“A study on Effect of Corporate Social Responsibility on Brand Image

with reference to Hyundai Motors”

DESSERTATION REPORT
Submitted towards partial fulfillment
OF
POST GRADUATION DIPLOMA IN MANAGEMENT
(Approved by AICTE, Govt. of India)
2018-20

Submitted to: Submitted by-

Dr. Mayank Sharma Pankaj Sharma
(Assistant Professor) BM-018123

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 DECLARATION

I, Pankaj Sharma, hereby declare that the project work entitled “A Study on the Effect of
Corporate Social Responsibility on Brand Image” is my own work and to the best of
my knowledge and belief, it contains no material previously published or written by any
other person. This work is done by me and submitted to Institute of Management Studies
under the guidance of the below mentioned guide/supervisor. For the award of Post
Graduate Diploma of Management.

Pankaj Sharma Signature of faculty mentor:

PGDM 018123 Name of faculty mentor: Prof. Mayank Sharma

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 ACKNOWLEDGEMENT

It is really a matter of pleasure for me to get an opportunity to thank all the people who
contributed directly or indirectly for the successful completion of the project report.
First of all, I am extremely thankful to IMS Ghaziabad for providing me with this
Opportunity and for all its cooperation and contribution.
I would also like to express my sincere thanks to Prof. Mayank Sharma who helped me
throughout my Dissertation Project. This project could not be completed without the
untiring support and proper guidance.
Last but not the least, I would like to thank to my parents, my friends and the college
students without their cooperation I would not have completed my research report.

Pankaj Sharma
PGDM (2018-2020)
IMS GHAZIABAD

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 Table of Content
S. no. Topic Page no.
1 Abstract 4
2 Introduction 5 - 10
3 Research objective 11
4 Literature Methodology 12 – 14
5 Research methodology 15
6 Data Analysis and Interpretations 16 – 33
7 Findings 34
8 Conclusion 35
9 Reference 36
10 Appendix 37 – 38

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 ABSTRACT
As the title of this project, the main objective of this research is to answer the broad
question: What are Corporate Social Responsibility (CSR) and Brand Image? And what
is the relation between Corporate Social Responsibility and Brand Image.

More and more corporations are trying to engage plentiful financial resources to develop
a good image to strengthen their connections with all stakeholders mainly clients,
workers, financiers, government and the public. Earlier financial performance was the
foremost standard to assess a firm's value and higher positions were given to
organizations that provide greater margins financially. But now Consumers are becoming
more aware of corporate social responsibility. Different researches have shown that
consumers are gradually into buying products on the basis of a firm's role in society.

Corporate Social Responsibility is, one thing that comes to mind is that some
organizations use CSR as a marketing tool in its broadest sense, and are mostly
concerned with their profits and not with the underlying social value based on ethical
considerations. Other organizations do however conduct their business in a manner that
reflects ethical concern but the real concept of Corporate Social Responsibility is where a
company manages its business activities in order to provide long term sustainable social
benefits to the society and is involved in the well-being of the society. Broad concept of
Corporate Social Responsibility is explained by different authors.

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 INTRODUCTION
1. Corporate Social Responsibility

Corporate social responsibility (CSR) is a self-regulating business model that helps a

company be socially accountable — to itself, its stakeholders, and the public. By practicing
corporate social responsibility, also called corporate citizenship, companies can be
conscious of the kind of impact they are having on all aspects of society including
economic, social, and environmental. To engage in CSR means that, in the normal course
of business, a company is operating in ways that enhance society and the environment,
instead of contributing negatively to them.

The European Commission advocate CSR as

“Being socially responsible means not only fulfilling legal expectations, but also going
beyond compliance and investing more into human capital, the environment and relations
with stakeholders.”

Corporate social responsibility is a broad concept that can take many forms depending on
the company and industry. Through CSR programs, philanthropy, and volunteer efforts,
businesses can benefit society while boosting their own brands. As important as CSR is for
the community, it is equally valuable for a company. CSR activities can help forge a
stronger bond between employee and corporation; they can boost morale and can help both
employees and employers feel more connected with the world around them.

