Bochnovicova Petra Exposé CSR final · 2014-01-30 · CSR is a concept integrating society’s concerns in order to achieve sustainable development of the organizations towards society

CSR in Food Industry: Impact of CSR on consumer behaviour 1

CSR in food industry: Impact of CSR on consumer

behaviour

Exposé

Submitted by

P e t r a B o c h n o v i č o v á

University of Kassel

Faculty- International Business Administration

E M B S

Kassel, Germany 21stOctober 2013


List of Abbreviations

CSR Corporate Social Responsibility


List of Tables and Figures

Figure 1: Carroll’s (1991) Pyramid of CSR 9

Figure 2: Interdependence between the corporations’ CSR activities, awareness of

consumers, consumers’ attitudes towards CSR and purchasing decision 11

Table 1. List of activities with appropriate time needed 28

Table 2. GANTT chart 30


Table of content

1. Abstract ............................................................................................. 5

2. Introduction ...................................................................................... 6

2.1 Relevance of the topic .................................................................................... 6

2.2 Theoretical background ................................................................................ 8

2.3 Purpose of the thesis .................................................................................... 15

2.4 Outline of the thesis ..................................................................................... 15

2.4.1 Overview of the chapters .......................................................................... 16

3. Review of Literature ....................................................................... 18

4. Methodology .................................................................................... 26

5. Plan of work .................................................................................... 28

6. Bibliography .................................................................................... 31


1. Abstract

Title: “ CSR in Food Industry: Impact of CSR on consumer behaviour”

Keywords: CSR, CSR awareness, CSR attitude, consumer behaviour, food industry

Background: Corporate social responsibility (CSR) has developed over many years. CSR is a concept integrating society’s concerns in order to achieve sustainable development of the organizations towards society on a voluntary basis. In today’s business world, more and more companies integrate CSR as a part of the companies’ strategies. However, public awareness of companies’ CSR activities is low. Nevertheless, consumers’ attention to CSR is increasing. Consumers are becoming more demanding and appear to be most concerned about the companies’ CSR. Moreover, consumers are paying more attention to the food they consume which increases the companies’ interest in implementing CSR in their strategy. This phenomenon results not only from higher demands of food consumers, but from legal requirements and high competition as well. Further, CSR may have an impact in increasing positive towards CSR and companies implementing CSR within their strategy. Once a consumer has a positive attitude towards CSR-related company and its products, it may result in the purchase of the product.

Purpose: The thesis explores consumer behavior related to CSR. The thesis will contribute to the existing literature on CSR in order to provide a better understanding in CSR concept. Further, the thesis will investigate the level of consumers’ awareness of CSR as well as food consumers’ attitude and impact of CSR on customers’ behavioral intention to purchase food products. Further, variables that are assumed to have an impact on food consumers’ purchasing behavioral will be outlined. Moreover, comparative analysis of different age categories linked to the CSR issues will be proposed.

Method: A deductive approach will be used in the study in order to evaluate the given hypothesis. The data will be collected through a survey, online questionnaire via social media as well as through in-hand questionnaire.

Conclusion: It is expected that the thesis will clearly identify CSR concept as well as the level of awareness among the different age categories, such as Baby Boomers, Generation X and Generation Y. It is further assumed that the thesis will identify the age category of a highest level of CSR awareness, as well as the level of willingness to purchase a food product from a CSR company compared to a product from not-related-CSR company. This study will further suggest the consumers, who are more willing to buy food products, which are produced in accordance with CSR. The conclusion will contain a comparison of different age categories and their relationship with CSR-related issues and will outline prospective recommendations for further research or prospective marketing practice.


2. Introduction In the following chapter I will firstly outline the relevance of the topic being

investigated. Secondly, I will describe a theoretical background of CSR and

consumer behavior providing some definitions of the major terms and theoretical

concepts, which will result into formulation of the hypotheses and the purpose of the

thesis. Further, I will provide a brief overview of a structure and a content of this

paper.

2.1 Relevance of the topic

Due to the globalization, companies react faster to today’s social and environmental

issues by implementing CSR policies into their corporate strategies. This trend is

growing fast especially in food industry, due to the fact that multinational food

companies have a high influence on society and environment. Therefore, CSR is

mainly focused on large food companies, which depend on human, natural and

physical resources. However, smaller enterprises should involve CSR practices

within their strategies as well (Hartmann, 2011). The EU food sector is

heterogeneous which implies that the pressure for CSR is different throughout the

food chain. Companies within food industry face public criticism, therefore it is of a

high importance to communicate CSR practices to stakeholders appropriately

(Hartmann, 2011). Nevertheless, CSR policies have become a basis of business

practices within the food industry (Dlott et al., 2006).

Regarding the consumption, people no longer understand what they eat. The way

people eat is mainly controlled by ten largest companies, which are also called “The

Big 10”. Among these companies are Associated British Foods (ABF), CocaCola,

Danone, General Mills, Kellogg, Mars, Mondelez International (previously Kraft

Foods), Nestlé, PepsiCo and Unilever. Within food sector, these companies control

more than fifteen per cent of all food sales out of which three quarters are made up of

highly processed foods such as burgers and frozen pizzas (Brown, 2013).

Malnutrition of today’s population results into obesity and other health problems.

According to the report published in The Lancet (Brown, 2013), food, drink and

alcohol industries have similar strategies as tobacco companies, which “undermine


public health interventions”. Furthermore, the food system is unsustainable. 1. 4

billion people are overweight and almost 900 million people are hungry. Water and

land resources are limited, and prices of food products are unstable. Moreover, the

food industry has unrestricted access to cheaper labour and land, from which they

benefit in terms of large profits, thus it is arguable whether their practices are in

accordance with sustainability and CSR policies.

Reputation and sales are linked to the consumers’ negative perception and attitudes

towards the companies, hence they are obliged to respond to consumers’ objections

and act faster than before (Oxfam, 2013). Consumer social media campaigns are

pushing companies and governments to act more socially. The campaign against

Nestlé forced the company to implement stronger policies into their strategy. In

March 2010, Greenpeace launched a video online highlighting Nestlé usage of

unsustainable forest clearing in production of palm oil. In couple of days, the video

had 1.5 million views in total and much criticism from the audience. In May 2010,

Nestlé has become a part of Roundtable for Sustainable Palm Oil with a goal to

eliminate unsustainable production by 2015 (Ionescu-Somers & Enders, 2012). The

number of viral campaigns is growing fast due to the accessibility of the Internet and

social media and its accessibility to the larger population. Nestlé campaign is a good

example.

