The role of Corporate Social Responsibility in the decision-making process of consumers in Ukraine
-
DOIhttp://dx.doi.org/10.21511/im.17(1).2021.07
-
Article InfoVolume 17 2021, Issue #1, pp. 78-93
- Cited by
- 1317 Views
-
1343 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
This paper aims to investigate the impact of Corporate Social Responsibility (CSR) of Fast Moving Consumer Goods (FMCG) companies on consumer buying behavior in the Ukrainian market. The qualitative data for this study were collected with the help of semi-structured interviews conducted with a total of 10 respondents, including 5 Ukrainian consumers (with different levels of responsible consumption adoption) and 5 CSR experts from FMCG companies located in Ukraine (both local and global; with CSR adoption level varying from low to well-developed).
The data obtained for this study revealed that the level of consumer awareness about CSR in Ukraine is still low. However, the level of awareness and the actual consumption of responsible products are constantly growing. The results also show that Ukrainian consumers who already have some level of awareness about CSR perceive CSR communication as more credible when it does not originate from the company directly or is endorsed by a third party. At the same time, interviewed experts stated that to raise awareness among the wider population, FMCG companies have to communicate their CSR achievements directly and massively. Ukrainian consumers are mostly impacted by the product-related CSR type, such as bio-ingredients and sustainable packaging. Price premium for responsible products is the key factor that causes the “intention-behavior gap” in Ukraine.
Practitioners from the FMCG industry in Ukraine may use the information provided by this study to shape their CSR strategies, which will allow them to cater to societal demands and, as a result, impact consumer buying behavior.
- Keywords
-
JEL Classification (Paper profile tab)M14, M31
-
References84
-
Tables3
-
Figures2
-
- Figure 1. Adapted model of the decision-making process based on the merge of TRA and SCT
- Figure 2. Conceptual research framework
-
- Table 1. Examples of expert statements regarding the CSR awareness level in Ukraine
- Table A1. Overview of experts participated in the interviews
- Table B1. Overview of consumers participated in the interviews
-
- Accenture Strategy. (2019). The Decade to Deliver. A call to business action. The United Nations Global Compact – Accenture Strategy CEO Study on Sustainability 2019.
- Advantix Digital. (2020). Marketing Trends and effects from COVID-19 (Coronavirus).
- Arli, D. I., & Lasmono, H. K. (2010). Consumers’ perception of corporate social responsibility in a developing country. International Journal of Consumer Studies, 34(1), 46-51.
- Auger, P., & Devinney, T. M. (2007). Do what consumers say matter? The misalignment of the preferences with unconstrained ethical intentions. Journal of Business Ethics, 76(4), 361-383.
- Bandura, A. (1986). Social foundations of thought and action. NJ: Prentice Hall.
- Bhattacharya, C. B., & Sen, S. (2004). Doing better at doing good: When, Why, And How Consumers Respond To Corporate Social Initiatives. California Management Review, 47(1), 9-24.
- Boccia, F., Rosa, M. M., & Covino, D. (2019). Consumer behavior and corporate social responsibility: An evaluation by a choice experiment. Corporate Social Responsibility and Environmental Management, 26(1), 97-105.
- Boulstridge, E., & Carrigan, M. (2000). Do consumers really care about corporate responsibility? Highlighting the attitude–behaviour gap. Journal of Communication Management, 4, 355-368.
- Brinkmann, J., & Peattie, K. (2008). Consumer Ethics Research: Reframing the Debate about Consumption for Goods. Electronic Journal of Business Ethics and Organization Studies, 13(1), 22-31.
- Carrington, M. J., Neville, B. A., & Whitwell, G. J. (2010). Why ethical consumers don’t walk their talk: towards a framework for understanding the gap between the ethical purchase intentions and actual buying behavior of ethically minded consumers. Journal of Business Ethics, 97(1), 139-158.
- Carroll, A. B., & Shabana, K. M. (2010). The business case for corporate social responsibility: A review of concepts, research and practice. International Journal of Management Reviews, 12(1), 85-105.
- Carroll, A. B. (1991). The pyramid of corporate social responsibility: toward the moral management of organizational stakeholders. Business Horizons, 34(4), 39-48.
- Carter, N., Bryant-Lukosius, D., DiCenso, A., Blythe, J., & Neville, A. J. (2014). The use of triangulation in qualitative research. Oncology Nursing Forum, 41(5).
- Cherinko, O., & Balanyuk, A. (2018). Waste Management in Ukraine. Opportunities for Dutch Companies. Final Report for the Embassy of the Kingdom of the Netherlands. Bilfinger Tebodin Ukraine CFI. Kyiv, Ukraine.
- Conroy, P., Porter, K., Nanda, R., Renner, B., & Narula, A. (2015). Consumer Product Trends. Navigating 2020. Deloitte University Press.
- Crane, A., Matten, D., Glozer, S., & Spence, L. (2019). Business Ethics (5th ed.). New York: Oxford University Press.
- Daszynska-Zygadlo, K., Slonski, T., & Zawadzki, B. (2016). The Market Value of CSR Performance Across Sectors. Engineering Economics, 27(2), 230-238.
- De Pelsmaker, P., Driesen, L., & Rayp, G. (2005). Do consumers care about ethics? Willingness to pay for fair-trade coffee. Journal of Consumer Affairs, 39(2), 363-385.
- Dilts, E. (2019, August 19). Top U.S. CEOs say companies should put social responsibility above profit. Reuters.
- Du, S., Bhattacharya, C. B., & Sen, S. (2010). Maximizing Business Returns to Corporate Social Responsibility (CSR): The Role of CSR Communication. International Journal of Management Reviews, 12(1), 8-19.
- Elkington, J. (1997). Cannibals with Forks: The Triple Bottom Line of 21st Century Business. Oxford: Capstone.
- Esmaeilpour, M., & Barjoei, S. (2016). The impact of Corporate Social Responsibility and Image on Brand Equity. Global Business & Management Research, 8(3), 55-66.
- Ethical Consumer. (2019). Markets Report 2018.
- Farrukh, M. (2016). The effect of corporate social responsibility on consumer buying behaviour: a case of Pakistan. International Journal of Information, Business and Management, 8(1), 242-251.
- Fernández, A. M. L., & Rajagopal. (2013). Influence of corporate social responsibility on consumers’ shopping behaviour and determining competitive posture of the firm. Journal of Marketing Analytics, 1(4), 222-233.
- Ferreira, A. I., & Ribeiro, I. (2017). Are you willing to pay the price? The impact of corporate social (ir) responsibility on consumer behaviour towards national and foreign brands. Journal of Consumer Behaviour, 16, 63-71.
- Filosof, J., Hollinshead, G., & Kurinko, R. (2012). Corporate Social Responsibility in Ukraine: cynical utilitarianism or Aristotelian ‘Common Good’? (UH Business School Working Paper). University of Hertfordshire.
- Fishbein, M., & Ajzen, I. (1975). Belief, attitude and behavior: An introduction to theory and research. MA: Addison-Wesley.
- Freeman, R. E. (1984). Strategic management: A stakeholder approach. Boston, MA: Pitman.
- Gladwin, T. N., Kennelly, J. J., & Krause, T.-S. (1995). Shifting paradigms for sustainable development: Implications for management theory and research. Academy of Management Review, 20(4), 874-907.
- Glanz, K., Rimer, B. K., & Viswanath, K. (2015). Health Behaviour. Theory, Research, and Practice (5th ed.). San Francisco: Jossey-Bass.
- Hahn, T., & Figge, F. (2011). Beyond the Bounded Instrumentality in Current Corporate Sustainability Research: Toward an Inclusive Notion of Profitability. Journal of Business Ethics, 104, 325-345.
- Hassinger, E. (1959). Stages in the adoption process. Rural Sociology, 24(1), 52.
- Hoepner, A. G. F., & Yu, P-S. (2010). Corporate Social Responsibility Across Industries: When Can Who Do Well by Doing Good?
- Hsu, K. (2012). The advertising effects of corporate social responsibility on corporate reputation and brand equity: Evidence from the life insurance industry in Taiwan. Journal of Business Ethics, 109(2), 189-201.
- Huang, C., Yen, S., Liu, C., & Huang, P. (2014). The relationship among corporate social responsibility, service quality, corporate image and purchase intention. International Journal of Organizational Innovation, 6(3), 68-84.
- ING. (2018). From Sustainability to Business Value. Finance as catalyst.
- Jackson, T. E. (2006). The Earthscan Reader in Sustainable Consumption. London.
- Jones, P., Comfort, D., Hillier, D., & Eastwood, I. (2005). Corporate social responsibility: A case study of the UK’s leading food retailers. British Food Journal, 107(6), 423-435.
- Kannaiah, D., & Jayakumar, A. (2018). Impact of Corporate Social Responsibility (CSR) Practices on Consumer Behaviour (with Reference to FMCGs in Tamil Nadu). International Journal of Business and Management, 13(3), 28-41.
- Karaosman, H., Morales-Alonso, G., & Grijalvo, M. (2015). Consumers’ responses to CSR in a cross-cultural setting. Cogent Business & Management, 2, 1-18.
- Karhova, V. (2018). Challenges and Problems of Solid Waste in Ukraine. The Ukrainian Journal of Business and Law, 11.
- Kim, S., & Ferguson, M. T. (2014). Public Expectations of CSR Communication: What and How to Communicate CSR. Public Relations Journal, 8(3), 1-22.
- Kim, S., & Ferguson, M. T. (2018). Dimensions of effective CSR communication based on public expectations. Journal of Marketing Communications, 24(6), 549-567.
- Kotler, P., & Lee, N. (2005). Corporate Social Responsibility: Doing the Most Good for Your Company and Your Cause. Hoboken, New Jersey: John Wiley & Sons.
- Kronthal-Sacco, R., & Whelan, T. (2019). Sustainable Share Index: Research on IRI Purchasing Data (2013-2018). NYU Stern Center for Sustainable Business.
- Kurinko, R. (2016, April 5). National CSR strategy in Ukraine: actual state and perspectives. Gurt 25 Rokiv – Group 25 Years. (In Ukrainian).
- Kurucz, E., Colbert, B., & Wheeler, D. (2008). The Business Case for Corporate Social Responsibility. In A. Crane, A. McWilliams, D. Matten, J. Mood, & D. Seigel (Eds.), The Oxford Handbook of Corporate Social Responsibility (pp. 83-112). Oxford: Oxford University Press.
- Kuryshko, D. (2018). 500 pyramids of Cheops: the amount of garbage in Ukraine. BBC News. Ukraine. (In Russian).
- Lee, C., Chang, W., & Lee, H. (2017). An investigation of the effects of corporate social responsibility on corporate reputation and customer loyalty – evidence from the Taiwan non-life insurance industry. Social Responsibility Journal, 13(2), 355-369.
- McCracken, G. (1988). The long interview. Newbury Park, CA: Sage.
- Miles, M. B., Huberman, A. M., & Saldaña, J. (2014). Qualitative Data Analysis: A Methods Sourcebook. Sage Publications.
- Oberseder, M., Schlegelmilch, B. B., & Gruber, V. (2011). Why don’t consumers care about CSR?: A qualitative study exploring the role of CSR in consumption decisions. Journal of Business Ethics, 104(4), 449-460.
- Oberseder, M., Schlegelmilch, B. B., & Murphy, P. E. (2013). CSR practices and consumer perceptions. Journal of Business Research, 66, 1839-1851.
- Palinkas, L. A., Horwitz, S. M., Green, C. A., Wisdom, J. P., Duan, N, & Hoagwood, K. (2015). Purposeful sampling for qualitative data collection and analysis in mixed method implementation research. Adm Policy Ment Health, 42(5), 533-544.
- Panapanaan, V. M., Linnanen, L., Karvonen, M. M., & Phan, V. T. (2003). Roadmapping corporate social responsibility in Finnish companies. Journal of Business Ethics, 44(2/3), 133-148.
- Park, J., Lee, H., & Kim, C. (2014). Corporate social responsibilities, consumer trust and corporate reputation: South Korean consumers’ perspectives. Journal of Business Research, 67(3), 295-302.
- Peloza, J., & Shang, J. (2011). How can corporate social responsibility activities create value for stakeholders? A systematic review. Journal of the Academy of Marketing Science, 39(1), 117-135.
- Petty, R. E., & Cacioppo, J. T. (1986). The Elaboration Likelihood Model of Persuasion. Advances in Experimental Social Psychology, 19, 123-205.
- Pomering, A., & Dolnicar, S. (2009). Assessing the Prerequisite of Successful CSR implementation: Are Consumers Aware of CSR initiatives? Journal of Business Ethics, 85, 285-301.
- Raza Naqvi., S. M. M. (2013). Impact of Corporate Social responsibility on Brand image in Different FMCGs of Pakistan. Interdisciplinary Journal of Contemporary Research in Business, 5(1), 79-93.
- Rockström, J., Steffen, W., Noone, K., Persson, Å., Chapin, III, F.S., Lambin, E., Lenton, T.M., Scheffer, M., Folke, C., Schellnhuber, H., Nykvist, B., De Wit, C.A., Hughes, T., van der Leeuw, S., Rodhe, H., Sörlin, S., Snyder, P.K., Costanza, R., Svedin, U., Falkenmark, M., Karlberg, L., Corell, R.W., Fabry, V.J., Hansen, J., Walker, B., Liverman, D., Richardson, K., Crutzen, P., & Foley, J. (2009). Planetary boundaries: exploring the safe operating space for humanity. Ecology and Society, 14(2), 32.
