The role of public relations and social media on achieving the confidence

under social responsibility in private sector companies

Feras Mahmoud Alkharraz, Hekmet Secem

Abstract

This article offers a preliminary analysis of the role of social media in gaining the confidence
of a private sector company’s audience within the framework of social responsibility
particularly during the era of Covid-19. Written and researched during the period of Covid-
19, in this article, we elaborate that although Covid-19 was outlined as a global pandemic if
implemented correctly within the framework of corporate social responsibility, social media
can still offer a great opportunity for private companies to gain the confidence of their
audience. Hence, the purpose of this study is to explore the effects of public relation and
social media on confidence of Palestine Telecommunication Company. To do so, a causal
model and a structured survey was conducted for collecting perceptions of 474 customers in
Palestine. The data is analyzed and hypothesis is tested by using IBM-SPSS-AMOS package
25.0. Results prove that public relation and social media play a critical role in boosting the
confidence of an organization’s audience if all is done within the framework of proper
corporate ethics.

Keywords: Social Media Marketing, Corporate Social Responsibility (CSR), Corporate

citizen, Covid-19, Generation Z (Gen-Z)

1. Introduction

Social media marketing is a vehicle that allows corporations to interact effectively and more
efficiently with various customers, who increasingly view themselves as “active co-creators”
of corporate programs. As at April 2020, Facebook is still the largest social media platform
with over 2.6 billion active users[ CITATION JCl201 \l 12297 ], a survey conducted by
Statista revealed that 66% of the users on Facebook either liked or followed a brand on the
platform[ CITATION Jac19 \l 12297 ]. Such statistics are the major catalysts for the hype
towards social network adoption by organizations since the key objective of any profit-
making organization when running a business is to make a profit. Another way of the key
elements to making profits is to nature relationships with customers as well as interact with
them[ CITATION SAS10 \l 12297 ]. Social media platforms allow this kind of interaction.
Social media allows the formulation of opinions, perceptions, and gaining or repression of
knowledge. A typical example is a usage of celebrities (opinion leaders) to advertise
products. Due to their influence other, people will follow the trend. This is referred to as the
Two-Step Flow Theory. In addition to such statistics, there are case studies of organizations
that engaged in new productive ways with their stakeholders via the usage of interactive
social media and social networks [ CITATION Jim \l 12297 ]. Social Media is powerful and
versatile up to the extent that influential people and organizations use it, the former president
of the United States of America President Obama used interactive social media in his election
campaign for effective citizen involvement. Another power behind social media is its ability
to influence users to spent more time on it. If a person is exposed frequently to media,
chances are likely that the person constructs reality in a way that is strongly linked to the
media they are exposed to (cultivation theory).

Although researches have been conducted based on the success of social media marketing,
little is known about what is most likely to occur with respect to gaining market confidence
through social media particularly due to the impact of Covid-19 onto the world as a whole.
The economies of some countries have been placed to a standstill due to border restrictions as
well as the World Health Organizations’ regulations advising people to stay locked indoors.
This has brought in a significant change to the way modern marketing can be handled. This
change might have an impact on corporate social responsibility (CSR), consumer ethics, basic
marketing philosophy[ CITATION Hon20 \l 12297 ] as well as consumer confidence. This
possible change is the major reason that impelled the call for research in the area of social
media market confidence as shown by the title of the article. The aim of this research is to
investigate the pivotal role of social media, especially in private companies as far as market
confidence is put into the picture all in the auspice of corporate social responsibility (CSR).

