Impact of CSR communication on brand business and

social values
Didier Louis, Cindy Lombart

To cite this version:

Didier Louis, Cindy Lombart. Impact of CSR communication on brand business and social val-
ues. Advances in National Brand and Private Label Marketing, pp.166-172, 2022, 978-3-031-06580-4.
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 Impact of CSR communication on brand busi-
ness and social values

Didier Louis

Professor of Marketing
IUT de Saint-Nazaire, Université de Nantes, Laboratoire d'Economie et de Management
didier.louis@univ-nantes.fr

Cindy Lombart

Professor of Marketing
Audencia Business School, In Situ Lab
clombart@audencia.com

Abstract.
Research on CSR has largely focused on the effects of companies’ CSR actions on their
performance or business value creation, but obtains contrasting results due to understudied
mediating effects, i.e. indirect relationships between CSR and company performance. Con-
sequently, the present study examines the direct, but also indirect, links between a compa-
ny’s perceived CSR, following a CSR communication, by introducing variables more spe-
cifically related to the social value the firm can deliver, upstream of its business value.
Using a sample of 414 consumers, results of structural equation modeling show the direct
and indirect ways in which a brand’s perceived CSR, following exposure to a CSR com-
munication, can improve its market value in terms of behavioral intentions. It also under-
scores that the perceived CSR of a brand increases the social value of this brand by encour-
aging consumers to adopt sustainable behaviors in order to increase their well-being.
Keywords. CSR; CSR communication; sustainable consumer behavior; well-being; advert-
ing effectiveness
2

1 Introduction

Most companies carry out responsible actions and communicate about these ac-
tions in order to raise their profile with consumers and improve their perceived
Corporate Social Responsibility (CSR) (e.g., Du et al., 2010; Lee et al., 2019). By
doing this, they want to position themselves as responsible companies in the
minds of these consumers, to differentiate themselves from their competitors (e.g.,
Chakrabory and Jha, 2019; Melé et al., 2020), and to encourage consumers to be-
have favorably toward them (via purchases/repurchases and word-of-mouth be-
havior) (e.g., Elg and Hultman, 2016; Aramburu and Pescador, 2019; Latif et al.,
2020). CSR communication is indeed an effective and relevant marketing tool for
firms (e.g., Hsu, 2012; Chakraborty and Jha, 2019).

Some companies also prompt consumers to engage in more responsible practices

(White et al., 2019). CSR can increase not only the business value but also the so-
cial value of a company (Dang et al., 2020). However, research on CSR has large-
ly focused on the effects of companies’ CSR actions on their business value or
corporate performance (e.g., reputation, brand equity, sales, through consumer re-
cruitment, trust, and loyalty ...). Scant research has focused on how a company’s
CSR actions generate social value (e.g., raising public awareness of social or envi-
ronmental issues, facilitating behavioral changes beneficial to individuals and so-
ciety in general …), upstream of its business value (Lee et al., 2019; Dang et al.,
2020).

Moreover, research on CSR obtained contrasting results (Ailawadi et al., 2014;

Anser et al., 2018). While some studies found that CSR positively influences cor-
porate performance (e.g., Surroca et al., 2010; Saeidi et al., 2015), others found
that CSR may damage a company’s business value (e.g., Lima Crisóstomo et al.,
2011; Orlitzky et al., 2011). Thus, managers and researchers are not fully con-
vinced of the relationships between CSR and corporate performance (e.g., Miller
et al., 2018; Muflih, 2021; Swaen et al., 2021). Some scholars maintain that these
inconsistent findings may be due to mediating effects, i.e. indirect relationships
between CSR and company performance, which have been ignored by prior stud-
ies (Saeidi et al., 2015; Dang et al., 2020; Wang, 2020). Therefore, several re-
searchers recommend investigating the mediating mechanisms between a compa-
ny’s CSR and its outcomes (Saeidi et al., 2015; Dang et al., 2020; Wang, 2020).

Given the abovementioned research gaps, the objective of this study is to examine
the direct and indirect links between a company’s perceived CSR, following a
CSR communication, and the business value generated. It also introduces varia-
bles related to the social value the firm can deliver. According to Lee et al. (2019),
business value will be measured in this research by consumers’ behavioral inten-
tions (i.e., to purchase and to recommend) and social value by consumers’ sustain-
able behaviour and well-being.
 3

2 Research model and hypotheses

We draw on four major theories to develop our research hypotheses and model:
signaling theory (Spence, 2002), advertising effectiveness (MacKenzie and Lutz,
1989), social identity theory (Tajfel and Turner, 1986) and the SHIFT framework
(White et al., 2019).

