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IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON BRAND IMAGE

CHAPTER# 3: LITRETURE REVIEW:
RELATED LITRETURE:
Literature and assistance for this study has been explored and extracted from internet, related books of brand management as well as corporate social responsibility. For the purpose of revealing a clearer image of the study, discussion and interviews are conducted with some professional brand managers as well as general public to understand the perception they had in mind about Corporate Social Responsibility (CSR) which would be given in the chapter of finding and analysis. The study is not conducted on any specific company and the reason for this is to understand the impact of Corporate Social Responsibility (CSR) on brand image. Therefore the research conducted some comparison of some brands i.e. brand of a company engaged in Corporate Social Responsibility (CSR) activity v/s brand of a company having no Corporate Social Responsibility (CSR) activity. And the comparison is done by the in-depth analysis of the company’s annual reports and by studying the brand’s market share carefully.

CORPORATE SOCIAL RESPONSIBILITY:
As the definition of Corporate Social Responsibility (CSR) has been stated in chapter # 1, therefore in this context I would like to discuss how Corporate Social Responsibility (CSR) activity is been taken by critics. There are many arguments against Corporate Social Responsibility (CSR). According to the critics Corporate Social Responsibility (CSR) activity is mostly an active attempt to increase corporate power and control on market. Critics has been emphasized that the activity of Corporate Social Responsibility (CSR) has a hidden motive, it seems like company is working for the society whereas in reality its working to built its own image and making more profit. (Corporate Watch)

This image is created by different sorts of advertising and is advocated by the consumer’s experiences (word of mouth). packaging. a collection of all qualities and attributes of the particular brand. n. (Management study guide. Brand image has to be optimistic as well as realistic. Whereas the brand image is the perception in the consumer’s mind linking all the feelings and ideas about the brand i. 2004) BRAND AND BRAND IMAGE: According to David Ogilvy. Or in other words as Business has defined it that Corporate Social Responsibility (CSR) means operating a business in a manner that meets or exceeds the ethical. Kaur and S. n.) as I have quoted before in chapter # 1. pp.e.d. n. (Agarwal. history. The Corporate Social Responsibility (CSR) activity of the company spreads awareness about the company and its brands to the community. brand is the intangible sum of the products’ attributes i. ethical. reputation and the way it’s been advertised (ogilvy. social. word of mouth and many other promotional tools. Brand image is the customer’s extract from the brand.d. (dictionary. But here companies have added that the Corporate Social Responsibility (CSR) activity provides familiarity to brand and not the favourability. M.d. economical or financial) to achieve its motive. 681-687) Therefore Corporate Social Responsibility (CSR) can be defined as a collection of company’s performance (environmental. its name. it should be different from competitors and should be easily recalled.) .) The concept of brand image in actual is that consumer is not only buying a product or service but also the image associated with the particular product/service.. Brand image is communicated to its target market/ public as well as encouraged from advertising.IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON BRAND IMAGE In response of this argument many of the private companies have admitted that they have commenced Corporate Social Responsibility (CSR) not only because it’s a accurate thing to do but also because it strengthens and provide greater support to their brands. commercial and public expectations (Baker. legal. price.e.

