The role of Corporate Social Responsibility in the decision-making process of consumers in Ukraine

Ganna Lobachevska,Claus-Heinrich Daub

doi:10.21511/im.17(1).2021.07

Ganna Lobachevska, Claus-Heinrich Daub

Open Access

https://doi.org/10.21511/im.17(1).2021.07

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Abstract

This paper aims to investigate the impact of Corporate Social Responsibility (CSR) of Fast Moving Consumer Goods (FMCG) companies on consumer buying behavior in the Ukrainian market. The qualitative data for this study were collected with the help of semi-structured interviews conducted with a total of 10 respondents, including 5 Ukrainian consumers (with different levels of responsible consumption adoption) and 5 CSR experts from FMCG companies located in Ukraine (both local and global; with CSR adoption level varying from low to well-developed). The data obtained for this study revealed that the level of consumer awareness about CSR in Ukraine is still low. However, the level of awareness and the actual consumption of responsible products are constantly growing. The results also show that Ukrainian consumers who already have some level of awareness about CSR perceive CSR communication as more credible when it does not originate from the company directly or is endorsed by a third party. At the same time, interviewed experts stated that to raise awareness among the wider population, FMCG companies have to communicate their CSR achievements directly and massively. Ukrainian consumers are mostly impacted by the product-related CSR type, such as bio-ingredients and sustainable packaging. Price premium for responsible products is the key factor that causes the “intention-behavior gap” in Ukraine.Practitioners from the FMCG industry in Ukraine may use the information provided by this study to shape their CSR strategies, which will allow them to cater to societal demands and, as a result, impact consumer buying behavior.

Highlights

Nowadays, the fast-growing population and a considerable increase in consumption lead to ubiquitous pollution of air, water, and land and putting an ever-growing pressure on the scarce resources and the entire ecosystem
This paper aims to investigate the impact of Corporate Social Responsibility (CSR) of Fast Moving Consumer Goods (FMCG) companies on consumer buying behavior in the Ukrainian market
The results show that Ukrainian consumers who already have some level of awareness about CSR perceive CSR communication as more credible when it does not originate from the company directly or is endorsed by a third party

Summary

Introduction

The fast-growing population and a considerable increase in consumption lead to ubiquitous pollution of air, water, and land and putting an ever-growing pressure on the scarce resources and the entire ecosystem. More and more companies and consumers are questioning the traditional way of running a business in this context. The idea that business has responsibilities beyond profit and should add social and environmental value (Crane et al, 2019) was widely accepted and integrated into the strategies of a vast variety of companies worldwide, especially during the last two decades. “sustainability issues will be critical to the future success of their business” In 2019, the CEOs of more than 180 US companies have signed the “statement of corporate purpose” with the key message that the companies’ social responsibilities are more important than profit (Dilts, 2019)

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