Corporate Social Responsibility And Csr - 8791 Words

Abstract Corporate social responsibility (CSR) draws more and more attentions from stakeholders, especially in the rapidly growing Chinese market. Most of the previous study regarding CSR and customer related outcomes are based on the social exchange theory, while the potential effect of customer company identification (C-C identification) has been ignored. Recently, the important effect of C-C identification on CSR has been conceptually and empirically validated by some studies. The study incorporates the C-C identification, trust, satisfaction as mediator between CSR and customers’ purchase intention, expanding previous studies by combining the social identity perspective with social exchange theory. A model was constructed based on†¦show more content†¦The main motivation behind CSR is the potential benefits that firms can derive when they are perceived by their stakeholders as a socially responsible organization (Tian, Wang, and Yang, 2011). In other words, the benefits of a certain company will be harmed if customers perceived its irresponsible activities. As an example, after the exposure of its emission scandal, Volkswagen, which was viewed as a responsible beforehand, encountered a 37% stocks price slump within two days. However, good CSR activities can still cause positive influence on Volkswagen’s reputations to minimize the lost in its reputation. After the scandal, Volkswagen said that it would recall around 8.5 million diesel-engine cars in the European Union and it would give $1,000 to some owners of diesel VW and Audi cars that do not achieve the emissions limits in the United States. As a positive results of the mentioned CSR actions, suggested by CN BC on October 20th 2015, over two thirds of German consumers, out of the 1,000 German adults questioned in an online survey, believe that the embattled German carmaker still builds outstanding cars and that the emissions scandal was overdone. Motivated by the importance of CSR in practice, many researchers have investigated the potential effect that CSR has on customer behavior and response, such as customer satisfaction (e.g., Luo and Bhattacharya,