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Generating global brand equity through corporate social responsibility to key stakeholders

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  • Anna Torres

    ()

  • Tammo H. A. Bijmolt
  • Josep A. Tribó
  • Peter Verhoef

Abstract

In this paper we argue that corporate social responsibility (CSR) to various stakeholders (customers, shareholders, employees, suppliers, and community) has a positive effect on global brand equity (BE). In addition, policies aimed at satisfying community interests help reinforce credibility to social responsible polices with other stakeholders. We test these theoretical contentions using panel data comprised of 57 global brands originating from 10 countries (USA, Japan, South Korea, France, UK, Italy, Germany, Finland, Switzerland and the Netherlands) for the period 2002 to 2008. Our findings show that CSR to each of the stakeholder groups has a positive impact on global BE. In addition, global brands that follow local social responsibility policies over communities obtain strong positive benefits in terms of the generation of BE, as it enhances the positive effects of CSR to other stakeholders, particularly to customers. Therefore, for managers of global brands it is particularly productive for generating brand value to combine global strategies with the satisfaction of the interests of local communities.

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Bibliographic Info

Paper provided by Department of Economics and Business, Universitat Pompeu Fabra in its series Economics Working Papers with number 1209.

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Date of creation: Feb 2010
Date of revision: Oct 2011
Handle: RePEc:upf:upfgen:1209

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Web page: http://www.econ.upf.edu/

Related research

Keywords: Global Brands; Brand Equity; Corporate Social Responsibility; Stakeholders.;

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