In order for a company to be socially responsible, it first needs to be responsible to itself

and its shareholders. Often, companies that adopt CSR programs have grown their business
to the point where they can give back to society. Thus, CSR is primarily a strategy of large

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corporations. Also, the more visible and successful a corporation is, the more responsibility
it has to set standards of ethical behavior for its peers, competition, and industry.

Corporate Social Responsibility is not about giving charity, it is about giving back to the
society. This concept should make companies to think again on this issue and the brand
owners should start looking into this and making this a core business strategy.

2. Brand

A brand is a product, service, or concept that is publicly distinguished from other products,
services, or concepts so that it can be easily communicated and usually marketed. A brand
name is the name of the distinctive product, service, or concept. Branding is the process of
creating and disseminating the brand name. Branding can be applied to the entire corporate
identity as well as to individual product and service names.

Brands are usually protected from use by others by securing a trademark or service mark
from an authorized agency, usually a government agency. Before applying for a trademark
or service mark, you need to establish that someone else hasn't already obtained one for
your name.

According to the American Marketing Association (AMA) defines a brand as a

“Name, term, sign, symbol or design, or a combination of them intended to identify the
goods and services of one seller or group of sellers and to differentiate them from those of
other sellers.” (Fries, 2006)
Brand is about creating and delivering a promise to target consumers. This promise can be
about functional satisfaction, experiential enrichment, or aspiration fulfilment (Kapferer,
2004; Keller, 2008).

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Although there has been considerable research into the relationship between corporate
social responsibility and brand Equity, it has frequently reflected either an ideological bias
or limited methodological procedures. Research has also been impeded by the difficulty of
adequately measuring CSR and brand Equity.
The interesting finding is that the relationship between brand and CSR is strongest for
familiarity, not for favourability. That is, if a company is well known in its community, its
CSR activities will strengthen its brand more than they would if the company were less
well known. The implication is that CSR's impact is strongest with customers who are
already familiar with the company, enhancing relationships with existing clients or
consumers.

3. Brand Image
Brand Image is an image or impression the customers form about a particular brand in their
mind which is developed over a certain time period. Brand Image can be defined as how
existing or potential customers view the brand and associate with it. Brand image is
something that eventually forms in the mind of the customer. Brand image may be same
as brand identity or may be totally opposite. The ideal scenario is that the brand image
should be positive and what the company or the manufacturer wants it to be. Every
company wants to position its brand in a certain way which it deems is the best way for it
to be seen by the customers, that is known as Brand Identity.

An image is the set of beliefs, ideas, and impression that a person holds regarding an
object. – Kotler

A brand Image is the perception of the brand in the mind of the customer. It is an aggregate
of beliefs, ideas, and impressions that a customer holds regarding the brand.

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A brand can be perceived differently by different customers. Hence, the formation of a
consistent brand image is a huge task for any business.

HYUNDAI MOTOR INDIA FOUNDATION

MIF was formed in the year 2006 with the purpose of 'giving back' to society and to
initiate Corporate Social Responsibility (CSR) activities in the areas of Community
Development, Health Care, Educational and Vocational Training, Environment, Road
Safety, Art, Science, Technology, etc.

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Dream Move

H-Social Creator
H-Social Creator is a Hyundai Motor India Foundation CSR initiative to bring change in
our society. H-Social Creator is a Planning Program through which youth come up with
creative ideas to resolve Social Issues and then give shape to their ideas.

Launched first in South Korea, in 2015, HSC is now being brought to India by Hyundai
Motor India Foundation. We are coming to your Campus to look for that one talent who
can give us a path breaking idea and Hyundai Motor India Foundation will invest a seed
capital of Rs. 15 lakhs into the idea to help create the much needed social change with
it, thereby making the winner a master of impact

Safe Move

Hyundai Motor India Ltd, the country's leading premium car manufacturer and the
largest passenger car exporter launched its CSR initiative 'Safe Move-Traffic Safety
Campaign' in association with Ministry of Road Transport and Highways.

Safe Move is one of the key pillars of Hyundai's global CSR campaign on Traffic Safety
Campaign. Under the aegis of "Safe Move", HMIL in association with the Ministry of
Road Transport and Highways will promote the best practices of road and traffic safety
habits among children. Mr Shah Rukh Khan to participate in Hyundai’s CSR initiatives
as Hyundai’s Corporate Brand Ambassador. Mr Khan has been associated with Hyundai
since 1998 in India and has been instrumental in strengthening Hyundai brand in India.

The Safe Move official Traffic Safety Campaign educates the children on the Traffic
Safety. Along with the TV airing, special School Contact and RWA (Residential Welfare

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Association) programs have been designed to reach out and spread the Traffic Safety
message across the multiple cities in India. A ‘Kids Hyundai’ website
(www.kids.hyundai.co.in), a specially designed website for children on Traffic Safety is
developed. In order to enjoy all the convenience and joys of driving, we need to ensure
a safe environment for drivers and pedestrians alike.

Happy Move

Happy Move is an integral part of Hyundai’s efforts to create a safe and happy world.
The theme of Happy Move program this year is “Save Our Heritage” and in this program
Hyundai conducted awareness drive (Jan11- 21, 2016) with 100 Happy Move Global
Youth Volunteers (80 from Korea and 20 from India) at the heritage sites of Safdarjung
Tomb, Firozshah Kotla, Qutub Minar and Old Fort. At these heritage sites, the volunteers
undertook activities to upkeep the amenities, maintenance of gardens and will conduct
awareness activities to educate the visitors on the value of heritage.

Further to spread the message amongst children, volunteers also conducted school
contact programme at Sarvodaya schools at Chanakya Puri, Pandara Road, Mehrauli and
INA colony. As part of the initiative volunteers also undertook school premises cleaning,
school wall designing, maintenance of gardens and design competitions for a positive
and conducive study environment.

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 OBJECTIVE OF THE STUDY

 To analyze the Perception of consumers regarding Corporate Social Responsibilities.

 To analyze customer loyalty, brand awareness, brand association and overall brand
image regarding Corporate Social Responsibility.

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 LITERATURE REVIEW

1) Corporate social responsibility: A brand explanation

The author states in his article about the CSR using brand explanation. Firstly, he defined
CSR in a very broad sense and then related it with brand. He explained brand as a trust and
a gap between brand and trust in different models and suggested how to close these gaps
in order to create CSR. In the end, he stated that the biggest challenge to be faced is to
change people’s thinking. People are the system, only they can change themselves.
(Kitchin, 2003)

2) Corporate Social Responsibility as a determinant of market success: An

exploratory analysis with special reference to MNC’s in emerging markets

In this article, the author says that Globalization has affect the business so much the
companies are expanding day by day and going globally in different countries to do their
business. The business process has changed so much in the last few years all around the
world and companies are competing with each other and trying to gain first mover
advantage in other countries and trying to make their good will and cash them. Consumers
are also try to go for the company product which bears more socially responsible and are
good some customer have negative impact on the company which are not socially good or
responsible. (Balachandran, 2004)

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3) Corporate Social Responsibility – Corporate Branding Relationship:
An Empirical Comparative Study

This article states the relationship of firm’s CSR activities with corporate branding
focusing on customer‟s viewpoint. This shows the impact of CSR activities on corporate
brand. In the findings, it showed that the commitment to CSR activities is highly
appreciated which means that there is a bright future of CSR in the companies. (Vassileva,
2001)

4) Influence of CSR on loyalty & Valuation of Services

The study of corporate social responsibility has been the object of much research in recent
decades, although there is a need to continue investigating its benefits as a marketing tool.
In the current work the author adopts a multidimensional perspective of social
responsibility, and carried out market research to determine the perceptions of users about
economic, legal, ethical and social aspects of their operating companies. With these data it
was determined the structure and components of the concept of social responsibility.
Subsequently, this is related with the overall evaluation of the service and loyalty by means
of a model of structural equations, in order to determine the influence of corporate social
responsibility on these concepts, and hence its benefits as a commercial tool. (Salmones,
Crespo, & Bosque, 2005)

