HOW CSR INFLUENCES CONSUMER TRUST AND LOYALTY AND THE
PERCEPTION OF CORPORATE MANAGERS ABOUT IT
JAPNEET KAUR (A00181720)
W2025 BUS245-209
CORP. SOCIAL RESPONSIBILITY
PROF. AMIT GHOSH
JANUARY 26, 2024
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How CSR Influences Consumer Trust and Loyalty and the Perception of
Corporate Managers About It
TABLE OF CONTENTS
INTRODUCTION.........................................................................................................................3
CSR AND CONSUMER TRUST.................................................................................................4
CSR AND CONSUMER LOYALTY............................................................................................5
PERCEPTION OF CORPORATE MANAGERS TOWARD CSR..........................................6
HOW AN ORGANIZATION'S CULTURE HELPS CSR ACTIVITIES SUCCEED.............8
REFLECTION: A BUSINESS NEEDS ITS ORGANIZATIONAL CULTURE......................9
CONCLUSION............................................................................................................................10
REFERENCES.............................................................................................................................11
By Japneet Kaur (A00181720) on January 26, 2025
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How CSR Influences Consumer Trust and Loyalty and the Perception of
Corporate Managers About It
INTRODUCTION
Organizations adopt CSR programs to both enhance their operational systems and build their
market reputation. According to Carroll (1991) businesses protect our environment and boost
community quality of life. New research proves that customers will support companies which
maintain their original CSR commitments (Bhattacharya & Sen,2004). Executive team CSR
viewpoints create the foundation from which a business develops its responsible action choices.
CSR AND CONSUMER TRUST
Companies achieve success when they place social value over every other priority because they
earn loyal customers who sustain their business operations. Businesses that focus on ethical
values and help society improve earn customers' trust in their core operations. Research has
shown that CSR activities can strengthen consumer trust in several ways:
1. The company needs clear reporting in addition to staying true to its stated goals: To
gain customer trust organizations must publicly display their sustainability work.
Customers trust businesses more when they see evidence that organizations take
responsibility for their actions because customers understand the effects of bad conduct.
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How CSR Influences Consumer Trust and Loyalty and the Perception of
Corporate Managers About It
Patagonia earns customer trust because it shows them all particulars of how it runs its
eco-friendly supply chain operations (Patagonia, 2023).
2. A company's sustainability efforts win trust of customers through shared value
metrics.: When companies show moral responsibility people trust them more. New
Edelman research reveals that business operations with dedicated social programs now
influence 70% of purchasing decisions. People trust Ben & Jerry's because its discussions
about climate change and racial justice help customers connect with the brand
3. Ethical Business Practices: When a company builds ethical standards for employees and
suppliers it boosts its reputation while strengthening the local people around it. Starbucks
Ethical Sourcing searches through all coffee production elements to make customers trust
the brand more (Starbucks 2023).
CSR AND CONSUMER LOYALTY
Along with creating trust CSR helps companies build stronger bonds with their customers. When
a brand matches what customers believe in, they develop stronger brand loyalty. CSR helps
foster this connection by:
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How CSR Influences Consumer Trust and Loyalty and the Perception of
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1. Emotional Engagement: When brands support good causes, they create deep emotional
bonds with their customer audience. By backing business operations consumers work
side by side to address important community issues. Bhattacharya and Sen discovered in
2004 that customers prefer to keep supporting brands backing CSR initiatives.
2. Brand Differentiation: Through CSR programs companies distinguish themselves better
against market competition. When companies put CSR first, they gain the advantage of
getting noticed. The charity partnership in each purchase makes TOMS Shoes build
lasting relationships with consumers (TOMS 2023).
3. A CSR program builds consumer advocacy and spreads product recommendations.:
Customers who back businesses naturally tell other people about their favorite brands.
Customers naturally tell others about their great CSR experiences once they enjoy
themselves.
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How CSR Influences Consumer Trust and Loyalty and the Perception of
Corporate Managers About It
PERCEPTION OF CORPORATE MANAGERS TOWARD CSR
A company's CSR results primarily depend on business managers' decisions. A business
manager's CSR evaluation choices determine their approach to connecting CSR with business
targets. Managers often view CSR from two primary perspectives: strategic and ethical.