for a local brand. differing leading values in different countries present the problem of selecting an approach in formulation a corporate social responsibility strategy. (Popoli. only they can change themselves. On one side. pp. 2011) Popoli said that the connection between Corporate Social Responsibility strategy and brand image and equity does not present the equal force in the global perspective as in the local perspective i. According to T. due to the same procedure that have permitted and encouraged the creation of a global market.IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON BRAND IMAGE CUSTOMER SOCIAL RESPONSIBILITYA BRAND EXPLANATION: In this article. Every brand has a social responsibility which is distinctive to the fine framework of trust that it has established with its stakeholders. 2003. Kitchin brand is actually a major determinant of relationship responsibility. (Kitchin. (Popoli. cultures and specific expectations of local stakeholders.e. 2011) . He has emphasized on how to change people’s thinking as people are the system. according to the main values. CSR has a strong effect on brand image and brand equity whereas on the other brand is the outcome of all the activities of company like what it offers? How it communicates its product/services to target market as well as how it operates its business. CSR strategy can be based on practices of choice and prioritization of the different aspects of socially responsible behaviour. 312326) THE RELATIONSHIP BETWEEN CORPORATE SOCIAL RESPONSIBILITY AND BRAND IMAGE: In the report titled ‘Linking CSR strategy and approaches in local and global markets’ the author Paolo Popoli has quoted Deigendesch (2009) argument that brands and corporate social responsibility are two sides of the same coin of entrepreneurial achievement. Author has his own opinion the problem between local and global brand cannot be solved by accepting or assuming a global approach. the author Tim Kitchin has discussed CSR and brand in detail. Whereas for a global brand.

SMEs typically do not respond to the pressures from stakeholders so they are not into CSR activity as they don’t believe that CSR affects brand image or the company’s rep utation.R. Author has proved the fact that CSR has a great impact on consumer’s behaviour i. Drumwright & B.IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON BRAND IMAGE WHY DOES CSR NEED TO BE ADAPTED TO AN SME CONTEXT? Small scale businesses should have an owner/manager having effective personal styles. 1996) THE EFFECTS OF CSR ON CUSTOMER DONATIONS TO CORPORATE-SUPPORTED NON PROFITS: In this article author has emphasized on the relationship of consumer behaviour and corporate social responsibility. E. Lichtenstein. MEASURING BRAND EQUITY ACROSS PRODUCTS AND MARKETS: In an article titled ‘Measuring Brand Equity across Products and Markets’ the author David has explained that company can measure brand equity by loyalty measures. good CSR activity influences consumer to purchase company’s product /services by providing different research facts. (D. M. awareness measures and market behaviour and by these measures author has proved that brand equity can be improved and enhanced by CSR activities. Authors have applied a perceived CSR as a means to measure a relationship between CSR activity and consumer’s attitude and behaviour towards the company. (David. association measures.Braig. M. perceived quality/ leadership measures. But as they can adapt CSR rapidly and can be well positioned to take benefit of new niche segments for their products/services with CSR factors. 2004) .e.

IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON BRAND IMAGE A CORPORATE SOCIAL RESPONSIBILITY IN PAKISTAN & A STRATEGY FOR IMPLEMENTATION: In the article ‘A Corporate Social Responsibility in Pakistan & a Strategy for Implementation’ author has made an attempt to explain the importance of CSR and its implementation in Pakistan. practices and attitudes. 2009) CORPORATE SOCIAL RESPONSIBILITY: THE MEDIATING EFFECT: In a report titled ‘The Corporate Social Responsibility on Brand Performance: The Mediating Effect of Industrial Brand Equity and Corporate Reputation’ the group of four authors i. (Shubham.com) Lead India Campaign by Time of India is a remarkable example for brand building by CSR. Chih-Jen Chiu. 2010) EXAMPLES OF RELATIONSHIP BETWEEN CSR AND BRANDS:  TIMES OF INDIA (KALINGATIMES. Chin-Fang Yang and Da-Chang Pai. (Waheed. 2010) . (Chi-Shiun Lai. According to the author that companies in Pakistan can gain competitive advantage over the social concerns by applying CSR.e. And further more author says that by applying CSR activities in Pakistan means creating competitive environment responsibly as it entails cultural agreement and atmosphere to facilitate responsible thinking. Chih-Jen Chiu. Chin-Fang Yang and Da-Chang Pai concluded that their research actually investigates the impact of corporate social responsibility and company’s reputation on industrial brand equity. And the observed and obvious end result supported their ideas and points out that corporate social responsibility and company’s reputation have their huge impact on the particular company’s brand and the authors further concluded that the reputation of the company and industrial brand equity also play a role of a intervening variable between corporate social responsibility and brand performance as well as brand image. Chi-Shiun Lai. It was a CSR activity but the great influence of this activity was on brand building strategy. Time of India began to bring change in society.

