Aminul Hoque Dissertation: Impact of CSR on Brand Image

4/4/2014

Dissertation: Impact of CSR on Brand Image Researcher: Aminul Hoque

Aminul Hoque UNIVERSITY OF GREENWICH BA (HONS) MARKETING MARK 1117 DISSERTATION SUPERVISOR: JONATHAN A. J. WILSON WORD COUNT: 11969

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Declaration I certify that this undergraduate dissertation has not been accepted in any degree and is not under the submission for any degree or qualification – other than that of an undergraduate degree in BA Marketing studied at the University of Greenwich. I also declare that this work is the result of my own investigations, except where identified by references and free from plagiarism of the work of others.

Student Signature:

Date: 04/04/2014

Abstract Purpose The purpose of this study is to explore the relationship between CSR and Brand image.

Moreover, the study also aims to find out if there is a positive correlation between the two. As current literature is yet to define if CSR has an impact on brand image, this dissertation aims to provide insights into purchasing behaviour as well as perception of consumers on brand image.

Methodology This dissertation has used interpretivism as a research paradigm. This research was designed as an exploratory phenomenon with elements of descriptive research. Information was collected through in-depth semi structured interviews and then later analysed through coding and the use of Word Cloud software.

Findings From the findings of this dissertation it can be seen that, CSR does have an impact on brand image to some extent. There are many factors that may impact a brand image some of which CSR may entail. It is found that CSR improves brand awareness, brand knowledge, reputation and combines with the stakeholder theory. However from the aforementioned it is also found that companies can be indirectly improving all these factors without the need for CSR activities.

Originality and Value The theoretical foundations of this dissertation which looks at the impact of CSR on brand image has been made with the use of qualitative approaches as well as the use of word cloud software. With the use of such techniques and approaches, it shows an in-depth understanding of consumers perceived CSR and how their perceptions may affect brand image. This research is valuable because it provides insights into consumer’s perceptions of companies and CSR activities.

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Acknowledgements

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t is of a great pleasure to thank everyone who helped me write my dissertation successfully.

I owe sincere and earnest thankfulness to my supervisor Dr Jonathan Wilson (Bilal) whom I cannot emphasise enough how privileged I was to have as my supervisor.

His support, advice, openness, flexibility and constant dedication inspired me to work even harder

and take pleasure of every moment of my last year in the University of Greenwich as a student. The following statement is dedicated to Dr Jonathan Wilson, as the very same line was said by him to motivate me.

Furthermore, I am truly indebted and grateful to the course leader Dr. Kate Armstrong who did not stop encouraging us to excel in our work and keep challenging ourselves.

In addition, I would like to show my gratitude and highest level of respect to my first personal tutor and one of the most memorable one Dr. Mazia Yassim, who has been a part of my university experience from the very first day to the end. I would also like to include Chris Rock, Ian Whitten, Matthew Housden, Robert Lewis and Nick Wilde for making my university experience that much better and fruitful. Thank you; it has been great pleasure to have you as my tutors.

In addition to this, I would like to thank my friends Mashud Ali and Nahida Begum for supporting me during my stressful times, I understand I may have been a pain in backside, but I was a pain worth dealing with. I would also like to thank the participants that took part within this study, without your help this dissertation would not even exist.

I would also like to thank my parents for their continuous support, for without their help, I would not be able to make this submission nor be in this opportune position.

Thank you,

Aminul Hoque

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Contents Declaration ............................................................................................................................................... I Abstract ................................................................................................................................................... II Acknowledgements................................................................................................................................ III Chapter 1: Introduction .......................................................................................................................... 1 Background to field of study ............................................................................................................... 1 Research aims and objectives ................................................................................................................. 2 Research Aims: .................................................................................................................................... 3 Research Questions: ........................................................................................................................... 3 Chapter 2: Literature Review: ................................................................................................................. 4 Introduction ........................................................................................................................................ 4 Secondary data methodology ............................................................................................................. 4 Literature Review Table ...................................................................................................................... 6 Brand Image ........................................................................................................................................ 7 Definition of CSR ................................................................................................................................. 9 CSR and its Domains ......................................................................................................................... 10 Financial Implications of CSR ............................................................................................................ 11 CSR and the Macro Environment ...................................................................................................... 12 Gaps in Literature.............................................................................................................................. 14 Conceptualisation of Literature ........................................................................................................ 15 Conclusions ....................................................................................................................................... 16 Chapter 3: Methodology ....................................................................................................................... 17 Introduction: ..................................................................................................................................... 17 The Research Paradigm..................................................................................................................... 18 Qualitative research: ......................................................................................................................... 20 Primary data collection: .................................................................................................................... 22 Sampling:........................................................................................................................................... 22 Sampling recruitment ....................................................................................................................... 23 Sampling criteria: .............................................................................................................................. 23 In depth interviews: .......................................................................................................................... 24 Ethical considerations ....................................................................................................................... 25 Data analysis ..................................................................................................................................... 25 Validity, Reliability and Objectivity ................................................................................................... 26 Limitations ........................................................................................................................................ 26 Conclusion ......................................................................................................................................... 27 Aminul Hoque 000 654 857

Chapter 4: Results and analysis of findings........................................................................................... 28 Unique Respondent Codes................................................................................................................ 29 Research Question 1: To what degree are respondents aware of CSR? .......................................... 30 Research Question 2: Does having knowledge of CSR, influence purchasing behaviour? ............... 31 Research Question 3: After knowing about CSR, does it affect your perception of a brand?.......... 34 Conclusion ......................................................................................................................................... 37 Chapter 5: Analysis of Findings ............................................................................................................. 38 Forming Relationships....................................................................................................................... 38 Apple, as a powerful brand ............................................................................................................... 38 Definitions of CSR.............................................................................................................................. 39 Word Cloud ....................................................................................................................................... 42 Conclusion ......................................................................................................................................... 43 Chapter 6: Conclusions and Recommendations ................................................................................... 44 Conclusions ....................................................................................................................................... 44 Recommendations for industry ........................................................................................................ 45 Recommendations for future research............................................................................................. 46 References ............................................................................................................................................ 47 Appendices............................................................................................................................................ 52 Ethics form ........................................................................................................................................ 52 Example Interview transcript ............................................................................................................ 53

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Chapter 1: Introduction Background to field of study The reason why I wish to carry out this research is that I feel that the marketing sector of every organisation is growing quite rapidly and so more and more companies are actually taking into consideration, on what kind of image they are projecting on to their customers about their company with their brand image (Waller, 2009). As the marketing field is growing, so is the value of CSR Corporate Social Responsibility, which is also growing steadily in the light of many organisations (Meiri, et al., 2012). As CRS is gradually becoming more of a buzzword in today’s organisations. These companies are also taking into consideration, of the effects of CSR also how it can benefit them and the overall brand image (Verma, 2011). Corporate Social Responsibility within this modern era is growing very fast and companies who tend to adopt to use such strategies and approaches to their business models tend do best out of those who do not adopt such strategies (Sen & Bhattacharya, 2001). The essence of CSR is not only growing within first world countries but it also emerging fast in emerging markets such as countries like India and China (Verma, 2011).

As an individual, I feel that corporate activities such CSR are going unnoticed at the consumer level. This has also be found by The Guardian that CSR activities have been gone unnoticed by consumers (Guardian, 2010). The Guardian also states that even by looking at the magnitude of CSR initiatives within the market today, it is still difficult to understand why companies are not getting any credit. Furthermore, a report made by the Hartman Group found that ‘consumers and companies disconnected on CSR’ (Group, 2010). This may be due to consumer needs and wants and what they expect from an organisation form which they are purchasing or have relations with i.e. a stakeholder. For example, a report done by Edelman Good Purpose

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shows consumers across 10 different countries mainly care about protection of the environment and health and wellbeing of individuals (GoodPurpose, 2009). This report shows that consumers are more inclined to pay attention towards those CSR activities.

Moreover as the light of marketing and CSR is growing as a convergence, there is also the perception of CSR that to some extent has been questioned and whether or not this does affect consumers perception towards a brand (Patel, 2012). As Patel, shows that although this may not be a consumer example this is however a stakeholder to the business and shows that there is a positive correlation between CSR activities and employee organisational commitment.

Research aims and objectives This research aims to explore the impact of CSR on brand image from a consumer point of view. Although this research will not be based within a specific industry, it will be following an exploratory phenomena approach. Respondents will be questioned about companies from a variety of industries to get a true understanding of the impact of CSR on brand image. This research will also be exploring the relationship between CSR and brand image. I will also be looking at the awareness of CSR and the perception and behaviour towards the subject itself from a consumer’s perspective.

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Research Aims: 

To explore the relationship between CSR and brand image.

