1. The Impact of Corporate Social Responsibility. (CSR) on Brand Equity: A Study with Special Reference to Sri Lanka Telecom PLC (SLT). Mr. FHA. Shibly.
The Impact of Corporate Social Responsibility (CSR) on Brand Equity: A Study with Special Reference to Sri Lanka Telecom PLC (SLT)
Mr. FHA. Shibly Lecturer Interdisciplinary Course Unit Faculty of Islamic Studies & Arabic Language South Eastern University of Sri Lanka Oluvil
Dr. MIM. Hilal Senior Lecturer Department of Management Faculty of Management & Commerce South Eastern University of Sri Lanka Oluvil
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Contents
1
Introduction
5
•
Research Framework
2
Research Questions
6
•
Methodology
3
4
•
Research Objectives
7
Review of Literature
8
• Findings & Recommendations
•
Contribution, Limitations, Future Research & References
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Introduction • Corporate social responsibility (CSR) has been presented in the Management and Accounting literature for about 45 years (Wood, 2010). • Today, Investment on CSR has become the common business practices in the world. CSR is receiving increasing attention, especially in recent decades. For example, more than 50 percent of global executives identify CSR as their top priority (Crook, C., 2005).
• Many companies and large enterprises in Sri Lanka undertake CSR activities to show how well they are associated and concerned about the community of public and they bring them as a part of the organization.
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Introduction
• CSR can make a contribution to brand image of companies (Middlemiss, 2003, and Klein & Dawar 2003, Maneet, 2011).
• There are various researches available in both developed and developing countries on CSR & Brand. • Preliminary literature revealed that there have been very few researches, which study the CSR impact on brand equity in Sri Lanka, published. Therefore this study will make a significant contribution to the companies, customers, stakeholders and research community. 4
Research Questions
Q1. Is there any relationship between the CSR & Brand loyalty?
Q2. Is there any relationship between the CSR & Brand Awareness?
Q3. Is there any relationship between the CSR & Perceived quality?
Q4. Is there any relationship between the CSR & Brand Association?
Q5. Is there any relationship between the CSR & Brand equity? 5
Research Objectives
To study the existing nature of CSR and progress made so far in Sri Lanka and Sri Lanka Telecom PLC (SLT) To identify the level of CSR in relation to SLT. To develop and examine a conceptual model that depicts the main factors effecting the CSR and Brand Equity in SLT. To identify the relationship between the CSR and brand awareness, brand loyalty, perceived quality and brand association of SLT.
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Review of Literature • For the measurement of CSR, the model developed by Carroll (1991) has been used. The four dimensions of CSR are – Philanthropic Responsibility – Ethical Responsibility – Legal Responsibility – Economic Responsibility • For the measurement of Brand Equity, the model developed by Aaker (1991) has been used. The four dimensions of Brand Equity are – Brand Loyalty – Brand Awareness – Perceived quality – Brand Association 7
Research Framework Brand Equity H5
H1
Corporate Social Responsibility of SLT
H2
Brand Loyalty
Brand Awareness
H3
H4
Perceived Quality
Conceptualized based on the work of Naqvi et.al (2013), Virvilaite & Daubraite (2011), Mansuoreh Behroozi et.al (2013), Asaad Almohammad (2010), Nisar Ahamad Nalband and Saad Al Kelabi (2013), Anupam Sharma* and Ravi Kiran (2013), EURIB (2009), David J. Smith (2007), Chi-Shiun Lai et.al (2010),Amna Arif et.al (2014)
Brand Association
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Methodology
• • • • • • •
Research Method Population Sampling methods Sample size Data collection tool Data analysis software Data analysis methods
:::::::-
Quantitative study Customers of Sri Lanka Telecom PLC Random Sampling 100 Questionnaire MS-Excel 2007 and SPSS 16.0 Descriptive Analysis, Reliability Testing, Factor Analysis, Correlation & Regression
Findings - Respondents’ Gender
Gender
Frequency
Percentage
Male
58
58%
Female
42
42%
Total
100
100%
10
Findings - Respondents’ Age
Age Category
Frequency
Percentage
Below 20
3
3%
21-30
54
54%
31-40
29
29%
41-55
11
11%
55 and above
3
3%
Total
100
100% 11
Findings - Respondents’ Employment
Category
Frequency
Percentage
Student
29
29%
Pvt. Sector
33
33%
Pub. Sector
26
26%
Self Employed
9
9%
Retired
1
1%
Others
2
2%
Total
100
100%
12
Findings - Respondents’ Educational Qualifications
Frequency
Percentage
High School
9
9%
Diploma
8
8%
Undergraduate
38
38%
Postgraduate
27
27%
Others
18
18%
100
100%
Total
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Findings - Instrument Reliability
Scale
No. of items
Cronbach’s
Type
Alpha CSR
15
0.914
High Reliability
Brand Loyalty
09
0.879
High Reliability
Brand Awareness
09
0.768
High Reliability
Perceived quality
10
0.922
High Reliability
Brand Associations
05
0.769
High Reliability
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Findings & Conclusions- Correlation Analysis Correlation matrix between CSR and Brand Loyalty, Brand Awareness, Perceived Quality, Brand Associations & Brand Equity Brand Loyalty CSR
Brand Perceive Awareness d Quality
Brand Association s
Brand Equity
Pearson Correlation
.670
.525
.561
.392
.636
Sig. (2-tailed)
.000
.000
.000
.000
.000
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Findings & Conclusions- Regression Analysis
R
R Square
Adjusted R
F
P
Square Brand Loyalty
.670
.449
.443
79.800
.000
Brand Awareness
.525
.276
.268
37.287
.000
Perceived Quality
.561
.315
.308
45.083
.000
Brand Association
.392
.153
.145
17.749
.000
Brand Equity
.636
.404
.398
66.427
.000 16
Findings & Conclusions- Response to Hypotheses No.
Research Hypothesis
Results
H1:
There is a relationship between the Supported CSR & Brand loyalty.
H2:
There is a relationship between the Supported CSR & Brand Awareness
H3:
There is a relationship between the Supported CSR & Perceived quality.
H4:
There is a relationship between the Supported CSR & Brand Association
H5:
There is a relationship between the Supported CSR & Brand equity
Strengthen Previous Findings
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Recommendations
• Consumers’ CSR awareness can be increased through SLT’s CSR information and responsibility filled marketing messages. • SLT doesn’t audit/review its CSR practices for the total quality management. So, it is recommended to implement an effective audit/review system in terms of improving the quality of CSR. • SLT should also include testing the effects of incremental investments in CSR activities so as to determine the optimal level of CSR return on investment.
• SLT needs to pay attention to increase its brand association. • Most of the respondents requested to implement more CSR activities towards the development of education.
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Contribution
• The outcome of this research has extended the boundaries of knowledge in the area of CSR on brand equity by making a valuable contribution to adoption literature; this study has contributed to the conceptual aspects of CSR and brand equity by means of identifying the key factors influencing and deriving at a refined conceptual model which can be used as a frame of reference by the firms those who initiative and implement CSR practices in their business context.
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Limitations & Future Research • Limitations – Time – Customers’ side – Data Collections – Sample • Future Research – Sample – Other companies – Consumer Behaviors 20
References
• Reference list
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