Impact of Corporate Social Responsibility on Consumer

based Brand equity in FMCG Industry of Pakistan

A Research Project submitted

by

Mairaj Ahmed (33779)

Abdul Haseeb (33836)
Adnan Hassan (33841)
Mussawir Ali Khan (30371)

To
Department of Business Administration
In partial fulfillment of
The requirement for the
Degree of

BACHELORS OF BUSINESS ADMINISTRATION

This Project has been

Accepted by the faculty

FACULTY OF BUSINESS ADMINISTRATION

Dr. Syed Irshad Hussain
Advisor
Research Facilitation Centre – RFU,
Iqra University
 Table of Contents
S no. Contents Page #
1 Chapter One: Introduction 04
1.1 Overview 04
1.2 Background of study 04
1.3 Problem Statement 06
1.4 Research Questions 06
1.5 Objective of the study 06
1.6 Significance of the study 06
1.7 Scope of the Study 07
1.8 Organization of the Study 07
1.9 Chapter Summary 08
2 Chapter Two: Literature Review 09
2.1 Theoretical Literature 09
2.2 Empirical Literature 09
2.3 Conceptual Framework 12
2.3.1 Hypothesis 13
3 Chapter Three: Methodology 14
3.1 Introduction 14
3.2 Research Design 14
3.3 Data and Construction of variable 14
3.4 Population 14
3.5 Statistical Technique 15
3.6 Importance 15
3.7 Primary Data 15
3.8 Secondary Data 15
3.9 Questionnaire / Instrument of Data Collection 15
3.10 Chapter Summary 16
4 Chapter Four: Analysis And Discussion 17
4.1 Validity and Reliability Analysis 17
4.2 Respondent’s Profile 17
4.3 Descriptive Analysis 19
4.4 Correlation Analysis 20
4.5 Regression Analysis 21
4.6 Hypothesis Assessment Summary 25
4.7 Chapter Summary 25
5 Chapter Five: Conclusion 26
5.1 Discussion 26
5.2 Conclusion 26
5.3 Policy Implication 27
5.4 Limitation 27
5.5 Recommendation and Future Suggestion 27
References 28
Appendix 30

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 Acknowledgement
We are thankful to Allah that he has made us enough capable to do this Research. We
have contributed our time, knowledge and skills to complete Research on the study of CSR and
Brand Equity. In addition, we are very pleased to thank Dr. Syed Irshad Hussain for assisting
us in the completion of Research Project. He has enlightened us with the depth of knowledge
throughout the research. The support of our supervisor has widened the knowledge of us in
research site.
Our supervisor has denoted his whole time in the completion of this Research. Every
question was being entertained in the elegant way. We are thankful to Dr. Syed Irshad Hussain
for approving our topic. This course enlightens our knowledge in the wider level and encourages
learning some new version of knowledge and about the reality.

2
 Abstract
The objective, for which this report project is based, is to examine brand value from
consumer perception and the role of corporate social responsibility producing their effects on the
brand equity. The purpose behind this research is to examine the direct association between the
brand equity and corporate social responsibility. The tool uses in this report project for collecting
primary data from respondents is questionnaire, for that we constructed a Likert Scale
questionnaire which contains overall 12 items and 4 items for each variable, with sample group
of more than 400 respondents. We opted for the elaboration of a questionnaire to obtain the
information necessary for our report project. Data analysis was conducted by using SPSS on
regression and correlation methods. Finding of this research is that all Hypotheses accepted with
the significance level of 0.000. The result reveals that, there is a significance positive
relationship of CSR on Brand awareness and Brand Equity whereas brand awareness has also
impact on brand equity. CSR activities perform by companies first create brand awareness in
consumers’ mind, which turn in to Brand Equity. It can be concluded that if companies perform
CSR activities can be used to create awareness about a company in consumers’ mind. We urge
managers to take participate in CSR activities to generate awareness of brand in consumers’
mind. The traditional Chinese proverb, ‘‘doing good and not wanting others to know it,’’ is not
appropriate in this circumstance. This report provides clear motivation for companies to promote
CSR activities.

3
 Chapter One:
INTRODUCTION
1.1 Overview
The notion of Corporate Social Responsibility (CSR) has gained a lot of attention in the
current business world. In the present era, organizations are developing corporate social
responsibility to increase their strength and build long-lasting relationships with their business
partners. Although corporate social responsibility is evident in the developed countries but the
potential benefits of CSR are not emerging some markets such as Pakistan. Corporate social
responsibility is an area of development knowledge that requires some professional experts who
would consider and refer to economic growth of the Pakistan. However, the FMCG
organizations of Pakistan are having various reliable resources, which can transform the life of
one citizen, which also define the moral duty of one individual rather than a required
commitment. This research has examined that how CSR is associated with Brand Equity in
Pakistan FMCG industry. The data integrated in this research is associated with the Pakistani
FMCG industry and their consumers.

