The Effects of Corporate Social Responsibility (CSR) on Consumer Behaviour in Online Commerce: The Case of Cosmetics during the COVID-19 Pandemics

Abstract

Corporate social responsibility (CSR) is a trend that manifests on a global level. The positive effects of CSR initiatives depend on the reaction of stakeholders, among which customers represent an important category. The purpose of this paper was to analyse the impact that CSR initiatives of cosmetics companies have on customer behaviour in both the short-term (buying intention) and the long-term (client loyalty) in the case of electronic commerce. Starting from the existing literature, the conceptual model proposed different dimensions of CSR as influencers (legal and ethical, philanthropic and community services, respect for environment, respect for consumers), and as mediators, which were considered as the brand trust and the competitive advantage of the company. The research method used was quantitative with the empirical data being collected from 1265 actual and potential consumers of cosmetic products. The hypotheses were tested using the partial least squares structural equation modelling (PLS-SEM). The main findings illustrated positive relationships between CSR and both buying intention and client loyalty, as the two facets of consumer behaviour. The interpretation is that CSR activities can increase both the consumer intentions to buy cosmetics products provided by CSR-involved companies, and increase the long-term customer loyalty for these companies. The research also provided evidence for a strong mediation effect of brand trust for both sides of customer behaviour. This illustrates that when brand trust is higher the effect of CSR initiatives on customer behaviour increases. The paper includes theoretical and practical contributions associated to the results of the research.