- Sachs, J., Schmidt-Traub, G., Kroll, C., Lafortune, G., & Fuller, G. (2019). Sustainable Development Report 2019. Bertelsmann Stiftung and Sustainable Development Solutions Network (SDSN).
- Sachs, J., Schmidt-Traub, G., Kroll, C., Lafortune, G., Fuller, G., & Woelm, F. (2020). The Sustainable Development Goals and COVID-19. Sustainable Development Report 2020. Cambridge: Cambridge University Press.
- Saldana, J. (2015). The coding manual for qualitative researchers. Sage.
- Saunders, M., Lewis, P., & Thornhill, A. (2007). Research methods for business students (4th ed.). Essex, England: Pearson Education.
- Schmeltz, L. (2012). Consumer-oriented CSR communication: focusing on ability or morality? Corporate Communications: An International Journal, 17(1), 29-49.
- Schramm-Klein, H., Zentes, J., Steinmann, S., Swoboda, B., & Morschett, D. (2016). Retailer corporate social responsibility is relevant to consumer behavior. Business and Society, 55(4), 550-575.
- Sen, S., & Bhattacharya, C. B. (2001). Does doing good always lead to doing better? Consumer reactions to corporate social responsibility. Journal of Marketing Research, 38(2), 225-243.
- Sen, S., Bhattacharya, C. B., & Korschun, D. (2006). The role of corporate social responsibility in strengthening multiple stakeholder relationships: A field experiment. Journal of the Academy of Marketing Science, 34(2), 158-166.
- Spiller, R. (2000). Ethical business and investment: A model for business and society. Journal of Business Ethics, 27(1/2), 149-160.
- Staudt, S., Shao, C. Y., Dubinsky, A. J., & Wilson, P. H. (2014). Corporate Social Responsibility, Perceived Customer Value, and Customer-Based Brand Equity: A Cross-National Comparison. Journal of Strategic Innovation & Sustainability, 10(1), 65-87.
- Steurer, R., & Konrad, A. (2009). Business-society relations in Central-Eastern and Western Europe: How those who lead in sustainability reporting bridge the gap in corporate (social) responsibility. Scandinavian Journal of Management, 25, 23-36.
- The Verkhovna Rada of Ukraine. (2013, June 25). Legislation of Ukraine. Presidential decree regarding the Action Plan for the implementation in 2013 of the Strategy of the state policy to promote the development of civil society in Ukraine. (In Ukrainian).
- The World Bank. (2018). International Comparison Program database. GDP per capita, PPP (current international $).
- Thøgersen, J., & Zhou, Y. (2012). Chinese consumers’ adoption of a ‘green’ innovation – The case of organic food. Journal of Marketing Management, 28(3-4), 313-333.
- Tian, Z., Wang, R., & Yang, W. (2011). Consumer responses to corporate social responsibility (CSR) in China. Journal of Business Ethics, 101(2), 197-212.
- Torres, A., Bijmolt, T. H. A., & Tribó, J. A. (2012). Generating global brand equity through corporate social responsibility to key stakeholders. International Journal of Research in Marketing, 29, 13-24.
- Vázquez-Burguete, J. L., Sahelices-Pinto, C., & Lanero-Carrizo, A. (2017). Corporate social responsibility and consumer behaviour in the cosmetics sector: A study in the Spanish context. International Review on Public and Non – Profit Marketing, 14(3), 375-390.
- Vorobey, V. (2005). In Search of National Identity. In A. Habisch, M. Wegner, R. Schmidpeter, & J. Jonker (Eds.), Corporate Social Responsibility Across Europe. New York: Springer-Verlang New-York Inc.
- Wang, D. H., Chen, P., Yu, T. H., & Hsiao, C. (2015). The effects of corporate social responsibility on brand equity and firm performance. Journal of Business Research, 68(11), 2232-2236.
- Wang, L., & Juslin, H. (2009). The impact of Chinese culture on corporate social responsibility: The harmony approach. Journal of Business Ethics, 88, 433-451.
- Worthington, I. (2013). Greening Business: Research, Theory, & Practice. Oxford: Oxford University Press.
- Yin, R. K. (2014). Case study research: Design and methods (5th ed.). Thousand Oaks, CA: Sage.