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5) Impact of Corporate Social responsibility on Brand image in Different FMCGs
of Pakistan,

The author in this research states about the concept of corporate social responsibility
(CSR) that has gained extensive consideration in recent years. Nowadays firms are using
CSR to gain competitive advantage and to establish long lasting relations with its
stakeholders. Although CSR is much popular in the developed world but the potential
benefits of CSR are less highlighted in the developing markets like Pakistan. Data were
collected from 180 students of 22 universities. Four hypotheses were developed and all of
them were accepted. Results showed that socially responsible activities of a firm enhance
the brand image of the firms’ goods as well as the general image of the firm. (S. M. M.
Raza Naqvi Et. Al., May, 2013)

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 RESEARCH METHODOLOGY

There are two types of sources used for collection of data-

Primary Data - Structured Questionnaire, Survey Method.
Secondary Data - Journals, Magazine, reference books, Research papers etc.
Sampling technique- Convenience sampling technique
Sampling Size- 60
Sample Area- Delhi NCR

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 DATA ANAYLSIS WITH INTERPETATIONS

INTERPETATION: Total number of responses that I have collected is 60 from which

maximum responses came from male i.e. 63.3% and female 36.7%.

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INTERPETATION: Maximum response came from people who were having an age
between 20-25 and there were no responses from the age group 30 years and above.

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INTERPETATION: According to result obtained from the survey done of sample size of
60 people it can be be said that CSR is a concept which companies are using to manage
their social activities for the well being of the society because 53.3 % and 38.3 % of total
population Strongly agrees and agrees respectively to this, which is the 91.6 % size of the
total population.

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INTERPETATION: According to study conducted, this can be said that CSR activities
done by companies has a direct impact on its brand performance because 65 % and 28.3 %
of the total population strongly agree and agree respectively to this and most importantly
there were no responses in the favour of disagree and storngly disagree.

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INTERPETATION: According to study conducted, it can be clearly said that CSR
activities done by companies also impacts the purchasing decision of the consumers.

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INTERPRETATION : According to study conducted it can be said that, because 80 % of
the total respondents believes that companies who continously do the CSR activities are
generally commited to use portion of their profits to help nonprofits.

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INTERPETATION: According to study conducted, 78.4 % of total population thinks that
the company integrates the charitable contibution to its business activities and also 21.7 %
of the total population is neutral to this fact.

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INTERPETATION: According to study conducted, I came across to the important fact
that only approx 2 % of the total population disagree that companies give back to the
communities in which they performs their business and 98 % of the total population
believes that such companies generally gives back to their communities in which they
perform their businesses which is the very good number for this impotant fact.

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INTERPETATION: According to study conducted, 80 % of the total population believes
that the company performs CSR activities so that they can obtain the long term success
which is the overall objectives of every organisation.

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INTERPETATION: This is the important fact which can be concluded through this study
that the company not only performs CSR activities to acheive long term success and create
their brand image but also behaves ethically and honestly with their customers.

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INTERPETATION: This study gives the result in favour of the company for which this
study has been conducted that this company actively sponsors or finance the social events.

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INTERPETATION: According to this study, it can be said that 83.3 % of the total
respondents believes that companies follow the norms defined while performing CSR
activities which is a good number and rest respondents are neutral or disagree to this.

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INTERPETATION: According to this study, it can be concluded that performing CSR
activities helps in creating brand image because more than 80 % of the total respondents
says that they can recognise the company/brand among other competing brands who
perfoms CSR activities.

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INTERPETATION: According to responses recieved it can be clearly seen that exactly
80 % of the total repondents are aware about the brand/company which has been mentioned
in the above question.

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INTERPETATION: According to the study conducted, it can be said that the quality of
the particular brand for which this study has been done is extremely high because 58.3 %
and 25 % of the total population agrees and strongly agrees respectively to this.

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INTERPETATION: According to this study, it can be clearly seen that more than 90 %
of the total respondents can quickly recall some characteristics of this particular brand.