1.2 Background of the Study

The concept of Corporate Social Responsibility began with the book “Responsibilities of
Businessman” written by Bowen in 1953. This is an unpleasant idea, because it contains other
ideas like reasonable business, business ethics and corporate citizenship. Earlier organizations
were the only considered as the profitable entities. However, after the change in the business
environment, the role of the organizations has changed dramatically. Today, the organizations
are an essential part of social life. However, corporate social responsibility is considered as a key
instrument in the business world for organizing various activities for the preservation and
resolution of social problems, and the commitment of society. Moreover, CSR also allows the
business organizations to create and reduce inventories efficiently and effectively. Today, the
unified relationship between business and society has developed unprecedentedly, which was
like never before (Hur et al., 2014, p.75).
However, various researchers have categorized CSR as listing of variables that affect the
meaning. Some authors define corporate social responsibility as “Being socially capable means

4
satisfying legitimate desires, as well as going past consistence and putting more into human
capital, the environment and relations with stake holders”. According to the definition of
European Commission which defines the corporate social responsibility as a notion where
organizations are watching ecological and social issues present in their business activities and in
the association present between their partners on an intentional premise. Corporate social
responsibility does not give selflessness as it is tangled with the offerings back to the society.
This notion should allow the organizations to review the problems associated with CSR present
in their organizations and the brand managers should begin to explore it and make it a core
strategy (Malik, 2015, p.419). The contention is that advertising enhances organization
information environment, to the point company that does not have to publicize its CSR program.
By broadcasting its good and services, a company increases the level of familiarity about its self
among its existing and potential customers. This builds up knowledge and motivates customers
to know more about company activities plus CSR activities too. As customer come to know more
about CSR activities they will be more willing to buy products and services, which in return has
positive outcome on market performance. “Corporate social responsibility is a moral
administration idea where companies’ objective is to coordinate social, financial and
environmental concerns along with the thoughts of human right into their business activities”.
However, most corporate associations are yet discovered needing in meeting the prescribed
procedures of CSR in their marketing operations. CSR is a plan of action to help organization
self-regulate perceiving that their exercises effect on assortment of stakeholders, including the
overall public. Moreover, to consolidate the best practices for integrating CSR in marketing
activities are essential for the success of the organization and its presence in their respective
industry. However, the association between marketing activities and corporate social
responsibility has been studied for decades and the results will affect the economic ideology at a
certain time. Generally, the impacts of marketing initiatives on the business opportunities and on
social obligations that relate to corporate social responsibility in society are accepted (Lee et al.,
2013, p.1716).
Furthermore, the elements of brand equity are turned into consumer issues for the
business community, because brand equity is considered as an asset of the company, which
combines a firm with its competitors and can increase brand-related financial returns. However,
brand value contain the] four levels for organizational advantage and the trademark or image

5
liability; these are the brand, brand community, brand quality and brand loyalty (Vallaster et al.,
2012, p.34). Customers may be very worried about the organizations they consider social
capability, depending on their relationship with the organization. Positive verbal communication
is due to the client's ability to identify the organization through the company's activities. The
maintenance and development of brand pricing is a tough task. Therefore, effective brand
administration must check the choices because the buyer's response depends on what they know
and remind the brand.

1.3 Problem Statement

Consumers approach for those brands of the organizations that are socially proficient and
are having remarkable social activities, which keep the consumer aware regarding the
introduction of new brands. However, for the organizations that are not socially incredible,
consumers do not prefer to approach to these kinds of brands.

1.4 Research Questions

The research questions are based on above-defined problem statement.
1. How CSR activities produce their impact on the brand awareness?
2. Is there a significant relationship present between corporate social responsibility and
consumer based brand equity?

1.5 Objective of the Study

The objective, for which this report project is based, is to examine brand value from
consumer perception and the role of corporate social responsibility producing their effects on the
brand equity. The reason underpinning this research is to examine the direct association between
the brand equity and corporate social responsibility. The analysis is done based on the
information collected from the consumers of FMCG companies who are aware of CSR
approaches and their brands.

1.6 Significance of the Study

This report project is considered significant because this report project aims to determine
and rectify the influence of CSR activities on the consumers based brand equity in the FMCG

6
industry of Pakistan. This research provides an area in terms to determine the significance of
CSR activities in the organization and its impact on the society. Furthermore, this research also
provides a measure in terms to determine that the integration of CSR activities and the
improvement in the Pakistan corporate sector, which is also found significant for their increased
brand values for the organization as well as it is found beneficial for the Pakistan economic
sector. However, the organizations that are eligible to apply the recommended approach derived
from the outcome of this report project will be able to induce improvement in brand equity by
using CSR approaches and activities. Moreover, the consumers, who want to gain some
information regarding the organization, can earn the desired information if CSR approaches are
integrated by the organization. Furthermore, this research will also help to understand and
uncover the critical area in the business sector, as in Pakistan this research area is still not
discovered in the desired manner.

