PR and Corporate Social Responsibility

PRand Corporate Social Responsibility

PRand Corporate Social Responsibility: Literature Review

Preview

CorporateSocial Responsibility has been proved to be the most efficient waythrough which the attitudes of consumers can be improved concerning aparticular company. Similarly, the CSR programs that the firms comeup with are meant to promote the socially responsible actions thatshould be attended effectively according to the demands of thestakeholders. The customers are globally sensitive towards theinstitutions that are take part in community services because theyform the basis of their purchase decisions. They are made aware ofthe activities of the enterprise through its involvement in the CSRpractices. CSR, therefore, helps build the image of such companiesthereby attracting more users to buy their products and services. Theactions taken is an opportunity for any organization to build astrong trust with its clients thereby enhancing its image before thepublic, which regard such duties as ethical regardless of whetherthey earn profits or not (Maruf, 2013). They are not mandated by anylaws or regulations, but they are a tradeoff between the profitmargins that a firm can earn and its morality towards the environmentthey are operating in.

Definitionof terms

Corporateimage (CI): This is the immediate mental perception that anindividual develops towards a given bureau (Telofski, 2011).

Corporatesocial responsibility (CSR): is an endless commitment that is shownby a particular conglomerate through ethical behavior and itscontribution to the economic development to ensure that thestakeholders who are directly and indirectly related to it have animproved quality of life (Lenguyen, 2011).

Publicrelations (PR): is how an individual/organization maintains afavorable public image.

PublicRelations Department (PRD): This is the unit of an agency that dealswith managing the information that spreads to the public (Buttle andMaklan, 2015).

Customerloyalty: is the level to which the buyers of a company are connectedto it resulting in a continued purchase (Harvard Business ReviewPress, 2011).

  1. CSR and Public Relations

Importanceof CSR

Thecompany’s involvement in the CSR activities helps build and improveits image before the public. Such organizations are considered to beexceedingly philanthropic compared to the ones that do not regardthese practices. The business’s image depends on how best it iscommitted towards the CSR and ways through which the patronagesperceive it. Most customers only shop in the institutions whichpositively contribute to the wellbeing of the society. Though CSR hasno direct profit contributions, its benefits are indirect and canaffect the well-being of any agency. They increase their fame beforethe consumers and become the most preferred one before them.Therefore, CSR is one of the ways through which a firm can clean upthe negative view that people have towards it (Pompper, 2015).

HowPRDs and CSR are of use during corporate crisis

Duringthe crisis periods, the two have a role to play. The PRD is the oneto identify the areas that may have given rise to the conflict andensure that the CSR works towards ensuring that it is solved amicablyin a way that is perceived as better before the society (Hershman,2014). The PRD is the corporate monitor, and it should carefullyfollow what raises issues before the public and make sure that thesame is reflected in the CSR programs so that it will not negativelyaffect their picture. If there are amendments that should be done,they will be done through the techniques that CSR will employ.

HowCSR restores firm image

Someconsortiums are struggling with reputational issues because of theirpast or present activities. CSR will ensure that it is fully involvedin the corporate programs that work towards making the community gainmaximally from the its activities (Ordonez, 2015). It will identifysome projects in the society that needs financial support and providemonetary donations to them so that they can be completed. It willalso make the donations that can be products or services to thepublic that aims at forming a strong partnership with the surroundingenvironment.

Justificationof PRD involvement in activities that lead to positive corporateimage

PRDsare involved in a range of undertakings that are beneficial to theirorganization as a whole. They help in the preparation of speeches forthe seniors that answer the questions of interest to the public andadvise them of the need to get involved in the CSR practices. Theymaintain favorable relations with all the forms of media so thattheir CI will not be negatively portrayed because this will adverselyaffect them. Wherever any media platform inquires anything abouttheir industry, they are the ones to disseminate such messages. Themanner in which they communicate is the way their company will beknown to the public (Virvilaite and Daubaraite, 2011).

