Title: Corporate Social Responsibility Authenticity: Its Effect on Corporate Image, Customer Attachment, Corporate Credibility and Customer Loyalty

Authors: Sri Yunan Budiarsi 

Item Type : Thesis (Thesis)

Affiliations: Doctoral Study Program in Management Science, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia

Publisher: Universitas Airlangga

Abstract

In the context of CSR, Authenticity refers to the purity/authenticity of CSR; meaning whether activities are related to the organization's core business values, as well as whether they are related to societal norms and expectations. The research in this Dissertation aims to determine CSR Authenticity or the purity of CSR that allows it to reduce doubts, cynicism and suspicion of society/consumers regarding the motivations behind CSR activities. By using Stakeholder Theory and An Affect Theory of Social Exchange as Grand Theory, this study attempts to explore the company-consumer relationship through CSR purity. CSR Authenticity is considered a 'key driver' variable that can represent the sincerity and purity of the company's moral responsibility to consumers, to reduce skepticism and distrust of CSR activities. In addition, this study also identifies the variables of Corporate Image, Customer Attachment and Corporate Credibility in forming consumer loyalty which is a reflection of the company's sustainability. In general, consumers will give a positive response to socially responsible companies, not only through purchases, but more than that, namely relational and loyalty. However, due to the complexity inherent in the construct, it is still doubtful that CSR is mechanically considered by consumers when making consumption decisions, or establishing relationships with companies. Not all consumers care about and engage with social responsibility, especially in developing countries. The results of direct CSR-Loyalty studies are still inconsistent, while those through mediation are also varied. On the other hand, research on CSR Authenticity is still very limited in the marketing field, because Authenticity is generally associated with brands. This study uses a quantitative approach with component-based Structural Equation Modeling analysis techniques or Partial Least Square (PLS 3 - SEM) to test the effect of CSR Authenticity on Corporate Image, Customer Attachment, Corporate Credibility and Customer Loyalty. The study involved 257 consumers in Jakarta and its surrounding areas, Semarang and its surrounding areas and Surabaya and its surrounding areas who represent Danone Aqua consumers in Indonesia. Danone Aqua was chosen because of its well-known social activities. The results show that CSR Authenticity does not affect Customer Loyalty (H1 is rejected), but CSR Authenticity has a significant positive effect on Corporate Image (H2 is accepted), Customer Attachment (H3 is accepted) and Corporate Credibility (H4 is accepted). Meanwhile, Corporate Credibility has a significant positive effect on Corporate Image (H5 is accepted) and Corporate Image has a significant positive effect on Customer Attachment (H6 is accepted). The study also shows that Customer Loyalty is not affected by Corporate Image (H7 is rejected), but is significantly positively influenced by Customer Attachment (H8 is accepted) and Corporate Credibility (H9 is accepted) of the company. The study also found that Customer Attachment and Corporate Credibility significantly mediate the relationship between CSR Authenticity and Customer Loyalty. CSR Authenticity has an indirect impact on Customer Loyalty or has an important predictive position on the dependent construct of Customer Loyalty, if through the mediation of Customer Attachment and Corporate Credibility. Therefore, to improve corporate social performance, the authenticity of CSR activities needs to receive priority attention and action, in the form of resource support from the company. Likewise, company statements about CSR activities must be in accordance with reality. This study is expected to provide theoretical contributions in the form of developing the concept of Authenticity both in the CSR literature and consumer behavior that emphasizes social outcomes in the CSR - Customer Loyalty line of studies; as well as providing empirical contributions in the form of policies in developing corporate CSR activities and company-consumer relationships in the field of strategic but ethical marketing. The government's contribution is to refine CSR regulations to prioritize the purity of motivation and the sustainability of CSR programs, distinguishing them from commercial aspects. Furthermore, it is hoped that this will encourage public participation in the form of shared environmental responsibility and education in considering the selection of products/companies with authentic CSR activities.

Keywords: CSR Authenticity, Corporate Image, Customer Attachment, Corporate Credibility, Customer Loyalty

Sources: http://repository.unair.ac.id/94327/