A Theoretical Framework Exploring the Relationship between CSR and Brand Equity

Abstract

Corporate Social Responsibility (CSR) is the moral obligation of a firm to serve the society beyond meeting its economic and legal goals and responsibilities. An ideal firm should integrate these responsibilities into their ethical code of conduct and serve the public through their products/services. Instead of using it as a mere marketing technique it should be seen as part of their culture and a necessity for sustainable development in the market. There are different dimensions of CSR which are aimed at the stakeholders of the organization namely community, customers, environment, corporate governance and suppliers. The benefits of CSR are many and goes beyond mere financial gains. CSR initiatives can be employed by a firm to develop and enhance the brand value or brand equity (BE) of a firm. In this particular paper the three dimensions of community, customers and environment are chosen to determine the
impact of CSR on Brand Equity (BE).Using different theories like Brand asset evaluator, Aaker and Keller model etc. these benefits of CSR on BE is explained. A theoretical framework is proposed. The model can be used to empirically verify which dimension of CSR has the most impact on the components of BE by firms through administering questionnaires to their consumers. Using the results, each firm can customize and strategically adopt CSR initiatives that will resonate positively with their existing customers as well as capture potential consumers and build a positive image in the public.