Research Questions: 1. To what degree are respondents aware of CSR? 2. Does having knowledge of CSR, influence purchasing behaviour?

3. After knowing about CSR, does it affect perception of a brand?

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Chapter 2: Literature Review: Introduction This chapter will aim to present the views of practitioners and scholars. The themes within this chapter are labelled accordingly pin pointing the areas of CSR which were looked at which formed the theoretical foundation of this dissertation.

A brand image is the heart and soul of a company. The brand image itself is used to identify the products of different companies hence the title brand. The brand itself is used to give it personality and influence consumer perceptions of the company it is associated with (Popoli, 2011). This definition therefore makes the brand image a crucial element for any business, which can be used to distinguish its products from the competition. The brand image is the perceptions and beliefs held by consumers about the brand, if you look at the present day market place consumers make their purchases depending on the brands image or identity (Kotler & Keller, 2009). This shows that the brand image, and what it personifies, is extremely vital to the survival of the business.

Secondary data methodology Secondary research was conducted mainly for three main purposes. The first of the three was that the secondary data collected helped create an aim for the study and help create an overall research purpose. The second purpose that secondary data was helpful for is by looking at the existing literature within the CSR field, one can see where the overall theory is drawn from and where it may have originated from as well as, other areas of exploration. Thirdly, the secondary data collected in the literature has helped in the formulation of effective questions that can be asked during the in-depth interviews that were held. As Malhotra & Birks, (2007) states that ‘the collection and analysis of secondary data help to define the marketing research problem

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and develop an approach’. This shows that secondary data is vital in formulating an ideal approach to the study.

The secondary data collection phase started with identifying the existing credible sources, which then gave me an insight into the actual nature of the topic, which was evolving over time. The considered resources looked at were Mintel, Journal of international marketing and many more.

The table below illustrates the secondary data collected. The top half of the table divided into the history of CSR garnered from reports and books explaining the history of CSR. Moreover, the bottom section of the table shows how my literature has formed around the historic timeline of CSR. Although from the table one can see the limitations to this study, through the amount of literature used. However, from this table we can also understand how CSR is growing through the years. As seen in the year 2000 the paper by Sen. & Bhattacharya, (2001) explains how consumers percieve CSR. Moreover in the year 2003 we can also see that CSR within corporations is picking up traction. However, in the years 2011 and above we can see that much emphasis is placed on CSR by large firms as the sources suggest. However it is within this year that we can also see that variations within CSR is also taking place and different agendas are being drawn as to why companies partake in CSR.

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Literature Review Table Key Milestones Historic Perspective of the CSR movement (Carroll, 2008) (Cultures, 2014) (Watch, 2006)

Key Milestones Literature Review on CSR and Brand Image

1960s

1970s

1980s

1990s

2000s

Complementary concepts gained movement such as responsiveness, performance, policy and ethics.

Corporate Social Policy Process is born, two themes developed in the light of stakeholder theory and business ethics.

Corporate citizenship, more than any other, became a concept that competed with CSR.

Much emphasis given to CSR and given way to empirical research branching into topics such as stakeholder theory, Business ethics, sustainability, and corporate citizenship.

End of 1960s business practice categorized philanthropy, customer relations and industrial relations as wider CSR.

CSR accelerates, as Heald, (1957) ushered in path for social responsibility.

His definition not concise, but clear enough to understand what was said in the 1960s.

In the 1970s we find reference increasingly being made to corporate social responsiveness (Ackerman, 1973) and CSP (Corporate Social Performance)

2000

2003

2006

2009

2011+

When, how or whom specific CSR initiatives work.

Consumers personal support for CSR and general beliefs (Sen. & Bhattacharya, 2001)

CSR program of actions to reduce costs (Heal, 2005)

Brand is the most valuable intangible asset (Keller & Lehmann, 2006)

Brand knowledge affected by companies and consumers.

Consumption of a brand increases brand awareness & image (Alimen & Cerit, 2010)

Brand and emotional connection and brand awareness (Narteh, et al., 2012)

Firms found partaking in CSR not only for external obligations but for competition and stock market performances (Klein, 2004)

CSR becoming increasingly popular marketing strategies, CSR an institutionalize program or promotional program (Pirsch, et al., 2007)

Significant attempts to formalize the definition of CSR. ‘Businessmen’s decisions and actions taken for reasons at least partially beyond the firm’s direct economic or technical interest’ (Davis, 1960)

Value, balance and accountability that may be used to discuss CSR, ethics and stakeholder management (Schwartz & Carroll, 2008) corporate profitability acts as a fetter to authentic social responsibility (Simeon, 2007)

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Paper released in 1990s, Academy of Management Journal on the subject of ‘stakeholders, social responsibility, and performance’ (October 1999) linking CSR to Stakeholder theory.

Overall it was found that CSR initiatives had a modest effect on brand preference (Chomvilailuk & Butcher, 2010) Influence of CSR image on brand identity. CSR improves brand prestige and distinctiveness (Curras-Perez, et al., 2009) Stakeholder theory approach to CSR (Freeman, 2010) (Kotler & Keller, 2009) Consumer behaviour (Schiffman & Kanuk, 2009) CSR focused around philanthropic and ethical behaviours (Sheth & Babiak, 2010)

(Husted, 2000) presented a contingency theory of corporate social performance (CSP). This fits with social issues and corresponding business strategies. Integration of responsiveness and stakeholder management.

Business environments (Paul & Dorron, 2011) CSR transfers to brand image differs in local and global brands.

(Popoli, 2011) CSR initiatives providing number of benefits.

How consumers attach to CSR and CSR initiatives impact on consumer behaviour (Assiouras, et al., 2011) How and why companies adopt CSR. Does it improve image?

(Verma, 2011)

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Brand Image Firstly, we must define what is a brand? ‘Brand helps to differentiate products or services from the others’ (Kotler & Keller, 2009). Additionally, Keller & Lehmann, (2005) have stated that ‘Brands are markers of offerings for companies, and a sign of quality, and an indicator of risk or trust for consumers.’ This shows that a brand holds great meaning to any organisation.

Therefore, a brand image for a company signifies the centre of feelings and emotions that, that specific brand carries and personifies. Thus, when a consumer makes a purchase into a brand they feel at ease and comfort when making a purchase as their emotions are also tied in within that purchase. This is because a brand contains all the elements of a cognitive and emotive nature where by the consumer makes psychological and social well-being affection with the product and brand and tries to find them within the brand and gain value at the same time from the brand and product itself (Aaker, 1993). A prime example of this can be the rebranding of BP (British Petroleum) when they redesigned their brand image in the year 2000, which aimed at portraying a “Green image, in an attempt to win over environmentally aware consumers” (BBC News, 2000). The brands identifier was a “green, yellow and white sunburst, symbolizing energy in all its dynamic forms” (BP, 2013). This rebranding of BP is trying to engage with not only the environmentalists but also the customer who use their products, trying to show them that they are more than just a company about petroleum as their slogan suggest “beyond petroleum”. This could also improve brand knowledge about the brand, as wind and solar activities can be perceived as doing well, although majority of the company is still interested in petroleum sourcing. As suggested by Alimen & Cerit, (2010) states that ‘Brand knowledge is defined by descriptive and evaluative brand-related information that it is individualistic inference about a brand stored in consumer Memory.’ This shows us that brand

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knowledge plays an important role in making brand perceptions as that part of the brand is stored in the consumer’s memory.

In addition to this when you look into the marketing management side of the brand image you can find that the brand image itself has not only a strong relationship with the consumers but also other stakeholders whom the firm may meet. This also implies that the brand image itself has to be in accordance with the “stakeholder theory” which means the organisation in question needs to satisfy those that really matter within the business and thus creating the stakeholders (Freeman, 2010). This broadened view of the market shows how the “stakeholder theory” works and encompasses a general vision that a company will interact with other external systems and companies. Moreover, Popoli (Popoli, 2011) argues that the brand image should be “considered as a container of a company’s relationship competences, not only in regard to real or potential consumers, but in regard to all the company’s stakeholders”.

In addition to this, (Narteh, et al., 2012), states that brands today are ‘ascribed with almost divine characteristics, that serve as a strategic business assets essential for firms to develop’.

This shows that brands and brand image is not only a considered as a container for the consumer but from the organisational point of view it almost has a supernatural power that draws consumers towards it and can be used strategically to develop firms. A further point made by Narteh, et al., (2012) shows that consumers with a higher level of brand awareness do not often spend much time on considering other brands when making a purchase and often goes by the common decision-making process of “I buy the brand I have heard of” or “choose the brand I know”. This shows that brand awareness and brand loyalty plays a significant role in the identity of a brand.

