The Influence of Corporate Social Responsibility and Business Ethics on Brand Fidelity: The Importance of Brand Love and Brand Attitude

Tarcia Camily Cavalcante Quezado,William Quezado Figueiredo Cavalcante,Nuno Fortes

doi:10.3390/su14052962

Abstract

Corporate social responsibility (CSR) and business ethics are perceived as distinct constructs by the consumer, although research from this perspective is scarce. Thus, the objective of this study is to investigate the impact of CSR and business ethics on brand fidelity. A theoretical review of CSR, business ethics, brand attitude, brand love, and brand fidelity was undertaken. From these constructs, a theoretical model was proposed, conducting an empirical study with a sample of 559 North American respondents. Through the statistical treatment of data with PLS-SEM, it was demonstrated that business ethics and CSR exert an indirect positive effect on brand fidelity, with relationships mediated by brand love. In turn, brand attitude exerts an indirect effect on brand fidelity, through the mediation of brand love. Based on the results, this study contributes to the approach of CSR and business ethics as distinct constructs and to the consolidation of the brand fidelity construct and its relationships. For management, this study helps organizations to perceive CSR and business ethics as important allies in a brand’s strategy. We conclude that although CSR remains important, customers value business ethics as a critical factor in their perceptions of the brand, contributing more strongly to brand fidelity.

Highlights

Throughout history, the world has faced major social and humanitarian challenges, which have political, economic and social consequences, requiring adequate responses from governments, but from society as a whole, individuals and organizations [1,2].Based on this premise, consumers have increasingly come to expect different positions from organizations, in order to overcome the hermetic logic of profitability and demonstrate greater commitment to and investment in social issues [3]
Corroborating Ferrel’s [9] findings that business ethics and corporate social responsibility (CSR) should be used as distinct constructs, we suggest that companies should implement values that govern their business activities, demonstrate principles and follow a code of conduct, and that its responsible activities should reach society, the environment, and other groups [18,92]
By empirically validating the relationships of business ethics and CSR with brand fidelity, we see the importance of companies developing strategies based on ethical values and CSR [109,111], in order to drive their results and improve their reputation, once we understand that it is easier to work with current customers to make them more loyal, rather than looking for new customers

Summary

Introduction

Throughout history, the world has faced major social and humanitarian challenges, which have political, economic and social consequences, requiring adequate responses from governments, but from society as a whole, individuals and organizations [1,2] Based on this premise, consumers have increasingly come to expect different positions from organizations, in order to overcome the hermetic logic of profitability and demonstrate greater commitment to and investment in social issues [3]. Responds to this expectation of consumers by highlighting the responsibility of organizations towards their different stakeholders, helping executives to reflect on value creation practices and their contribution to the well-being of the society [1,5,6] It is in this context that the role of corporate social responsibility (CSR) and business ethics emerges [7–9]. CSR and business ethics have been gaining ground and credibility as they are, respectively, socially responsible activities and ethical behavior, developed by companies towards their stakeholders, in order to maximize economic, social and environmental well-being, and generate value for themselves [9–13].

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