Consumers, regarded as important stakeholders, are becoming to pay more attention

to the food and what value it brings to them and to the world around. Related to the

increasing interest of consumers, there is an increase of the organizations’ interest

related to the CSR issues, such as the sustainability of food production and the

ethical supply chain (Agriculture, 2007). Moreover, consumers are more health-

conscious leading into high level of selection upon the demanding criteria. Therefore,

the companies are also becoming more responsible about the products they produce,

supply and sell. It is not only based on legal requirements and competitive

environment, but also the high demands of the customers (European Commission,

2011).

Oxfam’s Behind the Brands campaign as part of the GROW campaign is aiming to

develop a better food system. Therefore, ten most powerful food and beverage

corporations, The Big 10, were evaluated. The aim was to increase the transparency


and quality of the food supply chain. Resulting from the evaluation, the companies

must go for a change and integrate better-off policies into their business strategies

and make sure their operations are sustainable (Oxfam, 2013). Further, multinational

corporations, such as Kraft Foods (now Mondelez International), Nestlé, Mars and

Unilever, spend a lot of money to lobby with the governments to soften the

regulations. It can be argued that the food industry is one of the most irresponsible

industries. Thus, the question arises whether consumers are aware of CSR food

practices. Once consumers are acknowledged about the food corporations’ CSR

practices, does it have any impact on consumers’ attitude?

Another question arises to what extent CSR has an impact on consumers purchasing

decision and whether consumers buying food product base their purchasing decision

on CSR initiatives of companies. Once the consumer is aware of CSR-related

information about the company, is consumer’s attention more favourable of buying

the product in the end?

Moreover, only few researches have been done considering CSR in regards to food

industry. Maloni & Brown (2006) investigated CSR in the food supply chain. They

established eight categories as port of a CSR framework: health and safety, animal

welfare, biotechnology, community, environment, financial practices, labour and

procurement. Jones et al. (2008) explored CSR as a communication tool. They

revealed that UK largest food retailers use CSR themes to market their products and

to build consumers’ brand awareness within the stores. Hartmann (2011) suggests

that SMEs within food sector should implement CSR in a more proactive strategy

because of the increasing trend of consumers’ awareness of social and environmental

interests.

2.2 Theoretical background

Many companies take part in CSR activities these days since they realize CSR is an

important initiative in today’s world (European Commission, 2011). Today, around

eight thousands of businesses provide a CSR or sustainability report. Moreover,

majority of the companies have signed the UN Global Compact determining to align

their strategies with society’s needs in areas of human rights, labour, environment

and anti-corruption standards (United Nations, 2013).


No term has dominated in international literature, however there is a common

European understanding of what CSR means. According to the European

Commission (2011), CSR is a matter of every European organization since it

contributes to sustainable development. The European Commission (2011, p. 6)

further defines CSR as “the responsibility of enterprises for their impacts on society”

aiming to “maximize the creation of shared value for their owners/ shareholders and

for their other stakeholders and society at large; and to identify, prevent and

mitigate their possible adverse impacts”. CSR is a concept integrating society’s

concerns on a voluntary basis.

Furthermore, CSR can be defined as “an organization’s obligation to maximize its

positive impact and minimize its negative effects in being a contributing member to

society, with concern for society’s long-run needs and wants. CSR means being a

good steward of society’s economic and human resources” (Lantos, 2001, p. 595-

630). The aim of CSR is to achieve sustainable development of the organizations

towards society in a voluntary way. The organizations go beyond the legal

regulations in order to contribute to the development of society encompassing

economic, social and environmental concerns.

It is suggested that there are four CSR-related dimensions: economic, legal,

philanthropic and ethical as seen in Figure 1 (Carroll, 1991 as cited in Schwarz &

Carroll, 2003).

Figure 1: Carroll’s (1991) Pyramid of CSR

Source: Schwartz, M. S., Carroll, A.B. (2003)


Stakeholder theory suggests that successful must satisfy both profit maximization

and corporate social performance in accordance with the stakeholders’ needs (Pirsch,

Gupta & Grau, 2007). Stakeholder is either organization or an individual who are

directly or indirectly connected and can have an impact or be affected by the

organizations’ achievements of their business objectives (Freeman, 1984). Typical

stakeholders are shareholders, employees, suppliers, customers, government, and

public organizations (Clarkson, 1995).

Furthermore, there are several studies on the concept of CSR (Garriga, 2004;

Marrewijk, 2003; Roberts, 1992) and on consumers’ purchasing behavior

(Bhattacharya & Sen, 2004; Moie, 2001; Mohr, Webb & Harris, 2001) and impact of

CSR on consumer behavior (Bhattacharya & Sen, 2004; Garriga, 2004; Moir, 2001).

Moreover, CSR activities of the company influence consumers’ perception and

attitudes towards companies and their products (Pirsch, Gupta & Grau, 2007).

Consumers may perceive a company negatively if the company undergoes some

scandals regarding environment or social good, and thus obtain a negative attitude

towards the company, which can result into boycott when purchasing the company’s

product. Companies might therefore increase a positive attitude of stakeholders by

engaging CSR incentives. This might also increase purchases or investments. In

addition, the corporate image might improve (Bhattacharya & Sen, 2004). CSR

initiatives are meaningful once they deliver value to the consumers (Gadeikiene &

Banyte, 2013). CEOs agree that issues regarding sustainability (93%) and education

(72%) will be critical for future success of their business. Furthermore, 72% of them

believe that the most driving factors for sustainable actions are brand, trust and

reputation (Lacy, Cooper, Hayward & Neuberger, 2010).

CSR directly influences consumers’ intentions to buy products, which are related to

CSR (Sen & Bhattacharya, 2001). Another research regarding impact of awareness

of CSR on consumers’ attitudes and purchase decision shows a significant

relationship between CSR and consumer responses (Mohr, Webb and Harris (2001).

In this thesis I am aiming to investigate the level of consumers’ awareness of CSR

activities of food companies and whether their knowledge influences their attitude

towards CSR and thus have an impact on buying decision (Figure 2).


Figure 2: Interdependence between the corporations’ CSR activities, awareness

of consumers, consumers’ attitudes towards CSR and purchasing decision

Consumers’ awareness of CSR

Consumers’ attention to CSR-related issues is growing these days, however,

according to European Commission report (2011, p. 10), there are still some barriers

such as low level of awareness and access to the needed information and the need to

pay a price premium. Consumers are not well informed about the social and

environmental performance of goods and services (European Commission, 2011).

Public awareness of companies’ CSR activities tends to be low (Sen, Bhattacharya &

Korshchun, 2008). Researches further show that many consumers lack information

whether a company engages in some voluntary work or a social activity helping

people or environment. Therefore, I assume that the food consumers’ awareness of

CSR initiatives of companies is low.

H0: Consumers have a high level of awareness of CSR activities

H1: Consumers have a low level of awareness of CSR activities

CSR activities

• Economic • Legal • Ethical • Philanthropic

Consumers' awareness of food

corporations' CSR

• High • Low

Consumers' attitudes towards

CSR food corporations

• Positive • Negative • Neutral

Consumers' purchasing

decision

• Purchase • Boycotte


The awareness can be further tested whether the level of awareness differ among the

population of different age. Each group of population is unique and differs among

each other. According to Verschoor (2013), the age generations can be grouped as

followed: Greatest Generation or Traditionalists, born prior to 1945, Baby Boomers

or Boomers (1946-1964), Generation X (1965-1980), Millennials or Generation Y

(1981-2000). The Nielsen Company (2010 cited in isacosta’site) indicated

Generation Z dating 1995 to 2007, however I will assume Generation Z people were

born since 2000 on. Traditionalists are considered to be people older than 68, as for

year 2013, and Generation Z are youngsters aged 12 and less. Since it will be hard to

target these two groups of population, I will exclude them from the research and will

only focus on Boomers, Generation X and Generation Y since it s a relevant target

group for this type of research.

H2: Level of awareness of CSR is interdependent on age of food consumers.

H2a: The level of awareness of Baby Boomers is low.

H2b: The level of awareness of Generation X is low.

H2c: The level of awareness of Generation Y is high.

H2d: The level of awareness of Baby Boomers is lower than one of Generation X.

H2e: The level of awareness of Generation X is lower than one of Generation Y.

H2f: The level of awareness of Generation Y is higher than one of Baby Boomers.

I will further assume that the level of awareness of CSR activities changes in regards

to their education since today’s consumers are gaining information about

corporations’ activities and their responsibility through education and the influence

via media (Harrison & Freeman, 1999).

H3: Level of awareness of CSR changes according to the level of education.

Consumers’ attitude towards CSR

Nevertheless, people are willing to be more informed about the companies’ activities

and whether these activities are related to CSR or not. Hence, the companies should

disclose as much information about their CSR activities as possible. Gaining

company knowledge about its involvement in society’s interests and needs can effect

the customer commitment to the company or its products. Since the organizations are


the primary actors in CSR field, implementation of CSR objectives should be further

improved. Consumers are an important element in providing incentives for

responsible business behavior. It is up to the companies to effectively communicate

their CSR activities in order to gain a customer’s trust and loyalty. Further,

consumers’ knowledge and awareness may refine consumers’ perception about the

companies and their CSR initiatives (Brown & Dacin, 1997).

Different stakeholder groups, such as employees, consumers and investors, have

different wants and needs, however they react positively to the CSR-related company

(Sen, Bhattacharya & Korschun, 2006). Among all stakeholders, consumers appear

to be most concerned about companies’ CSR initiatives. They feel a need to be more

responsible towards their purchasing decisions and become more demanding since

they are more aware about the negative impact on nature the humans have

(Bhattacharya & Sen, 2004). Nevertheless, consumers are considered to be the most

influential stakeholders on companies regarding CSR incentives.

Based on previous research (Bhattacharya & Sen, 2004; Brown & Dacin, 1997)

companies’ CSR-related activities contribute to a positive perception about the

companies as well as increase positive attitude and loyalty towards CSR companies

(Brown & Dacin, 1997; Bhattacharya & Sen, 2004; Arli & Lasmono, 2010).

Attitudes are helpful variables in predicting and influencing the behavior of

individuals.

Hence, consumers who are aware of CSR initiatives view companies as socially

responsible increasing their positive attitude towards CSR. I expect that the same

results would generate within food industry. Therefore, I assume that consumers’

attitude towards food CSR companies is positive.

H4: Consumers’ attitude towards food corporations’ CSR is positive.

The proposition can be further tested among the population age categories.

H5: Consumers’ attitude towards food corporations’ CSR changes according

to age.

H5a: Baby Boomers generation has a positive attitude towards CSR.

H5b: Generation X has a positive attitude towards CSR.


H5c: Generation Y has a neutral attitude towards CSR.

The proposition can be further tested among the level of consumers’ education.

H6: Consumers’ attitude towards food corporations’ CSR changes according

to education.

Consumers’ purchasing behaviour

Consumers purchasing behavior is not only driven by their desire to satisfy their

needs but today’s consumers are more and more concerned about their influence of

consumption behavior on environment and society in general (Roberts, 1992). Many

researches show that CSR has a positive impact on consumers’ purchasing decision

of product (Bhattacharya & Sen, 2004; Mohr & Webb, 2005). Moreover, reports

show that CSR has a positive impact on a customers’ satisfaction (Luo &

Bhattacharya, 2006) and increases customer loyalty (Marin, Ruiz & Rubio, 2009).

The question arises whether CSR have an impact on consumers’ purchasing decision

of food products. Once a consumer has a positive attitude towards an organization

and its product, it might result in the actual purchase of a product. It is important to

point out that before a consumer is able to base purchasing decision process on CSR

initiatives of a company, a consumer must be well aware of them (Mohr, Webb &

Harris, 2001). Therefore, an effective CSR communication is a core aspect to

increase flow of the information to the prospective customers. Further studies show

that there is a positive relationship between CSR activities of the companies and

consumers’ attitudes towards that companies and their products (Brown & Dacin,

1997; Creyer & Ross, 1997).

On the basis of previous studies (Sen, Bhattacharya & Korschun, 2006; Creyer &

Ross, 1997), I expect that once consumers are aware of company’s CSR activities,

their purchases of the company’s products are likely to be positively influenced.

Hence, I assume that the consumers will be supportive of CSR food corporations

when purchasing food products.

H7: Consumers will be supportive of socially responsible business when purchasing food products.


I further assume that consumers are willing to spend more money when purchasing

products from a food corporation, which is associated with CSR activities. In

addition, I assume that consumers with higher level of awareness and higher income

are willing to pay a higher price for a food product from CSR-related corporation.

H8: Consumers are willing to pay more to buy food products from companies that show care for CSR.

H8a: Consumers with higher level of awareness are willing to pay more to buy food

products from companies that show care for CSR than consumers with lower level of

awareness.

H8b: Consumers with higher income are willing to pay more to buy food products

from companies that show care for CSR than consumers with lower income.

H9: Consumers are wiling to reward a socially responsible food corporation

2.3 Purpose of the thesis

Based on the previous discussion I will describe the aim of this paper. The purpose

of this thesis is to gain deeper understanding in CSR concept and to investigate food

consumers’ purchasing behavior regarded to CSR. The thesis aims to examine the

level of awareness of CSR within food sector and the food consumers’ attitudes

towards CSR. I will further assess whether consumers are willing to pay more for the

food products, which are related to CSR. In addition, comparative analysis of

different age categories linked to the CSR issues will be proposed.

2.4 Outline of the thesis

Introduction – This chapter describes a theoretical background of CSR and

consumer behavior providing some definitions of the major terms followed by the

problem discussion and the relevance of the subject. Further, purpose of the research

will result into formulation of the hypotheses followed by an overview of a structure

of the thesis.

Theoretical framework – This chapter will present theories and previous research

done on the concept of CSR, consumer behavior and consumer’s purchasing

intention relation to the CSR concept.


Methodology – This chapter presents the way the methodology will be applied. The

chapter describes the research approach and design. Further, the research strategy

and data collection is described. This section is concluded by a discussion of the

scope of the research and its validity and reliability.

Analysis of data – This chapter will present the data collected from the online

survey and desk research in relation to the relevant theories of CSR and customer

behaviour.

Conclusion – This chapter will summarize the work and present the answer for the

research question and hypotheses set up at the beginning of the report. It will further

present the main findings of the research. Final conclusions will be presented

followed by limitations and recommendations.

2.4.1 Overview of the chapters

Title page

Abstract

Table of content

List of abbreviations

List of tables

List of figures

1. Introduction

1.1. Theoretical background

1.2. The challenges of CSR in food industry

1.3. Problem discussion

1.4. Purpose of the thesis and Research question/Hypotheses

1.5. Outline of the thesis

2. Theoretical Framework

2.1. CSR

2.1.1. Evolution of CSR


2.1.2. Stakeholder theory

2.1.3. CSR objectives in food industry

2.1.3.1. The role of CSR in food industry

2.1.3.2. The perception of CSR of food consumers

2.2. Consumer behaviour towards CSR

2.2.1. Cultural factors

2.2.2. Social factors

2.2.3. Personal factors

2.2.4. Psychological factors

2.3. The impact of CSR issues on consumers’ attitude and willingness to

purchase a product

3. Methodology

3.1. Study approach and design

3.2. Quantitative methods

3.3. Qualitative methods

3.4. Sample

3.5. Validity and Reliability

4. Analysis of data

4.1. Results analysis

4.1.1. Analysis of quantitative research

4.1.2. Analysis of qualitative research

4.2. Main findings collected

4.3. Discussion and interpretation of findings

5. Conclusion

5.1. Summary of the work

5.2. Final conclusions

5.3. Limitations and future research

5.4. Theoretical and practical implications

6. Bibliography

7. Appendices

8. Personal Affirmation in Lieu of Oath


3. Review of Literature

Topic Title Author Source Content

CSR

Corporate Social Responsibility Theories: Mapping the territory.

Garriga, E., Melé, D.

Journal of Business Ethics, 53, 51-71. (2004)

The article classifies the main theories on CSR related to profits (gaining long-term

profits), political performance (use of business power

responsibly), integration of social demands and ethical

values (doing social good in accordance with ethics).

CSR

Corporate social responsibility: A three-domain approach

Schwartz, M. S. & Carroll, A. B.

Business Ethics Quarterly, 13 (4), 503-530. (2003)

Three core domains are presented economic, legal and

ethical responsibilities in a Venn model framework.

CSR

Corporate social responsibility. Evolution of a definitional construct.

Carroll, A. B.

Business Society 38, 268. (1999)

Evolution of CSR throughout the history.

CSR

Concepts and definitions of CSR and corporate sustainability: Between agency and communion.

Marrewijk, M.


This paper presents several concepts and definitions of CSR

and Corporate Sustainability (CS), such as stakeholder

approach (Freeman 1984), societal approach,

philanthropic approach.

CSR The Lantos, Journal of The author provides CSR


boundaries of strategic corporate social responsibility

G.P. consumer marketing, 18, (7), 595-630. (2001)

concept with its four components: economic, legal,

ethical and altruistic duties. The paper further discusses profit

making perspective to community service provider

perspective. The author concludes that ethical CSR is mandatory and that strategic

CSR is good for both business and society.

CSR

How Corporate Social Responsibility is Defined: an Analysis of 37 Definitions.

Dahlsrud, A.

Corporate Social Responsibility and Environmental Management, 15, 1-13. (2006)

The paper provides analysis of already existing definitions of

CSR.

CSR

A framework for understanding corporate social responsibility programs as a continuum: An exploratory study.

Pirsch, J., Gupta, S., & Grau, S. L.

Journal of Business Ethics, 70 (2), 125-140. (2007)

The article discusses institutionalized CSR programs

to be the most effective and increasing customer loyalty,

enhancing attitude toward the companies and decreasing

consumer skepticism, and more effective at generating purchase

intent.