1. Strategic Perspective: Managers see the value of CSR as a dependable business strategy
that helps their business make more money and handles threats better while winning
customers. Research by Freeman and colleagues in 2004 shows companies that perform
CSR well draw more investor funds plus maintain loyal clients. Top executives notice
CSR works to produce strong financial success and strengthens how people view their
organization at the same time.
2. Ethical Responsibility: These managers view CSR as their ethical obligation and as a
profitable business action. These business leaders treat CSR as more important than
simple giving because they focus on leading solutions for worldwide problems like global
warming and wage inequality. Under the leadership of Paul Polman as Unilever CEO
business success came from combining sustainability practices with operations to build
operations and resolve worldwide challenges (2020 Polman analysis).
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How CSR Influences Consumer Trust and Loyalty and the Perception of
Corporate Managers About It
3. Challenges In Implementation: Managers express strong interest in Corporate Social
Responsibility yet struggle to make it work effectively. According to Carroll and Shabana
(2010) the limited funds along with confusion about CSR metrics and business targets
make implementing CSR programs difficult to execute. Teams working effectively
toward CSR benefits while also understanding their results drives successful CSR
performance.
HOW AN ORGANIZATION'S CULTURE HELPS CSR ACTIVITIES SUCCEED
The method your organization uses to run its operations directly impacts how successful its
Corporate Social Responsibility programs become. Organizations build better CSR workspaces
by letting ethical values and environmental care lead their decisions. Organizations following
ethical business standards deliver better results with their CSR programs.
1. Employee Engagement: Organizations that follow CSR practices receive greater
participation from their staff in community activates. Employees who match their
company values stay more committed to reaching CSR goals and perform better in their
jobs (Kim et al., 2010).
By Japneet Kaur (A00181720) on January 26, 2025
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How CSR Influences Consumer Trust and Loyalty and the Perception of
Corporate Managers About It
2. Organizations reach better CSR results when they combine their CSR work with the
core operations that make them successful. Regular business growth results when CSR
standards become integration points of the organizational culture. Organizations obtain
better outcomes and retain efficiency when their Corporate Social Responsibility
initiatives match their company values.
REFLECTION: A BUSINESS NEEDS ITS ORGANIZATIONAL CULTURE
Strong corporate culture benefits business success when developing CSR plans. An
organization's culture promotes proper employee conduct by showing managers how they should
perform specific duties to support customer expectations. When ethical values extend evenly
across their organization businesses solve CSR problems better and create longer lasting positive
results.
Microsoft uses both its innovation standards and support for diverse employees to run effective
social responsibility projects. With its AI for Good program Microsoft finds technical solutions
to global challenges (Microsoft, 2023). Our sample companies show businesses can reach ethical
results when they build inclusion and fairness into their routine operations.
By Japneet Kaur (A00181720) on January 26, 2025
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How CSR Influences Consumer Trust and Loyalty and the Perception of
Corporate Managers About It
CONCLUSION
Companies earn customer loyalty by linking their business plans to community requirements
through social responsibility projects. Top business leaders determine the impacts CSR projects
will have by their approach to these initiatives. By following established operational protocols
businesses ensure their CSR projects stay focused on achieving their intended social results.
Organizations succeed in today's market by making CSR their business foundation.
