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Impacts of Socially Responsible Corporate Activities on Korean Consumers’ Corporate Evaluations in the Agrifood Industry

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  • Dongmin Lee

    (Program in Regional Information, Department of Agricultural Economics and Rural Development, Seoul National University, Seoul 08826, Korea)

  • Junghoon Moon

    (Program in Regional Information, Department of Agricultural Economics and Rural Development, Seoul National University, Seoul 08826, Korea)

  • Young Chan Choe

    (Program in Regional Information, Department of Agricultural Economics and Rural Development, Seoul National University, Seoul 08826, Korea)

  • Jaeseok Jeong

    (Graduate School of Pan-Pacific International Studies, Kyung Hee University Global Campus, Yongin 17104, Korea)

Abstract

The variety of socially responsible corporate activities employed in the agrifood industry has been broadening. An increasing number of agrifood companies have been employing strategic approaches to socially responsible activities, reinforced by Porter and Kramer’s concept of creating shared value (CSV). This study compares the effects on corporate evaluations of two socially responsible corporate activities: philanthropic giving and CSV. Because prior studies concerning the effects of corporate prosocial behaviors on consumer responses have yielded mixed results, the present study examines the effects of a priori perceptions of companies by using corporate stereotypes as moderators. The results show that the type of socially responsible corporate activity (CSV vs. philanthropic giving) does not influence corporate evaluations. However, in cases of CSV (vs. philanthropic giving), consumers evaluate an unwarm but competent company more attractively and place higher value on an incompetent but warm company. This research is important not only for enriching existing literature, but also for providing guidelines to practitioners with respect to selecting appropriate corporate initiatives based on perceived consumer stereotypes.

Suggested Citation

  • Dongmin Lee & Junghoon Moon & Young Chan Choe & Jaeseok Jeong, 2016. "Impacts of Socially Responsible Corporate Activities on Korean Consumers’ Corporate Evaluations in the Agrifood Industry," Sustainability, MDPI, vol. 8(12), pages 1-18, December.
  • Handle: RePEc:gam:jsusta:v:8:y:2016:i:12:p:1292-:d:84785
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    References listed on IDEAS

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    1. Majid Ghorbani & Liyan Xuan, 2018. "Challenging Ingrained Thoughts? The Joint Effect of Stereotypes and Awareness of Related Information on Pro-Environmental Behavior in China," Sustainability, MDPI, vol. 10(6), pages 1-20, June.
    2. Sang-soo Kim & Woo-yeul Baek & Kevin K. Byon & Sung-bum Ju, 2020. "Creating Shared Value and Fan Loyalty in the Korean Professional Volleyball Team," Sustainability, MDPI, vol. 12(18), pages 1-12, September.
    3. Prayag Lal Yadav & Seung Hun Han & Hohyun Kim, 2017. "Manager’s Dilemma: Stockholders’ and Consumers’ Responses to Corporate Environmental Efforts," Sustainability, MDPI, vol. 9(7), pages 1-14, June.
    4. Sang-soo Kim & Woo-yeul Baek & Kevin K. Byon & Sung-bum Ju, 2021. "Creating Shared Value to Enhance Customer Loyalty: A Case of a Sporting Goods Company in Korean Athletic Shoe Market," Sustainability, MDPI, vol. 13(13), pages 1-11, June.

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