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Definition of CSR There have been many extensive literatures done on the effects of CSR on branding and brand equity and others alike. However, none of the literatures previously done on the subject of CSR has a common meaning to what CSR Corporate Social Responsibility is and what it stands for.

One of the definitions for CSR from CIM (Chartered Institute of Marketing) is “Enhancing reputation and brands through responsible business practices and stakeholder relationship strategies” (Marketing, 2013). This definition shows us that CSR is an activity where it not only enhances the reputation of an organisation but also enhances the brand image through responsible business practices and stakeholder relationships. Moreover, there is another definition of CSR put forward by (Heal, 2005) “Corporate social responsibility is a program of actions to reduce externalized costs or to avoid distributional conflicts”. This definition of CSR has the foundations of an economic theory where by CSR activities may take place within an organisation to reduce social costs.

However, the definition of CSR can be split up in to two different schools of thought as expressed by Schwartz & Carroll (2008). The first school follows the very early definition, which states that the only social responsibility for businesses was to make profit is within the guidelines of the law. While the other school of thought expressed it in the manner that businesses had a much larger responsibility in the field this included, the economic outlook, legal and ethical activities (Schwartz & Carroll, 2008).

In addition to this, there is another definition of CSR from the European Union “Companies decide voluntarily to contribute to a better society and a cleaner environment” (Verma, 2011).

This definition is stating that companies have a choice in whether to engage in CSR activities or not. This definition further shows us that there are many perceptions of CSR and it is not as straight forward as it may seem. There is no real legal obligation for an organisation to engage

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in CSR activities (Paul & Dorron, 2011). As Shweta explains that big corporations like McDonalds, for example contribute a lot to society because they have many franchises around the globe thus aiding in employment, which is seen as positive social activity. Secondly Shweta argues that companies pay taxes and their rates are much higher and so this is a source of revenue for social activity which should be then managed well by the government of that specific country (Verma, 2011). Essentially this is stating that the social responsibility of that country is up to the government concerned within that country and not up to the individual or any organisations. The common theme found within these definitions is that CSR itself is found to be a voluntary program that an organisation may undertake mainly for financial and social gains. There are also other perceptions of a company’s activities that are also accounted as acts of CSR when in fact those acts are not CSR but more of a management objective. For example, McDonalds employs humane slaughtering techniques this prevents their workers from getting hurt in the slaughtering process and helps them yield more meat in the process (Verma, 2011).

Such activities should not be counted as CSR activities as they are only doing this for their own benefit without thinking about the consumer as well.

CSR and its Domains On the other hand, what I am trying to find out is “the impact CSR on brand image”. As the brand image, itself is at the centre of any business and aims to keep all relationships strong within it, what I am trying to find out is how does the internal and external activities of the organisation effects its brand image. Shweta argues, “Society does not exist for business, but business exists because of society” (Verma, 2011). This quote is stating that in order for a business to survive the business model of each company must be adapted around the society they reside in for businesses exist because of society itself. Therefore, the brand image of an

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organisation plays an important role in this theory, as the brand image is what the consumer bases their emotive and cognitive nature on for them to make a purchase. Shweta also enforces the idea of CSR becoming an important part in brand image “Credit rating agencies consider CSR initiative of companies for rating and in result; it gives positive impact in the mind of investors too” (Verma, 2011). The CSR theory also has to work in accordance with the “stakeholder” theory where broader targets of the market are also satisfied with the organisations activities and so strengthening the brand image. In relation to this (Schiffman & Kanuk, 2009) have also argued that brands that have a much higher level of awareness are more prominent in consumers’ minds and tend to do better in performance, in comparison to those brands that have a much lower brand awareness. This statement by Schiffman and Kanuk shows that for a brand to be more prominent in consumers’ minds, they would require more brand awareness this may include activities like advertising and CSR activities, which can also boost their corporate image awareness amongst consumers alike.

Financial Implications of CSR There is in addition, the question of CSR on financial performance “Does CSR improves financial performance?” There is growing literature on this subject, which investigates the relationship between Corporate Social Responsibility and financial performance. Majority of studies happen to find that there is a positive correlation between CSR and different indicators of financial performance (Kotchen & Moon, 2011). There also raises the question of why do companies go in to the CSR field? This question is related to the relationship between CSR and financial performance. A study has found that consumers are more sensitive towards negative CSR. “This negativity bias exists when consumers react more strongly towards corporate irresponsibility than towards corporate responsibility” (Assiouras, et al., 2011). This gives

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more of a reason for companies to undertake CSR activities as not only will it improve brand image but also their financial performance as it is linked with that. In addition to this, Chomvilailuk & Butcher (2010) states that “several authors have suggested that there should be a positive association between CSR and brand equity”. To further, support the statement (Sheth & Babiak, 2010) stress that the theory behind doing good has a strong resonance with consumers and has higher chance improving the brand image with the effect of such activities.

However, Chomvilailuk & Butcher, (2010) argues that in practice there is little evidence to prove if doing well has a strong resonance. This is because brand equity encompasses many elements to it such as quality, brand association and loyalty and there is hardly any research done within the field of whether CSR initiatives influence preference measures.

CSR and the Macro Environment In addition to this another study found that the cost of CSR also needs to be considered and is as important as how the CSR initiative takes place. As CSR in most cases is seen as a profitable activity, if seen from the angle of the corporate side the wider interests of the stakeholders and the rivals actually threaten the levels of profitability in the end (Simeon, 2007). Simeon continues to explain that if the organisation is within the environment of a capitalist society then profitability will come first before the stakeholder side see any improvements. This shows that the environment that the organisation is within also holds significant importance.

Moreover, (Chomvilailuk & Butcher, 2010) shows that in “1998 around 80% of Fortune-500 companies reflected on CSR issues on their website”. This shows that there is a growing interest for organisations in undertaking CSR activities. However there is also another side to this matter as pressure for companies to voluntarily to take part in CSR may be coming from the public and organisations such as the UN Global Compact (Pirsch, et al., 2007) which are Aminul Hoque 000 654 857

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forcing organisations to take part in a CSR and wider social activities within their business structure. An example of this can be the UK government changes to how a company operates within environment. This is actually a forced measure for organisations to take part in CSR in order to abide by UK regulations.

Another aspect as to why CSR may be beneficial to a company other than financial gains can be that CSR has many domains. Generally, CSR activities in the past would have a limited number of activities and thus the outcome from those would be minimal but none the less be a positive attitude. However CSR today has proved to have many attributes and benefits such as “Consumers’ positive product and brand evaluations, enhancement in brand image and personality, store attractiveness, brand choice, brand loyalty and commitment, brand identification, identity attractiveness, brand recommendations, advocacy behaviours and firm value market� (Sen. & Bhattacharya, 2001). As Bhattacharya has mentioned, CSR may entail many positive attributes and holds a credible option for companies to go into the field of CSR. However, Lichtebstein, et al., (2004) found that CSR had both a direct and indirect positive influence on the brand as well as the company. Moreover, (Curras-Perez, et al., 2009) found that among Spanish consumers purchasing cosmetics, CSR image within a firm played an important role as it had a direct and positive effect on the brand attractiveness. This shows that although the link between CSR and brand image as a whole may not be that strong, but in individual areas such as cosmetics where the business is orientated around consumers for example if you look at the body shop (The Body Shop, 2013) their wider social activity is to not use products on animals. This is part of their wider social activity and social responsibility as well as their business strategy and their unique selling point (USP).

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Gaps in Literature Based on my secondary research I have discovered that brand image is impacted through many factors. These can be comprised of factors such as brand association brand loyalty and even brand knowledge. However, through findings the authors do not consider the impact of CSR initiatives as it can be seen that, there is little knowledge on CSR initiatives and influence preference measures. As this can be insightful to see what CSR initiatives consumers move towards. There is also weak empirical research in perception and consumer behaviour towards CSR which can be further explored.

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Conceptualisation of Literature

Created for the purpose of this dissertation

After analysing the literature, I have formulated a conceptual framework for this dissertation.

All these factors affect brand image and based on the secondary research this conceptual framework has been created. This will now inform the basis of my primary research. After analysing the literature, I have found that brand awareness, reputation, and stakeholder theory are all important factors to a brand and its image. With the use of the primary data collected, I will try to understand, if this conceptual framework correlates with my findings.

