Impact of corporate social responsibility on perceived community well-being: The mediating role of awareness and trust
DOI:
https://doi.org/10.64171/JSRD.5.S2.26-31Keywords:
Corporate Social Responsibility (CSR), CSR awareness, Trust, Community well-being, PLS- SEMAbstract
Over the past number of years, CSR has come to be seen as a stakeholder-based model that is beyond the scope of philanthropy to produce wider social value. Even though previous research recognizes the potential of CSR efforts in improving community outcomes, mechanisms that underlie the impact of CSR in promoting community well-being have not been done extensively in a perception- based approach. This study analyses how perceived CSR initiatives affect the perceived community well-being through the use of awareness and trust. Using stakeholder theory along with existing literature on CSR perception, the study proposes a conceptual framework that mediates among CSR initiatives, awareness, trust, and perceived community well-being. The key assumption underlying the study is that CSR initiatives would have higher chances of improving the community's well-being when they are observable to stakeholders.
This study employs a quantitative method and relies on primary data to examine the population's perceptions of CSR initiatives, using Partial Least Squares Structural Equation Modelling (PLS-SEM). The study attempts to uncover how CSR initiatives can turn into positive perceptions of community well-being by concentrating on awareness as a cognitive mechanism and trust as an evaluative mechanism. The research shows that effective communication and trust-building strategies of CSR can increase the social impact of CSR activities. The research is especially pertinent within the frame of the long-term national development objectives like Viksit Bharat@2047, in which the contribution of the corporations to community development matters.
References
Bello KB, Jusoh A, Md Nor K. Relationships and impacts of perceived CSR, service quality, customer satisfaction and consumer rights awareness. Social responsibility journal. 2021;17(8):1116-30.
Bhattacharya CB, Sen S. Doing better at doing good: When, why, and how consumers respond to corporate social initiatives. California management review. 2004;47(1):9-24.
Carroll AB. The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business horizons. 1991;34(4):39-48.
Carroll AB. A commentary and an overview of key questions on corporate social performance measurement. Business & Society. 2000;39(4):466-78.
Chomvilailuk R, Butcher K. The effect of CSR knowledge on customer liking, across cultures. International Journal of Bank Marketing. 2013;31(2):98-114.
Du S, Bhattacharya CB, Sen S. Maximizing business returns to corporate social responsibility (CSR): The role of CSR communication. International journal of management reviews. 2010;12(1):8-19.
Fatma M, Rahman Z, Khan I. Building company reputation and brand equity through CSR: the mediating role of trust. International journal of bank marketing. 2015;33(6):840-56.
Freeman RE. Strategic management: A stakeholder approach. Cambridge university press; 2010.
González‐Rodríguez MR, Díaz‐Fernández MC. Customers' corporate social responsibility awareness as antecedent of repeat behaviour intention. Corporate Social Responsibility and Environmental Management. 2020;27(3):1294-306.
Hair JF, Risher JJ, Sarstedt M, Ringle CM. When to use and how to report the results of PLS-SEM. European business review. 2019;31(1):2-4.
Hair Jr JF, Hult GT, Ringle CM, Sarstedt M, Danks NP, Ray S. An introduction to structural equation modeling. In Partial least squares structural equation modelling (PLS-SEM) using R: a workbook. Cham: Springer International Publishing, 2021, 1-29.
Hasudungan A, Saragih HS. Brand awareness and relationship intention: the moderating role of perceived corporate social responsibility dimensions. Asia Pacific journal of marketing and logistics. 2023;35(10):2431-46.
Henseler J, Ringle CM, Sarstedt M. A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the academy of marketing science. 2015;43(1):115-35.
Kakkar A, Sharma R. CSR builds Loyalty: The role of Awareness, Satisfaction and Trust.
Kim H, Lee TH. Strategic CSR communication: A moderating role of transparency in trust building. International Journal of Strategic Communication. 2018;12(2):107-24.
Kim S. The process model of corporate social responsibility (CSR) communication: CSR communication and its relationship with consumers’ CSR knowledge, trust, and corporate reputation perception. Journal of business ethics. 2019;154(4):1143-59.
Li L, Li JY. Corporate social responsibility and society 5.0: assessing consumer awareness, loyalty, and trust toward socially responsible organizations. Sustainability. 2024;16(17):7862. doi:10.3390/su16177862.
Maignan I, Ferrell OC, Ferrell L. A stakeholder model for implementing social responsibility in marketing. European journal of marketing. 2005;39(9-10):956-77.
Matten D, Moon J. “Implicit” and “explicit” CSR: A conceptual framework for a comparative understanding of corporate social responsibility. Academy of management Review. 2008;33(2):404-24.
McWilliams A, Siegel D. Corporate social responsibility: A theory of the firm perspective. Academy of management review. 2001;26(1):117-27.
McWilliams A, Siegel DS, Wright PM. Corporate social responsibility: Strategic implications. Journal of management studies. 2006;43(1):1-8.
Morgan RM, Hunt SD. The commitment-trust theory of relationship marketing. Journal of marketing. 1994;58(3):20-38.
Olšanová K, Escobar Ríos A, Cook G, Král P, Zlatić M. Impact of the awareness of brand-related CSR activities on purchase intention for luxury brands. Social Responsibility Journal. 2022;18(3):597-618.
Pérez A, García de los Salmones MD, Liu MT. Information specificity, social topic awareness and message authenticity in CSR communication. Journal of Communication Management. 2020;24(1):31-48.
Pomering A, Dolnicar S. Assessing the prerequisite of successful CSR implementation: are consumers aware of CSR initiatives?. Journal of business ethics. 2009;85(Suppl 2):285-301.
Porter ME, Kramer MR. The link between competitive advantage and corporate social responsibility. Harvard business review. 2006;84(12):78-92.
Rela IZ, Awang AH, Ramli Z, Ali MN, Manaf AA. Corporate social responsibility practice and its effects on community well-being in Southeast Sulawesi, Indonesia. Int. J. Adv. Appl. Sci. 2020;7:54-61.
Rela IZ, Ramli Z, Taufik Y, Sum SM, Muhammad M. Effect of corporate social responsibility on community resilience: Empirical evidence in the nickel mining industry in Southeast Sulawesi, Indonesia. Sustainability. 2020;12(4):1395.
Turker D. Measuring corporate social responsibility: A scale development study. Journal of business ethics. 2009;85(4):411-27.
