MS, Mahrinasari (2019) Determinants of Brand Equity: Communication of Corporate Social Responsibility (CSR) versus CSR itself and Company Credibility. CONTEMPORARY ECONOMICS, 13 (3). pp. 317-334. ISSN Online ISSN: 2300-881, Print ISSN: 2084-0845

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Abstract

This research aims to develop the model of corporate social responsibility (CSR) image in building brand equity as empirical support for the model proposed by Chahal and Sharma (2006) and Hoeffler and Keller (2002). Data from 564 individual potential consumers were collected using on-line and off-line surveys and were analyzed by implementing the two-step approach of structural equation modeling (SEM). The main finding is that CSR communication has a greater role in creating brand equity than CSR dimensions and company credibility. A new and important finding is that CSR image acts as a mediating variable. These results imply that CSR communication is a strategic tool to eliminate stakeholders’ skepticism toward CSR activity, consequently building strong brand equity value. Some practical implications and avenues for future research are also explained. 1. Introduction Corporate Social Responsibility, here after called CSR has become a part of business strategies to gain competitive advantage (Alcañiz, Cáceres, & Pérez, 2010; Drumwright, 1996; Du, Bhattacharya, & Sen, 2007; Miller & Merrilees, 2013; Pérez, 2009; Simmons &  Becker-Olsen, 2006; Torelli, Monga, & Kaikati, 2012; Yuan, Lu, Tian, & Yu, 2018). Therefore, some of Indonesian companies disclosed their CSR activities to create a positive image as a business competitive strategy (Gunawan, 2015). However, stakeholders, es pecially communities and consumers, still skeptically perceive it as merely a fulfilment of legal obligations and an artificial activity. CSR activities do not provide social benefits, empower stakeholders’ quality of life or prosperity. They concern only the managements’ subjective desire and economic benefits but not the stakeholders’ needs (Ambadar, 2008; Hadi, 2011). Speed and Thompson (2000) and Webb and Mohr (1998) also stated that CSR practice is a selfish activity of the company (Alcañiz et al., 2010). Furthermore, Elving (2012) argued that organizations communicate their CSR activities to gain reputational advantages but that CSR activities sometimes lead to skeptical responses, especially for Indonesian stakeholders, resulting in their perception as self-serving and manipulative. Determinants of Brand Equity: Communication of Corporate Social Responsibility (CSR) versus CSR itself and Company Credibility KEY WORDS: CSR Image, Brand Equity, Company Credibility, and CSR Communication

Item Type: Article
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Fakultas Ekonomi dan Bisnis (FEB) > Prodi Manajemen
Depositing User: Mahrinasari MS
Date Deposited: 09 Jan 2020 04:21
Last Modified: 09 Jan 2020 04:21
URI: http://repository.lppm.unila.ac.id/id/eprint/17509

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