The integration of corporate social responsibility and marketing concepts as a business strategy: evidence from SEM-based multivariate and Toda-Yamamoto causality models
Keywords:customer’s buying behavior, Carroll's CSR pyramid, corporate social responsibility, Toda-Yamamoto causality model, SEM-based multivariate modeling
Research background: This paper integrates the marketing and corporate social responsibility concepts by investigating how the previous studies de-bated CSR as a business strategy. This discussion extended from academics to business practices. Hence, this study investigated the concept of CSR as a business strategy in a multifactorial fashion in the marketing field.
Purpose of the article: This study evaluates the modified model of CSR initiatives as business and marketing strategy and their impact on customers' buying behavior. For this purpose, we have taken dimensions of Carroll's pyramid of CSR as marketing strategies. We have also examined the influence of brand loyalty and cause-related marketing as mediating variables and technology as a moderator between dimensions of Carroll's pyramid and customers' buying behavior.
Methods: We employed modified theoretical & conceptual model for evaluating the direct and indirect hypothesized relationship. We have collected 693 responses from the structured and adapted questionnaire. The survey was done among marketing and senior managers of the Asian pharmaceutical industry. We employed SEM-based multivariate modeling to examine the hypothesized relationship.
Findings & value added: The finding of this research exhibited that dimensions of Carroll?s pyramid of CSR have a positive and significant impact on customers' buying behavior. The results further demonstrated that brand loyal-ty and cause-related marketing positively and significantly impact mediators between CSR dimensions and customers? buying behavior. Finally, the technology has a significant influence as a moderator between exogenous and endogenous factors. The undertaken study demonstrated important theoretical and practical implications. The modified conceptual framework has provided several new dimensions for future researchers to use and replicate in different economic sectors. On the other hand, practitioners of the pharmaceutical industry should incorporate Carroll's CSR pyramid as business strategies to gain the trust and respect of their customers.
Ahmad, A., Akram, N., & Amin, M. (2017). Corporate social responsibility and competitiveness ? a case study of ENGRO. Corporation. Research Journal of social science & Management, 6(11), 12?20.
Ahmed, R. R., Hussain, S., Pahi, M. H., Usas, A., & Jasinskas, E. (2019). Social media handling and extended technology acceptance model (ETAM): evidence from SEM-based multivariate approach. Transformations in Business & Economics, 18, 3(48), 246?271.
Ahmed, R. R., Vveinhardt, J., & Štreimikien?, D. (2017). Interactive digital media and impact of customer attitude and technology on brand awareness: evidence from the South Asian countries. Journal of Business Economics and Management, 18(6), 1115?1134. doi: 10.3846/16111699.2017.1400460.
Ahn, J., Wong, M. L., & Kwon, J. (2020). Different role of hotel CSR activities in the formation of customers? brand loyalty. International Journal of Quality and Service Sciences, 12(3), 337?353. doi: 10.1108/IJQSS-02-2020-0028.
Ahuja, V. (2015). Development of an optimal solution for digital marketing variables in an online Tool. International Journal of Internet Marketing and Advertising, 9(1), 49?65. doi: 10.1504/ijima.2015.068345.
Alrubaiee, L., Aladwan, S., Hussein, M., Idris, W. M., & Khater, S. (2017). Relationship between corporate social responsibility and marketing performance: the mediating effect of customer value and corporate image. International Business Research, 10(2), 104?123. doi: 10.5539/ibr.v10n2p104.
Amin-Chaudhry, A. (2016). Corporate social responsibility - from a mere concept to an expected business practice. Social Responsibility Journal, 12(1), 190?207. doi: 10.1108/SRJ-02-2015-0033.
Balcerzak, A. B., & MacGregor Pelikánová, R. (2020). Projection of SDGs in codes of ethics?case study about lost in translation. Administrative Sciences, 10(4), 95. doi: 10.3390/admsci10040095.
Blair, M. K. (2017). Using digital and social media platforms for social marketing. Oxford Medicine Online: Oxford University Press. doi: 10.1093/med/97801987 17690.003.0012.
Byrne, B. M. (2009). Structural Equation Modeling with AMOS, basic concepts, application and programming. New jersey: Hillsdale.
Carroll, A. B. (1979). A three-dimensional conceptual model of corporate performance. Academy of Management Review, 4(4), 497?505.
