Are customers willing to pay for corporate social responsibility? A study of individual-specific mediators

Abstract

The objective of this study is to identify, specify, and examine variables that mediate the link between customers' perceived level of corporate social responsibility (CSR) and their willingness to pay (WTP) premiums for CSR. Drawing on several consumer behaviour theories including perceived value theory, corporate identity theory, and theory of planned behaviour, theoretical and alternative models were proposed. Subsequently, a survey was administered to 212 users of shipping services in Singapore. Thereafter, the proposed models were analysed and compared using structural equation modelling. The link between CSR and WTP for CSR was found to be indirect and mediated by personal factors including customer satisfaction, customer loyalty, and CSR beliefs. Practising CSR in conjunction with service quality results in greater customer satisfaction. However, customer satisfaction is a necessary but insufficient condition for WTP for CSR. Instead, the effect of customer satisfaction on WTP for CSR is channelled via customers' CSR beliefs and loyalty. This study contributes to consumer behaviour theories by providing a better understanding of the lagging and immediate predictors of WTP for CSR. The results also draw important implications for the management of CSR activities and pricing of services.

Assessment of Corporate Social Responsibility and Its Impacts on Corporate Reputation of Companies in Selected Balkan Countries Former Yugoslavia States

“…Progressively, by engaging in CSR activities firms are trying to differentiate themselves from other competitors, create an expressive ties with their clients, stimulate employee satisfaction and loyalty to the company, build a basis for a greater customer tolerance to the growth of prices, create advantageous publicity, increase understanding of skeptical and negatively-oriented public officials and enhance CR and strengthen brand loyalty (Lu et al, 2019b). Therefore, scholars have identified customer's expectations and loyalty as important drivers for implementation of CRS (Abbas et al, 2018;Öberserder et al, 2013Vlachos et al, 2009;Yuen et al, 2016;Stanisavljević, 2017;Li et al, 2019). The customer's expectations are also influenced by institutional environment.…”

“…There are many recent studies analyzing the main drivers and determinants of CSR and its impacts (Bakan, 2004;Hult, 2011;Drummet, 2006;Christensen et al, 2013;Öberseder et al, 2013Mapelli et al, 2016;Ali et al, 2017;Dyduch & Krasodomska, 2017;Hafenbradl & Waeger, 2016). The main drivers and determinants of adoption of sustainable business practices such as CSR, identified by the authors are based mainly on institutional factors (Aoki, 2001;Postma & Hermes, 2003;Fiss, 2008;Fox et al, 2002;Roe, 2004;Draskovic & Stjepcevic, 2012;Draskovic & Lojpur, 2013) and less on the utilities determination responded to society and customer's needs (Abbas et al, 2018;Öberserder et al, 2013Vlachos et al, 2009;Yuen et al, 2016;Stanisavljević, 2017;Li et al, 2019) or executive characteristics such as leadership (Hafenbradl & Waeger, 2016;Barker & Mueller, 2002;Christensen et al, 2013;Kang et al, 2016;Maak et al, 2016;Petrenko et al, 2016;Lu et al, 2019c) or other factors.…”

Comparative Review of Corporate Social Responsibility of Energy Utilities and Sustainable Energy Development Trends in the Baltic States

“…The majority of studies dealt with the CSR of public sector enterprises and their impacts in the water sector [28][29][30][31][32][33][34][35]. The main areas of investigation were the drivers of CSR [36][37][38][39], as well as the impacts of CSR practices on consumer perceptions and loyalty [40][41][42][43][44][45][46][47][48][49][50]. However, broader outcomes of the CSR of energy utilities were mainly undervalued and lacked serious attention.…”

Corporate Social Responsibility and Corruption: Implications for the Sustainable Energy Sector

“…Alongside the regulatory requirements of mandatory environmental and labor relations which are defined by legal acts, new means are created in order to encourage enterprises to pursue better environmental and social standards [25]. Voluntary environmental and social activities are becoming an important factor in improving the image and reputation of a company [26][27][28][29]. In addition, this activity is economically viable and guarantees positive impact on the competitiveness and value of enterprises [30][31][32][33].…”