Corporate social responsibility benefits and company image: An embedded mixed-method inquiry

Widayat Widayat; Afrizal Indra Syahputra; Novita Ratna Satiti

doi:10.24036/jkmb.11678200

Corporate social responsibility benefits and company image: An embedded mixed-method inquiry

Widayat Widayat⁽¹⁾, Afrizal Indra Syahputra⁽²⁾, Novita Ratna Satiti⁽³⁾,
(1) Fakultas Ekonomi dan Bisnis Universitas Muhammadiyah Malang, Malang

Indonesia
(2) Fakultas Ekonomi dan Bisnis Universitas Muhammadiyah Malang, Malang

Indonesia
(3) Fakultas Ekonomi dan Bisnis Universitas Muhammadiyah Malang, Malang

Indonesia

Corresponding Author
Copyright (c) 2022 Widayat Widayat

DOI : https://doi.org/10.24036/jkmb.11678200

Full Text:

Language : en

Abstract

This study aims to examine public perceptions of the social, economic, and environmental benefits of Corporate Social Responsibility (CSR) programs on corporate image. Data were taken from a sample of visitors to CSR objects using questionnaires and interviews, at famous landmarks created by the CSR practices of tobacco companies. Accidental sampling was used to represent respondents at the research site. Partial Least Square-Structural Equation Modeling playing SmartPLS, was used for the proposed model. Data from interviews was analyzed with Nvivo. This study found that people have a positive view of the social and environmental benefits of CSR, but most have a bad opinion about the economic benefits. The finding shows that the public's perception of environmental, economic, and social benefits has a significant impact on the company's image. CSR practices can support the community's economy, soc,iety and the environment by offering a comfortable, calm, and pollution-free atmosphere. Besides that, it is a comfortable place for business relations, sports, and gathering with family

References

REFERENCES

Afiuc, O., Bonsu, S. K., Manu, F., Knight, C. B., Panda, S., & Blankson, C. (2020). Corporate social responsibility and customer retention: evidence from the telecommunication industry in Ghana. Journal of Consumer Marketing, 38(1), 15-26. doi:10.1108/jcm-10-2019-3459

Aguinis, H., & Glavas, A. (2017). On Corporate Social Responsibility, Sensemaking, and the Search for Meaningfulness Through Work. Journal of Management, 45(3), 1057-1086. doi:10.1177/0149206317691575

Akbari, M., Mehrali, M., SeyyedAmiri, N., Rezaei, N., & Pourjam, A. (2019). Corporate social responsibility, customer loyalty and brand positioning. Social Responsibility Journal, 16(5), 671-689. doi:10.1108/srj-01-2019-0008

Al Mubarak, Z., Ben Hamed, A., & Al Mubarak, M. (2019). Impact of corporate social responsibility on bank’s corporate image. Social Responsibility Journal, 15(5), 710-722. doi:10.1108/srj-01-2018-0015

Asmussen, C. G., & Fosfuri, A. (2019). Orchestrating corporate social responsibility in the multinational enterprise. Strategic Management Journal, 40(6), 894-916. doi:10.1002/smj.3007

Asrar-ul-Haq, M., Kuchinke, K. P., & Iqbal, A. (2017). The relationship between corporate social responsibility, job satisfaction, and organizational commitment: Case of Pakistani higher education. Journal of Cleaner Production, 142, 2352-2363. doi:10.1016/j.jclepro.2016.11.040

Awaysheh, A., Heron, R. A., Perry, T., & Wilson, J. I. (2020). On the relation between corporate social responsibility and financial performance. Strategic Management Journal, 41(6), 965-987. doi:10.1002/smj.3122

Baskentli, S., Sen, S., Du, S., & Bhattacharya, C. B. (2019). Consumer reactions to corporate social responsibility: The role of CSR domains. Journal of Business Research, 95, 502-513. doi:10.1016/j.jbusres.2018.07.046

Ben Amar, A., & Chakroun, S. (2018). Do dimensions of corporate social responsibility affect earnings management? Journal of Financial Reporting and Accounting, 16(2), 348-370. doi:10.1108/jfra-05-2017-0033

Bianchi, E., Bruno, J. M., & Sarabia-Sanchez, F. J. (2019). The impact of perceived CSR on corporate reputation and purchase intention. European Journal of Management and Business Economics, 28(3), 206-221. doi:10.1108/ejmbe-12-2017-0068

Caspers, C. G. W. (2020). Role of TRusT in AdopTing ConsumeR soCiAl Responsible behAviouR in The ConTexT of WATeR use in domesTiC households. South East European Journal of Economics and Business, 15(1), 1-13.

Contini, M., Annunziata, E., Rizzi, F., & Frey, M. (2020). Exploring the influence of Corporate Social Responsibility (CSR) domains on consumers’ loyalty: An experiment in BRICS countries. Journal of Cleaner Production, 247. doi:10.1016/j.jclepro.2019.119158

Esenyel, V. (2020). Key Elements of Corporate Reputation. Journal of Ekonomi, 04, 76–79.

