This document discusses the relationship between corporate social responsibility (CSR) and brand loyalty. It defines CSR and brand loyalty, outlining their key dimensions. CSR includes economic, legal, ethical, and philanthropic responsibilities. Brand loyalty includes attitudinal loyalty based on attitudes and behavioral loyalty based on repeat purchases. The document develops a conceptual framework linking the four CSR dimensions to the two types of brand loyalty. It then reviews several studies that have examined the relationship between CSR and competitive advantage, customer loyalty, and brand evaluation and image. Finally, it proposes indicators to operationalize and measure CSR performance and levels of brand loyalty.

1. The Impact of CSR on
Brand Loyalty

2. THE RELATIONSHIP BETWEEN
CORPORATE SOCIAL RESPONSIBILITY &
BRAND LOYALTY
Dependant Variable – Brand Loyalty
Independent variable - CSR

3. DEFINITIONS
 CSR –
stakeholder theory views CSR more generally as
firms having responsibilities towards society. They
are about individuals or groups that may be
directly or indirectly affected by their activity

4. DIMENTIONS OF CSR
Economic
responsibility
Legal responsibility
Corporate Social
Responsibility Ethical
responsibility
Philanthropic
responsibility

5. Economic responsibility –
is one of the dimensions identified. All other business responsibilities are
predicated upon the economic responsibility of the firm, because without it
the others become moot considerations.” do what is required by global
capitalism”
Legal responsibility-
legal responsibility holds that companies “do what is required by global
stakeholders”

6. Ethical responsibility-
•“do what is expected by global stakeholders” by Carroll 1998
•1 .acts responsibly, 2. honors human rights, 3. competes fairly with its
competitors, 4. treats employees fairly, 5.honest and upfront about
telling the truth by David et al ., 2005 .
Philanthropic responsibility-
•“do what is desired by global stakeholders by Carroll (1998)].
•Philanthropy involves firms making a contribution of money or kind
to a worthy cause without an expectation of tied benefit with the cause
because they wish to be a good citizen by Shaw and Post, 1993;
Collins, 1994

7. Brand Loyalty
•The biased behavioral response expressed over time by some decision-
making unit with respect to one or more alternative brands out of a set of
brands and is a function of psychological processes. by Jacoby
•Consumer attitudes on a brand preference from previous use and
shopping experience of a product. by Deighton, Henderson & Neslin.
•According to Aaker brand loyalty is a measure of the relationship that a
customer has to a brand.
•Consumers satisfy their past experience in use of the same brand and
incur repurchase behavior. By Aasael

8. DIMENTIONS OF BRAND LOYALTY
Attitudinal
loyalty
Brand
Loyalty
Behavioral
loyalty

9. Attitudinal loyalty-
•Loyalty attitude means psychological commitment to a brand.
•Attitudes consist of cognitive, affective and co-native which has been used
for classifying the dimensions of brand loyalty
Behavioral loyalty
•behavioral loyalty represents repurchase behavior

10. Development of a conceptual
framework for the relationship
between Corporate Social
Responsibility and Brand Loyalty

11. CSR BRAND LOYALTY
Economic H1
responsibility Attitudinal
loyalty
Legal H2
responsibility
H3
Ethical
responsibility
H4
Behavioral
loyalty
Philanthropic
responsibility

12. Proponent Year Relationship
1 Polonsky & Jevons 2006 CSR- Competitive Advantage
2 Moir,Idowu & Towier 2001- CSR benefit – Customer loyalty
2004
3 Siegel & Vitaliano 2007 CSR- Establish/Sustain Brand Loyalty
4 Lichtenstein et al 2004 CSR – Direct/indirecct relationship to loyalty
5 Friench study- cited in 2009 Fairtrade produts – Concern for enviroment
Cailleba
6 Bronn & Vrioni 2001 CSR- Marketing Communitation
7 Bhattacharya & Sen 2004,20 Positive CSR belifes – Longterm Brand Loyalty
01,2008

13. Proponent Year Relationship
1 Sen & Bhattacharya 2001 CSR – Company Evaluation
2 Marin et at 2009 CSR – Company Evaluation
3 Bablak-Curras- Perez et al 2010- Brand awarenes & Brand Image
2009
4 Polonsk y & Speed- Beckey – 2001 CSR initiatives –Purchase intention
oslen & Hill-Lachowet et at 2006
2002
5

14. Operationalization of Corporate
Social Responsibility and Brand
Loyalty concepts

15. Indicators of Corporate Social
Responsibility
Economic responsibility
 Earnings Per Share (EPS)
 Profitability
 Rank obtained in the operating industry

16. Legal responsibility
 No: of times taxes been paid on time
 No: of times fined or cases filed
 No: of products or services meeting the minimal legal
requirements

17. Ethical responsibility
 No: of environmental friendly products/services
 No: of ethical activities/programs
 Frequency of servicing and adjusting to environmental
friendly production processes

18. Philanthropic responsibility
 No: of CRM activities
 Value of sponsorships given per year as a percentage
 No: of times managers and employees participated in
voluntary and charitable activities
 Funds allocated for charitable activities
 No: of hours/days spent for charitable causes

19. Indicators of Brand Loyalty
Attitudinal loyalty
 No: of customers in a sample preferring a specific
brand
 No: of customers considering the brand as a fan/friend
 No: of likes for the brand advertised on social media
web pages

20. Behavioral loyalty
 No: of repeat purchases
 Repeat purchase rate
 No: of years a particular brand is purchased
 No: of brands of a particular product/service
purchased

21. Thank You