1.7 Scope of the Study

This research project aims to investigate the impact of CSR activities on brand equity
from consumer perspective, especially for those consumers who are aware about the CSR
activities and its approaches to gain the information regarding the brand. Moreover, the
investigation is done based on the data collected from the consumers of FMCG organizations of
Pakistan. However, the consumers who were not aware regarding CSR activities are not
integrated in this report project.

1.8 Organization of Study

This research project is based on three chapters, which will cover the problems,
definitions and implementation of the activities of corporate social responsibility producing their
impact on brand equity. The overview of each chapter is defined below:
1. Chapter One - This chapter defines the introduction of the problem, which defines the
overview of the study and labels the influence of CSR activities on the consumer
based brand equity. Furthermore, this chapter also defines the study scope and the
importance of the study and its objectives.

7
 2. Chapter Two - This chapter defines the review of the literature, which is associated
with the previously done researches. Furthermore, this chapter defines the
information to gain the clear understanding of the study.
3. Chapter Three - This chapter defines the details of methods selected, which is used to
conduct this study.

1.9 Chapter Summery

In this chapter we have identified the pathway on which we are going to continue our
research. We have discussed our research objectives and also the significance of our study and
also tell about the upcoming chapters which help the reader about this research project.

8
 Chapter Two:
Literature Review
2.1 Theoretical Literature
Consumer considers more than quality products and enterprises while picking a brand.
There are many consumers who prioritize corporate social responsibility with their brands.
Indeed some will even fail their most cherished associations if they acknowledge they are not
standing for societal and environmental issues. CSR is a way for associations to assume liability
for the social and characteristics impact of their business exercises. CSR intend to ensure that
association leads their business in a manner that is moral. This infers evaluating their social,
fiscal and natural effect and thought of human rights.
Brand equity is an exhibiting term that delineates a brand value. That value is constrained
by purchaser perspective and experience with the brand. If people have a great conclusion of a
brand, it has positive brand value. Brand equity is an arrangement of brand resources and
liabilities associated with a brand name and brand image which add to or subtract from the
esteem given by the organization. The thought is used to choose how productive a brand, relies
upon the likelihood that immovably settled and dependable brand are more effective.
There has been broad examination concerning the association between corporate social
obligation and brand Equity, it has as frequently as conceivable reflected either an ideological
tendency or limited methodological frameworks. Research has in like manner been upset by the
inconvenience of attractively assessing CSR and brand Equity. The entrancing finding is that the
association among brand and CSR is most grounded for nature, not for energy. That is, if an
association is eminent in its area, its CSR activities will strengthen its image more than they
would if the association were less outstanding. The recommendation is that CSR's impact is most
grounded with customers who are starting at now familiar with the association, overhauling
relationship with existing clients or purchasers.

2.2 Empirical Literature

Hur, Kim &woo (2013) study that how CSR leads corporate brand equity. For this study,
the researcher collected data through online survey. The design of survey is dependent on
organization project managers who are marketing research specialized with an online consumer

9
panel and the panel was consisted of more than 500,000 people. Researcher used the existing
scale in their survey. This research demonstrates that CSR has an altogether beneficial outcome
or positive effect on corporate brand credibility and corporate reputation. Corporate brand
creditability plays a role of mediating between the corporate reputation and brand equity.
Moreover, corporate reputation did their job as a mediating between the CSR and brand equity.
At long last, brand creditability and corporate reputation perform the role of mediators among
the CSR and brand equity.
Fatma, Rahman and Khan in 2014, research on building company reputation and brand
equity through CSR. The researcher gathers information by survey and in that survey banking
customers were also included. For the survey, the participants were approached in the time of
banking working hours. The method wad used by the researcher in this study was non
probabilistic sampling with the mixture of quota and convenience sampling while thinking
related two demographic standards one is participant’s age and another one is gender. The
instrument of this study is composed of five different segments the first part is based on
participants demographic data and the second segments is based on the observation of consumers
related the exercises of CSR. In the third part researcher measure the trust level of the
participants in their banking service. The fourth area is based on CSR related questions. In the
last part, contained all the items that measured Brand Equity dimension and that items measured
on seven point Likert scale. The findings of this research are that there is a positive and direct
effect of CSR on organization reputation and also on brand equity. Trust is performing a job of
mediating. Findings uncover that indirect impacts of CSR exercises are mediated by trust.
In 2011, Hsu Study on the advertising effects of CSR on corporate reputation and brand
equity. Researcher conducted survey for gathering the data by distributing 600 survey
instruments out of these only 48 cases were identified. For the data accuracy researcher used
different 18 Spss procedure. The survey questionnaire was composed of five different parts the
principle part of survey was perceptions of participants regarding the CSR initiatives from Life
Insurance Company. The observation of the participants about their satisfaction was included in
second part. The third part is based on participant’s perceptions about the reputation of the
organization. In the fourth segment measured brand equity dimension i.e. brand awareness and
brand association. The all items measure on seven point Likert scale. The findings is that the
connection between CSR which come into the category of independents variable and

