Considerations on the influence of corporate social responsibility on consumers' purchasing decisions

Abstract

In the age of globalization and increasing social and environmental awareness, corporate social responsibility (CSR) and commitment to sustainability are becoming increasingly important for companies. These practices are no longer just optional choices but are becoming essential criteria for consumers in their purchasing decisions. In our empirical endeavour, we used document content - and survey analysis as research methods. By employing a qualitative content analysis procedure, we examined and evaluated various campaigns promoting sustainability and philanthropy in relation to different apparel brands. Thus, we identifiedfour such relevant campaigns, designed to emphasize ethical and sustainable values enabling a comprehensive overview of the impact of these marketing strategies on consumer purchasing decisions. Moreover, we statistically analysed how the perceived brand value (i.e., translated into purchasing decision) is influenced by philanthropic and sustainable business practices. Based on our results we draw some relevant conclusions about the impact of CSR campaigns, in general, and on Romanian consumer purchasing behaviour, in particular.

Headnote

Abstract

In the age of globalization and increasing social and environmental awareness, corporate social responsibility (CSR) and commitment to sustainability are becoming increasingly important for companies. These practices are no longer just optional choices but are becoming essential criteria for consumers in their purchasing decisions. In our empirical endeavour, we used document content - and survey analysis as research methods. By employing a qualitative content analysis procedure, we examined and evaluated various campaigns promoting sustainability and philanthropy in relation to different apparel brands. Thus, we identifiedfour such relevant campaigns, designed to emphasize ethical and sustainable values enabling a comprehensive overview of the impact of these marketing strategies on consumer purchasing decisions. Moreover, we statistically analysed how the perceived brand value (i.e., translated into purchasing decision) is influenced by philanthropic and sustainable business practices. Based on our results we draw some relevant conclusions about the impact of CSR campaigns, in general, and on Romanian consumer purchasing behaviour, in particular.

Keywords; corporate social responsibility, sustainability, philanthropy, consumer-purchasing decisions

Introduction

In this paper, we present the influence of CSR on the customer's purchasing decision. Specifically, we examine the influence of philanthropy and sustainability on the consumer buying process. Since a while now, more and more small, and middle-sized enterprises (SME) are committing to issues such as sustainability, ethics, and social impact.

Corporate Social Responsibility (CSR) has its origins in the 1930-1940s and to this day, there are many definitions of corporate social responsibility (Frynas and Yamahaki, 2016). The answer to the question of why a business or a company exists is no longer only linked to economic aspects, but also revolves around a more nuanced and complex conceptual paradigm (Latapi Agudelo et al., 2019). We resonate with the European Commission's (2001) definition of corporate social responsibility, as a phenomenon in which companies voluntarily decide to contribute to a better society and a cleaner environment. To be responsible, according to the European Commission's definition, a company must integrate social and environmental concerns into its actions and strategies in the context of the interactions it engages in.

Although studies (Crişan-Mitra and Borza, 2015; Badulescu et al., 2018) show that CSR in Romania contributes to the increase of the company's notoriety as a socially responsible entity, Romanian managers are currently not fully attuned to the significance of CSR. Due to previous education focused on operations management, i.e., in achieving state-planned production targets, many managers of small and middle-sized enterprises tend to be resistant to adopting CSR as an additional tool for improving the competitiveness of companies (Obrad et al., 2011; Badulescu et al., 2018). Moreover, according to Saveanu et al., (2021), Romania scores below the European average on aspects related to handling human resources and environmental topics, i.e., the impact of CSR actions and policies have a relatively narrow applicability, especially in the Romanian SME.

Research shows that CSR initiatives can create a strong bond between the company and consumers, thus strengthening consumer loyalty and value creation (Husted and Allen, 2007). For example, a study by Rahman and Norman (2016) shows that firms that implement effective CSR policies tend to have higher consumer loyalty ratings. Scholars (Havidz and Mahaputra, 2020; Rosanti and Salam, 2021; Prayuda, 2024) show that a solid brand image positively influences the customers' purchasing decisions, translated in better reviews (Iskuntianti et al., 2020), a solid trust in the brand itself (Wijaya and Annisa, 2020), and mediates even the relationship between price and quality in purchase decisions (Sihombing et al., 2022).