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Conclusions After reading through these literatures, I have found that there are many aspects to brand image and that not one element can solely describe how a brand is made or brought into existence but it takes into the consideration the environment as well as how the brand itself is perceived amongst consumers and the overall brand awareness. Although the literature on benefits of CSR and branding may be extensive, the literature on CSR and consumer behaviour is quite weak. As Klein suggests, “These studies have also shown that the effects of CSR on Consumer behaviour is not overwhelmingly strong” (Klein, 2004). This suggests that the perception and consumer behaviour towards CSR may need further researching into if I am to explore the true relationship between CSR and brand image. On the other hand, Chomvilailuk & Butcher, (2010) also argue that although the idea behind doing well has a strong resonance with consumers, which also has a higher chance of improving the brand image. Chomvilailuk & Butcher, (2010) also argues that measuring such effectiveness is quite difficult as “brand equity this is because brand equity encompasses many elements to it such as quality, brand association and loyalty and also there is hardly any research done within the field of whether CSR initiatives influencing preference measures”. This suggest that the area of whether CSR initiatives influence preference measures needs to be further researched into as well to get a broader indication of the relationship between CSR and brand image and the CSR initiatives that may influence brand preference measures.

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Chapter 3: Methodology Introduction: This chapter aims to look at how I have gone about collecting my data for this research. This chapter will also be going through some of my research questions as well as how I have developed to undertake my primary data collection with the aid of my secondary data collection. This section will also go through my rationale of using qualitative data collection, and how it fits appropriately with my research. The figure below is showing the graphical summary of how the research took place.

Source: Malhotra & Birks, 2007

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The Research Paradigm This piece of research was heavily based on theory as well as observational approaches, which then defined the research questions and the overall design of the dissertation. Whilst conducting the study, two paradigms needed to be considered which were positivism and Interpretivism.

The interpretivist seeks to establish the legitimacy of his or her approach through induction (Malhotra & Birks, 2007). Kapoulas & Mitic, (2012) also state that the interpretivist pardigm is commonly refered to as a humanistic, subectivist and qualitative approach.

This dissertation aims to explore the relationship between CSR and brand image, which looks at emotional attachments made with brands through consumers alike, and how individuals perceive CSR and brands after having a wider knowledge. This meant that an investigation exploring multiple dimensions of the phenomena needed to be undertaken to get a full understanding of what was happening. This was possible through the interpretivist method as this proves legitimacy through induction.

‘Induction is a form of reasoning that usually involves the inference that an instance or repeated combination of events may be univerally generalised’ (Malhotra & Birks, 2007). Also Lawrence, (2005) states that “This inductive style of data analysis was a process of uncovering the story rather than a process of proving the theory”, thus showing that it does cover more of the qualitative nature which addresses my dissertation needs. (Malhotra & Birks, 2007)

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The table above outlines the four philosophies that can be used in research methods. From the table above, the preferred method chosen was Interpretivism as that approach gave a sound foundation to the research.

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Qualitative research: Qualitative research encompasses a variety of methods that can be used within this study. As Malhotra & Birks, (2007) states that ‘it enables participants to reflect upon and express their views or to observe their behaviour. It seeks to encapsulate the behaviour, experiences and feelings of participants in their own terms and context’. This conveys that qualitative research tries to envelop more of an emotive nature and very observant in behaviour.

Qualitative data collection method best suits my line of work in trying to find out if “CSR has an impact on brand image”. I have chosen the qualitative approach to the study because firstly my research questions propose to find out an in depth analysis of the randomly selected target population if whether or not they are aware of companies and their CSR actions. For me to undertake such a study using Qualitative data collection method would be ideal as the topic of CSR is going to be very difficult to quantify feelings and emotions towards the topic of CSR and then reiterate them back into numbers. Moreover, to further back up my use of qualitative data within my study, my two other research questions, which also aim to find out “Does having knowledge of CSR, affect purchasing behaviour? In addition, “After knowing about CSR, does it perception of brand?” from these research questions you can see that there is the feelings of perception and behavioural instincts involved. These questions from a quantitative point of view would be very hard to examine and fully analyse, as there will be a mixture of emotions, which will be very difficult to understand in numbers alone.

I have chosen qualitative data analysis as the primary method of data collection this is because a qualitative study has many more benefits as opposed to a quantitative approach within my study. The qualitative research follows more of a naturalistic and humanistic approach to finding out such data. Furthermore, this type of research is ideal as my aims of the study include “exploring the relationship between CSR and brand image.” As Donald Campbell would Aminul Hoque 000 654 857

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suggest "All research ultimately has a qualitative grounding� (Miles & Huberman, 1994). A qualitative study will also give my data collection and findings a more realistic and holistic view of what I am trying to find out. This is because a qualitative study would give a more realistic insight into the findings as this is a more feelings and behavioural study, which aims at getting a more rounded view of what perceptions and behavioural attitudes consumers, may feel towards brands and CSR activities. A qualitative approach will also allow me to develop a flexible approach to my findings as well as the data collection as the questions asked can develop further into more exploration from the interviewers’ side. In addition to this, a qualitative approach to my study will enable me to get an insight of first-hand experience of what the interviewer is feeling and behaving through the questions asked. These attributes of a qualitative study would benefit my proposal because aims and research questions are trying to find out the perception of CSR as well as the behaviour towards brands and purchasing which qualitatively would give a more rounded holistic view of the picture.

Both qualitative and quantitative data collection methods have their limitations. However, in the case of using a quantitative approach in this study would mean that I would only have to refer to numerical analysis to find out whether not the respondent is aware of CSR. As Fred would suggest that, "There's no such thing as qualitative data. Everything is either 1 or 0" (Kerlinger, 1999). This definition would suggest that the questions would have to be very precise and thus limiting the respondent to the questions themselves and leaving out the behavioural and emotional approach to the study as the research questions suggest

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Primary data collection: Sampling: As stated earlier, this dissertation would require rich qualitative data in order for me to get a full insight as to how people behave towards brands. For this study, I believe that using a nonprobability sampling would be best. This is because; non-probability sampling relies on personal judgement of the researcher rather than chance (Malhotra & Birks, 2007). This means that the researcher has the overall decision as to what is included in their sample.

The target population for this study would be ideally those that are over the age of 18 due to ethical concerns and procedures. The respondents I have chosen for this study are not specifically from any industry or base it around any industry environment, as I wish to get an overall view of what the public perceive of the term CSR and if it may relate to brand image. I have chosen to conduct the study in such a manner because as CRS is growing, there are many misconceptions being built by it too. As stated by the BBC , (2012) ‘You have to be authentic otherwise people become very sceptical about who you are and why you're doing it, and that can be very damaging.’ From this, you can see that there are many faces to CSR that I wish to be explored further.

I have further narrowed down the sampling technique that I wish to use; I have found that the snowballing technique would best fit my method of primary data collection. This is because the snowballing technique would give me access to a rich pool of data. This is because it will use respondents who are initially selected sometimes on a random basis, but more typically targeted individuals who are known to possess desired characteristics (Malhotra & Birks, 2007). After the interview, these respondents are then asked to identify others who may be of

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a similar nature. Although there is, a level of bias present within this type of sampling, selecting individuals from various backgrounds were used to reduce repeated samples.

Sampling recruitment The recruitment for this method was done through the snowball technique. This is a process where initially a group of respondents is selected randomly. However, typically are individuals who possess the desired characteristics (Malhotra & Birks, 2007). After conducting the interview, the respondents are then asked to identify others that may be interested in the survey too. For this research, about 12 respondents were chosen to get a reasonable view from respondents. This is also a good justifiable number.

Sampling criteria: After undertaking the secondary data collection, it has helped me to better define the respondents for this piece of research. Undergraduate and professionals alike were chosen to see how ideas fluctuate between different age groups. The sample contained anyone over the age of 18, as it needed to adhere to the MRS code of conduct. Respondents were also chosen from various backgrounds, to make sure that the data was not producing homogenous samples (Poria, et al., 2011). Overall, the respondents had to be over 18 as I was just trying to get a general understanding of how brand image was being affected, through different individuals and if the causes were CSR related. As the main question remains, ‘does CSR have an impact on brand image?’

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In depth interviews: Within this study, I have decided to use in-depth interviews to carry out this study. I have chosen to do so because I feel that it will help me get a better understanding of the situation and conceptions that consumers have built up. In-depth interview from what Malhotra & Birks, (2007) state that it is an, ‘ unstructured, direct, personal interview in which a single participant is probed by an experienced interviewer to uncover underlying emotions.’ With the use of indepth interviews, there are many advantages and disadvantages, although the advantages do outweigh the disadvantages with its use in this dissertation.

As in-depth interviews can be used to uncover a greater depth of insight than focus groups and also result in free exchange of information, and also much easier to arrange than focus groups (Malhotra & Birks, 2007). In-depth interviews have many techniques that the interviewer can use to draw quality information from the respondent. For example laddering is where the interviewer is trained in specific probing techniques, which then develops a mental mind map for the researcher to understand the respondents fully. The laddering technique mainly tries to focus on motivation and cognitive structures.