The researchers published their findings during 2004. Doing better at doing good: Throughout
designated periods consumers stand behind companies by participating actively. California
Management Review, 47(1), 9-24. https://doi.org/10.2307/41166284
By Japneet Kaur (A00181720) on January 26, 2025
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How CSR Influences Consumer Trust and Loyalty and the Perception of
Corporate Managers About It
REFERENCES
Bhattacharya and Sen presented their research in 2004. Doing better at doing good: At
specific times consumers prove their support for companies by acting. California
Management Review, 47(1), 9-24. https://doi.org/10.2307/41166284
Carroll, A. B. (1991). The pyramid of corporate social responsibility: Organizations
experience moral authority interactions with stakeholders in their settings. Business
Horizons, 34(4), 39-48. https: In two college-aged studies Forbes monitored young
people's reactions to corporate social programs. In 2010 Carroll and Shabana added their
research to this subject area. Ter at doing good: Consumers show support for company
social efforts at specific moments through actions. California Management Review,
47(1), 9-24. https://doi.org/10.2307/41166284
Carroll, A. B. (1991). The pyramid of corporate social responsibility: Stakeholder moral
control in organizational settings. Business Horizons, 34(4), 39-48. https: Forbes ran two
studies with college-age youngsters to study how consumers reacted to corporate social
initiatives. //doi.org/10.1016/0007-6813 (91)90005-G
By Japneet Kaur (A00181720) on January 26, 2025
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How CSR Influences Consumer Trust and Loyalty and the Perception of
Corporate Managers About It
Carroll and Shabana published research on the subject in 2010. The business case for
corporate social responsibility: Our approach blends both business and social
responsibility research with stakeholder social responsibility studies. International
Journal of Management Reviews, 12(1), 85-105. https: MORS uses the fundamental CSR
principles identified in Carroll and Shabana's 2010 research paper Doi:10.1111/j.1468-
2370.2009. 00275.x
Edelman. (2020). Edelman trust barometer special report: Brand trust in 2020. Retrieved
from https: Use www.edelman.com/trust/2020-trust-barometer-special-report to access
our latest research findings
Freeman R. E. Harrison J. S. Wicks A. C. (2004) Managing for stakeholders:
Organizations earn trust from their stakeholders in addition to achieving their business
goals and securing their financial stability. Researchers Kim, H. L. and colleagues
conducted their study’s better at doing good: Consumers show support for company
social efforts at specific moments through actions. California Management Review,
47(1), 9-24. https://doi.org/10.2307/41166284
Carroll, A. B. (1991). The pyramid of corporate social responsibility: Stakeholder moral
control in organizational settings. Business Horizons, 34(4), 39-48. https: Forbes ran two
studies with college-age youngsters to study how consumers reacted to corporate social
initiatives. //doi.org/10.1016/0007-6813 (91)90005-G
By Japneet Kaur (A00181720) on January 26, 2025
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How CSR Influences Consumer Trust and Loyalty and the Perception of
Corporate Managers About It
Carroll and Shabana published research on the subject in 2010. The business case for
corporate social responsibility: We examine existing studies along with business and
social responsibility research. International Journal of Management Reviews, 12(1), 85-
105. https: The Moral Management of Organizational Stakeholders (MORS) Contains
Multiple CSR Levels (Carroll and Shabana 2010) https://doi.org/10.1111/j.1468-
2370.2009.00275.x
Edelman. (2020). Edelman trust barometer special report: Brand trust in 2020. Retrieved
from https: You can see our findings at www.edelman.com/trust/2020-trust-barometer-
special-report
Freeman R. E. Harrison J. S. Wicks A. C. (2004) Managing for stakeholders:
Communities support organizations' growth when these businesses meet their business
targets and keep their financial foundation strong. Researchers Kim H.L. Kim S.Y. and
Han J produced their study results. Rand trust in 2020. Retrieved from https: Visit
www.edelman.com/trust/2020-trust-barometer-special-report to view our findings
Freeman R. E. Harrison J. S. Wicks A. C. (2004) Managing for stakeholders:
Organizations build public trust while reaching their success goals and sustaining their
economic presence. Yale University Press.
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How CSR Influences Consumer Trust and Loyalty and the Perception of
Corporate Managers About It
Kim, H. L., Kim, S. Y., and Han, J published their study. The impact of CSR on firm
value: Our analysis examines how marketing ability changes with customer happiness to
produce better business outcomes. International Journal of Research in Marketing, 27(2),
146-163. https: You can access this research at 10.1016/j.ijresmar.2009.10.004 through
the journal's online archive.
Microsoft. (2023). AI for good. Retrieved from https: Explore how Microsoft uses
artificial intelligence to benefit communities at their official AI for Good site.
Patagonia. (2023). We work to help society thrive and protect the earth. Retrieved from
https: Our website reveals our efforts to protect both the environment and society at
https://www.patagonia.com/environmental-social-responsibility
Polman, P. (2020). Net positive: A company succeeds when it gives more socially
valuable output than it earns in business operations. The Harvard Business Press
publishes this material.
Starbucks. (2023). Ethical sourcing. Retrieved from https: Find out more about Starbucks
ethical sourcing practices at their official website
https://www.starbucks.com/responsibility/sourcing/ethical-sourcing.
TOMS. (2023). Our impact. Retrieved from https://www.toms.com/impact
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