IDEAS home Printed from https://ideas.repec.org/a/gam/jijerp/v18y2021i16p8275-d608415.html
   My bibliography  Save this article

The Role of Corporate Social Responsibility and Corporate Image in Times of Crisis: The Mediating Role of Customer Trust

Author

Listed:
  • Chih-Cheng Chen

    (Department of Marketing and Distribution Management, College of Management, National Kaohsiung University of Science and Technology, Kaohsiung 824005, Taiwan)

  • Asif Khan

    (Department of Marketing and Distribution Management, College of Management, National Kaohsiung University of Science and Technology, Kaohsiung 824005, Taiwan)

  • Tanaporn Hongsuchon

    (Chulalongkorn Business School, Chulalongkorn University, Bangkok 10330, Thailand)

  • Athapol Ruangkanjanases

    (Chulalongkorn Business School, Chulalongkorn University, Bangkok 10330, Thailand)

  • Yen-Tzu Chen

    (Department of Information and Learning Technology, National University of Tainan, Tainan 70005, Taiwan)

  • Ornlatcha Sivarak

    (Mahidol University International College, Mahidol University, Nakhon Pathom 73170, Thailand)

  • Shih-Chih Chen

    (Department of Information Management, National Kaohsiung University of Science and Technology, Kaohsiung 824005, Taiwan)

Abstract

The purpose of this research is to empirically examine relationships between a multi-dimensional set of corporate social responsibility (CSR) initiatives, numerous dimensions of customer trust, and corporate image in an emerging economy. It also analyzes the mediating effect of customer trust on the relationship between CSR and corporate image. This study focuses on two of the most well-known hotel chains situated in Pakistan. Close-ended, self-administered questionnaires were circulated amongst a total of 300 hotel customers. The research data was analyzed using a partial least square-structural equation modeling (PLS-SEM) model. The results revealed that economic, legal, and ethical CSR significantly impacted corporate image, while philanthropic CSR did not affect the corporate image. However, economic, legal, and philanthropic CSRs were found to be in a significant relationship with customer trust, while ethical CSR was not in a significant relationship with customer trust. Finally, customer trust fully mediated the relationship between economic and legal CSR with corporate image, whereas it partially mediated the relationship between ethical and philanthropic CSR. This study is unique from earlier CSR research based on an assessment of the connection between CSR dimensions and corporate image to examine customers’ trust in an emerging economy, especially in times of crisis.

Suggested Citation

  • Chih-Cheng Chen & Asif Khan & Tanaporn Hongsuchon & Athapol Ruangkanjanases & Yen-Tzu Chen & Ornlatcha Sivarak & Shih-Chih Chen, 2021. "The Role of Corporate Social Responsibility and Corporate Image in Times of Crisis: The Mediating Role of Customer Trust," IJERPH, MDPI, vol. 18(16), pages 1-20, August.
  • Handle: RePEc:gam:jijerp:v:18:y:2021:i:16:p:8275-:d:608415
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1660-4601/18/16/8275/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/1660-4601/18/16/8275/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bozic, Branko, 2017. "Consumer trust repair: A critical literature review," European Management Journal, Elsevier, vol. 35(4), pages 538-547.
    2. Kotowska, B. & Martyniuk, T., 2015. "Reporting Of Corporate Social Responsibility In Smes Sector In Poland," Вісник Житомирського державного технологічного університету. Серія: Економічні науки // THE JOURNAL OF ZHYTOMYR STATE TECHNOLOGICAL UNIVERSITY. SERIES: ECONOMICS, Житомирський державний технологічний університет // ZHYTOMYR STATE TECHNOLOGICAL UNIVERSITY, vol. 72(2).
    3. Carroll, Archie B., 1991. "The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders," Business Horizons, Elsevier, vol. 34(4), pages 39-48.
    4. Ramaswamy, Venkat & Ozcan, Kerimcan, 2016. "Brand value co-creation in a digitalized world: An integrative framework and research implications," International Journal of Research in Marketing, Elsevier, vol. 33(1), pages 93-106.
    5. Yaeri Kim & Seojin Stacey Lee & Taewoo Roh, 2020. "Taking Another Look at Airline CSR: How Required CSR and Desired CSR Affect Customer Loyalty in the Airline Industry," Sustainability, MDPI, vol. 12(10), pages 1-19, May.
    6. HakJun Song & Wenjia Ruan & Yunmi Park, 2019. "Effects of Service Quality, Corporate Image, and Customer Trust on the Corporate Reputation of Airlines," Sustainability, MDPI, vol. 11(12), pages 1-14, June.
    7. DeConinck, James B., 2010. "The effect of organizational justice, perceived organizational support, and perceived supervisor support on marketing employees' level of trust," Journal of Business Research, Elsevier, vol. 63(12), pages 1349-1355, December.
    8. Scott Jeffrey & Stuart Rosenberg & Brianna McCabe, 2018. "Corporate social responsibility behaviors and corporate reputation," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 15(3), pages 395-408, October.
    9. Vicenta Sierra & Oriol Iglesias & Stefan Markovic & Jatinder Jit Singh, 2017. "Does Ethical Image Build Equity in Corporate Services Brands? The Influence of Customer Perceived Ethicality on Affect, Perceived Quality, and Equity," Journal of Business Ethics, Springer, vol. 144(3), pages 661-676, September.
    10. Sandro Castaldo & Francesco Perrini & Nicola Misani & Antonio Tencati, 2009. "The Missing Link Between Corporate Social Responsibility and Consumer Trust: The Case of Fair Trade Products," Journal of Business Ethics, Springer, vol. 84(1), pages 1-15, January.
    11. Jintae Kim & Kangho Cho & Cheong K. Park, 2019. "Does CSR Assurance Affect the Relationship between CSR Performance and Financial Performance?," Sustainability, MDPI, vol. 11(20), pages 1-12, October.
    12. Carolin Plewa & Jodie Conduit & Pascale Quester & Claire Johnson, 2015. "The Impact of Corporate Volunteering on CSR Image: A Consumer Perspective," Journal of Business Ethics, Springer, vol. 127(3), pages 643-659, March.
    13. Nicholas Ind & Oriol Iglesias & Stefan Markovic, 2017. "The co-creation continuum: from tactical market research tool to strategic collaborative innovation method," Journal of Brand Management, Palgrave Macmillan, vol. 24(4), pages 310-321, August.
    14. Angeloantonio Russo & Francesco Perrini, 2010. "Investigating Stakeholder Theory and Social Capital: CSR in Large Firms and SMEs," Journal of Business Ethics, Springer, vol. 91(2), pages 207-221, January.
    15. Becker-Olsen, Karen L. & Cudmore, B. Andrew & Hill, Ronald Paul, 2006. "The impact of perceived corporate social responsibility on consumer behavior," Journal of Business Research, Elsevier, vol. 59(1), pages 46-53, January.
    16. Kenneth E. Boulding, 1956. "General Systems Theory--The Skeleton of Science," Management Science, INFORMS, vol. 2(3), pages 197-208, April.
    17. Alejandro Alvarado-Herrera & Enrique Bigne & Joaquín Aldas-Manzano & Rafael Curras-Perez, 2017. "A Scale for Measuring Consumer Perceptions of Corporate Social Responsibility Following the Sustainable Development Paradigm," Journal of Business Ethics, Springer, vol. 140(2), pages 243-262, January.
    18. John Hulland, 1999. "Use of partial least squares (PLS) in strategic management research: a review of four recent studies," Strategic Management Journal, Wiley Blackwell, vol. 20(2), pages 195-204, February.
    19. D. Harrison McKnight & Vivek Choudhury & Charles Kacmar, 2002. "Developing and Validating Trust Measures for e-Commerce: An Integrative Typology," Information Systems Research, INFORMS, vol. 13(3), pages 334-359, September.
    20. Lombart, Cindy & Louis, Didier, 2014. "A study of the impact of Corporate Social Responsibility and price image on retailer personality and consumers' reactions (satisfaction, trust and loyalty to the retailer)," Journal of Retailing and Consumer Services, Elsevier, vol. 21(4), pages 630-642.
    21. Yi, Youjae & Gong, Taeshik, 2013. "Customer value co-creation behavior: Scale development and validation," Journal of Business Research, Elsevier, vol. 66(9), pages 1279-1284.
    22. Zhilong Tian & Rui Wang & Wen Yang, 2011. "Consumer Responses to Corporate Social Responsibility (CSR) in China," Journal of Business Ethics, Springer, vol. 101(2), pages 197-212, June.
    23. Russell L. Purvis & V. Sambamurthy & Robert W. Zmud, 2001. "The Assimilation of Knowledge Platforms in Organizations: An Empirical Investigation," Organization Science, INFORMS, vol. 12(2), pages 117-135, April.
    24. Jatinder Singh & Oriol Iglesias & Joan Batista-Foguet, 2012. "Does Having an Ethical Brand Matter? The Influence of Consumer Perceived Ethicality on Trust, Affect and Loyalty," Journal of Business Ethics, Springer, vol. 111(4), pages 541-549, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yooin Noh & Pei Liu, 2024. "Exploring How Consumers’ Perceptions of Corporate Social Responsibility Impact Dining Intentions in Times of Crisis: An Application of the Social Identity Theory and Theory of Perceived Risk," JRFM, MDPI, vol. 17(2), pages 1-16, January.
    2. Katerina Paschalidou & Efi Tsitskari & Kostas Alexandris & Thomas Karagiorgos & Dionisios Filippou, 2023. "Segmenting Fitness Center Customers: Leveraging Perceived Ethicality for Enhanced Loyalty, Trust, and Word-of-Mouth Communication," Sustainability, MDPI, vol. 15(22), pages 1-19, November.
    3. Joanna Sawicka & Elżbieta Marcinkowska, 2023. "Environmental CSR and the Purchase Declarations of Generation Z Consumers," Sustainability, MDPI, vol. 15(17), pages 1-14, August.
    4. Olena Oliinyk & Halyna Mishchuk & Laszlo Vasa & Katalin Kozma, 2023. "Social Responsibility: Opportunities for Integral Assessment and Analysis of Connections with Business Innovation," Sustainability, MDPI, vol. 15(6), pages 1-17, March.
    5. Tien-Chin Wang & Tsai-Yun Huang & Chien-Hui Lee, 2023. "Exploring the Preference of Corporations for Sponsorship Motives and the Impact of Sponsorship Motives on Sponsoring Intention in Post-Epidemic Era: Using Two Different Approaches—FPR and SEM," Sustainability, MDPI, vol. 15(10), pages 1-22, May.
    6. Chen Ma & Changjiang Yu & Yasir Latif, 2023. "CSR and Sustainable Growth in China’s Technology Firms between 2010 and 2021," Sustainability, MDPI, vol. 15(3), pages 1-24, January.
    7. Teguh Tresna Puja Asmara & Tarsisius Murwadji & Kartikasari & Anita Afriana, 2023. "Corporate Social Responsibility and Cooperatives Business Sustainability in Indonesia: Legal Perspective," Sustainability, MDPI, vol. 15(7), pages 1-23, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Oriol Iglesias & Stefan Markovic & Mehdi Bagherzadeh & Jatinder Jit Singh, 2020. "Co-creation: A Key Link Between Corporate Social Responsibility, Customer Trust, and Customer Loyalty," Journal of Business Ethics, Springer, vol. 163(1), pages 151-166, April.
    2. Ferrell, O.C. & Harrison, Dana E. & Ferrell, Linda & Hair, Joe F., 2019. "Business ethics, corporate social responsibility, and brand attitudes: An exploratory study," Journal of Business Research, Elsevier, vol. 95(C), pages 491-501.
    3. Mahrinasari MS, 2019. "Determinants of Brand Equity: Communication of Corporate Social Responsibility (CSR) versus CSR itself and Company Credibility," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 13(3), September.