In- depth interviews can also use a technique called projective techniques, this is where researcher ‘uncover the innermost thoughts and feelings of a person, those aspects that are particular to this person, in other words the essence of his or her individuality’ (Suné, 2000).

The aim of projective techniques is to project their own unconscious feelings in their answers.

In addition to this, the style that the in-depth interview will be following is of a semi structured interview. This is because this is an exploratory research and so more information can be collected through natural conversations where projective techniques can be used to explore the consumer point of view on CSR and brand image.

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Ethical considerations According to Ethics, (2011) the common way of defining what ethics means is ‘norms for conduct that distinguish between acceptable and unacceptable behaviour.’ Moreover, there is also another way of defining what ethics is through focusing on the disciplines that study standards of conduct. These can be for example philosophy, law, psychology or even sciences (Ethics, 2011). This dissertation will be using the second approach as that is focusing more on the disciplinary side of conducts with consumer’s information. This study will adhere to the MRS code of conduct and follow the Data Protection Act (1984) and Freedom of Information Act (2000). Further information is presented in the appendix.

Data analysis Data for this research will be analysed using coding techniques and the use of Word Cloud software. Malhotra & Birks, (2007) goes on to say that codin is where the ‘researcher needs to be able to organise, manage and retreivethe most meaningful bits of qualitative data they collect. This is normally done by assigning “lables” to the data. ’ this shows us that although not all of the qualitative data may not be useable, key areas may need to be labelled for appropriate use. On the other hand, there is also the use of Word Cloud software, which can be used for data analysis. Word cloud software, Wordle (Feinberg, 2013) (Wordle.net) uses Geographic Information System (GIS) spactial analysis. This method is used in vairious methodological approaches. Also Wilson, (2012) states that ‘It offers a quick and useful way to data mine, and synthesise large amounts of text, in order to yield key and significant themes within one image.’ This shows that by using the word cloud tool this study is getting the best of both methodological approaches.

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Validity, Reliability and Objectivity Precautions have been taken to make sure that this dissertation and its finding are reliable in order to be reliable and objective. The validity of the respondents was ensured by obtaining information through formal consent and abiding to the MRS code of conduct. In addition, academic journals have been used in the study to further validate the approach to the study and basing the grounds of collecting the primary data. Moreover, pilot studies have also been conducted to ensure the smoothness of the questions and to not cause ambiguity.

Limitations There were many limitations to this study; firstly, the literature that the study was based around is not comprehensive enough to fully understand the true idea behind the nature of CSR and why it takes place amongst companies. Although a good amount of reading was done on the subject, I believe that if given more time, a more rounded view could have been built up to better support the argument. In addition to this, the approach taken within the methodology can always be changed to better show the characteristics of why such perceptions are made. For example, instead of using the qualitative approach, quantitative can be used to get an in-depth view of how many people actually care about CSR and what kind of brands they purchase from. The qualitative approach can also be limiting to the extent that not much is also drawn from subjects and only so much probing and laddering can be done to extract such information.

Furthermore, there was also the bias of the type of methodology used to collect the primary data, which could have been changed. This is because by using the snowball sampling technique the study could have easily gathered more homogenous data, which may not be an overall representative of the general population. Moreover, within the data collection there is Aminul Hoque 000 654 857

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also a tendency to be bias and force the subjects within a certain direction so that answers are drawn in favour of the researcher. Therefore, to avoid such problems in data collection, I would recommend the researcher be observed by another to make sure such techniques are not used to draw bias information. Furthermore, there is also the bias in the data analysis, which may occur.

Conclusion In conclusion, from this chapter it can be found that the researcher has taken an Interpretivism approach to the study. It also found that snowball sampling is an appropriate means of collecting primary data for such a project. This is because they are known to have a rich pool of data and possess desirable qualities.

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Chapter 4: Results and analysis of findings This chapter will summarise the key findings of the research, which was carried out in order to answer the research questions. The results demonstrate objectivity, clarity and reliability of the study.

This dissertation aims to explore the impact of CSR on brand image conducted among general consumers. The process of analysing the collected data included data coding and the use of word cloud as suggested by Silverman, (2011) discusses the importance of qualitative analysis delivering a “professional vision” Silverman also adds that one must “Creative even playful, engagement with your archive”. In addition to this Silverman, (2011) also recommends that a “pen and paper” approach should be used more than that of a computer assisted approach.

However having found that both methods were of use to this study, word cloud software was ‘found to bea useful tool for harmonising pen and paper desk analysis, word document text and pictoral respresentations’ (Wilson, 2012).

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Unique Respondent Codes No:

Gender

Age

Level of understanding of CSR

1 2 3 4 5 6 7 8 9 10 11 12

Male Male Male Male Male Male Male Male Female Female Female Female

21 21 22 22 22 24 26 42 21 26 26 27

Level 5 Level 4/5 Level 3 Level 4 Level 5 Level 4 Level 4/5 Level 4 Level 5 Level 5 Level 4/5 Level 5

Unique respondent code M1L5 M2L4/5 M3L3 M4L4 M5L5 M6L4 M7L4/5 M8L4 F1L5 F2L5 F3L4/5 F4L5

Unique respondent code table

The contents of the table above was made through analysing the data through a simple yet effective flow chart made to show the levels of CSR understanding the respondents may have (see below). The five classifications that were identified are; ‘Unaware of CSR, Insufficient knowledge, does not care about CSR, Aware but not affected by CSR and Susceptible to CSR.’ In addition to this by looking at the unique respondent table above, the respondents have been classed under “male/female L1-5” the single letter denoting the gender status and the L denoting what stage of CSR they care about within the parameter of this dissertation.

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Research Question 1: To what degree are respondents aware of CSR? From the data collected, it can be seen that most of the respondents are aware of CSR to some extent illustrated by the flowchart above. It can be classified that the level of awareness within the parameters of this dissertation is that the respondents either are aware of CSR but have insufficient knowledge about the topic or be completely unaware of what CSR is. The level of awareness that an individual possesses can be closely related to the AAU Metrics (Awareness, Attitudes and Usage) as stated by Reibstein, et al., (2006) AAU metrics enables marketers ‘to quantify levels and and trends in customer knowledge, perceptions, beliefs, intentions, and behaviours.’ However, in the context of this dissertation this model can be used to find the perceptions and beliefs of consumers, as shown by the classification flowchart above.

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The AAU metric is also closely related to the Hierarchy of Effects of model (Lavidge & Steiner, 1961). The Hierarchy of Effects, an assumption that customers progress through sequential stages from lack of awareness, through initial purchase of a product, to brand loyalty. Although this dissertation does not follow into the domains of brand loyalty, the above model has been adapted to show how the respondents have taken effect, from the initial of lacking of awareness to having in sufficient knowledge of CSR. In conclusion, the results show that majority of the respondents show that they are aware of CSR and others a step further but have insufficient knowledge of the subject to say anything more.

Research Question 2: Does having knowledge of CSR, influence purchasing behaviour?

From the data collected, it can be seen that most of the respondents that took part in this study have stated that having knowledge of CSR affects their purchasing behaviour. However if we look into this deeper we find that some respondents are almost relating CSR to relationship marketing. For example, “Respondent M6L4” felt that CSR was in a sense of relationship marketing style. As he states; “I mean I would say in a sense, because I am more aware of what to look at now and not just focusing on different companies. Needs I really want from them? Look at what they are doing outside of their company, to actually make the place a better world. Customers do appreciate what businesses are doing outside of the company and I believe it is a good way of building reputation, and I will be influenced of what companies are doing.”

Male 6 Age 24 Level four

“I mean I would say in a sense, because I am more aware of what to look at now. And not just focusing on different companies.” This shows us that rather than moving from one company to Aminul Hoque 000 654 857

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another, consumers are more willing to stay with one company and actually build a relationship with the brand. So for consumers to stay with the brand more has to be done by companies other than brand incentives, thus relating to CSR initiatives to retain customers in this sense.

This can also be related to the literature as Popoli, (2011) argues that brands should be like a container of a company’s relationship competences. As shown, here this respondent feels that CSR does affect their purchasing behaviour. This point is further emphasized by another statement made by the same respondent.

“Customers do appreciate what businesses are doing outside of the company and I believe it is a good way of building reputation, and I will be influenced of what companies are doing.”

The respondent states that, influence and reputation is key for a brand. This shows us that, for a brand to build reputation it may take other routes to build brand reputation other than selling quality goods. They may partake in CSR to build brand reputation as well as influence consumers through such strategies. The respondent also adds that, consumers do appreciate what companies do outside of the business. This shows that consumers now are more aware of CSR and do expect it from companies, which may also affect their purchasing behaviour. As Reeves, (2010) states that ‘more than 88% of consumers think companies should try to achieve their business goals while improving society and the environment.’ This shows that consumers are aware of CSR and do expect it to be incorporated within businesses.

