Companies use Corporate Advertising to increase awareness of
Corporate Social Responsibility Therefore Increasing Profitability
Saint Leo University
This review of literature will explore seven peer reviewed articles that report on results from
research conducted on how companies use corporate advertising to increase awareness of corporate social responsibility thus increasing profitability. More specifically focusing on the advantages of corporate social responsibility and the positive benefits in profitability. This review of literature will incorporate various companies and industries from coffee, grocery, amusement parks, cars, oil production, ...view middle of the document...
Corporate social responsibility (CSR) is defined as the way companies integrate social, environmental, and economic concerns into their values and operations in a transparent and accountable manner. The modern era of CSR can be traced back to the 1950’s and has many different names such as corporate social performance, corporate social integrity, business ethics, corporate philanthropy, corporate social policy, and sustainable development just to name a few. Consistently evolving, these concepts became known as to corporate social responsibility (Madrakhimova, 2013).
CSR concentrates on nine areas: ethics, governance, transparency, business relationships, financial return, community involvement, product value, employment practices and environmental protection. Failure to be a good corporate citizen can prove to be detrimental for all constituents involved and cost the companies dearly in profitably. In today’s society, consumers are seeking substance and value behind a corporation. For the most part, consumers are doing their research on making more informed decisions behind their purchases (Khojastehpour & Johns, 2014).
In today’s world of corporate social responsibility is not sufficient enough to write a check for a charity but rather be more involved to specific causes. In reference to corporate philanthropy, the 2010 Cone Cause Evolution Study showed 85 percent of consumers have a more positive image of a company that supports a cause they feel strongly about and 83 percent wished more of the companies would support such causes (Argenti, 2013 p. 90). CSR has been an important research area for more than three decades, and has evolved from executives’ philanthropic activities to worldwide acceptance as a valuable component of stakeholder management and incorporation into strategic performance models. Acting in a socially responsible manner is increasingly seen as essential to the long-term survival of corporations. An international survey conducted by PricewaterhouseCoopers in early 2002 found that nearly 70 percent of the global chief executives believed that addressing CSR was vital to their company’s profitability (Ekatah, Samy, Bampton, & Halabi, 2011). The following seven reviews of literature attempt to support how corporate advertising and corporate social responsibility increases profitability for a wide range of companies.
Chen and Lee (2013) discussed the green impact of coffee beans from cultivation to consumption. For this study a total of 920 valid self-reported questionnaires collected in Taiwan were used for this empirical analysis. The student population of universities in the northern part of Taiwan participated in the study because over half of Starbucks’ stores were located in that specific geographical region. Questions referenced green brand image and ethical sourcing. Coffee marketers can advertise their green brand image to gain mindshare. As stated by Chen and Lee (2013), green brand image...