2. Literature Review

2.1 Public Relations: Corporate Social Responsibility (CSR)

The actual definition of corporate social responsibility also known as corporate accountability
or corporate ethics is quite elusive since the beliefs and attitudes regarding the nature of this
association fluctuate with the relevant issues of the day. However, [ CITATION Jam03 \l
12297 ], define CSR as the relationship between business and the larger society.[ CITATION
VAN01 \l 12297 ] view CSR as a firm’s obligation to use its resources in ways to benefit
society through committed participation considering that the firm is also a part of the society.
Corporate Social responsibility is a trend in corporate policy that services as a self-regulatory
guide to socially and environmentally responsible business practices[ CITATION Chr14 \l
12297 ]. The working definition of CSR according to ISO 26000 defines corporate social
responsibility as the responsibility of an organization for the impacts of its decision and
activities on social and the environment through transparent and ethical behavior that is
consistent with sustainable development and the welfare of society; takes into account the
expectations of stakeholders; is in compliance with applicable law and consistent with
international norms of behavior, and is integrated throughout the organization[ CITATION
Hoh07 \l 12297 ]”. The various definitions however also tend to fit into the four main CSR
theories classification that are elaborated in the article “Corporate Social Responsibility
Theories ”by [ CITATION Eli04 \l 12297 ]. The article analyzed the different approaches that
organizations adopt when it comes to CSR. The approaches were categorized into four groups
profit-making approach, political performance, social demands, and ethical values. However,
irrespective of which definition amongst the above-mentioned definitions one chooses to
accept, all of the definitions have something in common, to balance profit requirements of
their shareholders with the requirements of its customers (the recipients of the Social
Responsibility. For effective CSR one has to understand a couple of concepts, marketing,
corporate communication, human resources, customer service, etc.

Figure 1:The different types of stakeholders

Knowing what is happening in the market can give executives with predictive insights that
will equip them with an upper-hand when it comes to business execution. Executives must
first collect data to identify patterns and be prepared to lead the charge to
transform[ CITATION Chr14 \l 12297 ]. Every occurrence has an advantage or
disadvantages it can bring to an organization, however, with the right analysis of behavioral
patterns organizations can still make a profit via good CSR. There is a growing recognition of
the significant effect the activities of the private sector have- on employees[ CITATION
Hoh07 \l 12297 ].

Covid-19 was declared a pandemic on the 11th of March 2020[ CITATION Jam201 \l
12297 ]. Since then the pandemic has headlined in every national paper and website
worldwide. Airlines were grounded and borders closed. A popular blogger from the reputable
organization International Monetary Fund headlined a blog “April world economic outlook
projects global growth in 2020 to fall to a negative three percent” [ CITATION Git20 \l
12297 ]. Another blog from the same organization (IMF) and blogger headlined “For the first
time since the great depression both advanced and emerging markets and developing
economies are in a recession”[ CITATION Git20 \l 12297 ]. The United Nation’s Framework
for the immediate Socio-Economic Response to the Covid-19 crisis warns that “The Covid-
19 pandemic is far more than a health crisis: it is affecting societies and economies at the
core”[ CITATION UND \l 12297 ].

Whilst the pandemic has brought in many doubts about business continuity, the advent of
Covid-19 can offer a great opportunity for businesses to shift towards more genuine and
authentic CSR and contribute to addressing urgent global social and environmental
challenges[ CITATION Hon20 \l 12297 ]. Not forgetting the multiple numbers of lives that
have been lost, the scars, broken families, the pandemic-driven lockdowns will form a
memory that will inhabit our minds with a long-lasting footprint that will also be passed onto
the future generations. Covid-19 has the possibility to change how we see and what we
currently know about the world. Covid-19 has put to test the pledge made by organizations to
conduct ethical business as well as good corporate citizenship. It is with great displeasure that
some firms have tried profiteering from the crisis[ CITATION Hon20 \l 12297 ]. On the other
hand, some corporates took advantage and transformed their production lines to manufacture
ventilators, protective gear, sanitizers, etc. with some donating instead of selling.
Formulating a good rapport amongst a firm’s internal and external stakeholders is quite
beneficial for an organization. Twitter’s boss Jack Dorsey pledged to donate money
amounting to 1bn US dollars towards the effort to try and combat Covid-19, the same can be
said about the co-founder of Alibaba, Mr. Jack Ma. Through his foundation, they donated
coronavirus test kits amongst many other medical supplies to countries all over the world.
Hence, the 1st hypothesis of this study is as follows:
H1: There is a significant effect of public relation on achieving confidence under social
responsibility of private company in Palestine.

