Cách thực hiện CSR của doanh nghiệp từ góc nhìn người tiêu dùng

The CSR Communication Paradox from a Consumer Perspective How are a Corporation’s CSR Engagement and Communication Efforts Understood and Perceived by Consumers? Authors: Caroline Jarbeck & Vanessa Martin Supervisor: Ulf Elg Master Thesis ACKNOWLEDGEMENTS Lund University School of Economics and Management MSc in International Marketing and Brand Management Lund, Sweden, May 2015 ACKNOWLEDGEMENTS We would like to take this opportunity to express our gratitude to our supervisor Ulf Elg and thank him for the guidance and support throughout the writing process of our thesis Additionally, we would like to express a heartfelt thank you to Stephen Brammer for willingly sharing his expert knowledge on the topic of CSR with us Finally, we would like to thank the participants of our study for dedicating their time to provide us with useful and genuine in-depth insights into their personal perceptions and evaluations ABSTRACT Purpose – Corporations’ evident struggles and failures in the 21st century to communicate their CSR efforts effectively to consumers, along with the scarce research available on the topic of CSR communication, are two key factors that have captivated our interest and awakened a desire to investigate the area of consumer perceptions and CSR communication The rising consumer skepticism and consumers’ lack of knowledge of corporations’ CSR activities are evidence of ineffective CSR communication strategies, whose root causes demand further examination The present study therefore intends to explore the issue of CSR communication from a consumer perspective, aiming to develop a deeper knowledge and understanding of consumers’ perceptions of corporations’ CSR engagement, in addition to their own information needs and personal preferences in the matter of CSR communication The main purpose underlying the study is to generate new consumer insights on the topic of CSR, and thereby make valuable contributions to the theoretical and managerial field Methodology – The methodological basis of this study was formed by the use of a qualitative research design involving a case study The data collection took place in the form of 12 indepth interviews conducted in the Swedish area of Skåne, involving research participants from different nations, ranging from the age of 20 to 58 years Findings – The main finding of this work is represented by the insight that the stakeholder group of consumers is largely heterogeneous, resulting in the identification of four existing consumer types As a result, a conceptual model was developed, both characterizing the four different consumer types as well as offering strategic recommendations how to approach these Research Limitations – Since the data collection took place by focusing on a relatively small sample of consumers of a single Swedish company operating in the service sector, having further been carried out in the geographic area of Skåne only, the main limitation of this study refers to the issue of generalizability, as the validity and applicability of the results for other industries and countries is not guaranteed Practical Implications – The revealed existence of different consumer types in CSR communication results in the managerial implication to tailor CSR communication approaches to the different needs and preferences of the consumer groups discovered, which in turn will facilitate the overcoming of the identified CSR communication paradox by increasing consumer awareness of a firm’s CSR efforts, whilst decreasing consumer skepticism Originality – Focusing on the research area of consumer perceptions in CSR communication, this work sheds light upon a field that has experienced limited research up to now The study confirms revelations of previous research efforts that have equally identified the existence of different consumer types, but adds further value by providing strategic guidelines concerning the question how to practically approach these, which is often missing in existing research Keywords – Corporate social responsibility, CSR communication, communication paradox, consumer perceptions, consumer types, Barista Paper Type – Master thesis TABLE OF CONTENTS INTRODUCTION 1.1 The Growing Importance and Endorsement of CSR in the 21st Century 1.2 Driving Factors Behind Firms’ Engagement in CSR Initiatives 1.3 Problem Identification 1.4 Purpose and Objectives of the Study 1.5 Underlying Motivation and Research Expectations of the Study 1.6 Research Questions 1.7 Delimitations 1.8 Structure THEORETICAL FRAMEWORK 2.1 The Historical Development of CSR 2.2 The Dimensions of CSR 2.3 Definition of CSR 10 2.4 The CSR Debate 11 2.4.1 To Whom is the Corporation Accountable? 