Moreover, another interview found that “Respondent F4L5” had tendencies to think that CSR done by most companies is in a sense of ‘green washing’ “No, working in a school I work with a lot of companies that work with us as part of their own CSR programmes and I have seen how for many companies, as much as I would not like to say it, they are doing it as a token of good gesture. There is not really a long-term investment or there is not necessarily a genuine desire to help the people they are working with. They just want to look good and I am not interested in working with people that just want to look good.

However, I want to buy from companies that are good from their foundations, which to me is much more about how they treat their workers and how they run their businesses as a whole.”

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Female 4 Age 27 Level Five

Although from the initial statement, she has states that having knowledge of CSR does not affect her purchasing behaviour. She believes that if a company shows true altruism and social unity from its roots then it would influence her in purchasing decisions. The respondent believes that companies who partake in CSR now are almost “green washing” which means trying to appear as though they are doing well by minute amounts of CSR activity. As from the statement above, the respondent was relating this to Amazon, as they recently had many backlashes in terms of Tax evasion and employee working conditions and rights. For example, the respondent is more interested in companies like Innocent Smoothies, than the likes of Coca Cola who only took part in CSR after they became market leaders unlike Innocent, which was embedded from the start.

“To be honest with you, no. and I think it just depends on the type of person you are because when it comes to ethical issues. Its like what Primark has done, its never really stopped me from going there and shopping. Because I think it does affect the company. I think if all consumers come together, well consumers have a lot of power to destroy a company. But consumers have to be bothered to get together and fight for the right. Likewise with employees when they have conflicts at work and when their manager is oppressing the employees. If employees would get together and fight for this we would have certain rights. But we get oppressed and we just can’t be bothered to do anything. Likewise with this if I was driving past a Shell petrol station and there was no other option I would still go and get it. So it doesn’t stop me that drastically.”

Female 12 Age 27 Level four and five

From the respondent above it can be seen that, although the initial statement was that their purchasing behaviour is not changed by CSR, they do however go on to say that CSR will affect the type of person you are and their accepted levels of ethics. This can be related to developmental process ‘knowledge, volition, and action’ (Langlois & Lapointe, 2010). As this model shows firstly that the knowledge is there to put our own understanding in perspective.

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Volition is where; the individual highlights the beliefs and principles in which we adhere our levels of awareness (Langlois & Lapointe, 2010). Finally you have the action phase which puts the whole phase in perspective. From this it could adapted with the knowledge of CSR and then the action taken from it as the respondent states that it depends on the individual. The respondent also states that, consumers hold key to CSR if they wish to bring about change which may show that consumers may need to be emotionally attached to the organisation.

The main themes concluded from this research question is green washing and relationship marketing. As respondents feel that companies need to be good from their roots which is treating their employees right and also be able build relationships with their customers, and make emotional attachments with them.

Research Question 3: After knowing about CSR, does it affect your perception of a brand?

From the interviews conducted it can be seen that, the respondents do believe that their perception does change after knowing about CSR. From the statement below it can be seen that there is a relationship bond with the brand, which is somewhat torn after finding out that Apple doesn’t participate in CSR.

“Yeah I am quite shocked about Apple. I’ve always known that they didn’t have any CSR in place. But to think that they still haven’t. Sometimes makes me think they are so arrogant, I don’t want to buy their phone. But I’m just addicted Apple and iPhone and it’s like I can’t think of buying any other phone. So I guess they got me as a customer. But no it doesn’t affect my perception of a brand. I think it’s because I’m that typical consumer who I’m getting it and I’m happy whatever happens behind closed doors I don’t really care. This is quite sad.”

Female 11 Age 26 Level four and five From the above statement, it can also be seen that, although from their previous statement it was stated that “consumers do hold the power”. Here they have stated that, nothing can be done Aminul Hoque 000 654 857

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about the companies’ activities, as not enough consumers are repelling against such a big brand like Apple.

“It is always interesting to know what programmes people are doing, obviously there are some companies that do amazing work with schools for example, we have worked with Barclays and they have done a really good programme with us and that has given me a more positive perception of Barclays as a bank especially when the chief of the retail banking met with our students personally and that touched to me to think he was willing to give up his time to do that. It could affect my perception but equally effect my perception in a bad way if I see a company doing a CSR programme that seems to contradict the other practices as in the case of amazon. Just because they do that “smile” doesn’t mean I am suddenly going to buy from them, it just means that they are inconsistent.”

Female 12 Age 27 Level four and five

From the statement above it can be seen that the respondent does have a positive correlation with knowledge of CSR and brand perception, as they have had a first-hand experience at it.

This respondent shows more signs of relating to the brand and creating relationships. However from the statement they do also say that, CSR can affect their perception of a brand equally negatively. This is because they could be using CSR as a form of green washing the organisation. They also state that companies need to be consistent with their activities and levels of altruism or altruistic behaviour. From the experience stated above altruism can be seen in such a way.

Really not sure. Because most companies are doing CSR, they don’t need to be a market leading company. No I don’t think it would, but I think every company that is successful in their industry must promote CSR. Male 6 Age 24 Level four

From the above statement it can be seen that, the respondent finds CSR too much of a generic activity. Almost like every company is taking part in it almost diminishes the reason why the company is partaking in such activity other than financial gains. However this respondent does Aminul Hoque 000 654 857

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also state that most companies should take part in this activity as this is somewhat of a norm in today’s society.

No it wouldn’t affect my perception of a brand. This is because a company can be the most innovative company however they may not have any CSR initiative in place. I can’t really say that they are the worst company and give them a bad name, because they are making a lot of innovations. This is actually affecting the world in a good way because they are making a lot good products or services. So the answer is no it wouldn’t affect my perception of a brand.

Male 3 Age 22 Level three

From the above statement it can be seen, although the initial statement that their perception of a brand will not change if they don’t partake in CSR. However the respondent does discuss that innovation has a massive play in companies. He states that, “a company can be the most innovative company however they may not have any CSR initiative in place.” This shows us that, innovation within a company can play a big role in improving one’s life. For example if you look at Intel, their mission is to “This decade, we will create and extend computing technology to connect and enrich the lives of every person on earth” (Intel, 2014). They are not only just a computer chip manufacturer but through their innovations and inventions other benefits have arisen. Therefore the respondent here is trying to justify those companies such as Intel are actually partaking in CSR activity indirectly, as they in an industry which is somewhat heavily reliant in technological innovations.

Definitely. People feel better when they buy product knowing the company helps society. Rather than just buying a product. For example in the clothing industry where workers are exploited like exports, they are not paid enough, working and living conditions are very bad. So it feels good to know that there are people that care about such things such as CSR and society as well.

Male 2 Age 21 Level four and Level five

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The main themes discussed here innovation, relationship and green washing. From the following transcripts we can conclude that, although companies may not be partaking in CSR activities they may be helping society indirectly through their initial business plan. There is also further emphasis placed on relationship building within brands and the consumer, which may indicate the importance of such activities between the two. In addition to this, a further point on green washing is also made which shows that there are very few companies out there who act altruistically.

Conclusion To conclude, from the responses to these research questions it can be seen that, the respondents are aware of CSR to an extent as classified by the flowchart in the previous section. We can also find that having knowledge of CSR within a company does influence purchasing behaviour. However, it was also found that not all respondents were influenced the same way, so it may be that the CSR activity must create value for the customer in order for purchasing behaviour to change. It can also be found that CSR does influence brand perception to some extent, as there is a strong resonance with consumers liking brands that go good for communities and environment. However, others have argued that a company can be indirectly helping consumers without it having CSR imbedded within its roots.

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Chapter 5: Analysis of Findings This chapter aims to bring together the theoretical framework of this dissertation and the results presented in Chapter 4. This chapter will go through the analysis of the responses as well as the use of word cloud and its interpretations on the findings.

Forming Relationships From the findings in chapter 4, it can be seen that most of the respondents, wish to relate to the company. This “container theory” can also be found in the literature used to formulate this research. As Popoli (2011) suggests ‘that considered as a container of a company’s relationship competences, not only in regard to real or potential consumers, but in regard to all the company’s stakeholders’. Moreover it is also found that by looking at the literature and results presented in the previous chapter, that a few respondents argued that consumers hold power in what companies do in society. Similar findings was also presented within this literature as stated by Verma (2011) ‘Society does not exist for business, but business exists because of society.’ From these two findings, alone we can see that consumers do feel that the brand is almost meant to be like a container for emotional attachments as well the fact that, consumers realising that businesses should revolve around consumers and societies not the other way round.