Carroll, A. B. (1991). The pyramid of corporate social responsibility: toward the moral management of organizational stakeholders. Business Horizons, 34(4), 39?48. doi: 10.1016/0007-6813(91)90005-G.
Carroll, A. B. (2016). Carroll?s pyramid of CSR: taking another look. International Journal of Corporate Social Responsibility, 1(3), 1?8. doi: 10.1186/s40991-016-0004-6.
Chen, C. J., Guo, R. S., Hsiao, Y. C., & Chen, K. L. (2018). How business strategy in non-financial firms moderates the curvilinear effects of corporate social responsibility and irresponsibility on corporate financial performance. Journal of Business Research, 92, 154?167. doi: 10.1016/j.jbusres.2018.07.030.
Chitra, K., & Sasikala, K. (2016). Social media marketing strategies for enhancing brand awareness: a study with reference to select start-ups. Asian Journal of Research in Social Sciences and Humanities, 6(9), 1081?1095. doi: 10.5958/22 49-7315.2016.00856.x.
Demirel, A. (2020). CSR in sport sponsorship consumers' perceptions of a sponsoring brand's CSR. International Journal of Sports Marketing and Sponsorship, 21(2), 371?388. doi: 10.1108/ijsms-09-2019-0108.
Emory, C. W., & Cooper, D. R. (1991). Business research methods. Homewood: Richard D Irwin.
Farid, T., Iqbal, S., Ma, J., Castro, G. S., Khattak, A., & Khan, M. K. (2019). Employees? perceptions of CSR, work engagement, and organizational citizenship behavior: the mediating effects of organizational justice. International Journal of Environmental Research and Public Health, 16(10), 1731. doi: 10.3390/ijerp h16101731.
Filipovic, J. (2015). Brand awareness and buying intention in the online environment. Marketing, 46(4), 277?284. doi: 10.5937/markt1504277f.
Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39?50. doi: 10.1177/002224378101800104
Galant, A., & Cadez, S. (2017). Corporate social responsibility and financial performance relationship: a review of measurement approaches. Economic Research-Ekonomska Istraživanja, 30(1), 676?693. doi: 10.1080/1331677X.2017 .1313122.
Gao, Y., Zhang, D., & Huo, Y. (2017). Corporate social responsibility and work engagement: testing a moderated mediation model. Journal of Business and Psychology, 33(5), 661?673. doi: 10.1007/s10869-017-9517-6.
Gardberg, N. A., Zyglidopoulos, S. C., Symeou, P. C., & Schepers, D. H. (2019). The impact of corporate philanthropy on reputation for corporate social performance. Business and Society, 58(6), 1177?1208. doi: 10.1177/00076503176 94856.
Gayathri, J. V. S. (2019). CSR in the digital ERA ? an access on the CSR communication of companies and identification of services for CSR. International Journal of Innovative Technology and Exploring Engineering, 8(11S), 689?693. doi: 10.35940/ijitee.k1117.09811s19 .
Hadjikhani, A., Lee, J. W., & Park, S. (2016). Corporate social responsibility as a marketing strategy in foreign markets. International Marketing Review, 33(4), 530?554. doi: 10.1108/imr-03-2014-0104.
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017). A primer on partial least squares structural equation modeling. Thousand Oaks, CA: Sage. doi: 10.15358/9783800653614.
Han, H., Yu, J., & Kim, W. (2019). Environmental corporate social responsibility and the strategy to boost the airline?s image and customer loyalty intentions. Journal of Travel & Tourism Marketing, 36(3), 371?383. doi: 10.1080/1054840 8.2018.1557580.
Hayes, A. F., & Rockwood, N. J. (2020). Conditional process analysis: concepts, computation, and advances in modeling of the contingencies of mechanisms. American Behavioral Scientist, 64(1), 19?54. doi: 10.1177/0002764219 859633.
Hildebrand, D., Sen, S., & Bhattacharya, C. B. (2011). Corporate social responsibility: a corporate marketing perspective. European Journal of Marketing, 45(9/10), 1353?1364. doi: 10.1108/03090561111151790.
Ho, C. W., Ding, M. C., & Lii, Y. S (2017). The impact of consumer and environmental CSR on consumer behavioural intention. World Review of Entrepreneurship, Management and Sustainable Development, 13(1), 10?26. doi: 10.1504/wremsd.2017.10001144.
