…high firm-cause fit); this increases the effectiveness of ESG communications (Kuo and Rice, 2015). Similarly, ESG efforts with a clear connection to firm operations lead to positive customer outcomes (Nickerson et al. , 2021).…”

“…high firm-cause fit); this increases the effectiveness of ESG communications (Kuo and Rice, 2015). Similarly, ESG efforts with a clear connection to firm operations lead to positive customer outcomes (Nickerson et al, 2021). An examination of the research to date suggests that communicating ESG efforts in ways that make them appear tangible to customers is key (e.g.…”

The Moderating Effect of Brand Trust during COVID -19 Pandemic in the relationship between CSR practices and Brand Loyalty of Egyptian Commercial Banks

“…It receives around 9 million visitors per year (https://kidzania.com/en). Conversely, other studies concluded that CSR messages can increase positive attitudes towards a brand as well as significantly increase brand purchase intentions (Nickerson et al, 2022;Tai, 2022;Schmeltz, 2011).…”

Sustainable Finance: ESG/CSR, Firm Value, and Investment Returns*

“…Corporate brands and reputation are essential sources of competitive advantage, which allow firms to attract customers and promote customers’ purchase intention while lowering transaction costs (e.g., Sweetin et al ., 2013). The marketing literature has established that strong CSR engagement helps build a positive brand identity, enhance firm reputations, and achieve a competitive advantage over long periods (e.g., Marin et al ., 2009; Chernev and Blair, 2015; Nickerson et al ., 2021).…”