Corporate Social Responsibility And Its Impact On The Food Industry

Several researches have explored the connection between CSR and purchase intention. Creyer and Ross (1997) found that the ethical behaviour of companies in considered by consumers during purchase decision. Mohr et al. (2001) also supported this assumption and suggested that there is a ‘substantial market segment’ paying attention to companies’ CSR practices. A research developed by Prabu et al. (2005) obtained similar findings and added that Social Responsibility has as well a positive effect on corporate identity.

There is a change in the expectation of employees, customers and shareholders which makes CSR more favorable in doing business today. It is a more sustainable way of doing business and those organization which are more involved in corporate social responsibility will most likely reap the rewards in the longrun.In today’s fast speed and digital world, each business despite its size need to have CSR program in place. Those without CSR programs must implement it as fast as possible otherwise they will lose valuable stakeholders in the long run.

Capitalism is dominating the lives of today’s world and people do not even realize how they are being swindled. The civilians of the modern society do not acknowledge how they are being used as assets to make bottom lines for the world’s most competitive companies. With so many corporations and businesses running, there is a neverending race of who can get the most consumers and profits. For companies to attract investors and customers, they use CSR, or corporate social responsibility, to gain advantages in the business industry. Corporate social responsibility is when a company decides to do certain activities to help improve society . CSR consists of different types of categories which are philanthropy, ethical labor practices, and the environment. Throught the decades, there has been a constant debate that concerns how beneficial and helpful corporate social responsibility really is. Some people argue that CSR can let a company make profits and help the general public at the same time, but others suggest that companies who use CSR are only prioritizing their self interest and wealth. Therefore, a company cannot be socially responsible while simultaneously making a profit because corporate social responsibility is used as a way to avoid government regulation and to greenwash a company’s reputation.

When looking at a company’s corporate social responsibility (CSR) and the tie in to consumer confidence, the apparel industry illustrates both the best and the worst cases. Today’s consumers are more aware of how multinational corporations are incorporating or failing to incorporate CSR practices throughout the product lifecycle. This awareness has pushed companies in the apparel industry like Nike and Gap to evaluate current practices and incorporate socially responsible and environmentally responsible policies throughout their supply chain.

It evaluates value creation in terms of environmental, social and economic performance. Hence, businesses have to succeed economically, as well as stressing concern for social justice and environmental quality. However, an issue with defining CSR is not only concerned with its miscellaneous attributes but also its heterogeneous body of research. Most research conducted is concerned with CSR from a perspective of theoretical articles and quantitative research. Defining CSR and quantifying its value through the use of statistics can be an ambiguous task, which thus; presents the opportunity to greater understand CSR through a qualitative approach.

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 CNBC 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,

When policies to implement social responsibility are adopted, the direct financial impact on goods and services is evident; for instance, as part of its CRS strategy, Home Depot has partnered with Energy Star and according to the company’s 2016 responsibility report, the result of that partnership saved customers over $701.6 million in annual energy utility costs. More savings brings more sales. Additionally, a solid CSR demonstrates a level of ethical commitment and in today’s world, consumers are looking for that. Consumers will intentionally seek out products from suppliers who have CSR policies in place (“Resources & Reports”, 2016).

The concept of CSR (corporate social responsibility), has been around for many years, it has continued to grow in significance and importance. Moreover, there has been a public debate and commentary on the same subject. For instance, (International Journal of Corporate Social Responsibility) argues that CSR has had social-political influence i.e. the political regime, culture and legal systems of many countries around the globe. More companies around the globe in are engaging themselves in CSR activities, as a result, providing more information on social and environmental issues to the mass. According to (Burritt and Schaltegger, 2010; Gurvitish and Sidorova, 2012), in the past, research that considers both CSR reporting and activity has

In 2002, Environics International presented another study (the CSR Monitor) showing that about a third of consumers reward ethical firms and punish the unethical ones (Papafloratos, 2009). More recently, the 2010 Corporate Social Responsibility Perceptions Survey stated that more than 75% of consumers believe it is crucial for companies to be socially responsible and 55% of them are more likely to buy a product associated with a certain cause than when choosing between similar products (Burson Marsteller, 2010).

Today many customers will be more loyal to businesses that show CSR. A good business will know this and show CSR in one way or another. This paper will discuss two companies that have

The term corporate social performance was first coined by Sethi (1975) and his three level model of CSR are 'social obligation (a response to legal and market constraints); social responsibility(Congruent with societal norms); and social responsiveness (adaptive, anticipatory and preventive) (Cochran, 2007).The conceptual theoretical framework of CSR was developed by (Archie B Carroll 1991), and the four dimensions of CSR pyramid are economic, legal, ethical, and philanthropy .In a pyramid a corporation has four types of responsibilities, where the foundation is the economic responsibility to be profitable. The second is the legal responsibility to obey the law set forth by society. The third ethical responsibility is closely linked to the second. The fourth is philanthropic responsibility are the resources contributed by corporations’’. The implementation tool of CSR are the “activities undertaken by a corporation to support

Corporate Social Responsibility has been popular strategy among companies. Numerous companies release CSR report and variety of studies have been conducted on different aspect of CSR. Although many researches have been conducted, there are some controversy about concept and effectiveness of CSR. According to the recent study, CSR reports are significantly related to short and long-term measurement of financial performance (Orhan Akisik • Graham Gal, 2014) and M. Tsoutsoura’s date (Tsoutsoura, 2004) indicates that the sings of the relation between CSR and financial performance were positive. In addition, CSR influences

The main aim of a business is to earn profit but a business also need to fulfill the social and sustainability need along with its economic need this responsibility is known as Corporate social responsibility. CSR is The commitment of the business to seek after those strategies to settle on those choice, or to take after those lines of activity which are alluring as far as the target and estimation of our general public.(Carroll 1999,p.270) Now a days, relationships with customers depends on the value the company give to the social, economical and sustainable needs. In spite of the fact that executing CSR exercises rightly can prompt great impacts, for example, an expanding of organization 's benefits and a commitment to the social issues with boundless materials, without a significant learning of CSR may bring about terrible impacts, for example, squandering time and cash. According to research "Empirical studies regarding the relationship between CSR and performance are mix’’(shen and chang 2009, p.134) .This paper will talk about the significance of CSR about in meeting economical, social and sustainability needs and after that advantages and disadvantages.

Agunis, glovas (2012), Paper entitled “what we know and don‟t know about corporate social responsibility: A review and research agenda” in Journal of management, based on 588 journal articles and 102 books. The study provided a framework of CSR actions which affects external as well as internal stakeholders and outcomes of such actions. The paper also enhanced the knowledge regarding levels, forms of CSR; need to understand CSR with outcomes etc. further the researcher also suggested a framework of research design, data analysis and measurement for future research of CSR.

Problem - In today’s society, there is a growing interest in, and demand for Corporate Social Responsibility (CSR). Reasons for this can be multinational corporations’ increasing