11 2.4.2 The Shareholder Approach 11 2.4.3 The Stakeholder Approach 12 2.4.4 Advocates of CSR 12 2.4.5 Critics of CSR 13 2.4.6 Emergence of a New View 14 2.5 CSR and Consumer Behavior 14 2.5.1 Extant Knowledge of Consumer Perceptions of CSR 15 2.5.1.1 CSR’s Effect on Consumer Evaluations and their Attitudes 15 2.5.1.2 Consumer Interest in CSR and its Influence on Purchase Intentions 16 2.5.1.3 Consumer Awareness of Corporations’ CSR Activities 16 2.5.1.4 Communicating CSR to Consumers 17 2.6 CSR Communication 18 2.6.1 Definition of CSR Communication 18 2.6.2 The Importance of CSR Communication in the 21st Century 18 2.6.2.1 Protection of Corporate Reputation 19 2.6.2.2 Rise in Public Demand 19 2.6.2.3 Reduction of Skepticism 20 2.6.2.4 Raise Consumer Awareness of CSR 20 2.6.3 Challenges of CSR Communication 21 2.6.4 CSR Communication Strategy 22 2.6.4.1 Choice of CSR Communication Strategy 22 2.6.4.2 Appropriate Degree of CSR Disclosure 22 2.6.4.3 Degree of Stakeholder Involvement 23 2.6.5 Corporate Social Initiatives 25 2.6.5.1 The Choice of CSR Initiatives 25 2.6.5.2 The Different Types of CSR Initiatives 25 2.6.5.2.1 Cause Promotions 25 2.6.5.2.2 Cause-Related Marketing 26 2.6.5.2.3 Corporate Social Marketing 26 2.6.5.2.4 Corporate Philanthropy 26 2.6.5.2.5 Community Volunteering 27 2.6.5.2.6 Socially Responsible Business Practices 27 2.6.5.3 Selecting the ‘Right’ CSR Initiatives 27 2.6.6 CSR Communication Content 29 2.6.6.1 Key Areas of CSR Communication Content 30 2.6.6.2 Types of CSR Communication Content 31 2.6.7 CSR Communication Channels 32 2.6.7.1 Credibility of CSR Communication Channels 32 2.6.7.2 The Inside-Out versus the Outside-In Approach 34 2.6.8 Other Factors Influencing the Effectiveness of CSR Communication 36 2.6.8.1 Company-Specific Factors 36 2.6.8.2 Stakeholder-Specific Factors 37 2.6.8.3 Perceived Motives of Companies’ CSR Engagement 37 2.7 Summary 38 METHODOLOGY 43 3.1 The Object of Study 43 3.2 Empirical Material Needed 43 3.3 Philosophical Background 43 3.3.1 Ontology 44 3.3.2 Epistemology 44 3.4 Research Design 44 3.4.1 Sampling Strategy 46 3.4.2 Data Collection 47 3.4.3 Data Analysis 48 3.5 Ethics and Politics 48 3.5.1 Ethical Considerations 49 3.5.2 Political Considerations 49 3.6 Limitations 49 BARISTA FAIR TRADE COFFEE 51 4.1 Company Facts and Figures 51 4.2 The Barista Concept 51 4.3 The Communication Challenge of CSR 52 4.4 Barista’s CSR Initiatives 53 4.5 Barista’s CSR Communication Channels 54 PRESENTATION AND ANALYSIS OF EMPIRICAL RESULTS 55 5.1 Analysis of Research Dimensions 55 5.1.1 Consumer Interest in CSR 55 5.1.1.1 Personal Level of CSR Interest 55 5.1.1.2 CSR in Purchase Decisions 56 5.1.1.3 Expected Degree of a Firm’s Social Responsibility 59 5.1.2 Consumer Perceptions of CSR Initiatives 61 5.1.2.1 Consumer Awareness of Barista’s CSR Initiatives 61 5.1.2.2 Consumer Perceptions of CSR Initiatives 62 5.1.3 Perceived Motives of CSR Engagement 66 5.1.4 Consumer Perceptions of CSR Communication Channels 68 5.1.4.1 Credibility of Communication Channels 68 5.1.4.2 Credibility versus Desirability of Communication Channels 71 5.1.4.3 Undesired and Least Credible Communication Channels 73 5.1.4.4 Employees as a Communication Channel 75 5.1.4.5 The Communicator of CSR Messages 76 5.1.4.6 One-Way versus Two-Way Communication 77 5.1.5 CSR Communication Content 79 5.1.5.1 Preferred CSR Information 79 5.1.5.2 Preferred CSR Communication Style 80 5.1.6 Perceived Appropriate Degree of Social Disclosure 83 5.1.7 Reduction of Consumer Skepticism 