CSR and stakeholde

rs

The role of corporate social responsibility in strengthening multiple stakeholder relationships: A

Sen, S., Bhattacharya, C. B., & Korschun, D.

Journal of the Academy of Marketing Science, 34 (2), 158-166. (2006)

The authors indicate that stakeholders (consumers,

employees, investors) react positively to the focal company


field experiment.

CSR & Company-

and stakeholder-specific factors

Maximizing Business Returns to Corporate Social Responsibility (CSR): The Role of CSR Communication

Bhattacharya, C.B., Du, S., Sen, S.

International Journal of Management reviews, 12 (1), 8-19. (2010)

The article presents the framework CSR communication

and different aspects of CSR communication, (from message

content and communication channels to company- and

stakeholder-specific factors). Moreover, the article presents

stakeholder-specific factors that influence the effectiveness of

CSR communication in order to increase the level of consumers’ awareness of companies’ CSR

activities.

CSR and stakeholde

r theory

What do we mean by corporate social responsibility?

Moir, L.

Corporate Governance, 1 (2), 16- 22. (2001)

The author provides a broad review what is meant by CSR

and how corporations should act accordingly. The article

discusses stakeholder theory, social contracts theory and

legitimacy theory.

CSR and stakeholde

r theory

Determinants of corporate social responsibility disclosure: An application of stakeholder theory.

Roberts, R.W.

Accounting Organizations and Society, 17 (6), 595-612. (1992)

This article provides a framework for predicting CSR activity based on a stakeholder theory of strategic management

CSR and customer

satisfaction

Corporate social responsibility, customer satisfaction, and market value.

Luo, X., & Bhattacharya, C. B.

Journal of Marketing, 70, 1-18. (2006)

The study supports conceptual framework on relationships

between CSR, customer satisfaction and market value.


CSR communic

ation

Which CSR-Related Headings Do Fortune 500 Companies Use on Their Websites?

Smith, K. T., Alexander, J. J.

Business Communication Quarterly, 76, 155. (2013)

CSR communication.

CSR and consumer behaviour

The role of identity salience in the effects of corporate social responsibility on consumer behavior.

Marin, L., Ruiz, S., & Rubio, A.


The article proves that CSR initiatives increase consumer loyalty because a) consumers

develop a more positive evaluation of the company and b) consumers identify with the

company as a result of company’s CSR activities.

CSR and relationship between consumer and CSR

Long-term relationships between consumer and socially responsible company: The effect of consumer’s support for CSR.

Gadeikiene, A., Banyte, J.

International Journal of Management Cases, 15 (2), 153-168. (2013)

CSR initiatives are meaningful once they deliver value to consumers. CSR support

positively influence directly and indirectly (satisfaction, trust and

commitment) on a long term.

Consumers’

perception of CSR

Doing better at doing good: When, why, and

Bhattacharya, C.B., Sen, S

California Management Review, 47 (1), 9-24. (2004)

The article examines consumers’ reactions to specific

CSR initiatives and whether they work. Consumers identify with the company once they are

strong supporters of the


how consumers respond to corporate social initiatives.

company’s CSR initiatives. The findings show that consumers are more sensitive to negative

CSR information than to positive ones and that a lack of consumers’ awareness about

CSR initiatives is a major factor in their ability to respond to

these initiatives.

Use of CSR

initiatives to

influence consumers

The impact of perceived corporate social responsibility on consumer behavior

Becker-Olsen, K. L., Cudmore, A. & Hill, R. P.

Journal of Business Research, 59, 46-53. (2006)

Low-fit and high-fit initiatives have a same negative impact

consumer beliefs, attitudes and intentions

Consumers’

perception of CSR

Consumers’ perceptions of corporate social responsibilities: A cross-cultural comparison

Maignan, I.


The study investigates consumers’ perception of CST

and their evaluation of the economic, legal, ethical, and

philanthropic companies’ responsibilities in France, Germany and the USA.

Consumers’

perception and

attitude

Consumers’perception of CSR in a developing country

Arli, D., I., & Lasmono, H., K.

International Journal of Consumer Studies. 34, 46-51 (2010)

The research examines the perception of consumers and

purchasing intentions related to CSR.

Consumers’

perception of CSR

Chinese consumers’ perception of corporate social responsi

Ramasamy, B., & Yeung, M.

Journal of Business Ethics 88, 119-132 (2009)

This study tries to assess the level of CSR awareness of

consumers and its impact on consumers’ perception and

purchasing decision.


bility

Impact of CSR on

consumer behavior

Do consumers expect companies to be socially responsible? The impact of corporate social responsibility on buying behavior.

Mohr, L.A., Webb, D.J. and Harris, K.E.

The Journal of Consumer Affairs, 35 (1), 45-72. (2001)

The article analyses consumers’ point of views on CSR of

companies. The results indicate that awareness on CSR might have a significant impact on

behavioral intentions. Respondents have positive

believes about socially responsible companies and would like to acquire more

information about companies’ CSR. However, most

respondents’ purchasing decision is not based on CSR

criterion. Lack of SRCB (Social Responsible Consumer

Behavior) results from a) purchasing based on traditional

criteria such as price, quality and convenience assuming that CSR would compromise their

choices, and b) lack of awareness and access to

information on CSR records of organizations.

CSR & food

industry

Corporate social responsibility in the food sector.

Hartmann, M.

European Review of Agricultural Economics, 38 (3). (2011)

This article provides an overview of CSR within food industry regarding corporate financial performance (CFP), consumers’ perception and behavior, and employees’ perception and behavior.

CSR & food

industry

Corporate Social Responsibility in the Supply Chain: An Application in the Food industry.

Maloni, M. J., Brown, M. E.


The author discusses food industry trends. It further

develops a framework of supply chain CSR within food industry

including animal welfare, biotechnology, environment,

fair trade, health and safety, and labor and human rights.

Purchase The influence

Creyer, E., H.,

Journal of Consumer

The empirical research on ethics and social responsibility in


intentions of firm behavior on purchase intention: do consuemrs really care about business ethics?

Ross, W., T.

