The Influence of a Firm’s CSR Initiatives on Brand Loyalty and Brand Image

Abstract

The objective of this study is to examine the impact of corporate social responsibility (CSR) initiatives of a firm as one of the critical factors to improve the competitiveness of the firm in today's aggressive market environment. The influence of corporate social responsibility on brand loyalty and brand image, which distinguishes the firm from other competitors, was evaluated in the study. Data from 364 consumers were collected through adapted and structured questionnaires for the period from August 2018 to December 2018. The respondents were selected through convenience sampling to generate the responses of individual online consumers who buy luxury goods online. The sample size of 364 was taken from a simple random table with a 5% margin of error and a 95% confidence level. SEM-based multivariate approaches such as structural equation modeling and confirmatory factor analysis were employed, and SmartPLS 3.0 software was used for the data evaluation. The results indicate that the firm's CSR initiatives have a significant and positive impact on brand loyalty and brand image. The study undertaken has several theoretical and practical implications which could provide the basic foundations and conceptual framework for future studies, and it offers strategic directions for the senior managers of firms to plan CSR initiatives that can enhance the brand loyalty of their brands and also increase corporate reputation, all of which are beneficial to remain competitive in today's business arena.

THE PERCEPTION OF COMPANY EMPLOYEES BY SMEs WITH CSR CONCEPT IMPLEMENTATION

“…Companies are aware of the benefits of the CSR idea. It is proven that the implementation of CSR has a positive effect on product perception, brand loyalty, and image of the company, and CSR can be used as an effective tool how to differentiate products from the other competitors and increase the competitive advantage of the company (Lu et al, 2020;Bardos et al, 2020). Despite these competitive benefits of CSR implementation, according to Boccia et al (2019), price still remains the key criterion in most of the customers' decision-making.…”

“…Despite these competitive benefits of CSR implementation, according to Boccia et al (2019), price still remains the key criterion in most of the customers' decision-making. The implementation of CSR has a positive effect on the attitudes and behaviour of employees (Wang et al, 2020), identification of the employee with the company, his perception of involvement in meaningful activities, and motivation to work more (Breger et al, 2020) or lower employee's turnover (Vveinhardt & Sroka, 2020) while we must not forget, that even in the age of automation, the human factor remains still irreplaceable (Lazanyi et al, 2020). From the managerial point of view, it is of particular interest to investigate the influence of CSR on sustainability or continuance of the activity (Dayanandan et al, 2018).…”

“…),Wang et al (2020), andNazir & Ul Islam (2020), which proof an increasing interest in employees and thus increase their loyalty to employers. Flammer & Luo (2017) also note the positive influence of CSR implementation in companies on increasing employee performance and behavior, or as it is mention by Breger et al (2020) on their motivation to work more.…”

Perceived firm ethicality and brand loyalty: the mediating role of corporate social responsibility and perceived green marketing

“…CSR, whether legal or ethical or philanthropic, as perceived by customers, enhances positive functional and symbolic images in the minds and hearts of customers (He and Lai, 2014). In the discussion of the relationship between CSR effect on brand loyalty, several authors have reported that CSR improves brand loyalty and performance (Jeon et al, 2020;He and Lai, 2014;Lu et al, 2020;Prieto et al, 2020), even though others studies such as Wang et al (2015) have reported that CSR does not influence brand loyalty. Nevertheless, the majority of evidence supports the existence of that causal relationship.…”

The perception of using social media – a comparison of entrepreneurs implementing CSR in managerial practice and other entrepreneurs in selected V4 countries

“…Differences could be caused by various factors, including the company's age and size (Çera et al, 2020). According to Lu et al (2020), CSR implementation positively affects product perception, brand loyalty, and image, which increases the competitive advantage of the enterprise. Social networks have a significant impact on communication strategy development for SMEs.…”