The effects of perceptions of corporate social performance on individual purchasing
Date
2019
Authors
Koech, Roselyne Chepkoech
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
Although some previous research has focused on consumer behaviour with respect to corporate social performance (CSP), few empirical studies have been done, especially in the African context. In particular, a highly under-researched topic is the role that corporate social performance (CSP) plays in South Africa. Due to the increasing public awareness of CSR globally, individuals in South Africa are becoming more aware of the need for companies to engage in corporate social responsibility (CSR) and companies have realised that fulfilling social responsibilities has a positive impact on their overall performance and sustainability. In this regard, the current study examines the effects of perceptions of CSP in South Africa. Particularly, it investigates whether the perception of CSP plays a role on individual’s purchasing decisions, in enhancing reputation of a company, and the role that a company’s reputation for social responsibility plays during a corporate crisis.The study uses the exploratory model of surplus, break-even and deficit developed by Coldwell and Joosub (2014) and a modified version of Carroll and Buchholtz’s (2000) model to measure the perceived actual CSP of companies in comparison to what individuals expect a company’s CSP to be. To measure the effects of perception of CSP in relation to actual purchasing behaviour, Carroll’s CSR framework (1991), which takes economic, legal, ethical and philanthropic responsibilities into account, was adopted. To explore whether CSP influences the reputation of a company, Fombrun's, Gardberg, & Sever (2000, p. 253) 20-items RQ grouped into six pillars “(emotional appeal, products & services, financial performance, vision & leadership, workplace environment, and social responsibility)” was used. Finally, to investigate whether CSR-derived reputational capital plays a role in sustaining a company during a crisis, crisis scenarios from Dean
(2004) were adopted and modified to suit the study. A qualitative follow-up study, through face-to-face interviews, was carried out to clarify the quantitative findings.
A mixed methods technique that combines questionnaires, interviews and content analysis was used to explore the effects of perceptions of CSP on individual purchasing behaviour, reputation capital and crisis management. A sample of 145 students at the University of the Witwatersrand in South Africa was used for a quantitative study, and a sample of 30 for a qualitative study. The findings show that a company that fulfils consumer expectations of social performance generates positive perceptions of CSP that not only lead to actual purchases of goods and services but also generate desirable returns through enhanced reputational capital that is seen to sustain a company during a crisis situation. Aspects other than CSP that also influence an individual's actual purchasing behaviour at grass roots level are also described in the study.
The study extended the theoretical understanding of CSR by interrogating Carroll’s CSR framework (1991) for empirical analysis and its applicability in an African context. The findings show that CSP plays a positive though relatively minor role in individuals’ actual purchasing behaviour. This study also enhances the theoretical knowledge of individual expectations of CSP and actual CSP of companies in South Africa. Our study validates Coldwell & Joosub’s (2014) exploratory model of surplus, break-even and deficit in the relationship between actual and expected CSP. Also, the study has managerial implications in that those companies that engage in CSR are perceived favourably than those that do not hence enhancing their reputational capital; and that prior CSP reputational capital played a significant role in a crisis situation. Future research could investigate aspects like culture, political settings and the economic foundations of different
African countries to confirm the findings of this study.
Description
A thesis submitted in fulfilment of the requirements for the degree Doctor of Philosophy in the School of Economic and Business Sciences,University of the Witwatersrand, Johannesburg
Keywords
Citation
Koech, Roselyne Chepkoech, (2019). The effects of perceptions of corporate social performance on individual purchasing behaviour, reputation capital and crisis management :a mixed methods study, University of the Witwatersrand, https://hdl.handle.net/10539/29615