Marketing, 14 (6). (1997)

marketing. The finding show that: 1.) the ethicality of a firm’s

behavior is an important consideration during the

purchase decision, 2.) ethical corporate behavior is expected,

3.) they will reward ethical behavior by a willingness to pay

higher prices for that firm’s product, and, 4.) although they

may buy from an unethical firm, they want to do so at lower

prices which, in effect, punishes the unethical act.

Sustainable

consumers

Green consumption or sustainable lifestyles? Identifying the sustainable consumer

Gilg A., Barr, S. & Ford, N.

Futures 37, 481-504. (2005)

Identification of sustainable lifestyles and green

consumption.

Consumer behaviour

Fundamental motives for why we buy: How evolutionary needs influence consumer behavior

Griskevicius, V., Knrick D. T.

Journal of Consumer Psychology, 23 (3), 372-386. (2013)

Fundamental motives of consumer behaviour.

Consumer behaviour

Consumer behavior. Applications in Marketing 2nd ed.

East, R., Wright, M., Vanhuele, M.

SAGE Publication, London, UK (2013)

Basic concepts on consumer behavior.



Can Consumers Buy Responsibly? Analysis and Solutions for Market Failures

Valor, C.

Journal of consumer policy, 31 (3), 315-326. (2008)

This paper investigates whether consumers are able to purchase in a responsible way. The paper further identifies the restrictions and suggests possible scenarios

of consumer responsible behavior.


The company and the product: Corporate association and consumer product responses

Brown, T.J., Dacin, P.A.

Journal of marketing, 61, 68-84.

(1997)

This article provides the result of three studies conducted

demonstrating that a) knowledge about the company

may influence believes and attitudes towards new products of the company, b) corporate

ability and CSR may have different impact on consumers’ responses to products, and c)

products of a negatively concerned company do not

always have negative consumer responses.

Ages

The new rules of generational welfare

Grose, M.

Milsons Point, N.S.W.: Random House Australia, 2005

Classification of population in terms of age.

Age generation

s

Ethical behaviour differs among generations

Verschoor, C. C.

Strategic Finance

A study on ethical behaviour and difference between young

and older generations, addressing to ethics


4. Methodology

The aim of methodology is to confirm or disprove the hypotheses mentioned earlier

in the work. The most appropriate option to answer the hypotheses would be through

a survey based on the past research (Maignan, 2001; Rahim et al., 2011; Janice,

2012; Ramasamy & Yeung, 2009; Arli & Lasmono, 2010). Previous literature on this

topic had proven the validity of the survey and a good fit was indicated (Maignan,

2001; Creyer & Ross, 1997). The five-point Likert-type scale will be used.

Measurement instruments: The data will be collected through a questionnaire

designed with marketing research software Sphinx.

The questionnaire will be divided into main four parts. Part A contains general

questions on consumers’ awareness of CSR and consumers’ awareness of food

companies’ CSR activities in order to identify the respondent’s knowledge of the

term CSR and CSR activities within a food sector. This part will indicate the

respondents’ ability to continue with the questionnaire. Those respondents who will

indicate not having any knowledge of CSR will be excluded from the data analysis.

The scale for part A was adapted from Rahim et al. (2011). The Cronbach’s Alpha

was 0.759 which proves the reliability since the number is higher than 0.7 (Zikmund,

2003).

Part B is related to consumers’ attitude towards CSR. In order to identify the

consumers’ attitude towards CSR of food companies, the means were used as an

indicator in order to identify whether the consumers have either positive, negative or

neutral attitude. This scale of attitude was adapted from Janice (2012), with few

adjustments in order to better fit the research, e.g. “companies” into “food

corporations” and “products” into “food products”. These adjustments were made in

order to better fit the research. The reliability score was 0.647. The score, which is

higher than 0.6 is generally accepted, especially within the exploratory research

(George & Mallery, 2008; Nunnally, 1967).

In part C, I measured food consumers’ support of socially responsible practices of

food companies. The scale has been developed by Maignan (2001, p. 62), who

investigated consumers’ readiness to support CSR companies in France, Germany


and US. Resulting reliability coefficients were : 0.97, 0.92, 0.96, respectively. The

scales have been further used to measure consumers’ perception of CSR in China

(Ramasamy & Yeung, 2009) and consumes’ perception of CSR in a developing

country (Arli & Lasmono, 2010). The scale measure is “1” which indicates “strongly

disagree” to “5” which indicates “strongly agree”. The original scale used a seven-

point scale. The scale was reduced to a five-point scale in order to reduce the

confusion among the respondents (Lu & Liu, 2000; Arli & Lasmono, 2010).

In the last part, part D, some demographic questions will be asked, such as gender,

age, income per household and level of education.

The research will be based on a quantitative approach. The questionnaire will be

conducted both online and in-hand in order to reach high number of respondents to

assure the level of validity and reliability. The aim is to reach around 385

respondents according to the sampling calculation at

http://www.raosoft.com/samplesize.html. However, it might be difficult to obtain

this number of respondents. Conducting a face-to-face interviews was an option as

well, however it is time-consuming and it will be more difficult to reach a broader

perspective on CSR. Therefore, I think the questionnaire would be the most suitable

methodology option to reach a great amount of respondents. The questionnaire will

be distributed mainly online through social media, however I am aware of the fact

that it might be difficult to reach all age categories online. Therefore, I will distribute

the questionnaire in-hand as well. Both ways are appropriate in order to target all

population groups of age to get proportionally same amount of respondents of each

age generation. Once there is similar number of respondents in each age generation, I

will be able to get more reliable data.

Setting: Comparative analysis of existing literature followed by analysis of

quantitative data. An online questionnaire will be spread via social media and e-

mails, and physically. The questionnaire will be divided into four sections.

The “awareness of CSR” section will consist of five questions in order to understand

whether the respondents are aware of CSR or not.

The “consumers’ attitude towards CSR” section will contain 5 statements about

attitude towards CSR and whether respondents would support food corporations


related to CSR practices by indicating to answer the scale starting from “strongly

agree” through “neutral/ I do not know” to “strongly disagree”. The questions will

try to answer what are the respondents’ opinions about the CSR activities of the

companies.