2.2 Social Media effects: Private Sector Companies

Undoubtedly the popularity and economic sense of social media are on the rise. Presently
billions of people are riding on social media platforms, individuals can easily share data,
information as well as any other media-related products. Social network platforms have
gained so much traction as they have a high potential impact on the global market. Due to this
many companies have extended their market penetration tentacles via establishing their
presence on platforms such as Facebook, Twitter, Instagram, WhatsApp, etc. The major
benefit of this market penetration establishment is, social networks incubate casual
communication between companies and customers/audiences on their own terms which in
turn formulates strong relationships between the involved parties. Social media platforms
such as Pinterest, Foursquare, Tumblr, Instagram, etc. build brand awareness as well as
develop customer engagement [CITATION Chr14 \l 12297 ]. Slowly but surely the advent of
social network platforms has fashioned a vehicle through which corporates both private and
the public can boost their audience’s confidence rather than the previous era were customers
would receive corporate messaging via mere coincidence as passive recipients.

Social media offers huge potential for organizations to conduct thorough market research
through what has been defined as ‘mass-self communication’ [ CITATION Cas09 \l 12297 ].
As individuals surf through their social media applications the social networks are monitored
to discover any new trends, obtain any new information that can offer a competitive
advantage, etc. The observed outputs trigger corporate citizens to respond in a way that can
either boost their sales or gain market confidence. 94% of Gen-Z think that companies should
address pressing social and environmental issues and 5% of consumers are willing to pay
extra for such products and services [ CITATION Jam20 \l 12297 ]. With such statistics
emanating from social networks, in order to boost sales as well as increase competitive
advantage, it would be crucial for a corporate(s) to steer its course towards achieving social
and environmental awareness in its products or services.

Another way to build brand awareness and loyal advocates is to keep them involved and to
deploy a fun, creative way for supporters to participate in and to share with online
friends[CITATION HAL20 \l 12297 ]. Involving the loyal advocates to advertise your
business builds confidence as recommendations secure that competitive advantage against
other players in the market. There is power in numbers and the social network has that force
behind it. As the adage goes, more passionate consumers follow the brand. In 2019, retail e-
commerce sales worldwide amounted to 3.53 trillion US dollars and e-retail revenues are
projected to grow to 6.54 trillion US dollars in 2022[CITATION JCl20 \l 12297 ]. This trend
puts pressure on organizations. It forces them to develop and harness their content marketing
to creatively attract the intended audience[ CITATION Chr14 \l 12297 ]. Such developments
include quick response codes, location-based advertising, targeted advertising based on
browsing history, etc. Social media allow organizations of all sizes to embrace and adopt
tools, techniques, etc. into their communication messages [ CITATION Chr14 \l 12297 ].
However, if also abused social media can create and quickly spread false information that
could lead to a potential catastrophe. The conspiracies on Facebook, YouTube, and other
platforms’ posts began popping up and going viral: 5G causes COVID-19; drinking bleach
can cure it; Bill Gates is behind it[ CITATION Rya20 \l 2057 ]. The previous examples of
fake news led to the need for serious damage control. Several social platforms took down the
fake posts. As for Facebook it even reached an extent of sending alerts to its users just in case
they might have crossed paths with such misleading post [ CITATION Rya20 \l 2057 ].
Hence, the 2nd hypothesis of this study is as follows:
H2: There is a significant effect of social media on achieving confidence under social
responsibility of private company in Palestine.

2.3 Conceptual Framework of the Study

This study has been formulated based on social exchange theory which claims that social
relationship which are intangible resources that lead towards the better confidence for the
enterprises. Hence, the constructs under investigation in this study are shown in the following
schematic diagram.
 Figure 1. Research Framework
3. Research Methodology

3.1 Sample and Data Collection

The purpose of this study is to explore the effects of public relation and social media on
achieving confidence under social responsibility of private company in Palestine. Therefore,
survey was conducted and perceptions of Palestine telecommunication companies’ customers
were collected to analyze the relationship. A self-administered questionnaire was distributed
to the randomly selected Palestine telecommunication companies’ customers. The
respondents were given a total of 90 days to fill the questionnaire and a total of 474 usable
questionnaires were received back. Grounded on gender, male constituted 55.4% while
female represented 44.6% of the sample population.