The research model proposed (Fig. 1) posits the effectiveness of a grocery brand’s
CSR communication in influencing consumers to purchase and recommend that
brand’s products. It then postulates the direct and indirect ways in which a grocery
brand’s perceived CSR, following exposure to CSR communication, can improve
consumers’ behavioral intentions. It also assumes that the perceived CSR of a gro-
cery brand also increases the social value of this brand by encouraging consumers
to adopt sustainable behaviors to increase their well-being.

Attitude toward
brand in CSR
communication
H3
(AB)

H2 H4

Attitude H1 H5 Behavioural
toward CSR Perceived
intentions toward
communication corporate social
brand in CSR
(ACC) responsibility
communication
(CSR)
(FBI)

H7
H6
H9
Sustainable
consumer Well-being
behaviour (WB)
(SCB) H8

Fig.1: Research model proposed

3 Methodology

Within a panel of alumni from one of the authors’ institutions, 414 consumers par-
ticipated in our study. These consumers answered an on-line questionnaire after
reading an explicit CSR communication (Morsing et al., 2008), a printed adver-
tisement for a water brand sold in grocery stores, published in the national press.
4

This advertisement features a plastic bottle of water. The label on the bottle men-
tions the grocery brand and that it is a “100% recycled material bottle and always
100% recyclable. Keep sorting in mind!”. The advertisement also includes a text:
“Today it is possible. Your brand is launching its first 100% recycled plastic water
bottle and it’s all thanks to your sorting your bottles! So let’s keep it going togeth-
er.” This ad was chosen because it highlights the grocery brand’s CSR (concern
for the environment and for consumers) and encourages consumers to adopt sus-
tainable behaviors (through recycling and environmental protection).

Consumers’ attitude toward the CSR communication (ACC) was measured by

three items taken from the work of Zhang et al. (2011). Perceived corporate social
responsibility (CSR) was measured by six items inspired by the critical review of
Latif and Sajjad (2018). Consumers’ attitude toward the grocery brand (AB) was
measured by four items taken from the work of Charton-Vachet and Lombart
(2018). Sustainable consumer behavior (SCB) was measured by six items adapted
from the work of Quoquab et al. (2019). Consumers’ behavioral intentions (FBI)
was measured by three items drawn from the work of Zeithaml et al. (1996). Con-
sumers’ well-being (WB) was measured by three items inspired by the work of
Guevarra and Howell (2015). For these six measurement scales, consumers were
asked to specify their degree of agreement or disagreement with each item (or lev-
el of probability for purchasing intention) on a six-point Likert scale ranging from
“disagree completely” to “agree completely” (or “very unlikely” to “very likely”).

4 Results

Partial least squares structural equation modelling (PLS-SEM) with a bootstrap

method with 5,000 replications has been used to analyse the data. First, this re-
search shows (Fig. 2) that the attitude toward CSR communication has a signifi-
cant positive influence on consumers’ sustainable behavior (Path Coefficient
(PC)=0.356; p<0.01), their attitude toward the grocery brand (PC=0.436; p<0.01))
and the perceived CSR of the grocery brand (PC=0.456; p<0.01). Hypotheses H7,
H2 and H1 are therefore supported by our data. This research validates and ex-
tends previous work in the field of advertising effectiveness to CSR communica-
tion (MacKenzie and Lutz, 1989). Further, it empirically confirms recent work by
Zhao et al. (2020) who, within the framework of signaling theory (Spence, 2002),
had postulated that consumers’ reception of a company’s CSR communication
would have a positive impact on their perceptions of its CSR.