The “consumers’ purchasing behavior” section will contain six statements on

respondents’ purchase decision related to CSR, such as “I believe that food

corporations must make efforts to behave in a socially responsible manner” or “I

would pay more to buy food products from a socially responsible company”.

Sample: The study will focus on UK consumers in order to avoid cultural bias. The

sample should be proportionally representative in terms of age, gender and income.

Since UK has a population more than 20,000 people, calculated from

http://www.raosoft.com/samplesize.html, with a confidence level of 95%, it is

recommended to reach 385 respondents, which might seem difficult at first place in

terms of time and my connections. Slovak sample was in my mind at first place. It

seems that CSR is not very well known among Slovaks, however, it would be

interesting to see how CSR incentives are perceived in Slovakia. In this case, the

sample size would stay the same, which is 385 respondents.

5. Plan of work

A following table (Table 1) indicates a list of the activities that need to be

accomplished and the expected length of each activity. Further GANTT chart (Table

2) provides a better overview of the flow of the activities, as well as the lectures at

the University.

Table 1. List of activities with appropriate time needed

ACTIVITY LENGTH OF ACTIVITY

Selection of the topic:

! Topic Proposals 1st August - 26th August


! Discussion of the topic 4th September - 30th September

Exposé writing 1st October - 21st October

Exposé due 21st October

Survey Designing 22nd October- 12th November

! Questionnaires formulating 22nd October- 7th November

! Pilot questionnaire online 8th November- 12th November

! Survey online 11th December - 22nd January

Draft Writing (first 3 chapters) 9th November – 6th December

Draft Writing (4th Chapter) 7th December- 13th December

Intermediate presentation preparation 12th December - 18th December

Intermediate Presentation due 19th December

Draft writing/ Intermediate Report

Finalising

15th January- 17th January

Intermediate Report due 22nd January

Data analysis and Draft Writing

(chapter 5, 6 and 7)

March

Finalisation of thesis report April

Final presentation due End of May


Table 2. GANTT chart


6. Bibliography Agriculture (2007). Beyond credence? Emerging consumer trends in

international markets. Retrieved from

http://www.dpi.vic.gov.au/agriculture/investment-trade/market-access-and-

competitiveness/markets/emerging-consumer-trends-in-international-markets. ISBN

978-1-74199-134-5

Arli, D., I., & Lasmono, H., K. (2010). Consumers’ perception of corporate

social responsibility in a developing country. International Journal of Consumer

Studies, 34, 46-51. doi: 10.1111/j.1470-6431.2009.00824.x

Becker-Olsen, K. L., Cudmore, A. & Hill, R. P. (2006). The impact of perceived

corporate social responsibility on consumer behavior. Journal of Business Research,

59, 46-53. doi: 10.1016/j.jbusres.2005.01.001

Bhattacharya, C. B., & Sen, S. (2004). Doing better at doing good: When, why,

and how consumers respond to corporate social initiatives. California Management

Review, 47 (1), 9-24. No doi.

Bhattacharya, C. V., Korschun, D., Sen, S. (2008). Strengthening stakeholder-

company relationships through mutually beneficial corporate social responsibility

initiatives. Journal of Business Ethics, 85, 257-272. doi: 10.1007/s10551-008-9730-3

Bhattacharya, C. B., Du, S., & Sen, S. (2010). Maximizing business returns to

corporate social responsibility (CSR): The role of CSR communication. International

Journal of Management reviews, 12 (1), 8-19. doi: 10.1111/j.1468-

2370.2009.00276.x

Brown, J. (2013, February 12). Junk science: Food companies accused of using

tobacco’s tricks to protect profits. The Independent. Retrieved from

http://www.independent.co.uk/life-style/food-and-drink/news/junk-science-food-

companies-accused-of-using-tobaccos-tricks-to-protect-profits-8490815.html

Brown, T. J., & Dacin, P. A. (1997). The company and the product: Corporate

association and consumer product responses. Journal of marketing, 61, 68-84. No

doi.


Carroll, A. B. (1991). The pyramid of corporate social responsibility. Toward the

moral management of organizational stakeholders. Business Horizons. Retrieved

from http://www-rohan.sdsu.edu/faculty/dunnweb/rprnts.pyramidofcsr.pdf

Clarkson, M. E. (1995). A stakeholder framework for analyzing and evaluating

corporate social performance. Academy of Management Review, 20(1), 92–118.

Creyer, E., H., Ross, W., T. (1997). The influence of firm behavior on purchase

intention: do consuemrs really care about business ethics? Journal of Consumer

Marketing, 14 (6). 0736-3761

Dlott, J., Gunders, D., & Arnold, A. (2006). Sustainability Trends in the Agrifood

Sector. Sure Harvest Briefing Paper. Soquel, UK: Sure Harvest.

East, R., Wright, M., Vanhuele, M. (2013). Consumer behavior. Applications in

Marketing. 2nd ed. London: SAGE Publications Ltd

European Commission (2011). A renewed EU strategy 2011-2014 for CSR,

Communication from the commission to the European parliament, the council, the

European economic and social committee and the committee of the regions.

Retrieved from http://eur-

lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2011:0681:FIN:EN:PDF

Freeman, R. E. (1984). Strategic management: A stakeholder approach.

Marshfield, MA: Pitman Publishing Inc

Gadeikiene, A., Banyte, J. (2013). Long-term relationships between consumer

and socially responsible company: The effect of consumer’s support for CSR.

International Journal of Management Cases, 15 (2), 153-168. ISNN 1741-6264

Garriga, E., & Melé, D. (2004) Corporate Social Responsibility Theories:

Mapping the territory. Journal of Business Ethics, 53, 51-71. Retrieved from

http://www.jstor.org/stable/25123282

George, D., Mallery, P., & George, D. (2008). SPSS for windows step by Step: A

simple guide and reference: 15.0 update (8th ed.). Boston, Mass: Pearson A & B

Griskevicius, V., Knrick D. T. (2013). Fundamental motives for why we buy:

How evolutionary needs influence consumer behavior. Journal of Consumer


Psychology, 23 (3), 372-386. doi: 10.1016/j.jcps.2013.03.003

Harrison, J. S., & Freeman R. E. (1999). Stakeholders, social responsibility, and

performance: empirical evidence and theoretical perspectives. The Academy of

Management Journal, 42(5), 479–485.