Hoque, N., Rahman, A. R. A., Molla, R. I., Noman, A. H. M., & Bhuiyan, M. Z. H. (2018). Is corporate social responsibility pursuing pristine business goals for sustainable development? Corporate Social Responsibility and Environmental Management, 25(6), 1130?1142. doi: 10.1002/csr.1527.
Huang, J. H., Lee, B. C. Y., & Ho, S. H. (2004). Consumer attitude toward grey market goods. International Marketing Review, 21(6), 598?614. doi: 10.1108/0 2651330410568033.
Hussain, S., & Ahmed, R. R. (2020). Smartphone buying behaviors in a framework of brand experience and brand equity. Transformations in Business & Economics, 19, 2(50), 220?242.
Hwang, J., & Lyu, S. O. (2018). Understanding first-class passengers? luxury value perceptions in the US airline industry. Tourism Management Perspectives, 28, 29?40. doi: 10.1016/j.tmp.2018.07.001.
Jahdi, K. (2014). Cause-related marketing (CRM) and corporate social responsibility (CSR). Social Responsibility Journal, 10(4), 674?684. doi: 10.1108/srj-07-2012-0063.
Javed, S., Rashidin, M. S., & Wang, J. I. A. N. (2018). What really matters? A triumph of brand extension: evidence from Engro Corporation. Journal of Politics Economy and Management, 1(2), 1?16.
Jeon, M. A., & An, D. (2019). A study on the relationship between perceived CSR motives, authenticity and company attitudes: a comparative analysis of cause promotion and cause-related marketing. Journal of Sustainability and Social Responsibility, 4, 7. doi: 10.1186/s41180-019-0028-4.
Kaiser, H. F. (1974). An index of factorial simplicity. Psychometrika, 39(1), 31?36. doi: 10.1007/bf02291575
Kang, E. Y., & Atkinson, L. (2021). Effects of message objectivity and focus on green CSR communication: the strategy development for a hotel?s green CSR message. Journal of Marketing Communications, 27(3), 229?249. doi: 10.1080/ 13527266.2019.1640270.
Keller, K. L. (1993). Conceptualizing, measuring, and managing customer-based brand equity. Journal of Marketing, 57(1), 1?22. doi: 10.2307/1252054.
Khan, I., & Fatma, M. (2019). Connecting the dots between CSR and brand loyalty: the mediating role of brand experience and brand trust. International Journal of Business Excellence, 17(4), 439. doi: 10.1504/ijbex.2019.10020542.
Khan, Z., Lew, Y. K., & Park, B. (2015). Institutional legitimacy and norms-based CSR marketing practices. International Marketing Review, 32(5), 463?491. doi: 10.1108/imr-01-2014-0017.
Kuo, T. C., Kremer, G. E. O., Phuong, N. T., & Hsu, C. W. (2016). Motivations and barriers for corporate social responsibility reporting: evidence from the airline industry. Journal of Air Transport Management, 57, 184?195. doi: 10.1016/j.jairtraman.2016.08.003.
Loosemore, M., & Lim, B. T. H. (2018). Mapping corporate social responsibility strategies in the construction and engineering industry. Construction Management and Economics, 36(2), 67?82. doi: 10.1080/01446193.2017.1326616.
Lu, J., Ren, L., Zhang, C., Rong, D., Ahmed, R. R., & Streimikis, J. (2020). Modified Carroll?s pyramid of corporate social responsibility to enhance organizational performance of SMEs industry. Journal of Cleaner Production, 271, 1?18. doi: 10.1016/j.jclepro.2020.122456.
Manimalar, R., & Sudha, S. (2016). Corporate ethical and legal responsibility: effects of CSR on consumer trust and brand loyalty. Prabandhan: Indian Journal of Management, 9(6), 7. doi: 10.17010/pijom/2016/v9i6/94957.
Moliner, M. A., Tirado, D. M., & Estrada-Guillén, M. (2019). CSR marketing outcomes and branch managers? perceptions of CSR. International Journal of Bank Marketing, 38(1), 63?85. doi: 10.1108/ijbm-11-2018-0307.
Moon, B. J., Lee, L. W., & Oh, C. H. (2015). The impact of CSR on consumer-corporate connection and brand loyalty. International Marketing Review, 32(5), 518?539. doi: 10.1108/imr-03-2014-0089.
Mustafa, S., Ikram, F., & Naeem, M. (2019). Impact of CSR dimensions on customers satisfaction and brand loyalty in telecom companies in Pakistan. International Journal of Scientific and Research Publications, 9(3), 8761. doi: 10.29322/ijsrp.9.03.2019.p8761.