10
organization reputation and brand equity which come into the category of dependents variable.
The effects of CSR are positive on all these independent variable. Consumer satisfaction has no
intervening impact on the connection among CSR and corporate reputation. The impact of CSR
activities on brand equity is mostly intervened by consumer satisfaction.
Saeednia and Sohani (2013) work on “the effect of CSR on building corporate reputation
and brand equity”. Researcher collects data by conveyed questionnaire to the participants. They
designed 384 questionnaires out of these they got 344 filled one. Researchers designed
questionnaire in Likert scale. The survey instrument is composed of five different segments. In
the first part they collect demographic information of respondents. The second area of survey is
about the perceptions of consumer regarding the components of CSR. The third one is based on
study about the satisfaction of customers. The second last part of the survey is about perceptions
of customers. In the last part researchers study about the items like brand awareness and brand
equity. In this stud researchers observe the CSR exercises impact on firm reputation and brand
equity. The proposed investigation of this paper structured a questionnaire and appropriated it
among a few people who took an interest in our survey. The aftereffects of the usage of auxiliary
condition demonstrating have affirmed that CSR positively affects consumer satisfaction and
could and could help build firm reputation and brand equity.
Yang and baslie (2018) works on the impact of corporate social responsibility on brand
equity. They collected data from many secondary sources. They accessed the database for
gaining information related CSR exercises and for gaining information about global BE they
used second database which was interbred. Their findings show that different dimension of CSR
have different impact of brand equity. Employee based CSR and product quality both play a key
role in the relationship of CSR and brand equity.
Singh and Verma (2017), research on how corporate social responsibility effects on brand
equity of Indian firms. For this study, researchers gather data from web based questionnaire and
they selected 20indian organizations from five different industries. The measurement scale was a
structured questionnaire consisting of 44items which was categorized in 44items. The questions
were anchored on a 5-point Likert scale. Their findings show that there is a positive effect of
CSR on BA, BI, BL and PI. BA, BI, BL and PI play a role of mediator between the relation of
CSR and brand equity. In sum, their results show that CSR has a direct and positive effect on
BA, BI, BL and PA and indirect effect on brand equity through mediating.

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 Esmaeilpour and Barjoie (2016) investigate on the impact of corporate social
responsibility and image on brand equity. The instrument used by the researcher for the
collection of data was questionnaire. The sample size of their research was 384. They used
questionnaire as an instrument and the questionnaire composed of 26items. They used AMOS
software for testing research hypotheses and conceptual framework through structural equation
modeling. Their findings show that corporate social responsibility has a positive effect on both
corporate image and also on brand equity. Moreover, brand equity positively influenced by
corporate image.
Abdolvand and Charsetad (2013) investigate on corporate social responsibility and brand
equity in industrial marketing. For this study, they structured questionnaires on a five point
Likert scale for the collection of data. They distributed 200 questionnaires out of 200 after
eliminating error s they got 101 filled questionnaires which are usable for their study.
Researcher used structural equation model for testing conceptual model. The findings of this
study are that brand equity is positively affected by the corporate social responsibility so the
managers have opportunity to increase company brand equity by practicing CSR activities.
Mensah, Yensu and Atuilik (2017) investigate on building brand equity through the
influence of corporate social responsibility. Researcher designed and organized questionnaires
using the five point Likert scale for the collection of data and they distributed questionnaire 373
employees and customers as a sample. For data analyzing they used descriptive statistics,
cronbach alpha and multiple regression. Their findings show that brand equity is positively
influenced by all the variables of corporate social responsibility.

2.3 Conceptual Framework:

H1
Corporate Social Responsibility Brand Equity
(CSR)
H2 H3

Brand Awareness

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2.3.1 Hypothesis:
H1: There is a significant positive relationship between Corporate Social Responsibility and
Brand Equity
H2: There is a significant and positive relation between CSR and Brand Awareness.
H3: Brand Awareness is the positively associated with Brand Equity of the firm.
H4: Brand awareness mediates the relationship between corporate social responsibility and brand
equity.

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 Chapter Three:
Methodology
3.1 Introduction
In this chapter we will study how to precede research questions or to check initial
hypotheses. Once we have decided how to proceed, we define the population to be studied, the
size of the sample. In this phase, we explain the whole process how to collect data from
respondents and what statistical techniques will be used for measuring the data.

3.2 Research Design

In this report project, the research is quantitative research and this research is typically
based on deductive approach. In this research we will gather data from people who use FMCG
products and to some degree know about CSR activities.

3.3 Data and Construction of variable

There are three variables identified:
Dependent Variable: Brand Equity (Brand Value)
Independent Variable: CSR (Corporate Social Responsibility)
Mediating Variable: Brand awareness

3.4 Population
The target population which is identified in this report is general public resident of
Karachi who to some degree knows about CSR and Brand Equity.

3.4.1 Sample size and Sampling

As there is not always enough time or resources to collect data from all those people who
aware about CSR activities that’s why we have decided to collect data or information from more
than 400 respondents as a sample. For this, we prepared questionnaire and we will focus on
distributing questionnaire to those participants who were above 18 years of age as it allowed
research to gather data from public who are aware about the brand equity and CSR concepts.

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3.5 Statistical Technique
The main purpose of data analysis is to organize give meaning to the results and thus
enable other researchers to can understand. In the descriptive analysis, the collected data are
organized, according to previously established criteria, and subsequently treated statistically.
Taking into account the objectives of the report project, the data analysis was carried out based
on regression and correlation techniques to test our hypothesis.

3.6. Importance
In this research we are going to use regression and co relation techniques to test our
hypothesis because it is the best way to test quantitative research hypothesis that is why it is
important to use these techniques to test our hypothesis in this research.

3.7 Primary Data

The tool uses in this report project for collecting primary data from respondents is
questionnaire. The first part of the questionnaire is consisting of demographic information of
respondents. While the other part of the questionnaire is based on variables which are mention in
literature review.

3.8 Secondary Data

We used secondary data to support our research and idea through literature review and
other research articles.

3.9 Questionnaire / Instrument of Data Collection

The most common method, used in quantitative research designs, is the questionnaires
that can be defined as a data collection instrument containing a series of statements or to assess
the attitudes, skills and investigating or collecting information from them. We opted for the
elaboration of a questionnaire to obtain the information necessary for our report project, not only
taking into account the properties of this instrument, but also because this technique has the
advantage of being fast and to be easily distributed to a considerable people and allow them to

15
freely express their opinions through of the anonymous character of the answers. We selected
five point Likert scale within the questionnaire.

3.10 Chapter Summary

In this chapter, we have to use quantitative data collection technique of survey
questionnaire with sample group of more than 400 respondents. Data analysis was conducted by
using SPSS on regression and correlation methods.

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 Chapter 4

4.1: Validity and Reliability Analysis

4.1.1: Overall Reliability
In this report project, we have done research to find out the relationship between CSR
and Brand Equity, for that we constructed a Likert Scale questionnaire which contains overall 12
items and 4 items for each variable.
Cronbach's Alpha being a reliability coefficient and indicates how positively items are
correlated. A value between 1 - 0.9 indicates excellent reliability, a value between 0.9 - 0.8
indicates Good reliability and a value between 0.8 - 0.7 indicates Acceptable reliability in the
test. Cronbach’s alpha .812 indicates that our result is good and there is higher internal
consistency reliability between the variables.

Table 1: Overall Reliability

Variables Cronbach's Alpha N of Items

CSR with Brand Equity .812 12

4.1.2: Reliability of Individual variable

Cronbach’s alpha of Brand Equity is .713 which indicates that the reliability of this variable is
fair enough for acceptability of data.
Cronbach’s alpha of CSR is .699 which indicates that the reliability of this variable is
questionable for acceptability of data.
Cronbach’s alpha of Brand Awareness is .781 which indicates that the reliability of this variable
is good enough for acceptability of data.

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Table 2: Reliability of Individual variable
Reliability Statistics
Variables Cronbach's Alpha N of Items

Brand Equity .713 4

CSR .699 4
Brand Awareness .781 4

4.2 Respondent’s profile

In this report, we have collected data from more 436 respondents in which majority
respondents are male where female respondents are approximately 1/4th of total respondents.
The qualification of all the respondents who take part in this report are from school level to PhD,
majority are from College / University with ratio of 66.7% of the total respondents, 23.6% of the
total respondents have Graduate degree, 8.8% of the total respondents are high school qualified
and 0.5% respondents have PhD degree. According to our data 404 of the total respondents had
given information about their household income where 32 respondents had not given their
household income information. 35.9% respondents have household income in the range of
Rs.50000-Rs.100000, 37.6% respondents have household income between Rs.10000-Rs.50000,
19.3% respondents have household income above Rs.100000 and rest of the respondents have
house hold income below Rs.10000.

4.2.1 Age and Gender of the Respondents

In the current sample majority respondents are male with ratio of 74.1%, where female
respondents are 25.9% approximately 1/4th of total respondents. Most of the respondents are in
age group of 18-25years, which is 74.3% of the total respondents. 20.6 % respondents are
between 26-35 years. 3.7% respondents are between 36-45years and rests are above 45years
which is 1.4% of total respondents.

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Table 3: Age and Gender of the respondents
Frequency Percent
Gender Female 113 25.9
Male 323 74.1
Total 436 100.0

Frequency Percent
Age 18-25 324 74.3
26-35 90 20.6
36-45 16 3.7
45 Above 6 1.4
Total 395 100.0

4.3 Descriptive Analysis

In this research, we used Likert scale as 1 for strongly disagree, 5 for strongly agree and 3
for neutral. In the below table 4 mean vale of brand equity, CSR and brand awareness is more
than 3 which indicate that more than 50% respondents agree. So we conclude that more than
50% respondents believe that CSR and Brand awareness greatly affected on Brand equity.
Furthermore, the directions of all variables are same which mean all variable positively affected
each other. For a symmetrical distribution the skewness index take the value of zero, negative
value shows that a negatively skewed distribution and In contrast Positive value indicate that
positive skewed distribution. The results shown in the Table 4 indicate that all three variables
Brand equity, CSR and Brand awareness are negatively skewed. The kurtosis index measures the
extent to which a given distribution deviates from the shape of normal distribution. If the value
of kurtosis statistics is 3, it’s mean the distribution is according to standard normal distribution
and if the value of kurtosis statistics is greater than 3 it show that the distribution is peaked than a
normal distribution, and if the kurtosis statistics value is under 3 or a negative value so its mean
distribution is flatter distribution. The table 4 figures shows that all three variables are flatter
distributed. On the other hand, the coefficient of kurtosis for brand awareness variable is 2.88,
which is close to 3 and it shows that the data of Brand awareness variable is distributed close to
normal distribution.

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Table 4: Descriptive Analysis
Descriptive Statistics

N Mean Std. Deviation Skewness Kurtosis

Statistic Statistic Statistic Statistic Std. Error Statistic Std. Error

Brand Equity 436 3.56 .750 -.461 .117 .846 .233
CSR 436 3.62 .752 -.432 .117 .401 .233
Brand Awareness 436 3.97 .692 -1.273 .117 2.888 .233
Valid N (listwise) 436

4.4 Correlation Analysis

We used correlation analysis to check the connection among two variables. The
correlation value always place between the 1 and -1. If the correlation value is closest to the 1
and -1 its mean there is a perfect correlation among two variables, and if the correlation value
lying between the 0.30 and 0.50 so we can say that the correlation is at some extent among two
variables. The coefficient of correlation between two variables is positive it shows that the
connection between two variables is positive and the negative coefficient indicates that the
connection among two variables is negative. In the below table, the coefficient value of all three
variables i.e. corporate social responsibility, Brand awareness and Brand equity, are laying
among 0.30 and 0.50, which shows that the connection among all three variables at some extent.
The value of correlation coefficient among two independent variables are positive so it’s mean
all three variables i.e. corporate social responsibility and Brand awareness are positively
correlated with Brand equity. In other words, these variables have positively affected the Brand
equity. However, the correlation coefficient of the CSR, Brand awareness and Brand equity are
significance at reasonable level of significance. It signifies that CSR and Brand awareness have a
considerable or significant effect on the Brand equity.
Table 5: Correlation Analysis
Correlations

Brand Equity CSR Brand Awareness

Brand Equity Pearson Correlation 1 .389** .449**
Sig. (2-tailed) .000 .000

N 436 436 436

CSR Pearson Correlation .389** 1 .329**
Sig. (2-tailed) .000 .000

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 N 436 436 436
Brand Awareness Pearson Correlation .449** .329** 1
Sig. (2-tailed) .000 .000

N 436 436 436

**. Correlation is significant at the 0.01 level (2-tailed).

4.5 Regression Analysis

4.5.1 CSR and Brand Equity
Table 6: Regression Result of Model 1
Dependent variable= Brand Equity N=

Variables Coefficient t-statistic Sig

Constant 2.162 13.267 .000

CSR .387 8.785 .000

R-Square .151 F-statistic 77.184

Adjusted R-Square .149 P-value 0.000

R-square:
R-Square is the coefficient of determination. R-square shows variation in dependent
variable in reaction of independent variable. 100% r-square means dependent variable is
completely explained by independent variable and has a strong relationship among independent
and dependent variables. In contrast if r-square value is closest to the 0% its means dependent
variable is not explained by the independent variable. The above table shows that the value of r-
square is 0.151 percent which reveals that 15.1% model is explained by corporate social
responsibility. Whereas rest of the 84.1% model not defined due to other factors which can also
effect brand equity.