Taking the above into consideration, we are grounding our empirical endeavour on "the latest belief' according to which responsible companies should focus on generation of shared values (Latapi Agudelo et al., 2019) and we explore if this perceived shared values are important for Romanian customers. Consequently, we will analyse both the general concept of CSR, through a qualitative analysis of four CSR international campaigns from the apparel industry and CSR in Romania, deploying a quantitative study through a questionnaire filled by Romanian consumers, related to the impact of the companies' philanthropic and business sustainability policies on their purchasing decisions. Moreover, we additionally examine what impact the common values (theirs and the companies') have in building loyalty for the companies' brands.

The article is organized as follows. Section 1 presents various definitions and concepts related to CSR (in general - subsection 1.1. and in the Romanian case, in particular - subsection 1.2.), and purchasing decisions (also discussing brand image and customer loyalty - subsection 1.З.); section 2 describes the research methodology and the specific objectives of the research; section 3 presents the empirical part of the paper and the results, forked into the qualitative study (i.e., subsection 3.1.) dealing with the content analysis of four international CSR campaigns of multinational companies, and the quantitative approach (i.e., subsection 3.2.), encompassing a survey on Romanian consumers about the factors that influence their purchasing decisions. Finally, section 4 offers a discussion upon our search for a relationship between the purchasing decision and the factors that compose the concept of social responsibility. Conclusions are being drawn and limits and prospects are put brought into light.

1. Considerations on CSR and purchasing decisions

1.1. CSR

The first author to address corporate social responsibility was Howard R. Bowen, who is also known as the "father of CSR". With the publication of the book "Social Responsibilities of the Businessman" in 1953, he set a milestone for the beginning of the modern CSR era. He defines the concept of social responsibility as "the obligation of businesspeople to pursue those policies, make those decisions or follow those courses of action that are desirable in terms of the goals and values of our society" (Bowen, 2013; Carroll, 1999). Bowen discusses many issues related to CSR and business in his book and raises several questions, including the most important one: "What responsibilities to society can businesspeople reasonably be expected to fulfil?" (Bowen, 2013; Carroll, 1999).

After Bowen, authors such as Davis (1960, 1967, 1973), Preston and Post (1975, 1981) and Carroll (1979) have continued to search for an appropriate definition of the meaning and content of CSR. Davis contends that the idea of corporate social responsibility is still muddled but frequently appears in management contexts. He argues that "decisions and actions of businesspeople should be made at least partially beyond the immediate economic and technical interests of the company" (Carroll, 1999).

Another important author for the CSR concept in the 1970s is George Steiner. He argued that business must continue to be an element of the economy and that as profits increase, so does corporate responsibility (Steiner, 1975; Carroll, 1999). CSR therefore not only improves business, but its movement represents a broader interest in the role of business and the improvement of social obligations (Eells and Walton, 1974; Carroll, 1999).

According to Carroll, "corporate social responsibility involves managing a company in such a way that it is economically profitable, law-abiding, ethically correct and socially beneficial" (Carroll, 1991). Despite the numerous definitions and concepts that have been developed for CSR, Carroll first presented his CSR model in the form of a pyramid in 1991. Called the "Pyramid of Corporate Social Responsibility", the 4 elements are explained as follows: economic, legal, ethical, and philanthropic. These dimensions are shown in the pyramid in Figure 1.

At the bottom of the pyramid are the economic responsibilities, which are considered to have the highest share or the greatest importance within the overall spectrum of responsibilities and which form the foundation without which the other responsibilities cannot be fulfilled. At the top of the pyramid in this order are legal, ethical, and philanthropic responsibilities, with the latter having the least weight in the overall spectrum of corporate social responsibility. Carroll (1991) therefore locates ethical norms within the economic and legal responsibilities, but also beyond them in relation to the ethical responsibilities (Meynhard and Gomez 2019 cited in Brieger et al., 2020).

The four elements are explained as follows:

* Economic - the economic level refers to the responsibility to earn from stakeholder investments.

* Legal - responsibility for compliance with the law.

* Ethical - the responsibility to comply with social norms that are not codified by law but are expected by stakeholders operating in society.

* Philanthropic - the responsibility to take on a specific role in volunteering to benefit a segment of society (Burton and Goldsby, 2009).

