Adding value: the relationship between Corporate Social Responsibility (CSR), brand value and consumer brand loyalty

Abstract

This study examined KAPPAHL and IKEA’s Corporate Social Responsibility activities and the effect it has on building consumer brand loyalty. The conceptual framework of the study is built on two theories, stakeholder theory and triple bottom line theory, which are relevant to the objectives of this study. The methodology of the present study is qualitative approach, undertaken for the study through analysis of the CSR activities practiced in the two selected organisations. The CSR objectives, plan, implementation strategies and role of various stakeholders have been analysed. The research concludes that there are several factors that help create brand value and consumer brand loyalty and CSR can be one of those factors. The main role of CSR in the process of branding is to assist the brand to “keep its promise” to the consumers. One way to achieve this is through clear and consistent CSR communication. The research suggests that a key point in an organisation’s CSR communication strategy is to always take action before communicating. By offering total transparency with the organisation’s CSR work and efficiently conveying its possible impact, CSR can serve as an effective tool in educating and engaging the consumer about the brand. In a more emotional and personal economy, CSR helps to create a more genuine and deeper relationship with consumers wherein bold and unrealistic advertising campaigns without any social commitment may fail to attract consumers. While advertising mostly seeks to assert what a brand wishes to be, this study implies that CSR takes the proposition of what the brand actually has done and what it has achieved. In a period when organisations seek to build relationships between the consumer and the brand, a value based and honest approach towards CSR helps in creating a more genuine and loyal relationship which certainly enhances the value of the brand