Consumers’ Perception on Organisational Corporate Social Responsibility Practices and its Implications on Consumer Attitude: Evidence from the Malaysian Telecommunication Industry

Bee Lian Song,Chee Yoong Liew

doi:10.5539/jms.v7n4p112

Abstract

This paper aims at investigating consumers’ perception on the Corporate Social Responsibility (CSR) practices of the telecommunication service companies in Malaysia, and its antecedent to consumer attitude. The local telecommunication service providers have emphasized on service quality, stakeholder value, corporate reputation, and innovation to achieve good business performance. However, little is known about the contribution of service quality, stakeholder value, corporate reputation, and innovation on the effectiveness of organisational CSR practices. Furthermore, lack of previous studies that have investigated the impact of organisational CSR practices on consumer attitude, particularly in the context of Malaysian telecommunication industry. With the adoption of structural equation modeling approach and survey method, a total of 360 samples comprising the prepaid and postpaid mobile consumers were obtained for this study. The results shown that consumers’ perception on service quality and stakeholder value had significant relationship with CSR practices. However, consumers’ perception on corporate reputation and innovation had no significant relationship with CSR practices. CSR practices was positively related to consumer attitude. In the theoretical implications, service quality and stakeholder value variables were found as important elements in the proponents of Strategic CSR Theory. In the managerial implications, this study recommended that the telecommunication service providers should highly focus on more effective planning and implementation of CSR practices through better integration of CSR in its core business functions and value chain system, diversification of CSR scope and stakeholders engagement.

Highlights

Corporate Social Responsibility (CSR) is playing an important role in the rapidly changing global world
The local telecommunication service providers have emphasized on service quality, stakeholder value, corporate reputation, and innovation to achieve good business performance
Service quality and stakeholder value variables were found as important elements in the proponents of Strategic CSR Theory

Summary

Introduction

Water and food scarcity, child poverty, labor discrimination, pollution—all these issues are increasingly being prioritised along with business performance It has becoming more difficult and challenging for companies to sustain business as usual due to resource scarcity, natural disasters or social issues, which raise costs and endanger operations (Ellis, 2010). Companies are facing challenging roles by getting their own strategy to take part in today’s interests of society and customer, as well as being responsible for social needs and sustainable use of resources. These have leads to companies across the globe are focusing on improvement of their environmental and social commitment by using different strategies and channels through effective CSR practices. CSR is increasingly needed to handle and resolve the arising global issues and this has leads to CSR as the forefront of today’s global agenda

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Discussion

Conclusion