The pyramid should be considered sustainable in that these responsibilities represent long-term commitments that spill over to future generations of stakeholders. Although the pyramid could be perceived as a static snapshot of responsibilities, it should be understood as a dynamic, adaptable framework whose content is geared towards both the present and the future. In the next section, we move from a conceptual understanding of corporate social responsibility to its manifestation in Romania.

1.2. CSR in Romania

Although the idea of corporate social responsibility (CSR) has a long history in business literature, it is relatively new in the Romanian business landscape. Multinational companies have adopted CSR and developed new processes and initiatives. CSR activities began to diversify as they made their way into the Romanian business landscape, becoming more professionalized over time and often becoming a permanent endeavour integrated into companies' development strategies.

In the context of the process of alignment with EU standards and requirements, investigating the implementation of CSR by Romanian companies can provide essential information for assessing the degree of compliance and identifying areas for improvement. CSRMedia.ro and EY have conducted several studies, based on empirical evidence collected between 2013 and 2015, where they show a clear trend of increasing interest of Romanian companies in CSR. These studies highlight a growing concern among companies to strengthen their CSR efforts and improve their visibility in this area. (CSRMedia.ro and Ernst&Young, 2013; 2014; 2015). The promoters of this phenomenon are generally multinational companies that implement the CSR approach of the and above all their corporate culture, which is rarely adapted to local needs (Crişan-Mitra and Borza, 2015).

The resources spent on CSR initiatives are increasing, although they are still in their infancy in the Romanian business climate. A growing number of companies are paying great attention to CSR, especially considering that the social audit is one of the most important indicators for evaluation in the economic field (Obrad, et al., 2011).

In Romania, the first social responsibility actions were carried out in 1990, when several nongovernmental organizations (NGOs) with humanitarian purposes were founded with the support of international, public or private institutions. Certain "responsible" economic sectors have increased in Romania, including waste management, the marketing of organic and eco-products, ecotourism, rural tourism and renewable energy. According to a survey by The Azores (2014), among the most ethical food businesses in Romania, sustainable development in the supply chain and organic products received the highest scores at 25.5% and 24.7% respectively, while stakeholder involvement was rated the lowest at 2.2% (Popa 2015).

1.3. Purchase decision and loyalty

The purchase decision is a sequence of decisions that a consumer makes before making a purchase decision, which begins as soon as they are ready to satisfy a need. According to Lee and Ismail (2009), consumers made their purchase decision firstly based on traditional criteria such as price, quality, and convenience and secondly on the basis of harm or benefit to society.

Consumers are becoming increasingly aware of corporate social responsibility (CSR) through better education and the growing influence of the media. The nature of CSR activity, consumer support for the initiative and their beliefs about the trade-offs a company makes in its CSR activities play a crucial role in consumers' reactions to CSR activities (Sen and Bhattacharya, 2001). Some marketing experts believe that consumers are increasingly basing their purchasing decisions on their perception of a company's role in society. For example, consumers want to know how a company treats its employees, shareholders, neighbours, and other stakeholders. A company that engages in CSR activities helps itself to create a brand identity, which acts as a factor that can influence consumers' purchase intention (David, Kline and Dai 2005; Ali and Sohail 2018).

According to Inamullah (2012), customer loyalty is the willingness of a consumer to buy the same product and maintain the same lucrative association with a particular company. Many researchers have accepted the notion that loyalty or loyal customers are the lifeblood of a business, regardless of its size and scope (Yusof et al., 2015). Customer loyalty could lead to higher profits for retailers as customers buy more of a higher percentage of goods from retailers (Ailawadi and Keller, 2004). Loyalty can be measured by the intention to repurchase, recommendation of the product/service and patience towards the price (Kim and Yoon, 2004).

Rahman and Norman (2016) have shown that consumers have a more positive attitude towards a company when they learn that its CSR activities are aimed at local beneficiaries. This attitude manifests itself in a better intention to purchase the product and a willingness to pay higher prices for it (Rahman and Norman, 2016 cited in Sawicka and Marcinkowska, 2022). A study by Mohr et al. (2001), which examined the relationship between CSR and consumer purchasing behaviour, yielded following conclusions: most respondents were generally positive about socially responsible companies and expected a high level of CSR activities from companies. In addition, the results showed that a slight majority of respondents did not really or only sometimes think about aligning their purchasing behaviour with CSR, even if CSR as a purchasing criterion did not play a major role in the decision-making process or purchasing behaviour.