3.2. Instrumentation
This survey included three constructs which are public relation, social media, and confidence.
The public relation instrument was adapted and customized from the work of Nathalie, Reed-
Rhoads, and Haghighi (2010), and the social media instrument was adapted from the work of
Wilson, Kickul, and Marlino, (2007), while the confidence instrument was adapted from
Ajzen and Fishbien, (1980), and Zaidatol (2009). Statement items were measured using a
five-point Likert interval scale from 1 (strongly disagree) to 5 (strongly agree).

3.3 Method of Analysis

Structural Equation Modelling (SEM) is a second generation method of multivariate analysis
technique (Awang, and Fazella, 2017; Awang et al., 2017a; Awang 2017b; Awang, 2015;
Awang, 2014; Awang, Afthanorhan, Mohamad, and Asri, 2015a; Hoque et al., 2017a; Hoque
et al., 2017b; Hoque, Awang, Jusoff, Salleh, and Muda, 2017c; Hoque and Awang, 2016a)
thus, the researchers employed SEM so as to keep pace with the advancement in research
methodology. In SEM, the researcher validated the measurement model of a latent construct
using the Confirmatory Factor Analysis (CFA) procedure. Once validated, the researcher
assembled the constructs into the structural model and execute the SEM procedure.
Consequently, analyzing and testing the theory using IBM-SPSS-AMOS software version
25.0 is fast, efficient and robust (Awang et al., 2017a; Awang, 2017b; Hoque et al., 2017a;
Hoque et al., 2017b; Hoque et al., 2017c; Hoque et al., 2017d; Hoque and Awang, 2016b;
Awang, 2014; Awang, 2015). Hence, this study employed IBM-SEM-AMOS software
version 25 for analysis and testing the hypothesis.
4. Results
4.1 Measurement Model
Before exhibiting the structural model and executing SEM, the study needs to validate the
measurement model of latent constructs for unidimensionality, validity, and reliability
(Hoque and Awang, 2019; Hoque et al., 2018a; Hoque, Awang, Siddiqui, & Sabiu, 2018b;
Hoque et al., 2017a; Hoque et al., 2017b; Hoque et al., 2017c; Hoque et al., 2017d; Hoque
and Awang, 2016a; Awang, 2015; Awang et al., 2015a). Unidimensionality is achieved
when the factor loading for all items for sub-construct and construct are positive with a
minimum value of 0.6 (Hoque et al., 2017b; Hoque et al., 2017c; Hoque and Awang, 2016a;
Awang 2014; Awang, 2015). Construct validity is achieved when the fitness indexes for the
measurement model meet three model fit types namely, Absolute fit, Incremental fit, and
Parsimonious fit. Discriminant validity is achieved when all constructs are not highly
correlated (Hoque et al., 2018a; Hoque et al., 2018b; Awang et al., 2015a; Hair et al., 2014;
Fornell and Larcker, 1981). Convergent validity is achieved when the value of Average
Variance Extracted (AVE) meet the minimum value of 0.5 (Hoque et al., 2018b; Hoque,
Awang, and Ghani, 2016; Awang 2014; Awang, 2015; Awang et al., 2015a; Hair et al.,
2014). Construct reliability is achieved when the values of Composite Reliability (CR) and
Average Variance Extracted (AVE) reach the minimum value of 0.6 and 0.5 respectively
(Hoque et al., 2018a; Hoque et al., 2018b; Awang et al., 2017a; Hoque et al., 2017a; Hoque
et al., 2017b; Hoque et al., 2017c; Hoque et al., 2017d; Hoque and Awang, 2016a; Awang et
al., 2015a; Awang 2015; Hair et al., 2014; Fornell and Larcker, 1981). All the Fitness
Indexes (P-Value=.000; RMSEA=.052; GFI=.935; IFI=.977; CFI=.976; TLI=.970;
NFI=.948; RFI=.934; ChiSq/df=1.774) shown in Figure 2 indicated the measurement model
of the four latent constructs (i.e., learning, self-efficacy, intension and SME Performance)
have met the requirement as well as signifies a satisfactory fit to the data and result of all
indexes was good. Hence, this study achieved the construct validity (Hoque, Siddiqui,
Awang, and Baharu, 2018c; Awang et al., 2017a; Awang 2015; Awang et al., 2015a).