The perceived CSR of a grocery brand has a significant positive influence on the
attitude toward this brand (PC=0.291; p< 0.01) and on consumers’ behavioral in-
tentions toward it (PC=0.158; p< 0.01). Hypotheses H4 and H5 are therefore af-
firmed. Attitude toward the grocery brand also has a significant positive influence
on behavioral intentions toward this brand (PC=0.558; p<0.01). Hypothesis H3 is
also supported. Attitude toward the grocery brand is therefore a partial mediator of
 5

the relationship between perceived grocery brand CSR and behavioral intentions
toward this brand. Perceived grocery brand CSR also has a significant positive in-
fluence on consumers’ sustainable behavior (PC=0.144; p<0.01). H6 is therefore
supported by our data. This research thus confirms previous studies that have
shown, based on social identity theory (Tajfel and Turner, 1986), that a company
adopting responsible practices may improve consumers’ perceptions and increase
firm profitability (Luo and Bhattacharya, 2006; Olsen et al., 2014). It also empiri-
cally validates the previously suggested link between a firm’s perceived CSR and
consumers’ SCB (Durif et al., 2011; Iglesias et al., 2018; Dang et al., 2020).

Finally, consumers’ sustainable behavior has a significant positive impact on their

well-being (PC=0.388; p<0.01), which in turn influences their behavioral inten-
tions (PC=0.154; p<0.01). Hypotheses H8 and H9 are therefore supported. Con-
sumers’ sustainable behavior and well-being therefore partially mediate the rela-
tionship between perceived grocery brand CSR and consumers’ behavioral
intentions toward this brand. The model proposed and tested explains 46.1% of the
variance in consumers’ behavioral intentions toward the grocery brand. This re-
search thus empirically confirms, as suggested by the SHIFT framework (White et
al., 2019), that prompts can positively affect sustainable behaviors and that these
sustainable behaviors may improve consumers’ well-being (e.g., Dunn et al.,
2011; Minton et al., 2018).

Path Coefficient t R²
ACC  CSR 0.456 10.405*** 0.208
ACC  SCB 0.356 7.165***
0.195
CSR  SCB 0.144 2.905***
SCB  WB 0.388 8.558*** 0.151
ACC  AB 0.436 10.074***
0.390
CSR  AB 0.291 6.712***
CSR  FBI 0.158 3.792***
AB  FBI 0.558 13.410*** 0.461
WB  FBI 0.154 4.225***
Note: Student’s t test values higher than |2.575| indicate parame-
ters significant at the 1% level.
Fig. 2: Results of the structural equations model

5 Conclusion

There is currently a debate in the literature about whether or not CSR directly in-
fluences consumers’ behavioral intentions. Some research concludes that there is a
6

direct link between these two variables (e.g., Anselmsson and Johansson, 2007;
Stanaland et al., 2011; Dang et al., 2020), but other studies find that this direct
link is non-significant (e.g. Lombart and Louis, 2014; Öberseder et al., 2014;
Wang, 2020). Several researchers have suggested that this link may be mediated
by other variables, and called for future investigations of these relationships
(Saeidi et al., 2015; Dang et al., 2020; Wang, 2020).

The present study enriches this debate by showing the existence of both direct and
indirect links between perceived CSR, following exposure to a CSR communica-
tion, sustainable consumer behavior and consumer behavioral intentions. It thus
responds to the current calls for additional research to shed light on mediating ef-
fects (Saeidi et al., 2015; Dang et al., 2020; Wang, 2020) between a grocery
brand’s perceived CSR and its business value but also social value (Lee et al.,
2019; Dang et al., 2020). To do so, it drew on and unified within one integrating
model different theories in the field of marketing: advertising effectiveness (Mac-
Kenzie and Lutz, 1989), signaling theory (Spence, 2002), social identity theory
(Tajfel and Turner, 1986) and the SHIFT framework (White et al., 2019).

This research also shows that the attitude toward a grocery brand’s CSR commu-
nication is pertinent because it reinforces both the image of the grocery brand as
responsible and its positive evaluation by consumers, captured in this research
through the attitude toward the grocery brand. Moreover, exposure to CSR com-
munication, via the attitude it generates, allows consumers to adopt sustainable
behaviors, notably recycling, and thus indirectly increases their well-being.

However, this research has limitations that provide avenues for future research.
Different grocery brands and products could be studied to increase external validi-
ty: other water brands or other consumer products (national brands or private la-
bels). Other business (satisfaction, trust, etc.) or social (consumer citizenship, etc.)
outcomes could also be integrated into the model. Future experimental research
could also disentangle the different components of CSR communication to deter-
mine those that most influence the perception of the brand’s CSR and consumers’
sustainable behavior. Finally, actions other than recycling could be examined,
such as local consumption, animal protection, composting or environmental pro-
tection in the broad sense.

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