However, 39% of respondents based some or most of their purchasing on CSR (Mohr et al., 2001 cited in Bashar, 2021). In the same line of thought, Becker-Olsen (2005) contributed to a study aimed at investigating the impact of CSR on consumer behaviour. The results of the study showed that an overwhelming majority of respondents believed that companies should participate in social initiatives and 76% believed that these initiatives would benefit companies' businesses. About half of the respondents stated that they would boycott irresponsible companies if reasonable alternatives were available (Becker-Olsen and Hill, 2005, cited in Bashar, 2021).

2. Research methodology

Document analysis can be a valuable method for qualitative research as it can provide insight into topics that would be difficult to gain through other research methods such as interviews or observations (Holliday, 2007). Therefore, we believe that document analysis is an efficient method to define relationships between CSR and the consumer's purchasing decision. Thus, we analysed various environmental philanthropy campaigns of the following apparel brands: Patagonia; TOMS; H&M; Benetton. We sought for a connection between brand image and CSR policies, asking ourselves:

RQ: How and why are CSR policies influencing the customers' purchasing decisions?

Consequently, we examine four sustainability and philanthropic campaigns undertaken by apparel brands and analyse the impact of corporate social responsibility (CSR) on consumer purchasing decisions. At a time when environmental and ethical issues are becoming increasingly important, the fashion industry has begun to adopt sustainable strategies and initiatives to meet the growing demand for green and ethical options. These campaigns aim to inform and influence consumers to choose brands and products that use responsible and sustainable practices.

We also developed to working hypothesis, sprang from our research question that deal with the declared goals of CSR policies, namely business sustainability and philanthropic character of these campaigns (Hl) and creating common values which lead to customer loyalty (H2), thus positively influencing the purchasing decision.

Hl: Customers' purchasing decisions in relation to clothing items will show a positive correlation with the perceived sustainable business practices and philanthropic policies.

H2: Customer loyalty will have a positive correlation with the existence of apparel brands' policies to create shared value with those of their customers.

In order to explore our hypothesis, we applied a questionnaire addressed to Romanian consumers (N=100), where significant information was obtained about their preferences and perspectives on sustainability in the fashion industry and brands' philanthropic campaigns. Demographics such as gender, age, education level and monthly income have composed the first part of the questionnaire, whereas, in the second part, we developed questions regarding the Romanian customers' purchasing behaviour and attitudes towards sustainability issues (thus, addressing the first hypothesis). The third and last section of the questionnaire dealt with the relation between customer loyalty and common shared values, trying to engage in answering the second hypothesis. For the last two sections of the questionnaire, a Likert scale with numbers from 1 to 5 was used, where 1 = not at all important and 5 = very important.

Demographic analysis revealed a predominance of women (see, Appendix 1), 18-25 year-old (see, Appendix 2), and those with a university degree (Appendix 3). while the income intervals were evenly distributed (please consult, Appendix 4).

Linear regression was used to assess the impact of the independent variables (philanthropy, sustainability) on the dependent variable (brand value). We analysed the relationship using Spearman correlation. The Spearman correlation coefficient measures the association between ordered or ranked variables without assuming their distribution.

3. Results

3.1. Content analysis of public records

In the first part, we analyse the strategies and tactics used in these campaigns to promote responsible practices in the fashion industry. In the second part, we draw some conclusions regarding the influence of CSR on consumer purchasing decisions. The campaigns we have chosen are representative of the topic. By understanding the impact these campaigns have on customers, we gain a clearer perspective on how companies can use sustainable and philanthropic advertising strategies to attract and retain loyal and engaged customers while making a meaningful contribution to social and environmental issues. We chose to focus on the campaigns of globally recognized brands because of the impact these campaigns have on customers due to their name recognition. Brands such as Patagonia, H&M and TOMS have stood out with important initiatives and campaigns in this direction. These companies have adopted innovative strategies and taken concrete measures to reduce their environmental impact and contribute to a more sustainable textile industry.

