Does+Corporate+Social+Responsibility+Build+Customer+Loyalty (1)

Does+Corporate+Social+Responsibility+Build+Customer+Loyalty (1)

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Does Corporate Social Responsibility Build Customer Loyalty? Yes, If It Directly Affects Consumers' Experience With the Brand, New Tuck Research Finds Published: May 24, 2011 Jackie Luan Kusum L. Ailawadi Pepsi's Refresh Project funded 238 ideas for improving communities. The company's "human right to water" program pledged more than $15 million for safe water across the world. Walmart has pledged $2 billion in cash and food donations to food banks and, in 2009, it unveiled its Sustainable Product Index.
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Like Pepsi and Walmart, many companies engage in a spectrum of corporate social responsibility initiatives and invest heavily in publicizing them. While the intrinsic satisfaction of doing good is important, as author Tim Sanders has argued, CSR programs tend to be meaningful and sustained only when they align corporate financial needs (profit, revenue, growth) with social needs (people, community, planet). So which, if any, of the plethora of CSR initiatives beget positive returns? The truth is that , until recently, we didn't know. Several cross-sectional studies spanning firms across different industries have correlated CSR performance with financial performance. The correlation is often positive, but there are also several negative and insignificant effects. Add to these mixed results the ambiguous direction of causality
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern