Enhancing the Prospect of Corporate Sustainability via Brand Equity: A Stakeholder Model

Abstract

Given that brand equity is increasingly recognized as a measure of corporate sustainability, in the present study, we examine the relationships among stakeholder benefits, stakeholder trust and brand equity. Derived from a sample of 433 stakeholders from 115 companies in Thailand, the findings indicate that functional benefits improve brand equity indirectly and directly via stakeholder trust and psychological benefits. On the other hand, psychological benefits improve brand equity indirectly and directly via stakeholder trust. Psychological benefits create more direct, positive effects on brand equity than functional benefits. The effects of functional benefits on brand equity are enhanced through psychological benefits. Directions for future studies and practical implications are also discussed.

Are Consumers Equally Willing to Pay More for Brands That Aim for Sustainability, Positive Societal Contribution, and Inclusivity as for Brands That Are Perceived as Exclusive? Generational, Gender, and Country Differences

“…Other research has argued that customers are an important stakeholder to consider when implementing corporate sustainability, and that this deserves more attention in academic research and business practice [78][79][80]. Building and managing stakeholder-based brand equity has been considered at a theoretical level as a means to manage and increase corporate sustainability [81]. We aim to contribute to this perspective by advancing customer willingness to pay for inclusive, sustainable brand offerings as an important parameter to manage when considering the "customer" stakeholder.…”

Happiness and its relationship to expectations of change and sustainable behavior in a post-COVID-19 world

“…It makes sense to propose strategic segmentations based on an individual's sustainability orientation (Mediano Serrano and Vicente Molina, 2002). This should facilitate better targeting and design of marketing campaigns by companies, particularly when most firms are developing and implementing campaigns to link sustainability attributes with brand equity (Winit and Kantabutra, 2022). To achieve this, it is crucial to articulate the message correctly to avoid suspicions of greenwashing and to find genuine effectiveness in companies' CSR campaigns, leading to increased customer loyalty (Cuesta-Valiño et al, 2019).…”

Toward a System Theory of Corporate Sustainability: An Interim Struggle

“…Functional, frequently referred to as utilitarian benefits are tangible benefits associated directly with services and products, ranging from monetary benefits, welfare to facilities. Psychological benefits are intangible, frequently considered as happiness [175]. Such happiness can only be achieved when stakeholders receive psychological benefits relevant to their individual values [148,176].…”

“…To be precise, when stakeholders are ensured of their own sustainable wellbeing by the sustainable corporations, their trust in the corporate brands increase [175]. According to the Stakeholder model by Winit and Kantabutra [175], a corporation is required to deliver both functional and emotional benefits in order to improve stakeholder trust as a precursor to improving brand equity.…”

“…To be precise, when stakeholders are ensured of their own sustainable wellbeing by the sustainable corporations, their trust in the corporate brands increase [175]. According to the Stakeholder model by Winit and Kantabutra [175], a corporation is required to deliver both functional and emotional benefits in order to improve stakeholder trust as a precursor to improving brand equity. According to the emerging system theory, sustainable corporations choose to offer functional benefits that improve psychological benefits, enhancing stakeholder trust and brand equity respectively.…”