And this does show a positive impact on its brands but also it encouraged others company like Toshiba to not only use the recycling sites but also to establish a joint venture of Creative . Starbucks closely involves its strategic partners.  PANASONIC CORPORATION: Panasonic Corporation a well known global company of electronics does not require any introduction.IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON BRAND IMAGE  NIKE: Nike has appeared as one of the most successful global company in terms of CSR because it has learned from the mistakes it made in past and attacks of numerous NGOs.d. Starbuck has reached to significant and large extents to minimize the harmful environment effect of growing coffee. It has paid its employees higher rate than its competitors and also offers more benefits to its employees. Its brands and reputation has been enhanced and enriched through its CSR activities and that is why it is still a known famous corporation. approaching climate change. Starbucks inclusive projects work within multiple areas including recycling and reducing waste. create its brand as agent of much more committed corporate citizen. 2010)  STARBUCKS COFFEE: Starbucks coffee has been a great promoter of CSR since its commencement. trade ingredient & other dignified elements. customers and employees in its CSR activities. and insure itself against any repeat of the consumer boycotts it faced (Shubham. use of fair. energy and water preservation. n. Nike is the very first company who hired a vice-president for CSR and to publish an annual CSR report. It is one of the most detectable. perceived and visible CSR activities. A thorough study of Starbuck’s website reveals that in order to procure and obtain Fair Trade CertifiedTM coffee as part of its supply chain strategy. (Genesis. Coming to the point the corporation in North America started its CSR activity by having a Nationwide Recycling Program with more than 300 drop-off sites nationwide.) And the whole impact of CSR can be clearly seen on its Return of investment. constructing greener stores. the corporation has done a lot to deal with the public attitude.

n.)  INTEL: Intel (another well known recognized successful global corporate needs no introduction) was able to reduce energy usage as CSR activity.d.2 pounds per person. This proposal proved success by an outcome of energy savings of about 6 megawatt-hours and $400. (Genesis.IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON BRAND IMAGE Recycling Systems. For this purpose Mc Donald offered discount to consumers who registered themselves to participate in the particular program. And the community’s response over this activity can be witnessed through the profit the companies made that year and later.)  McDonald’s McDonald’s in Japan participated in the proposal of Japanese government’s ‘Team Minus 6%’ to eliminate CO2 emissions by 2. Inc (CRS) in 2007. (Genesis. This helped not only in reducing the usage of materials and energy but also enable the company to save money it was spending on printing and on sending snail mails. (Genesis.)  CITIGROUP: Employees of Citigroup. The company start controlling its energy usage of air conditioners at its offices and product assembling units by elevating one degree temperature. In the year 2007 Mc Donald’s restaurant and their employees helped a lot to promote the cause and encouraged customers to participate more and more. . in the year 2007 the company decided to go green by launching a project named as ‘Project Green’ by starting educating their clients to receive electronic statements instead of paper statements. n. n.000 energy costs in a year. This energy reduction results in a positive impact on its consumer’s attitude towards the company and its products. This CSR activity showed a positive response of Japanese towards Mc Donald’s.d. Therefore. per day.d. in association with its retail clients are helping their company to address climate change and to improve its bottom line.

This survey has shown how much CSR activity has been important not for only its brand and company reputation but also for the employees retention.) NATIONAL GEOGRAPHIC MAGZINE SURVEY: In 2008 surveyed and find out more than 80% of U.IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON BRAND IMAGE This step taken by the company not only benefited the company in terms of return and profit but also strengthen the customer relationship as the complaints of not receiving the paper statement eliminated and customers accepted the usage of e-statement as they realized it is beneficial for environment.d.S workers polled said that they believe it is important to work for a company or organization that makes the environment a top priority. . (Genesis. n.