F-statistics:
We used F-statistic techniques to analyzed either model is significant or insignificant.
The significant model reveals that there is a significance connection among independent and
dependent variable. By calculating the value of F-statistics and P-value we can examine the

21
significance of F-statistics. If the significance value is not more than 5% its mean we have to
reject null hypothesis and otherwise we have to accept. From the above regression model we can
conclude that our regression model is significant because the significance value of F-statistics is
less than 0.0.5.

Coefficient and t-statistic

The beta value of independent variable discloses the connection among independent and
dependent variable. We can check the way or direction of relation among dependent and
independent variable by seeing the sign of beta. Positive sign indicate that there is positive
connection while negative sign show that there is negative relation among independent and
dependent variable.
T-statistics and P-value show the significance between independent and dependent
variable. If p-value of beta laying under the given level of significance so it shows that there is a
significant connection among independent and dependent variable and in this case we have to
reject null hypothesis. In opposite, if the p-value of beta reached over the given level of
significance so it mean there is not a significant connection among independent and dependent
variable and we have to accept null hypothesis.
The above regression model 1 results show that the coefficient of CSR is 0.387 which
mean one percentage change in CSR generates 38.7% positive change in brand equity. The
positive sign of beta indicate that there is a positive relation. The significance value of the beta of
CSR is 0.000 which come under the 5%, it shows that there is significant connection among
corporate social responsibility and Brand equity.

4.5.2 CSR and Brand Awareness

Table 7: Regression Result of Model 2
Dependent variable= Brand Awareness N=

Variables Coefficient t-statistic Sig

Constant 2.877 18.673 .000

CSR .303 7.263 .000

R-Square .108 F-statistic 52.755

Adjusted R-Square .106 P-value 0.000

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R square:
As we discussed above through r-square we can observe the variations in dependent
variable in reaction of independent variable. The above regression model discloses that 10.8%
model is explained by corporate social responsibility while rest of the 89.2% model is not
defined because of other factors, which also effect on brand awareness.

F-statistics
As we discussed above through F-statistics we can check the model is either significant
or insignificant. From the above regression model we conclude that our model is significant
because the significance value of F-statistics is 0.000 which come under the 0.05.

Coefficient and t-statistic

As we discussed above the beta value of independent variable discloses the connection
among independent, dependent variable, and significance value of t-statistics reveal that the
connection between variables is either significant or insignificant.
The above regression model 2 results show the coefficient of CSR is 0.303 which mean
one percentage change in CSR generate 30.3% positive change in brand awareness. The positive
sign of beta indicate that there is a positive relation. The significance value of beta of CSR is
0.000, which come under the 0.05, it reveals that there is a significant connection among CSR
and Brand awareness.
4.5.3 Brand Awareness and Brand Equity
Table 8: Regression Result of Model 3
Dependent variable= Brand Equity N=

Variables Coefficient t-statistic Sig

Constant 1.629 8.693 .000

Brand Awareness .487 10.475 .000

R-Square .202 F-statistic 109.718

Adjusted R-Square .200 P-value 0.000

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R square:
As we discussed above through r-square we can observe the variations in dependent
variable in reaction of independent variable. The above regression model discloses that 20.2%
model is explained by Brand awareness while rest of the 89.2% model is not defined because of
other factors, which also effect on brand equity.
F-statistics
As we discussed above through F-statistics we can check either the model is significant
or insignificant. From the above regression model we conclude that this model is also significant
because the significance value of F-statistics is 0.000 which come under the 0.05.
Coefficient and t-statistic
As we discussed above the beta value of independent variable discloses the connection
among independent and dependent variable and significance value of t-statistics reveal that either
the connection between variables is significant or insignificant.
The above regression model 3 results show the coefficient of Brand awareness is 0.487
which mean one percentage change in Brand awareness generates 48.7% positive change in
brand equity. The positive sign of beta indicate that there is a positive relation. The significance
value of beta of Brand awareness is 0.000, which come under the 0.05, it reveals that there is a
significant connection among Brand awareness and Brand equity.
4.5.4 Mediation:
Table 9: Regression Result of Model 4
Mediating Result
Dependent variable= Brand Equity
Variables Coefficient Sig

CSR .269 .000

Brand Awareness .390 .000

In the table 8, the beta value of CSR was decreased but the level is significant. The result
indicates that brand awareness partially mediate the connection among CSR and Brand equity.