Hartmann, M. (2011). Corporate social responsibility in the food sector.

European Review of Agricultural Economics, 38 (3), 297-324. doi:

10.1093/erae/jbr031

Ionescu-Somers, A., Enders, A. (2012). How Nestlé dealt with a social media

campaign against it. Retrieved November 10, 2013 from

http://www.ft.com/cms/s/0/90dbff8a-3aea-11e2-b3f0-

00144feabdc0.html#axzz2n0N1gONJ

Isacosta’site. List of Generations Chart. Retrieved from

http://www.esds1.pt/site/images/stories/isacosta/secondary_pages...../10º_block1/Ge

nerations%20Chart.pdf

Janice, W. S. K (2012). The study of consumer perception on corporate social

responsibility. Towards consuemrs attitude and purchase behavior. The Hong Kong

Polutechnic University

Jones, P., Comfort, D., Hillier, D. (2005). Corporate social responsibility as a

means of marketing to and communicating with customers within stores: A case

study of UK food retailers. Management Research Review, 28 (10). doi:

10.1108/01409170510785011

Lacy, P., Cooper, T., Hayward, R., & Neuberger, L. (2010, June). A new era of

sustainability: UN Global Compact-Accenture CEO Study 2010. Retrieved from

http://www.accenture.com/SiteCollectionDocuments/PDF/Accenture_A_New_Era_o

f_Sustainability_CEO_Study.pdf

Lantos, G. P. (2001). The boundaries of strategic corporate social responsibility.

Journal of consumer marketing, 18, (7), 595-630.

Luo, X., & Bhattacharya, C. B. (2006). Corporate social responsibility, customer

satisfaction and market value. Journal of Marketing, 70, 1-18. ISSN: 0022-2429


(print), 1547-7185 (electronic)

Maignan, L. (2001). Consumers’ perceptions of corporate social responsibilities:

A cross-cultural comparison. Journal of Business Ethics, 30 (1), 57-72. Retrieved

from http://www.jstor.org/stable/25074480

Maloni, M. J., Brown, M. E. (2006). Corporate social responsibilty in the supply

chain: An application in the food industry. Journal of Business Ethics, 68 (1), 35-52.

Retrieved from http://www.jstor.org/stable/25123894

Marin, L., Ruiz, S., & Rubio, A. (2009). The role of identity salience in the

effects of corporate social responsibility on consumer behavior. Journal of Business

Ethics, 84 (1), 65-78. doi: 10.1007/s10551-008-9673-8

Marrewijk, M. (2003). Concepts and definitions of CSR and corporate

sustainability: Between agency and communion. Journal of Business Ethics, 44, 95-

105. Retrieved from http://www.jstor.org/stable/25075020

Mohr, L. A., Webb, D. J., & Harris, K.E. (2001). Do consumers expect

companies to be socially responsible? The impact of corporate social responsibility

on buying behavior. The Journal of Consumer Affairs, 35 (1), 45-72. doi: 0022-

0078/0002-1

Mohr, L. A., & Webb, D. J. (2005). The effects of corporate social responsibility

and price on consumer responses. The Journal of Consumer Affairs, 39 (1), 121-147.

doi: no. Retrieved from http://onlinelibrary.wiley.com/store/10.1111/j.1745-

6606.2005.00006.x/asset/j.1745-

6606.2005.00006.x.pdf?v=1&t=hpdx7q57&s=36d5bc19145e00073cd46a7cdce858a

b7cd8d0f5

Nunnally, J. C. (1978). Psychometric Theory. McGraw-Hill Book Company, New York

Pirsch, J., Gupta, S., & Grau, S. L. (2007). A framework for understanding

corporate social responsibility programs as a continuum: An exploratory study.

Journal of Business Ethics, 70 (2), 125-140. doi: 10.1007/s10551-006-9100-y

Rahim, R. A., Jalaludin, F. W., & Tajuddin, K. (2011). The importance of

corporate social responsibility on consumer behaviour in Malaysia. Asian Academy


of Management Journal, 16 (1), 119-139

Ramasamy, B., & Yeung, M. (2009). Chinese consumers’ perception of

corporate social responsibility. Journal of Business Ethics, 88, 119-132. doi:

10.1007/s10551-008-9825-x

Roberts, R.W. (1992). Determinants of corporate social responsibility disclosure:

An application of stakeholder theory. Accounting Organizations and Society, 17 (6),

595-612. doi:0361-3682/92

Schwartz, M. S. & Carroll, A. B. (2003). Corporate social responsibility: A three-

domain approach. Business Ethics Quarterly, 13 (4), 503-530.

Sen, S., & Bhattacharya, C. B (2001). Does doing good always lead to doing

better? Consumer reactions to corporate social responsibility. Journal of Marketing

Research, 38 (2), 225- 243. Retrieved from http://www.jstor.org/stable/1558626

Sen, S., Bhattacharya, C. B., &, D. (2006). The role of corporate social

responsibility in strengthening multiple stakeholder relationships: A field experiment.

Journal of the Academy of Marketing Science, 34 (2), 158-166. doi:

10.1177/0092070305284978

Smith, K. T., & Alexander, J. J. (2013). Which CSR-related headings do Fortune

500 companies use on their websites? Business Communication Quarterly, 76, 155.

doi: 10.1177/1080569912471185

The Nielson Company (2010). Marketing across the generations. Retrieved from

http://www.marketingcharts.com/wp/television/marketing-across-the-generations-

12158/

United Nations (2013). Global Compact. The ten principles. Retrieved from

http://www.unglobalcompact.org/AboutTheGC/TheTenPrinciples/index.html

Valor, C. (2008). Can Consumers Buy Responsibly? Analysis and Solutions for

Market. Journal of consumer policy, 31 (3), 315-326. doi: 10.1007/s10603-008-

9070-9

Verschoor, C. C. (2013). Ethical behavior differs among generations. Strategic

Finance. Retrieved from


http://web.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=d3663d3d-810f-46ca-9ccf-

0f27f400678e%40sessionmgr115&vid=1&hid=122