* Patagonia is committed to spending 1% of sales on preserving and restoring the natural environment. The key values promoted by the "1% for the Planet" campaign include social responsibility, sustainability, environmental protection and community involvement.

* The "Garment Collecting" campaign initiated by H&M consists of collecting and recycling old clothes and using recycled materials to make new products. The values promoted include raising awareness and education, transparency and informing customers about recycling and sustainability.

* TOMS' "One for One" campaign is a social and business initiative in which TOMS donates a product or service for every product purchased by customers. Some of the key values promoted through the campaign are empathy, generosity, providing equal educational opportunities for all children and supporting the local economy.

* The aim of the United Colours of Benetton campaign is to draw public attention to social issues, contribute to change and raise awareness of important issues. "United Colours of Benetton" promotes several core values, including Diversity and Inclusion, Human Rights, Social Commitment.

Further, we examine the impact of corporate social responsibility (CSR) campaigns on consumer behaviour. In a world where concern about social and environmental issues is growing, brands have a greater responsibility to show their commitment to these issues and engage in philanthropic and sustainable activities.

A CSR campaign is a strategy that brands use to make a positive impact on society and raise awareness of their ethical values. Such campaigns range from supporting social causes such as education and health to environmental protection measures and the promotion of human rights. This section focuses on how CSR campaigns influence consumer behaviour. We examine how consumers perceive and respond to such campaigns and how they influence their purchasing decisions. We also examine which factors determine the effectiveness of these campaigns and how they can strengthen customer loyalty and increase sales.

By understanding the impact of CSR campaigns on consumer behaviour, brands can develop more effective and responsible strategies that respond to customers' needs and values.

The "1% for the Planet" campaign has played an important role in raising awareness and informing customers about the negative impact of human activity on the environment. It has helped to educate consumers about the importance of protecting and preserving nature. With over 3,000 members in more than 90 countries, people's awareness of the need to protect our planet has increased. The "1% for the Planet" campaign has led to increased loyalty to brands that pledge to donate 1% of their revenue to environmental organizations. The 1 % for the Planet initiative has helped to strengthen Patagonia's reputation as a leader in sustainability. Through its commitment to donate at least 1% of annual sales to environmental charities, Patagonia has captured consumers' attention and gained their trust (Alonso, 2023).

The "1% for the Planet" and "Garment Collecting" campaigns promote environmental protection as a core value. Both campaigns promote sustainability and environmental protection efforts. 1% for the Planet focuses on donations to environmental organizations and Garment Collecting promotes the recycling and collection of clothing to avoid waste and reduce environmental impact. Sustainability campaigns help to build a positive brand image in the eyes of consumers. Companies that commit to sustainability and promote their efforts can gain the trust and loyalty of customers and stand out from the competition. One of the key values of the H&M campaign is to inform customers about sustainability. The campaign promotes the importance of recycling and the circular economy. Customers are taught to recycle and reuse recycled clothing in a way that is economical and beneficial for the planet. However, it is important to note that there is also criticism of the clothing drive. Some believe the campaign is just a marketing ploy to get customers to return to H&M stores and buy new products.

Some argue that H&M should focus more on producing sustainable, high-quality clothing instead of recycling. Both the "One for One" campaign and the "United Colours of Benetton" campaign are campaigns to promote CSR, especially the philanthropic part. Both campaigns have had a great impact and attracted the attention of the public. They have succeeded in strengthening their brand image, initiating discussions, and encouraging people to get involved in promoting positive social values.

Toms donated over 95 million pairs of shoes to children in need, funded 780,000 pairs of eyeglasses and 722,000 weeks of clean water, and donated $6.5 million. In total, the company has helped over 9.5 million people in over 85 countries around the world. The "One for One" campaign has given TOMS a significant increase in sales and awareness. The unique concept of making a donation for every product sold attracted the attention of consumers who were motivated to support a company with a strong social purpose.

Social campaigns can help to raise awareness of important social and environmental issues. They can bring issues such as discrimination, poverty, climate change or human rights to the fore and educate the public about these topics. Thanks to these social campaigns, such as that of "United Colors of Benetton", people are sensitized to the problems surrounding them. Generosity and social campaigns help to create a sense of solidarity and social cohesion. When people are willing to support those in need and get involved in social initiatives, a sense of community is created, and interpersonal relationships are strengthened. Creating equal educational opportunities for all children, which the "One for One" campaign has succeeded in doing to a certain extent, is an essential prerequisite for reducing social inequalities and promoting fundamental rights. Ensuring universal access to quality education creates the conditions for the personal and professional development of every child, regardless of their background and social status.