Resourcesand knowledge/experience to accomplish community service initiatives

Forthe efforts to be accomplished, the PRD department needs to haveknowledge of business, people, and technicality. Business knowledgewill enable them to make effective choices that involve all theactivities affecting the enterprise like decision making and buildingan insight among others. The people skills, for example, buildingpartnerships, will ensure that the CI is improved before the publicwhereas the scientific ones make the firm relate well with thesurrounding. The necessary resources can be either monetary ornonmonetary (Ray and Silver, 2014).

  1. Relationship between CSR and customer loyalty

Tofind out the relationship that exists between the two, it isimperative that the antecedents of subscriber loyalty be clearlydefined as they are divided into two, that is, customer and productrelated factors.

Customerrelated factors

Theyinclude the overall satisfaction with the company products and brandtrustworthiness. Customer satisfaction plays a vital role inincreasing the competitive advantage and ensuring that the currentcustomers are retained. It links consumers to the repeated purchaseand spreading a positive word of mouth about the benefits of theparticular firm. The contentedness can be better defined afterconsumption though some authors regard it as the difference thatexists between perceptions and expectations. Favorable CSR leads toimproved achievement from the way it increases patron identificationand support that increases their loyalty. CSR also leads to positivecustomer behavior for those who are firmly attached to that agency(Chung, Yu, Choi, and Shin, 2015).

Onthe other hand, the CSR practices influence the customer trustpositively. Once people identify themselves with a given institution,they satisfy their self-definitional needs as their attitudeincreases following the positive corporate behavior that makes theirimage more appealing than any other. The support given to the societywins the faith of all those who knows the commitments of that firm.Furthermore, the product promotions are perceived to be fit only ifthe perception of the bureau is good. It can be, therefore, concludedthat the CSR activities and customer trust are directly related, andthe same case applies to their loyalty (Diallo and Lambey-Checchin,2016).

Product-relatedfactors

Itscomponents are the product quality and brand image. The affirmationof the goods and services ensures that the customers are satisfied,retained and remains loyal. CSR is the mediator between theperception that individuals have towards attribute and ardor. Themorality of company practices determines the attitudes that peopledevelop towards it and its products. The goods should be of the highstandard because if they are inferior, the CSR will have too littleto do with improving the client loyalty. It should be remembered thatpositive behavior does not substitute product characteristic andmaintaining high standards does not compensate for the unethicalpractices. In general, CSR has a positive impact on loyalty throughquality productions and servicing that makes a business unique fromits competitors (Berg and Lidfors, 2012).

Similarly,word of mouth influences the way consumers behave and the attitudesdeveloped towards the brand image (Raman, Lim, and Nair, 2012). Thiswill be possible if there is the satisfaction that is stimulated bypositive involvement in the CSR activities. The message will bespread from one individual to the other thereby improving the companyimage an indicator that the customers have remained firm to itthroughout the period. If there are regions where the company is notknown, the CSR programs make it familiar and its influence remainsstable once the brand becomes unique from others. CSR also can act asdifferentiation methods from the operations of the competitors incase they do not exist because it is coupled with innovation. Theassociations that a consumer develops form a basis upon which a firmcan be evaluated though such an assessment depends on the certain CSRpractices (Asatryan, 2013). Managers should make use of the strategicperspective as a basis for decision-making because it shades light onhow evaluations are made by customers. The relationship between CSRand brand images can be controlled by other personal preferences.However, the corporate responsibilities favorably change the brandimage and the customer loyalty as well.

  1. Strength/limitation of the literature review

Thisliterature review has its strengths in that it has identified indetails how the corporate social responsibility affects the customerloyalty in different ways. It has identified the factors thatdirectly affect the customer devotion and how they are influenced bythe activities that take place after the corporation indulges itselfin undertaking the community services regardless of their ability toearn them profits directly. The practices have proved how useful theyare in the long run. Likewise, it has emphasized that high-qualityproducts are not a guarantee that the firm should not get involved inevents that are aimed at making the society a better place becausethat is one way of ensuring that their image is improved. The usersof this research paper can get detailed information of what they canobserve to maintain their consumers who will spread the message toattract more others.