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4.6 Hypothesis Assessment Summary:
Hypothesis Significance value Accept/ Reject
H1: There is a significant
positive relationship between
Corporate Social 0.000 Accepted
Responsibility and Brand
Equity
H2: There is a significant and
positive relation between CSR 0.000 Accepted
and Brand Awareness.

H3: Brand Awareness is the

positively associated with 0.000 Accepted
Brand Equity of the firm.
H4: Brand awareness mediates
the relationship between 0.000 Accepted
corporate social responsibility
and brand equity.

4.7 Chapter Summary:

In this chapter we discussed analyzed the reliability of individual variable and over all
reliability. In the beginning of the chapter we discuss the respondent’s age, gender, income and
qualification. We used different techniques to check our model i.e. descriptive, regression and
correlation. Also we discussed through r-square, F-statistics and t-statistics in details.

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 Chapter Five:
5.1 Discussion
The review of literature on the impact of Corporate Social Responsibility on Brand
Equity showed that the studies produced varying results. Most of the studies’ result shows that
there is a relationship between Corporate Social Responsibility and Brand Equity But not
directly linked with each other. Singh and Verma (2017), research on how corporate social
responsibility effects on brand equity of Indian firms and their results show that CSR has a direct
and positive effect on BA, BI, BL and PA and indirect effect on brand equity through mediating.
Abdolvand and Charsetad (2013) investigate on corporate social responsibility and brand equity
in industrial marketing and the findings of this study are that brand equity is positive affected by
the corporate social responsibility. Esmaeilpour and Barjoie (2016) investigate on the impact of
corporate social responsibility and image on brand equity and their findings show that corporate
social responsibility has a positive effect on both corporate image and on brand equity.
Moreover, brand equity positively influenced by corporate image. According to the results,
which we have collected from more than 400 respondents, we can say that there is a positive and
significant impact of CSR on brand awareness and brand equity. In addition, Brand awareness
has also positive and significant impact on brand equity.

5.2 Conclusion
The aim of conduct this research is to find out the connection among CSR and Brand
equity, which has been accomplished. The result reveals that, there is a significance positive
relationship between CSR and Brand Equity, but regression analysis result shows that the
relation is not very strong but there is a relation mediating by brand awareness, which means that
CSR activities perform by companies first create brand awareness in consumers’ mind, which
turn in to Brand Equity. It can be concluded that if companies perform CSR activities can be
used to create awareness about a company in consumers mind.

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5.3 Policy Implication
CSR has become a strategic marketing tool to enhance the brand awareness. Now a day’s
many companies moving their strategic plans toward CSR activities. According to the above
results, we propose the following managerial implications. We urge managers to take participate
in CSR activities to generate awareness of brand in consumers’ mind. The traditional Chinese
proverb, ‘‘doing good and not wanting others to know it,’’ is not appropriate in this
circumstance. This report provides clear motivation for companies to promote CSR activities.

5.4 Limitation
This study has a several limitations which effects the interpretations and results. First,
there is a financial restriction in conducting this research because as a student, there is a restraint
for us to expand this research on large scale. Another limitation is time limit for submitting the
report, if there is no time limit, this report can be extended with more variable and more
literature review to check the relationship between CSR and Brand Equity. Another limitation is
that we have to restrict the sample size from less than 500 respondents, if the sample size
increases the results may be changes.

5.5 Recommendation and Future Suggestion

Future research on this topic is needed. CSR and Brand Equity itself has many sub heads,
which can be researched as separate variables to find clear connection among CSR and Brand
Equity. This report opens a new dimension for researchers to find out more different ways to find
the relation between CSR and Brand Equity.

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 Appendix
Choose any Brand/Company as brand ‘X

Strongly disagree

Strongly agree
Disagree

Neutral

Agree
BRAND EQUITY
It makes sense to buy this brand ‘X’ among other competing
brands.
Even if another brand has same features as this brand, I would
prefer to buy brand ‘X’.
If there is another brand as good as this brand ‘X’, I prefer to buy
this brand ‘X’.
If another brand is not different from this brand ‘X’ in anyway, it
seems smarter to purchase this brand ‘X’.
CORPORATE SOCIAL RESPONSIBILITY
I would pay more to buy products from a social responsible
company
I consider the ethical reputation of business when I shop.

I avoid buying products from companies that have engaged in

immoral actions
If the price and quality of two products are the same, I would buy
from the firm that has a socially responsible reputation
BRAND AWARENESS
I can recognize this brand ‘X’ among other competing brands.

Some characteristics of this brand ‘X’ come to my mind quickly.

I know the symbol or logo of this brand ‘X’.

I have no difficulty in imagining this brand ‘X’ in my mind.

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