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

Author: 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 the activity is related to the organization's core business values, and whether it is related to societal norms and expectations. The research in this dissertation aims to determine CSR Authenticity or the purity of CSR so that it can reduce doubts, cynicism and public/consumer suspicion regarding the motivation behind CSR activities. By using Stakeholder Theory and An Affect Theory of Social Exchange as Grand Theory, this research tries to explore company-consumer relationships through the purity of CSR. 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 towards CSR activities. Apart from that, this research also identified the variables Corporate Image, Customer Attachment and Corporate Credibility in forming consumer loyalty which is a reflection of the company's sustainability. In general, consumers will respond positively to companies that are socially responsible, not only with purchases, but more than that, namely relationships and loyalty. However, due to the complexity inherent in the construct, it is doubtful that CSR is mechanically considered by consumers when making consumption decisions, or establishing relationships with companies. Not all consumers care about and are involved in social responsibility, especially in developing countries. The results of direct CSR - Loyalty studies are still inconsistent, while those through mediation also vary. On the other hand, research on CSR Authenticity is still very limited in the marketing field, because generally Authenticity is associated with brands. This research uses a quantitative approach with component-based Structrural Equation Modeling analysis techniques or Partial Least Square (PLS 3 - SEM) to test the influence of CSRAuthenticity on Corporate Image, Customer Attachment, Corporate Credibility and Customer Loyalty. The research involved 257 consumers in Jakarta and its surroundings, Semarang and its surroundings and Surabaya and its surroundings who represent Danone Aqua consumers in Indonesia. The Danone Aqua company was chosen because its social activities are well known to the public. The research results show that CSRAuthenticity does not affect Customer Loyalty (H1 is rejected), but CSRAuthenticity 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). Research also shows that Customer Loyalty is not influenced by Corporate Image (H7 rejected), but is significantly positively influenced by the company's Customer Attachment (H8 accepted) and Corporate Credibility (H9 accepted). From the research it was also found that Customer Attachment and Corporate Credibility significantly mediate the relationship between CSRAuthenticity and Customer Loyalty. CSRAuthenticity 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. So, 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 regarding CSR activities must be in accordance with reality. This research is expected to provide a theoretical contribution in the form of developing the concept of Authenticity both in CSR literature and consumer behavior which emphasizes social outcomes in the CSR - Customer Loyalty line of study; as well as providing empirical contributions in the form of policies in developing company CSR activities and company-consumer relations in the field of strategic but ethical marketing. The contribution for the government is to improve CSR regulations which prioritize purity of motivation and sustainability of CSR programs which differentiates them from commercial aspects. Apart from that, it is hoped that it can encourage community participation in the form of shared responsibility for the environment and education in considering choosing products/companies with authentic CSR activities.

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

 

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