Figure 2. The Pooled CFA Results and the Output Showed All Fitness Indexes Achieved

Table 1.CFA Results for the Measurement Model

Construct and Dimensions & Factor CR AVE

Dimensions Items Loading (above 0.6) (above 0.5)
PR1 .95
Public Relation .970 .941
PR2 .99
TL1 .82
PR1 .833 .715
TL2 .87
TL3 .85
PR2 .725 .573
TL4 .65
SB1 .99
Social Media .975 .951
SB2 .96
TI1 .81
SB1 TI2 .82 .869 .689
TI3 .86
TI4 .84
SB2 TI5 .89 .890 .729
TI6 .83
C1 .95
Confidence .860 .755
C2 .78
FP1 .83
C1 FP2 .82 .863 .678
FP3 .82
SP1 .90
C2 SP2 .85 .868 .688
SP3 .73
The values of factor loading for every item of four constructs including sub-constructs that
comprise of learning, self-efficacy, intension and SME Performance together with the
squared multiple correlations or R2, CR and AVE for every construct as well as sub-
constructs shown in Table 1 which indicated all latent constructs have achieved
unidimensionality. All latent constructs have achieved convergent validity, and construct
reliability. Moreover, the discriminant validity is assessed through correlation and also
through discriminant validity index summary. According to Hoque et al. (2018a), Hoque et
al. (2018b), and Awang (2015) one of the criteria of Discriminant validity is the correlation
between exogenous constructs must not exceed 0.85 (Awang et al., 2017a; Hoque et al.,
2017a; Hoque et al., 2017b; Hoque et al., 2017d; Hoque and Awang, 2016a). Table 2 which
indicated the discriminant validity index summary as well as the diagonal values in Table 2
are the square-root of AVE for the respective constructs, while other values are the
correlation between constructs. Discriminant validity of the constructs is achieved when the
diagonal values (i.e. square-root of AVE for the respective constructs) are greater than any
values in their rows, and columns respectively (Awang et al., 2017a; Hoque et al., 2017a;
Hoque et al., 2017b; Hoque et al., 2017c; Hoque and Awang, 2016a; Hoque and Awang,
2016b; Awang, 2015a; Fornell and Larcker, 1981).

Table 2.
Discriminant Validity Index Summary

Construct Public Relation Social Media Confidence

Public Relation .970
Social Media .451 .975
Confidence .662 .744 .869

The correlation value of latent constructs public relation with social media and confidence are
.451, and .662 respectively and correlation value of latent constructs social media with
confidence is .744. Moreover, the value in diagonal is greater than the value in its row and
column in Table 2, this study accomplishes that the discriminant validity is achieved for the
model (Hoque et al., 2018a; Hoque et al., 2018b; Awang et al., 2017a; Hoque et al., 2017a;
Hoque et al., 2017b; Hoque and Awang, 2016a; Awang et al., 2015a; Fornell and Larcker,
1981).
4.2 Structural Model
As shown in Figure 3, the hypotheses H1 , & H2, are supported. In H1, there is a significant
effect of public relation on achieving confidence under social responsibility of private
company in Palestine (β=0.404, P=.001). In H2, there is a significant effect of social media
on achieving confidence under social responsibility of private company in Palestine
(β=0.474, P=.001). The structural model explains 68.9% variance in SME performance.

Table 3. Squared Multiple Correlations (R2)

Variable Estimate (R2)
Confidence 0.689

The above Table 3 indicates that the predictors of confidence explains 68.9% of its variance.
In other arguments, the error variance of confidence is about 31.1% of the variance of
confidence.

