Has Environmental Investment a Marketing Effect in Turkish Banking Industry?

Abstract

The increase in environmental consciousness around the world since 1970's pushed firms to engage in socially responsible behaviors. The Corporate Social Responsibility (CSR) has naturally gained attention in the academic and business world (Colvin, 2001; Harrison & Freeman, 1999; Sen & Bhattacharya, 2001; Waddock & Smith, 2000). The reasons for these socially responsible behaviors are not only the external obligations or regulatory compliance but also the firms desire to increase competitiveness, to improve stock market performance (Bansal & Roth, 2000; Drumwright, 1994, 1996; Klassen & Mclaughlin, 1996; Russo & Fouts, 1997; Waddock & Smith, 2000) and to create a positive self‐image among consumers. There have been numerous studies on CSR suggesting a link between social initiatives and consumer's positive product and brand evaluations, brand choice and brand recommendations (Brown & Dacin, 1997; Drumwright, 1994; Handelman & Arnold, 1999; Osterhus, 1997; Sen & Bhattacharya, 2001). Moreover, the consumers are continuing to become more interested in CSR and green product market is fast growing so the use of CSR initiatives by the firms to receive the support of the society and to influence consumer behavior has become quite common. However, these socially responsible steps must also have an effect on corporations' major objective: maximizing the profits.