CSR campaigns can be a way to stand out from the competition. When consumers have a choice between two similar products, a company's commitment to social issues can influence their purchasing decision. At the same time, a campaign that supports the customer's moral values often enjoys a higher reputation, and there is a greater chance that the customer will learn about the brand through a campaign.

3.2. Survey on customers' purchasing behaviour and attitudes towards sustainability issues.

The results of our survey revealed a positive association between age (please consult, Table 1) and interest in sustainability, as well as higher income (see, Table 2) and this concern. This could be explained by the fact that consumers, while getting older (and wealthier), the interests regarding environmental issues are getting stronger and fastidious. Thus, the CSR policies aiming for sustainable business behaviour seems to gain more and more attention for the Romanian consumers from the apparel sector.

Moreover, correlation was used to assess the connection between variables such as monthly income and interest in sustainability and philanthropy. Consequently, our results show that people with a higher monthly income often have greater financial resources to purchase sustainable products.

Running the regression between the dependent variable - brand value, and the two independent variables - philanthropy and sustainability, we obtained following results (see, Table 3).

According to our results, there is a positive correlation between monthly income and sustainability, indicating that people with higher incomes are more likely to adopt sustainable behaviours. These findings could help companies to better target their customers and engage in philanthropical and sustainable practices, and consequently, strengthening and improving their brand value.

Discussion and Conclusions

Philanthropy can help to positively shape a company's image in the eyes of consumers. When a company actively participates in philanthropic activities, such as donations to social, environmental, or charitable causes, this can improve the public perception and reputation of the company. For some consumers, participation in philanthropic activities can be a sign of a company's commitment to social issues and its contribution to the common good, which can have a positive impact on their purchasing decisions.

Sustainability can help create a sustainable and relevant brand image in the eyes of consumers. Companies that adopt sustainable practices and demonstrate a genuine commitment to sustainability can be perceived as concerned about their impact on the environment and the community. Customers who share the values of sustainability are more likely to choose that company over others that do not place the same importance on environmental and social issues.

The conclusion of the paper is in line with the theory discussed in Section 1. In the context of the influence of CSR on consumer purchasing decisions, Carroll (2016) states that that social practices and commitments can influence consumer attitudes and behaviour. He pointed out that as consumers become more aware of the social and environmental impacts of companies, they may take these aspects into account when making purchasing decisions. The results were also like those of Mohr's (2001) study which contributed to a deeper understanding of the impact of CSR on consumer behaviour and the importance of this issue for companies in developing effective marketing and communication strategies.

In summary, both sustainability and the philanthropic environment have the potential to positively influence Romanian customers' purchasing decisions, as initially proposed in hypothesis 1, by creating emotional and value-based connections between brand and consumer, as proposed in hypothesis 2. These statements are also in line with the findings of some scholars (Havidz and Mahaputra, 2020; Rosanti and Salam, 2021; Prayuda, 2024), whereas creation of common values seems to be the novel belief, and also the golden ticket through which CSR strategies and policies generate customer loyalty, and trust in the companies' brands (Iskuntianti et al., 2020; Wijaya and Annisa, 2020).

In this paper, we have answered the original research question, namely that there is an influence of CSR on consumers' purchasing decisions. The scientific approach and methodology chosen to examine customers' purchasing decisions regarding corporate social responsibility (CSR) in the context of environmental sustainability and philanthropy can provide valuable insights into consumer behaviour and preferences for socially responsible practices. Among the benefits of this approach, we generate a deeper understanding of how CSR initiatives influence consumer decision-making, which can be useful for companies in developing effective CSR strategies. In addition, stakeholders such as consumers, businesses, policy makers and researchers can benefit from the findings of this research to make informed decisions and contribute to sustainable practices.

Our research could be extended through deploying a larger sample, and deepening the discussions about what motivates Romanian customers to purchase one brand or another, through indepth interviews and focus groups, which enable a more nuanced understanding of the connection between perceived CSR policies, brand value and loyalty.

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