Feng, Y., Zhu, Q., & Lai, K.-H. (2017). Corporate social responsibility for supply chain management: A literature review and bibliometric analysis. Journal of Cleaner Production, 158, 296-307. doi:10.1016/j.jclepro.2017.05.018

Ferrell, O. C., Harrison, D. E., Ferrell, L., & Hair, J. F. (2019). Business ethics, corporate social responsibility, and brand attitudes: An exploratory study. Journal of Business Research, 95, 491-501. doi:10.1016/j.jbusres.2018.07.039

Franco, S., Caroli, M. G., Cappa, F., & Del Chiappa, G. (2020). Are you good enough? CSR, quality management and corporate financial performance in the hospitality industry. International Journal of Hospitality Management, 88. doi:10.1016/j.ijhm.2019.102395

Gangi, F., Meles, A., Monferrà, S., & Mustilli, M. (2020). Does corporate social responsibility help the survivorship of SMEs and large firms? Global Finance Journal, 43. doi:10.1016/j.gfj.2018.01.006

Gond, J.-P., El Akremi, A., Swaen, V., & Babu, N. (2017). The psychological microfoundations of corporate social responsibility: A person-centric systematic review. Journal of Organizational Behavior, 38(2), 225-246. doi:10.1002/job.2170

Gursoy, D., Boğan, E., Dedeoğlu, B. B., & Çalışkan, C. (2019). Residents' perceptions of hotels' corporate social responsibility initiatives and its impact on residents' sentiments to community and support for additional tourism development. Journal of Hospitality and Tourism Management, 39, 117-128. doi:10.1016/j.jhtm.2019.03.005

Han, H., Yu, J., & Kim, W. (2019). Environmental corporate social responsibility and the strategy to boost the airline’s image and customer loyalty intentions. Journal of Travel & Tourism Marketing, 36(3), 371-383. doi:10.1080/10548408.2018.1557580

Hassan, S. B., & Shamsudin, M. F. (2019). Measuring the Effect of Service Quality and Corporate Image on Student Satisfaction and Loyalty in Higher Learning Institutes of Technical and Vocational Education and Training. International Journal of Engineering and Advanced Technology, 8(5C), 533-538. doi:10.35940/ijeat.E1077.0585C19

Hsu, S.-L. (2018). The Effects of Corporate Social Responsibility on Corporate Image, Customer Satisfaction and Customer Loyalty: An Empirical Study on the Telecommunication Industry. The International Journal of Social Sciences and Humanities Invention, 5(5), 4693-4703. doi:10.18535/ijsshi/v5i5.08

Jamali, D., & Karam, C. (2018). Corporate Social Responsibility in Developing Countries as an Emerging Field of Study. International Journal of Management Reviews, 20(1), 32-61. doi:10.1111/ijmr.12112

Jeon, M. M., Lee, S., & Jeong, M. (2020). Perceived corporate social responsibility and customers’ behaviors in the ridesharing service industry. International Journal of Hospitality Management, 84. doi:10.1016/j.ijhm.2019.102341

Kallmuenzer, A., Nikolakis, W., Peters, M., & Zanon, J. (2017). Trade-offs between dimensions of sustainability: exploratory evidence from family firms in rural tourism regions. Journal of Sustainable Tourism, 26(7), 1204-1221. doi:10.1080/09669582.2017.1374962

Kim, H. L., Rhou, Y., Uysal, M., & Kwon, N. (2017). An examination of the links between corporate social responsibility (CSR) and its internal consequences. International Journal of Hospitality Management, 61, 26-34. doi:10.1016/j.ijhm.2016.10.011

Kim, J., Song, H., Lee, C.-K., & Lee, J. Y. (2017). The impact of four CSR dimensions on a gaming company’s image and customers’ revisit intentions. International Journal of Hospitality Management, 61, 73-81. doi:10.1016/j.ijhm.2016.11.005

Kim, M., Yin, X., & Lee, G. (2020). The effect of CSR on corporate image, customer citizenship behaviors, and customers’ long-term relationship orientation. International Journal of Hospitality Management, 88. doi:10.1016/j.ijhm.2020.102520

Kim, S., & Ferguson, M. A. T. (2016). Dimensions of effective CSR communication based on public expectations. Journal of Marketing Communications, 24(6), 549-567. doi:10.1080/13527266.2015.1118143

Latapí Agudelo, M. A., Jóhannsdóttir, L., & Davídsdóttir, B. (2019). A literature review of the history and evolution of corporate social responsibility. International Journal of Corporate Social Responsibility, 4(1). doi:10.1186/s40991-018-0039-y

