The Causal Effect of Corporate Social Responsibility and Corporate Reputation on Brand Equity: A Fuzzy-Set Qualitative Comparative Analysis

Abstract

Corporate social responsibility (CSR) has become an international phenomenon, and while enterprises are engaging in related activities for the benefit of stakeholders, one might question whether CSR has a key driving role at establishing corporate reputation and brand equity. To address the issue, this research explores the causal impact of CSR and corporate reputation on brand equity by using structural equation modeling and fuzzy set qualitative comparative analysis. The findings from structural equation modeling show that CSR has a positive effect on brand equity and corporate reputation. In addition, fuzzy set qualitative comparative analysis identifies several causal configurations of CSR and corporate reputation in building brand equity. Overall, the driving factors of CSR and corporate reputation, depending on enterprise characteristics, have different impacts on brand equity. These results suggest that companies need to rethink their strategic actions for brand equity building.