Table 4. Standardized Regression Weights of public relation and Social Media on

Confidence

Variable Path Variable Estimate

Confidence  Public Relation 0.414

Confidence  Social Media 0.555

Table 4 base on Figure 3 showed that the effect of public relation on confidence was 41.4%
while 58.6% does not influence confidence and the effect of social media on confidence was
55.5%, whereas the effect of social media on confidence was 55.5% while 44.5% does not
influence confidence.
 Figure 3. Standardized Regression Path Coefficient

Figure 4. Unstandardized Regression Path Coefficient

The unstandardized regression weight (i.e. shown in Figure 4) indicated that the estimate of
the beta coefficient that measures the effects of the public relation, and social media
constructs on the confidence construct.

Table 5. Regression Weight for Path Estimate

Variable Path Variable Estimate S.E. C.R. P Result

Public
Confidence  .404 0.062 6.507 .001 Significant
Relation
Confidence  Social Media .474 0.057 8.318 .001 Significant
Note: *** P<0.05
The hypothesis of this study was spelt out as: H1, Public relation has significant effect on
achieving confidence under social responsibility of private company in Palestine (β=0.404,
P=.001). In H2, Social media has significant effect on achieving confidence under social
responsibility of private company in Palestine (β=0.474, P=.001). The result in Table 5
showed that the level of significance for regression weight indicates that the probability of
getting a CR as large as 6.507, and 8.318 respectively in absolute value is 0.05. In other
words, the effects of two constructs (i.e., public relation, and social media) on confidence
construct is highly significant. Hence, this research suggested that there is a straightforward
need to give more attention on public relation and social media for achieving confidence and
also to help in the national GDP of Palestine through proper exploitation of them Conclusion
and future research direction.

5. Conclusion and future research direction

The environment in which consumers exist is quite dynamic thus, good corporate social
responsibility (CSR) is not only hinged on simple philanthropic goals but on strong and
consistent CSR policies[ CITATION Jam20 \l 12297 ]. In this article, we have provided
some initial insights and thoughts on the role social media plays in favoring a private sector
company via boosting its audience’s confidence. Although unfortunately in Palestine the
ongoing political instability and geographical separation between the Gaza strip and the West
Bank are the major causes of the challenges and are resulting in worse humanitarian
conditions during the Covid-19 pandemic[ CITATION Moh20 \l 12297 ], we believe the best
time to conduct such research is during this period whereby the pandemic is on its peak,
many companies are resorting to shutting down their operations.
The aim is to make a more realistic input towards how organizations can better cope with the
trauma caused by Covid-19 and possibly implement or continue good corporate social
responsibility via the usage of social media. The results show that even though there is a
pandemic, social media plays a significant role in boosting customer confidence. Covid-19
offers a platform whereby organizations can practice various types of corporate social
responsibility initiatives. Therefore, creating an environment whereby someday in the future
a new way of doing corporate social responsibility is introduced. The results of our study
agree with the research that was done by [ CITATION Hon20 \l 12297 ]. The results show
that social media marketing is quite effective and can yield profits for an organization even
during a time like this when a pandemic is at hand.

It would be interesting replicating this research referencing to other organizations to see if

these results still hold. As a possible starting point suggestion for future researches, we
observed quite an interesting result when it comes to trusting an organization because it uses
social media to conduct its corporate social responsibility activities. The response showed a
rather low ratio of 42.74%. Maybe these results are due to the increase of fake news
spreading easily over social media as mentioned in the previous sections of the article, which
is resulting in people being cautious when it comes to trusting an organization. Furthermore,
this research was hinged on analyzing social marketing basing on the possible challenges that
Covid-19 is bringing, there is still a need to research the possible long term effects of the
pandemic especially on the confidence of a company’s audience. This can be future research
whereby future researchers may want to know the ways in which organizations can
implement in order to stimulate a customer’s trust and confidence. The pandemic stimulated
a worldwide behavioral change in the way we now socialize, conduct ourselves, etc. future
research is needed as it assists knowing which changes in marketing will prove beneficial in
the long term.

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