Nurunnabi, M., Alfakhri, Y., & Alfakhri, D. H. (2020). CSR in Saudi Arabia and Carroll?s pyramid: what is ?known? and ?unknown?? Journal of Marketing Communications, 26(8), 874?895. doi: 10.1080/13527266.2019.1604560.
Park, J. (2017). Is a cause-related self-prevention campaign a good CSR strategy? Asia Marketing Journal, 19(2), 25?43. doi: 10.15830/amj.2017.19.2.25.
Powell, S. M. (2011). The nexus between ethical corporate marketing, ethical corporate identity and corporate social responsibility. European Journal of Marketing, 45(9/10), 1365?1379. doi: 10.1108/03090561111151808.
Rahman, M., Rodríguez-Serrano, M. A., & Lambkin, M. (2019). Brand equity and firm performance: the complementary role of corporate social responsibility. Journal of Brand Management, 26(6), 691?704. doi: 10.1057/s41262-019-00155-9.
Romaniuk, J., Wight, S., & Faulkner, M. (2017). Brand awareness: revisiting an old metric for a new world. Journal of Product & Brand Management, 26(5), 469?476. doi: 10.1108/jpbm-06-2016-1242.
Schyvinck, C., & Willem, A. (2018). A typology of cause-related marketing approaches in European professional basketball. Sport Management Review, 21(4), 347?362. doi: 10.1016/j.smr.2017.08.006.
Sharma, R., & Jain, V. (2019). CSR, trust, brand loyalty and brand equity: empirical evidences from sportswear industry in the NCR region of India. Metamorphosis: A Journal of Management Research, 18(1), 57?67. doi: 10.1177/09726 22519853158.
Sheikh, S. U. R., & Beise-Zee, R. (2011). Corporate social responsibility or cause-related marketing? The role of cause specificity of CSR. Journal of Consumer Marketing, 28(1), 27?39. doi: 10.1108/07363761111101921.
Singh, J., & Saini, S. (2016). Managing consumer loyalty through acquisition, retention and experience efforts: an empirical study on service consumers in India. Vision: The Journal of Business Perspective, 20(2), 121?134. doi: 10.117 7/0972262916637264.
Sobel, M. E. (1986). Some new results on indirect effects and their standard errors in covariance structure models. In S. Leinhart (Ed.). Sociological methodology. San Francisco: Jossey-Bass, 159?186. doi: 10.2307/270922.
Tao, W., & Ji, Y. G. (2020). Firm-determined or consumer-determined corporate social responsibility (CSR)? Examining the effects of choice-of-cause in cause-related marketing. International Journal of Business Communication. Advance online publication. doi: 10.1177/2329488420918397.
Tuan, L. T. (2012). Corporate social responsibility, leadership, and brand equity in healthcare service. Social Responsibility Journal, 8(3), 347?362. doi: 10.1108/1 7471111211247929.
Türkel, S., Uzuno?lu, E., Kaplan, M. D., & Vural, B. A. (2016). A strategic approach to CSR communication: examining the impact of brand familiarity on consumer responses. Corporate Social Responsibility and Environmental Management, 23(4), 228?242. doi: 10.1002/csr.1373.
Wang, D. H. M., Chen, P. H., Yu, T. H. K., & Hsiao, C. Y. (2015). The effects of corporate social responsibility on brand equity and firm performance. Journal of Business Research, 68(11), 2232?2236. doi: 10.1016/j.jbusres.2015.06.003.
Woolley, K., & Fishbach, A. (2017). A recipe for friendship: similar food consumption promotes trust and cooperation. Journal of Consumer Psychology, 27(1), 1?10. doi: 10.1016/j.jcps.2016.06.003.
Yang, J., & Basile, K. (2019). The impact of corporate social responsibility on brand equity. Marketing Intelligence & Planning, 37(1), 2?17. doi: 10.1108/mi p-02-2018-0051.
Yunis, M. S., Durrani, L., & Khan, A. (2017). Corporate social responsibility (CSR) in Pakistan: a critique of the literature and future research agenda. Business & Economic Review, 19(1), 65?88. doi: 10.22547/ber/9.1.4.
How to Cite
Copyright (c) 2021 Oeconomia Copernicana
This work is licensed under a Creative Commons Attribution 4.0 International License.