84 5.2 Consumer Types in CSR Communication 87 5.2.1 Involvement Seekers 89 5.2.2 Sleepers 90 5.2.3 Distance Seekers 91 5.2.4 Cynics 92 5.3 Consumer Types Model Applied to Barista 93 5.3.1 Channels 94 5.3.2 Content 95 5.3.3 Communication Style 95 5.3.4 Evaluation of Barista’s CSR Strategy 95 CONCLUSION 97 6.1 Conclusions and Theoretical Implications 97 6.2 Managerial Implications 99 6.3 Future Research 100 REFERENCES 102 APPENDIX A: Consumer Sample Information 113 APPENDIX B: The Interview Guide 114 FIGURES Figure 1: The CSR Pyramid (Carroll, 1979) Figure 2: Factors Influencing CSR Communication Effectiveness 39 Figure 3: Consumer Ranking of Barista’s CSR Initiatives 63 Figure 4: Communication Channels Perceived as Most Credible 69 Figure 5: Communication Channels Perceived as Most Desirable 71 Figure 6: Communication Channels Perceived as Least Desirable 74 Figure 7: Factors Reducing Consumer Skepticism 85 Figure 8: Consumer Types in CSR Communication 88 INTRODUCTION “Promoting philanthropy is perilous, and companies can find they're damned if they and damned if they don't” (Alsop, 2002:1) 1.1 THE GROWING IMPORTANCE AND ENDORSEMENT OF CSR IN THE 21ST CENTURY Moving away from the age of greed and heading towards a new age, the age of responsibility, we are currently witnessing a change in corporate behavior with firms making substantial investments into their CSR programs New consumer and public demands have emerged and raised the pressure on firms to be ‘good corporate citizens’ and to demonstrate their commitment towards social and environmental issues (Komodromos & Melanthiou, 2014) As several scholars have pointed out, CSR has become a “standard practice” that is increasingly being perceived as “an entry ticket to doing business in the 21st century” (Beckmann, 2006:165) It has gone from being considered a trivial issue and a “voluntary exercise of companies” to “an inescapable priority for business leaders in every country”, finding itself highly ranked on corporations’ agendas (Thoresen, Didham, Klein & Doyle, 2015:88; Porter & Kramer, 2006:78) The previously dominant picture of CSR engagement as “a joke” and “wasteful”(Lee, 2007:53), has largely been replaced by the view of it as an “investment” and a “source of competitive advantage” in the new era (Asongu, 2007; Branco & Rodrigues, 2007:5) Hence, the practice of CSR and sustainability reporting are no longer the exception, but the mainstream approach adopted by most forward-thinking corporations (GRI, 2011) As argued by Werther and Chandler (2011:19), CSR is becoming “crucial for success”, and firms’ avoidance and neglect of their social and environmental responsibilities can have a detrimental impact on their business Advocates believe that ignoring CSR can lead to high costs and seriously endanger a company's reputation (Kielburger & Kielburger 2011; Creasey, 2015) With the Fortune 500 companies’ reported expenditure of more than $15bn on CSR activities in the previous year, it becomes evident that a fundamental shift has taken place in the mindset of organizations and their managers regarding the way they think about CSR and integrate it into their business practice (Smith, 2014) 1.2 DRIVING FACTORS BEHIND FIRMS’ ENGAGEMENT IN CSR INITIATIVES Naturally arising questions are: What has driven firms to embrace this new responsibility and what are the drivers behind their increased focus and commitment towards CSR? 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Can you think of a specific initiative they undertake? Consumer Interest in CSR: • To what extent you think that firms have social obligations? (Show Carroll’s CSR Pyramid) • Do you consider the environmentally & socially responsible behaviour of companies when making a purchase decision? • How would you describe your personal interest in sustainability issues? (Highly interested, interested, neutral, hardly interested, not interested at all) CSR Initiatives Ranking: • Can you think of preferred CSR initiatives you like corporations to undertake? • Please read carefully through the different sustainability initiatives described below and rank them afterwards (Most appealing = number 1, least appealing = number 6) Take as much time as you need 1) In co-operation with the UN school feeding initiative, Barista donates SEK of every purchase to a school meal project in Ethiopia (Cause-Related Marketing) 2) Barista employees visit schools to educate kids about the concept of Fair Trade and sustainability (Community Volunteering) 3) During certain periods of time Barista gives away free coffee to the homeless (Corporate Philanthropy) 114 4) Barista carries out an online campaign that promotes the idea of Fair Trade in order to achieve a general change in the minds of the consumers when making purchase decisions (Corporate Social Marketing) 5) Barista strives to offer 100% organic products and materials in their stores (Socially Responsible Business Practices) 6) Barista sponsors a football game to raise awareness for the topic of fair trade(Cause Promotion) Consumer interests and personal perceptions: • You ranked initiative X first/last What made you this? Why you perceive this initiative to be most/least appealing? CSR Fit: • Which initiative you think suits Barista best/least? Consumers’ perception of motives: • Why you think Barista engages in CSR activities? What you think are Barista’s motives? (Genuine interest, profit maximisation, image improvement, strategic differentiating factor etc.?) CSR Communication Channels Ranking: • Through which channels should information about sustainability initiatives be communicated? • Please now read through the given examples of communication channels and choose: a The top that are the most credible ones to you b The top most desirable ones to receive CSR information from c The top most undesirable ones to receive CSR information from 1) 2) 3) 4) 5) 6) 7) 8) Advertisements Employees Company website Company’s social networks In-store information (e.g signs on walls, tables) External media coverage Friends and relatives (WOM) Packaging and labels 115 9) Company CSR Report 10) No CSR communication at all Consumers’ personal perceptions: • Why you perceive channel X to be the most credible/desirable/undesirable one? • Would you feel sceptical or question the credibility of the information coming from any of these channels? • Is the credibility of the information influenced by who communicates it to you? (Show Morsing and Schultz’ model) Should firms communicate their actual initiatives at all or should this be left to third parties? Content: • What kind of information are you interested in? Where you think should the focus of the communication be? (E.g the company’s commitment to a cause, its impact, its reason for engagement) • Would you perceive a company’s communication about sustainability results/ achievements as marketing (in a negative way, as an exploitation of the cause)? Communication Style: • Do you prefer to receive factual information and figures or would you rather like to be approached more emotionally (campaign-like)? Closing Questions: “A company’s authentic commitment to CSR can easily be misunderstood as being a marketing attempt”, which is leading to skepticism among consumers • Do you agree with this statement? • If yes, how can scepticism in your opinion be reduced or avoided? • Should a company like Barista whose entire business approach rests upon the idea of social responsibility and is deeply embedded within the organization and its practices use a low-key or a rather proactive communication strategy?Do you think that Barista should maintain its subtle communication strategy or should they be more proactive in their communication? 116 ... Corporations’ CSR Activities 16 2.5.1.4 Communicating CSR to Consumers 17 2.6 CSR Communication 18 2.6.1 Definition of CSR Communication 18 2.6.2 The Importance of CSR Communication... ‘Right’ CSR Initiatives 27 2.6.6 CSR Communication Content 29 2.6.6.1 Key Areas of CSR Communication Content 30 2.6.6.2 Types of CSR Communication Content 31 2.6.7 CSR Communication... 2.6.2.4 Raise Consumer Awareness of CSR 20 2.6.3 Challenges of CSR Communication 21 2.6.4 CSR Communication Strategy 22 2.6.4.1 Choice of CSR Communication Strategy