Likewise,it has some weaknesses that should properly be analyzed before anydecision is made based the contents provided here. In that matter,therefore, the behavior of customers differs from one person to theother concerning particular companies and the products that theyproduce and thus their preferences are dissimilar. This study may nothold to all people because there are those who do not care much aboutthe CSR provided the product maintains the standards they require.The previous practices may have created a strong base of purchaserloyalty, and the same message has been passed from one person to theother over time, and thus such companies may not be profoundlyaffected by their nonparticipation in the CSR activities.

References

Asatryan,R. (2013). TheEffect of CSR Initiatives on Customer Loyalty in the AirlineIndustry,Retrieved fromhttp://www.wseas.us/e-library/conferences/2013/Milan/ICMA/ICMA-10.pdfon November 1, 2016.

Berg,H &amp Lidfors, L. (2012). TheEffect of Perceived CSR on Customer Loyalty,Retrieved fromhttp://lnu.diva-portal.org/smash/get/diva2:533436/FULLTEXT01on November 1, 2016.

Buttle,F &amp Maklan, S. (2015). CustomerRelationship Management: Concepts and Technologies.Routledge Publishers.

Chung,K., Yu, J., Choi, M &amp Shin, J. (2015). The Effects of CSR onCustomer Satisfaction and Loyalty in China: The Moderating Role ofCorporate Image. Journalof Economics, Business Management, 3(5),Retrieved from http://www.joebm.com/papers/243-M10014.pdfon November 1, 2016.

Diallo,M. F &amp Lambey-Checchin, C. (2016). Relationshipsbetween CSR and Customer Loyalty: What Lessons for Retailers,Retrieved from https://riodd2016.sciencesconf.org/113317/documenton November 1, 2016.

HarvardBusiness Review Press. (2011). HarvardBusiness Review on Increasing Customer Loyalty.Boston, Mass: Harvard Business Review.

Hershman,J. (2014). CorporateSocial Responsibility – Why PR needs it,Retrieved fromhttp://www.pria.com.au/priablog/corporate-social-responsibility-why-pr-needs-iton November 1, 2016.

Lenguyen,T. (2011). TheImpact of Corporate Social Responsibility programs on a Company’sImage and Reputation: A Case Studyhttp://www.graduate.au.edu/gsbejournal/7V/Dec2011/Dung%20Le%20JOURNAL.pdfon November 1, 2016.

Maruf,A. A. (2013). Corporate Social Responsibility and Corporate Image.TransnationalJournal of Science and Technology,3(8), retrieved from http://tjournal.org/tjst_august_2013/03.pdfon November 1, 2016.

Ordóñez,P. P. (2015). TechnologicalSolutions for Sustainable Business Practice in Asia.IGI Global Publishers.

Pompper,D. (2015). CorporateSocial Responsibility, Sustainability and Public Relations:Negotiating Multiple Complex Challenges.Routledge Publishers.

Raman,M., Lim, W &amp Nair, S. (2012). TheImpact of Corporate Social Responsibility on Consumer Loyalty,Retrieved fromhttp://web.usm.my/km/30(2)2012/KM%2030%20(2)%20ART%204%20(71-93).pdfon November 1, 2016.

Ray,S., &amp Siva, R. S. (2014). ImplementingCorporate Social Responsibility: Indian Perspectives.New Delhi: Springer India.

Telofski,R. (2011). InsidiousCompetition: The Battle for Meeting and the Corporate Image.iUniverse Publishers.

Virvilaite,R &amp Daubaraite, U. (2011). Corporate Social Responsibility inForming Corporate Image. EngineeringEconomics, 22(5), 534-543,Retrieved fromhttp://www.ecoman.ktu.lt/index.php/EE/article/viewFile/972/1063on November 1, 2016.