    4. Mobin Fatma & Zillur Rahman, 2016. "Consumer responses to CSR in Indian banking sector," International Review on Public and Nonprofit Marketing, Springer;International Association of Public and Non-Profit Marketing, vol. 13(3), pages 203-222, October.
    5. Fatih Özcan & Meral Elçi, 2020. "Employees’ Perception of CSR Affecting Employer Brand, Brand Image, and Corporate Reputation," SAGE Open, , vol. 10(4), pages 21582440209, November.
    6. Santhiya Ramasamy & Karpal S. Dara Singh & Azlan Amran & Mehran Nejati, 2020. "Linking human values to consumer CSR perception: The moderating role of consumer skepticism," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(4), pages 1958-1971, July.
    7. Subhajit Bhattacharya, 2017. "Does corporate social responsibility contribute to strengthen brand equity? An empirical study," International Review on Public and Nonprofit Marketing, Springer;International Association of Public and Non-Profit Marketing, vol. 14(4), pages 513-533, December.
    8. Linda D. Hollebeek & Moira K. Clark & Wafa Hammedi & René Arvola, 2021. "Cocreated brand value: theoretical model and propositions," Journal of Brand Management, Palgrave Macmillan, vol. 28(4), pages 413-428, July.
    9. Iskandar Zainuddin Rela & Abd Hair Awang & Zaimah Ramli & Yani Taufik & Sarmila Md Sum & Mahazan Muhammad, 2020. "Effect of Corporate Social Responsibility on Community Resilience: Empirical Evidence in the Nickel Mining Industry in Southeast Sulawesi, Indonesia," Sustainability, MDPI, vol. 12(4), pages 1-17, February.
    10. Henri Kuokkanen & William Sun, 2020. "Companies, Meet Ethical Consumers: Strategic CSR Management to Impact Consumer Choice," Journal of Business Ethics, Springer, vol. 166(2), pages 403-423, October.
    11. Katharina Hedderich, 2014. "Corporate Social Responsibility In Germany And Other Countries," Balkan Region Conference on Engineering and Business Education, Sciendo, vol. 1(1), pages 373-378, August.
    12. Varsha Singh & Sakshi Kathuria & Deepika Puri & Bharat Kapoor, 2023. "Corporate social responsibility and behavioral intentions: A mediating mechanism of Brand Recognition," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(4), pages 1698-1711, July.
    13. Claudiu George Bocean & Michael Marian Nicolescu & Marian Cazacu & Simona Dumitriu, 2022. "The Role of Social Responsibility and Ethics in Employees’ Wellbeing," IJERPH, MDPI, vol. 19(14), pages 1-15, July.
    14. Gaurav Dawar & Seema Singh, 2022. "How Can Small and Medium Enterprises Effectively Implement Corporate Social Responsibility?: An Indian Perspective," Global Business Review, International Management Institute, vol. 23(3), pages 756-784, June.
    15. Derek Moscato & Toby Hopp, 2019. "Natural born cynics? The role of personality characteristics in consumer skepticism of corporate social responsibility behaviors," Corporate Reputation Review, Palgrave Macmillan, vol. 22(1), pages 26-37, February.
    16. Yu-Bing Wang & Ching-Wei Ho, 2017. "No Money? No Problem! The Value of Sustainability: Social Capital Drives the Relationship among Customer Identification and Citizenship Behavior in Sharing Economy," Sustainability, MDPI, vol. 9(8), pages 1-17, August.
    17. Nadeem, Waqar & Alimamy, Saifeddin & Ashraf, Abdul Rehman, 2023. "Navigating through difficult times with ethical marketing: Assessing consumers' willingness-to-pay in the sharing economy," Journal of Retailing and Consumer Services, Elsevier, vol. 70(C).
    18. Stephen T. Homer & Koon Vui Yee & Kuan Siew Khor, 2023. "Developing a measurement instrument for perceived Corporate citizenship using multi-stakeholder, multi-industry and cross-country validations," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(1), pages 277-300, February.
    19. Louis, Didier & Lombart, Cindy, 2018. "Retailers’ communication on ugly fruits and vegetables: What are consumers’ perceptions?," Journal of Retailing and Consumer Services, Elsevier, vol. 41(C), pages 256-271.
    20. Matti Haverila & Kai Haverila & Caitlin McLaughlin & Mehak Arora, 2022. "Engagement, participation, and relationship quality in the context of co-creation in brand communities," Journal of Marketing Analytics, Palgrave Macmillan, vol. 10(3), pages 232-249, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jijerp:v:18:y:2021:i:16:p:8275-:d:608415. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.