Apple, as a powerful brand Moreover, within the discussions it was also found that the brand Apple did have prevalence against other brands. For example from “Respondent F3L4/5 f” interview it was found that, amazon is somewhat forced to carry out CSR activities even though it is not legally obliged to carry such duties.

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Again, if it were not that they would have done something else, either way they have to do CSR. They would have to because it is part of their reputation.

Female 26 Level four and five However when it came down to Apple, it seems as though the consumer almost doesn’t care if a company carries out CSR activities or not even though after stating that the company is “Arrogant.” Relating this to the conceptual framework, (Schiffman & Kanuk, 2009) have also argued that brands that have a much higher level of awareness are more prominent in consumers’ minds and tend to do better in performance. This is showing us indirectly that, brands that have a very high level of awareness and high in performance tend to do better than companies that have lower awareness. However adding on to that point, it is also found that brands such as Apple are seen as too powerful to tell what to do, in a sense as found in the results. As comparing Amazon to Apple, Apple is doing significantly better than Amazon, as found in Money (2014), Apple has a brand value of $104B compared to Amazon $15B.

Definitions of CSR In addition to this, it was also found that, the definition of CSR varied amongst respondent as compared to the multiple definitions found within the conceptual framework of this dissertation. From the many interviews it can be drawn that, reputation is a key factor in CSR and CSR activities. It was found that respondents had an understanding that companies were not all altruistic, there was a hidden gain in them partaking in CSR activities, one of those attributes that wished to be improved was the reputation which can be seen from the interviews conducted. This can also be seen from a report done by the Reputation Institute which found that ‘42% of your company’s reputation is driven by perceptions of Citizenship, Governance, and Workplace, the three reputation dimensions that comprise CSR’ (Intelligence, 2013). The Reputation Institute also states that, companies are just “green washing” and not taking a Aminul Hoque 000 654 857

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serious approach to relationship building. From this we can see that reputation is a key part in building a brand and maintain a strong CSR initiative.

From the definitions of CSR from the respondents it was also found, that there was a strong emphasis placed on stakeholders and the need for their lives to be improved by the activities of the businesses within society itself. This can be closely linked to that of the Chartered Institute of Marketing definition which states,’ Enhancing reputation and brands through responsible business practices and stakeholder relationship strategies’ (Marketing, 2013).

Created for the purpose of this dissertation

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The above top down pyramid has been adapted from (Reidenbach & Robin, 1991) model of Corporate Moral Development. The pyramid above shows us the common themes and ideas developed by the respondents. The pyramid also shows the adequate knowledge which contains the more understanding nature of CSR. Finally within the bottom section it contains the actual nature of what CSR is and how it should be portrayed by firms. This has been developed from the findings of the primary research within this dissertation.

From the table we can draw a conclusion that most respondents found to be discussing CSR in the region of “common knowledge.” It was found that respondents mainly perceived CSR as way of enhancing profits; society and environment focused as well organisational behaviour focused. However, if we look at the “adequate knowledge” we begin to get a deeper understanding of what the respondents actually discussed. In addition this, at the bottom of the adapted pyramid it can be found the actual concept of CSR and what it should be entailing through which was derived from the literature.

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Word Cloud

Developed for the purpose of this dissertation

The above use of word cloud software, [tagxedo.com] (Tagxedo, 2014) made from the respondents transcripts, shows us many key points that can be emphasised on. As this word cloud is made up of the consensus view of the topic of CSR and its effects on brand image. The graph is telling us that the respondents showed more concern towards charities, support and people when the issue of CSR was raised. This relates to the conceptual findings of this dissertation as the Chartered Institute of Marketing definition of CSR emphasises on

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‘stakeholder relationship strategies.’ (Marketing, 2013). The cloud above also tells us about importance of reputation and responsibility, which may also indicate that CSR should be about ethical practices within the organisation as well as outside the organisation.

Conclusion From the findings of this chapter, it can be seen that most respondents were interested in forming relationships with firms. They saw CSR as a form of engagement and a way of relating to consumers. Moreover, from this chapter we can conclude that consumers also saw Apple as a brand innovates yet does not give back to the community in which it serves. This may be because they believe that innovation is helping the community so why partake in a voluntary activity. From this chapter it was also found that respondent’s definitions of CSR varied compared to the definitions stated within the literature. This shows that CSR is not generic amongst consumers; it varies according to beliefs, which may also relate to the stakeholder theory.

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Chapter 6: Conclusions and Recommendations Conclusions From the findings of this dissertation, it can be seen that CSR is undertaken by companies for various reasons. Some of the reasons may include either educating or possibly even greening wash (cleaning the brand image) their image. However, through the literature and findings of this dissertation it can be said that CSR is not just about building a better financial portfolio.

Through the findings it is found that although there may be financial gains in such activity, it is more about building reputations and relationships with consumers as (Intelligence, 2013) states. The Reputation Intelligence also states that CSR should be a way of building relationships and not just green washing a brand as it may have been found within this research.

In addition to this, by looking at the primary research found confirms my findings within the secondary research and relates to my conceptual framework. As seen within my conceptual framework, I have based this dissertation around factors such as brand knowledge, brand awareness, the business environment, reputation and the stakeholder theory. The primary research has showed that consumers people are aware of CSR but to an extent. As the flow chart in chapter 4 illustrates that people who may have an opinion or idea of CSR do to some extent care about CSR. However those who have no clue as to what it is, do care once alerted of it but most of the respondents show that they do not.

The primary research also shows that consumers do feel they should be part of the wider business need; this is in accordance with the stakeholder theory (Freeman, 2010). Within the primary research, it was also found that CSR has a strong resonance with ethical practices

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amongst consumers. This shows that although CSR is a process that which is voluntary, high expectations of ethics and ethical practices are expected from businesses by consumers.

Moreover, we can also conclude that, consumers wish to form relationships with companies, thus forming bonds and increasing in loyalty for organisations. It is also found that customers naturally want to be loyal, as loyalty in itself is found to have many health benefits for customers (Wang, 2011). From this, it can be seen that to loyalty is a part of forming relationships, which consumers are seeking from companies and vice versa.

Furthermore, speculating on the organisations discussed within this dissertation, it shows that Apple, are perceived as a company with a lot of power. Respondents within this dissertation even argue that Apple has too much power that they disregard the stakeholder theory to an extent. However this is from a consumer point of view, but from financial results being listed in Forbes showing that Apple was most valuable brand of 2013 (Forbes, 2013). Although through consumers point of view stakeholder theory may not be taken into account by Apple they may be innovating through their products to which consumers feel attached in a sense to the brand. To conclude CSR does affect brand image to a degree. However, I believe that CSR should be given significant importance as it is growing and from the conceptual framework, it can be seen that CSR does not only affect brand image but also other crucial elements that make the brand.

Recommendations for industry After conducting this research, it can be seen that, for any business to prosper SME (Small Medium Enterprise) or large firm, some form of CSR should be undertaken in present times.

As Forbes suggest that (Forbes, 2010) ‘more than 88% of consumers think companies should try to achieve their business goals while improving society and the environment.’ In addition to this, a study done by Cone Communications shows that ‘consumers across the globe

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resoundingly affirm CSR as a critical business strategy’ (Communications, 2013). From these sources, one can understand that CSR initiatives and activities are almost a necessity within businesses. Although CSR activity may not be financially viable for most SME’s. However, CSR should be about creating values, as consumer behaviour suggests that not all consumers perceive CSR the same way. In addition to this research also shows that ‘in order for consumers to support firms that engage in CSR they must receive value from the exchange’ (Green & Peloza, 2011). Furthermore, firms should also take up CSR because it can improve a brands image and reputation. It is also found that positive actions by firm’s leaves a resonance of doing well in consumers mind, which means more of a reason to undertake CSR at an industry level.

Recommendations for future research This dissertation has been aimed at exploring the research between CSR and brand image.

From the findings, it is conclusive that CSR does have an impact on brand image. It is also found that CSR is not the only factor that effects brand image but it entails many others such as brand awareness in itself as well. However, in future research the themes and questions raised within this dissertation can also be tested quantitatively using positivism as a research paradigm.

Another interesting area of research within CSR and brand image can be to investigate when brand engagement begins in consumers. When do consumers begin their first engagement of brands and how they perceive them? By looking at this dissertation, it was found that CSR is seen as a form of engagement, so it would be interesting to see when these brand engagements begin. Although this would mean looking at age brackets under the age of 18 year olds, which would show an interesting insight.