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INTERPETATION: As per the responses received it can be said that logo of the particular
brand for which this study has been conducted is eye catching and easy to recognise and
remember because 88.4 % of total population can easily and quickly recall the logo and
symbol of this brand.

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INTERPETATION: According to this study, it can be said that performing CSR activity
directly impacts the buying behaviour of the consumers for that particular brand, because
80 % of the total population says that it makes sense to buy the brand who perform CSR
activity instead of other brand even if they are same.

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 FINDINGS
The data collected from 60 respondents were analyzed in accordance with objectives of the
study. The results are presented and discussed. It is inferred after analyzing that:
 Most of the responses collected are from youths of Delhi NCR. The age group from
20-25 have answered most and out of all 63% are male and approximately 37% are
female.
 Many people have agreed that they are not inclined towards evaluating the
substantive attributes and performance of a CSR performing brand by themselves
rather than listening to others opinions.
 In this study it was found that more than 80% of the total population believes that
the companies who performs CSR activities it helps them to improve their brand
performance.
 One of the important fact which has been found in this study was, as this data has
been mostly collected from youth and youth says that they will prefer the brand who
is involved in CSR activities over any other brand who do not perform the CSR
activities.
 More than 80% of the population believes that companies perform CSR activities
because it helps then in long term success.

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 CONCLUSION

1. These findings of the result will help companies to consider in maximizing their CSR
initiatives and build brand equity and invites to apply to both private and public sectors.

2. Build institutional capacity for Corporate Social Responsibility

4. Build Corporate Social Responsibility into core of company business model.

5. Build stronger partnerships with NGOs, with local communities, and “with any
stakeholder who can add value to the business”

6. Involve stakeholders in innovative strategies and projects “to create productive change”

7. Find ways to create new relationships with suppliers based on shared visions about
Corporate Social Responsibility.

8. Establish policies and systems to attract and retain talent for the long-term success of the
business.

10. Engage in better non-financial risk management

11. Ensure good governance

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 REFERENCES

 Baker, M. (2008). Corporate Social Responsibility-What does it mean? Retrieved

from http://www.mallenbaker.net/csr/definition.php

 Balachandran, S. K. (2004). Corporate Social Responsibility as a determinant of

market success: An exploratory analysis with special reference to MNCs in
emerging markets . Marketing Strategies for Firms in Emerging Markets , 1-19.

 Bhattacharya. (2003). Consumer-company identification: A framework for

understanding consumer's relationships with companies. Jounal of Marketing , 67
(2), 76-88.

 Cobb-Walgren, C. J., Ruble, C. A., & Donthu, N. (1995). Brand Equity, Brand
preference & Purchase Intent. Journal of Advertising , 24 (3), 25-40.

 Fries, Z. G. (2006). Branding and Corporate Social Resposibility. In Z. G. Fries,

Brands and Brands Management (pp. 0-9). University of Cologne.

 Kitchin, T. (2003). BRAND MANAGEMENT. VOL. 10 (NO. 4-5), 312–326.

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 APPENDIX

Questionnaire
1. Name
2. Gender
3. Age
4. Rate the following questions between
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree
1. Corporate Social Responsibility is a concept where company manages its social
activities for the well-being of the society
2. CSR activities done by the companies improves brand performance
3. I would prefer a company brand which is involved in CSR activities
4. Such (CSR) company is committed to using a portion of its profits to help nonprofits.
5. Such company integrates charitable contribution into it business activities
6. Such company gives back to communities in which it does business
7. The companies tries to obtain maximum long-term success from its CSR activities
8. The companies behaves ethically and honestly with its customers
9. Such company actively sponsors or finance social events
10. The companies respects the norms defined in the law when carrying out CSR activities
11. I can recognize the companies / Brand among other competing brands who perform
CSR activities

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12. I am aware of such brand / company mentioned in the above question
13. The likely quality of such brand is extremely high
14. Some characteristics of such brand / company come to my mind quickly
15. I can quickly recall the symbol or logo of such brand / company
16. It makes sense to buy this brand instead of any other brand, even if they are the same.

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