Effect of CSR activities on customers’ purchase intention: The mediating role of trust
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Author(s)Imran AliLink to ORCID Index: https://orcid.org/0000-0002-4525-5096
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Mohammad NaushadLink to ORCID Index: https://orcid.org/0000-0003-4421-3422
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Hadeel Jaafar Alasmri
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DOIhttp://dx.doi.org/10.21511/im.19(2).2023.13
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Article InfoVolume 19 2023, Issue #2, pp. 155-169
- Cited by
- 1588 Views
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518 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Corporate social responsibility (CSR) is the belief that businesses must consider ethical, social, and environmental issues when making decisions. Several studies have found that CSR improves corporate performance. Moreover, CSR is thought to increase consumer trust and purchase intention. This study investigates the effect of CSR activities on customers’ purchase intentions and the mediating role of trust. It draws linkages and establishes that businesses can improve their bottom lines while positively affecting society by acting responsibly.
The present study selected two independent variables (ethical corporate social responsibility and legal corporate social responsibility) alongside one dependent variable (purchase intention) and one intervening variable (trust). The sample comprises two hundred and thirty respondents from India’s National Capital Region (NCR), Delhi, and nearby regions. The data were examined using structural equation modeling (SEM). The results showed that CSR activities significantly positively affected customers’ purchase intention. Furthermore, trust mediated the linkages between CSR activities and customers’ purchase intention. The findings suggest that CSR activities can increase customers’ purchase intention by fostering trust. In other words, when customers trust a firm, they are more likely to intend to purchase its products or services. CSR managers should therefore focus on creating and maintaining trust with their customers. In addition, findings suggest that firms should be conscious of their social image. This study offers significant insights because they show that any business can be successful and socially responsible.
Acknowledgment
This study is supported via funding from Prince Sattam bin Abdulaziz University project number (PSAU/2023/R/1444).
- Keywords
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JEL Classification (Paper profile tab)M14, M31, M38
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References52
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Tables7
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Figures3
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- Figure 1. Proposed research model
- Figure 2. Model fit
- Figure 3. Structural model
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- Table 1. Demographics
- Table 2. KMO and Bartlett’s test
- Table 3. Construct reliability and validity
- Table 4. Discriminant validity (Fornell-Larcker criterion)
- Table 5. Fit indices of confirmatory factor analysis
- Table 6. Hypotheses conclusions
- Table 7. Mediation analysis
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The relationship between corporate social responsibility and earnings management: accounting for endogeneity
Hyunjung Choi , Byungchul Choi ,
Jungyoon Byun
doi: http://dx.doi.org/10.21511/imfi.15(4).2018.06
Investment Management and Financial Innovations Volume 15, 2018 Issue #4 pp. 69-84 Views: 4662 Downloads: 550 TO CITE АНОТАЦІЯThis study examines the relationship between corporate social responsibility (CSR) and earnings management after controlling for endogeneity of CSR. Using a sample of non-financial firms listed on Korean Securities Market between 2002 and 2010, this study finds that ignoring endogeneity biases the estimated relation between CSR and earnings management. Specifically, the results show that the negative and significant relation between CSR commitment and discretionary accruals reported in the previous studies becomes insignificant. However, the negative and significant relation between CSR commitment and real activities manipulation remains significant even when the endogeneity of CSR commitment is taken into account. Therefore, this study provides evidence that proactive CSR engagement significantly affects firm’s practice of real activities manipulation, while it does not affect its practice of discretionary accruals. These results indicate that CSR commitment leads managers to be more responsible in management of operational activities than in accruals management.
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Does board composition have an impact on CSR reporting?
Patrick Velte 
doi: http://dx.doi.org/10.21511/ppm.15(2).2017.02
Problems and Perspectives in Management Volume 15, 2017 Issue #2 pp. 19-35 Views: 4525 Downloads: 1725 TO CITE АНОТАЦІЯCorporate social responsibility (CSR) reporting plays a key role in management control, particularly in light of the increased demand for non-financial reporting after the financial crisis of 2008–2009. This literature review evaluates 47 empirical studies that concentrate on the influence of several board composition variables on the quantity and quality of CSR reporting. The author briefly introduces the research framework that underpins current empirical studies in this field. This is followed by a discussion of the main variables of board composition: (1) committees (audit and CSR committees), (2) board independence, (3) board expertise, (4) CEO duality, (5) board diversity (gender and foreign diversity), (6) board activity, and (7) board size. The author, then, summarizes the key findings, discusses the limitations of the existing research and offers useful recommendations for researchers, firm practice and regulators.
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Green product buying intentions among young consumers: extending the application of theory of planned behavior
Andhy Setyawan ,
Noermijati Noermijati ,
Sunaryo Sunaryo ,
Siti Aisjah
doi: http://dx.doi.org/10.21511/ppm.16(2).2018.13
Problems and Perspectives in Management Volume 16, 2018 Issue #2 pp. 145-154 Views: 3344 Downloads: 1121 TO CITE АНОТАЦІЯThis research reveals the factors explaining the purchase intention toward green products among young consumers. Young consumers are beginner consumers who are going to play an important role to take a responsibility in preserving the environment. Theory of Planned Behavior (TPB) is selected as the main theoretical framework in this research alongside some other variables (environmental concern, environmental knowledge, and willingness to pay), which are added in the research model to expand TPB application. Three hundred and twenty-six respondents were interviewed through a survey and the data are analyzed using Structural Equation Modeling (SEM).
The findings illustrated that not every explanatory variable influenced the purchase intention toward green products among young consumers. Environmental concern and attitude did not influence the purchase intention toward green products among young consumers.