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Appendices Ethics form

Researcher: Aminul Hoque The University of Greenwich Old Royal Naval College, 30 Park Row, London SE10 9LS Ha130@greenwich.ac.uk 01/02/2014

Consent Form I…………………………… agree to participate in [name]’s research study. The purpose and nature of the study has been explained to me in writing. I am participating voluntarily. I give permission for my interview to be tape-recorded. I understand that I can withdraw from the study, without repercussions, at any time, whether before it starts or while I am participating. I understand that I can withdraw permission to use the data within two weeks of the interview, in which case the material will be deleted. I understand that anonymity will be ensured in the write-up by disguising my identity.

I understand that disguised extracts from my interview may be quoted in the dissertation and any subsequent publications if I give permission below:

(Please tick one box :) I agree to quotation/publication of extracts from my interview

☐

I do not agree to quotation/publication of extracts from my interview

☐

Signed …………………………………….

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Example Interview transcript Me: What do you think the term CSR means?

Response: Corporate Social Responsibility. It’s when big companies engage with the community to do something with them, this also enhances their reputation.

Me: So now, I am going to tell you what the meaning of CSR is by the CIM, which is the chartered institute of Marketing. This definition was laid out in 2013. So is (insert definition which was used) Response: Basically the same. Looking at all stakeholders mainly it will be those parts of their community and their customers. It’s a way for them to build their relationships with communities. So for them it’s to show them that we care, about our communities and the stakeholders. And we are doing something for them. And for the company it’s actually them increasing their reputation.

So they are allowing more people to be aware of their brand name or their brand image and their company. And increases their reputation to show that they are doing all those things with the community.

Me: Do you know of any CSR activity? If so, can you give me an example?

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Response: I am aware of the CSR initiative by Sainsbury’s, they have done a couple, 1) books for schools and they did 2) you collect these coupons and it allows you to raise funds for sports at your school. Therefore, I really like that one because it effects the customer directly.

Me: After you knowing of that CSR activity, has it changed your view towards this company.

Response: I think it has slightly because it showed to me that they do care about their consumers. I like the idea where you can take the coupons. It is an investment on their behalf, which goes back to the customers who can give it back to their schools. Since there is, no limit to whom it can go to they can give it to others. Gives people a choice and shows an effect to the community as a whole.

Me: Now I will be showing you a few companies 4 in total. In addition, I just want to get your view of what they do and how you perceive them as a whole.

First, we are starting with Amazon.

Me: I explain about the company Amazon and its recent events Me: Okay Amazon Smile, say you purchased something from Amazon, that’s Amazon directly. 5 percent of those proceeds go towards one of your selected charity of your choice. In addition, they have thousands in their database for you choose from. However, what I wanted to ask you Aminul Hoque 000 654 857

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is how you feel about Amazon tax evading. Although tax evasion has nothing to do with CSR, I just wanted to know how you feel about the situation. Although tax is in a wider business context and it is obligatory that a business does this.

Response: It works really well because it gives the customer the chance to decide what charity it goes to as opposed to them saying its going direct to this one charity. It makes it more appealing.

Well I think a lot of companies have been caught tax evading as well, I think the main thing is that it affects its image but it doesn’t probably affect their CSR. Because CSR is every big businesses responsibility to do anyways. Regardless of what other dodgy stuff they are doing on the side. So in the sense that this will not stop them from doing their CSR and building their relationships and most importantly their reputation.

Me: Do you think that the “Amazon Smile” the first ever Amazon CSR initiative for them, is trying to cover the backlash of tax evasion in the past?

Response: It could be it is a good tactic. Again if it wasn’t that they would’ve done something else, either way they have to do CSR. They would have to because it’s part of their reputation. It’s part of every big organisation. They have to do that. And if they didn’t then that’s something the other companies would pick up on. And inquire why you aren’t doing any CSR. Because CSR is also for the employees, it gives the employees to be part of a working company that does a really good imitative like giving money to certain charities. So it encourages people to work for them as well.

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Me: The next company we are going to talk about is Apple.

Me: I explain about the company Apple and its recent events Me: In the recent times its been listed as the world’s most valuable brand In Forbes 2013 and in the same year they were also listed 79th most innovative company in 2013. However having said that, how would you feel if I told you that Apple to this day has no CSR initiative in place.

Like nothing in place.

Response: The thing with Apple is, the reason why they are the world most valuable brand is because they create amazing technology which regardless will have a demand from customers. So once they have that they got their reputation, they got their build-up of employees and the customers and guaranteed employees who wish to work for them whether they have CSR or not. What they have to their advantage is they know they can create such amazing technology. Looking at their competitors they always out weight them on certain parts. Whereas people at Amazon, sometimes when they do a CSR its because they need to compete and become competitive.

Whereas Apple, they have got a bigger stand and they can be quite arrogant because of the technology they produce. And no one can touch them based on that.

However I believe they should do a CSR initiative but if they get picked up on it they would do it. But I think they probably feel we are so valuable we produce amazing technology for our customers. Each product is produced for a certain customer with a certain type. With a target audience behind it. They just probably feel that is enough for them.

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Me: The next two companies I wish to talk to you about are following more of an organisational approach and I wish to talk about them in that aspect. So for example if you wish to work for these companies, how would feel about the situation. We have Dell here.

Me: I explain about the company Amazon and its recent events Me: Recently they have been listed 51 in the fortune 500 list, which is a list of the most valuable brands in the world. Also currently to this day they support 4615 charities. How do you feel about this and would you be willing to work for an organisation that supports this many charities?

Response: I think Dell when it started it off, it started competing with Microsoft. So what happened with them is their competitor was someone who was making programs that other companies weren’t doing. And at that time you didn’t have companies like Apple to dominate the market. So for these companies doing something other than “oh we create such amazing technology” and “we can create these programs.” They need to attract customers other ways as well. Hence why they probably support this many charities. And they have been around for a while so that doesn’t surprise me.

Me: Now I will be discussing the company Shell to you

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Me: I explain about the company Shell and its recent events Me: Recently they have been listed as 18th best place to work in, out of 25 in the year 2012 (Forbes).

However, in that same year they had an oil spill in Nigeria, were told to pay $5bn in charges.

How would you feel about working for a company that has that many outstanding debts and problems.

Response: I think this is similar to Apple where it dominates in the oil industry. Again it’s been around for many years and it’s worldwide. They have a lot of oil plants in the Middle East that’s where most of the oil comes from. So for them, again there have been a lot of boycotts towards Shell as well. I remember it saying boycott them because it’s not ethical what they are doing. Ethical procedures that are helping other countries. Or they are so caught up in money that when the spillages happen in certain countries the helping out procedure later on and aftermath of those countries they don’t really put enough support in. so they have a good reputation and they don’t have a good reputation. They are kind of in the middle, but because of the increased competition with Texaco and other petrol companies, Especially when that boycott came around telling people to not specifically to go to Shell. I remember me as a customer I came to a point where I drove past Shell and I would not get my petrol from there. That’s how powerful it became. Because I didn’t like what they were doing. So to me their reputation of not helping the community and not helping the people when they are such a powerful brand. Resulted in me as a customer not buying petrol from them. And because there are other companies in the same field available it’s not just Shell there are quite a lot of competitors out there. It did not mean I had to drive a mile to go to the next one.

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However if I were to be an employee for this company then I would feel different about the situation. I would probably feel the same as other consumers, which is the negativity. Also hypocritical because I work for the company too. And if I’m stuck in the company where I can’t land another job then you’re just stuck aren’t you.

Me: Now I’m going to ask you two final questions.

Me: So after knowing about CSR will it affects your purchasing behaviour? Not in terms of these companies, but in general, after knowing about CSR will it affects your purchasing behaviour?

Response: To be honest with you, no. and I think it just depends on the type of person you are because when it comes to ethical issues. It’s like what Primark has done; it’s never really stopped me from going there and shopping. Because I think it does affect the company. I think if all consumers come together, well consumers have a lot of power to destroy a company. But consumers have to be bothered to get together and fight for the right. Likewise with employees when they have conflicts at work and when their manager is oppressing the employees. If employees would get together and fight for this we would have certain rights. But we get oppressed and we just can’t be bothered to do anything. Likewise with this if I was driving past a Shell petrol station and there was no other option I would still go and get it. So it doesn’t stop me that drastically.

Me: After knowing about CSR will it affect your perception of a brand? Not in terms of these companies, but in general, after knowing about CSR will it affect your perception of a brand.

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Response: Yeah I am quite shocked about Apple. I’ve always known that they didn’t have any CSR in place. But to think that they still haven’t. Sometimes makes me think they are so arrogant, I don’t want to buy their phone. But I’m just addicted Apple and iPhone and it’s like I can’t think of buying any other phone. So I guess they got me as a customer. But no it doesn’t affect my perception of a brand. I think it’s because I’m that typical consumer who I’m getting it and I’m happy whatever happens behind closed doors I don’t really care, Which is quite sad.

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