Lee, J., & Lee, Y. (2018). Effects of multi-brand company’s CSR activities on purchase intention through a mediating role of corporate image and brand image. Journal of Fashion Marketing and Management: An International Journal, 22(3), 387-403. doi:10.1108/jfmm-08-2017-0087

Mohammed, A., & Rashid, B. (2018). A conceptual model of corporate social responsibility dimensions, brand image, and customer satisfaction in Malaysian hotel industry. Kasetsart Journal of Social Sciences, 39(2), 358-364. doi:10.1016/j.kjss.2018.04.001

Omoloso, O., Wise, W. R., Mortimer, K., & Jraisat, L. (2020). Corporate Sustainability Disclosure: A Leather Industry Perspective. Emerging Science Journal, 4(1), 44-51. doi:10.28991/esj-2020-01209

Palacios-Florencio, B., García del Junco, J., Castellanos-Verdugo, M., & Rosa-Díaz, I. M. (2018). Trust as mediator of corporate social responsibility, image and loyalty in the hotel sector. Journal of Sustainable Tourism, 26(7), 1273-1289. doi:10.1080/09669582.2018.1447944

Palazzo, M., Vollero, A., & Siano, A. (2020). From strategic corporate social responsibility to value creation: an analysis of corporate website communication in the banking sector. International Journal of Bank Marketing, 38(7), 1529-1552. doi:10.1108/ijbm-04-2020-0168

Pang, A., Lwin, M. O., Ng, C. S.-M., Ong, Y.-K., Chau, S. R. W.-C., & Yeow, K. P.-S. (2018). Utilization of CSR to build organizations’ corporate image in Asia: need for an integrative approach. Asian Journal of Communication, 28(4), 335-359. doi:10.1080/01292986.2017.1420207

Partalidou, X., Zafeiriou, E., Giannarakis, G., & Sariannidis, N. (2020). The effect of corporate social responsibility performance on financial performance: the case of food industry. Benchmarking: An International Journal, 27(10), 2701-2720. doi:10.1108/bij-11-2019-0501

Pham, H. S. T., & Tran, H. T. (2020). CSR disclosure and firm performance: The mediating role of corporate reputation and moderating role of CEO integrity. Journal of Business Research, 120, 127-136. doi:10.1016/j.jbusres.2020.08.002

Platonova, E., Asutay, M., Dixon, R., & Mohammad, S. (2016). The Impact of Corporate Social Responsibility Disclosure on Financial Performance: Evidence from the GCC Islamic Banking Sector. Journal of Business Ethics, 151(2), 451-471. doi:10.1007/s10551-016-3229-0

Rim, H., & Kim, S. (2016). Dimensions of corporate social responsibility (CSR) skepticism and their impacts on public evaluations toward CSR. Journal of Public Relations Research, 28(5-6), 248-267. doi:10.1080/1062726x.2016.1261702

Rodrigues, P., Borges, A. P., & Vieira, E. P. (2020). Corporate social responsibility image and emotions for the competitiveness of tourism destinations. Journal of Place Management and Development, ahead-of-print(ahead-of-print). doi:10.1108/jpmd-01-2020-0005

Salehzadeh, R., Khazaei Pool, J., & Jafari Najafabadi, A. H. (2018). Exploring the relationship between corporate social responsibility, brand image and brand equity in Iranian banking industry. Journal of Islamic Accounting and Business Research, 9(2), 106-118. doi:10.1108/jiabr-11-2014-0041

Tapia, G. P., Mercadé Melé, P., & Almeida-García, F. (2018). Corporate image and destination image: the moderating effect of the motivations on the destination image of Spain in South Korea. Asia Pacific Journal of Tourism Research, 24(1), 70-82. doi:10.1080/10941665.2018.1541913

Tran, M. A., Nguyen, B., Melewar, T. C., & Bodoh, J. (2015). Exploring the corporate image formation process. Qualitative Market Research: An International Journal, 18(1), 86-114. doi:10.1108/qmr-05-2014-0046

Uduji, J. I., & Okolo-Obasi, E. N. (2019). Corporate social responsibility initiatives in Nigeria and rural women livestock keepers in oil host communities. Social Responsibility Journal, 15(8), 1008-1032. doi:10.1108/srj-01-2018-0025

Xia, B., Olanipekun, A., Chen, Q., Xie, L., & Liu, Y. (2018). Conceptualising the state of the art of corporate social responsibility (CSR) in the construction industry and its nexus to sustainable development. Journal of Cleaner Production, 195, 340-353. doi:10.1016/j.jclepro.2018.05.157

Zhao, X., Wu, C., Chen, C. C., & Zhou, Z. (2020). The Influence of Corporate Social Responsibility on Incumbent Employees: A Meta-Analytic Investigation of the Mediating and Moderating Mechanisms. Journal of Management. doi:10.1177/0149206320946108