Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
How can CSR affect company performance?: A qualitative study of CSR and its effects
Karlstad University, Faculty of Economic Sciences, Communication and IT.
Karlstad University, Faculty of Economic Sciences, Communication and IT.
2006 (English)Independent thesis Advanced level (degree of Magister), 20 points / 30 hpStudent thesis
Abstract [en]

In today’s society, there is a growing interest in, and demand for Corporate Social Responsibility (CSR). Reasons for this can be multinational corporations’ increasing influence on world economy as well as scandals revealing horrible working conditions in different industries. In spite of the fact that the demand for CSR is growing, there has always been critics. The most influential critic is Noble Prize winner Milton Friedman, who claims CSR to be a waste of stockholders’ money. However, several articles claim, opposite Friedman, that CSR rather increases a company’s financial performance in the long run. These claims have made us curious about in what way CSR is related to a company’s performance. Moreover, it has led to us wanting to find out how CSR can influence customer perceptions on a product or service offering, and how these influenced perceptions affect company performance.

In order to concretize our problem we have chosen to use the clothing industry as a framework for our study. The choice of industry has its reasons in an increasing public interest in how clothes are manufactured, which is largely because of continuous scandals concerning poor working conditions in the clothing industry.

To find out how CSR can influence customer perceptions and company performance we have studied literature concerning the subject. Furthermore, these theoretical studies have led to us coming up with a model for how CSR can influence customer perceptions and ultimately affect company performance. This model is influenced by Heskett, Jones, Loveman, Sasser and Schlesinger‘s (1994) the Service-Profit Chain as well as by Carroll’s (1991) Pyramid of CSR and Levitt’s (1980) Total Product Concept. We call the model the Value Linking Chain and it depicts how different elements are put into an offer. Furthermore, how this offer is evaluated, both before and after the purchase, by customers and how those evaluations affect the company performance. In order for us to test this model empirically, we have interviewed representatives from companies, customers and non-government organizations.

The analysis indicates that customers are ready to boycott companies that do not behave socially responsible. This has lead to us widening our theoretical scope and revising the Value Linking Chain, which evolved into the CSR-Performance Chain.

In conclusion, CSR can influence customer perceptions on a product or service offering and in the end affect company performance through the links in the CSR-Performance Chain. Furthermore, we have found that companies’ level of CSR must lie on or above customers’ baseline (i.e. minimal acceptable level) in order for them to avoid boycotts, since boycotts affect company performance negatively.

Place, publisher, year, edition, pages
2006. , p. 46
Keywords [en]
CSR, Corporate Social Responsibility, Profit, Quality, Offer, The Service Profit chain, The CSR Performance Chain, Value, Sustainability, Performance
Keywords [sv]
Hållbar utveckling, Kvalite, Ansvar, Värde, Varumärke
National Category
Business Administration
Identifiers
URN: urn:nbn:se:kau:diva-757OAI: oai:DiVA.org:kau-757DiVA, id: diva2:6476
Presentation
2006-03-27
Uppsok
samhälle/juridik
Supervisors
Examiners
Available from: 2007-03-28 Created: 2007-03-28

Open Access in DiVA

fulltext(869 kB)40355 downloads
File information
File name FULLTEXT01.pdfFile size 869 kBChecksum SHA-1
aea9be5ada55240b4bda9ab953faf2bda7ef53cf8169b9cf39983689bd9109cf587649c6
Type fulltextMimetype application/pdf

By organisation
Faculty of Economic Sciences, Communication and IT
Business Administration

Search outside of DiVA

GoogleGoogle Scholar
Total: 40355 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

urn-nbn

Altmetric score

urn-nbn
Total: 5860 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf