Faculty of postgraduate studies and scientific research

German University in Cairo

Marketing Seminar (MARK 705)

The impact of corporate social responsibility in brand equity

Supervised by: Prof.Dr. Tamer Awad

Prepared by: Hussein Elmahdy

Submission date: January 2ed 2021

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Table of Contents

Abstract………………………………………………………………………………………………………….2
Introduction……………………………………………………………………………………………………..3
Litterateur review………………….....................................................................................................................5
Stakeholder………………………………………………………………………………………………….….5
Societal stakeholder………………………………………………………………………………………….…5
Economic stakeholder……………………………………………………………………………………….….5
Organizational stakeholder……………………………………………………………………………………..6
Carroll's pyramid of responsibilities theory…………………………………………………………………....6
Economic Responsibilities…………………………………………………………………………………… 7
Legal Responsibilities ……………………………………………………………………………………….10
Ethical Responsibilities………………………………………………………………………………….........13
Philanthropic Responsibilities………………………………………………………………………….……..15
Opponent opinion on CSR…………………………………………………………………………………....16

Strategic CSR ………………………………………………………………………………………………....17

People ………………………………………………………………………………………………………...17

Supply Chain ………………………………………………………………………………………………....17

Environment…………………………………………………………………………………………………..17

Community…………………………………………………………………………………………………... 18

Customer……………………………………………………………………………………………………...18

The relationship between brand equity and CSR……………………………………………………………..19

How-to build brand equity…………………………………………………………………………………….20

Brand awareness………………………………………………………………………………………………23

Brand association……………………………………………………………………………………………...23

Perceived value………………………………………………………………………………………………..24

Brand experience……………………………………………………………………………………………...24

Brand preferences brand loyalty………………………………………………………………………………25

Conclusion ……………………………………………………………………………………………………26

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Introduction

In today business the customer perception and satisfaction is a major factor that influences business

profitability as well as brand reputation, successful business entities and companies has recently focused in

social icons in a manner to attract new customer and prospects to its business cycle and product mix this

strategy require a firm to provide adequate regular expenditure to finance these social activities.

The question hear is why the firm or businesses are driven to philanthropic activates that affects the

organization indirectly and what would be the effect if they neglect social concerns also are business obligate to

provide ideation for social concerns while conducting business and the measurement of the outcome relevant to

the expenditure, is there is a framework for financial budget that imitate social expenditure and provide

boundaries. What is the reason of implying to social concerns , the matter that create a relationship and

complexities between social concerns and also corporate social responsibilities and firms profitability brand

image and brand loyalty, where all the variables affect the business positively and negatively in indirect

manner , all these inclusions would be discussed and elaborated in this study where it would focus on the

degree of impact of social corporate responsibility on brand equity undertaken the available resources of

previous studies and business journals also previous researches about this topic

(David Vogel, 2019)

The importance of this study is to measure the impact of social corporate activities and spending on future

income and corporate profitability where it would help enterprises and business entities to consider social

corporate responsibility as more important factor that may influence firm's brand equity in the local and

international market. The research conducted to indentify cause and effect relationship among variables ,where

the study already been narrowly defined. The framework would identify the broad problem,

Definition of the problem statement, developing hypothesis, determine measurement data collection and

analysis and finally interpretation of the results (David Vogel, 2019)

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 Is business now a day forced to comply with customer perception to survive?

Actually the answer to this question is extremely wide and would correlate marketing elements as well as

financial and strategic management where this question is vulnerably correlated to different field studies but in

this paper It would be focused on strategic management specially social corporate responsibility according to

corporate governance. The focus in this paper would be on the strategic CSR social corporate responsibility and

try to measure the effectiveness of efficient CSR on brand equity and the intangible e value of the organization

or businesses. Nevertheless this study would also select the parameter for social return and sustainability of

social programs and its effect on brand image, and value added to the product from CSR strategies

First of all based on earlier studies CSR is defined as economic, legal ethical and philanthropic

expectations that society has of organizations at a given point of in time. (Carroll, Debbi haski leventhal . 1979)

According to this terminology is a view of the corporation and its role in society that assume a

responsibility among firms to pursue goals in addition to profit maximization and a responsibility of the

stakeholders to hold the firm responsible for its actions (freeman 1984, Debbi haski leventhal )

Business decision making linked to ethical value compliance with legal requirements and respect for people,

communities and the environment around the globe. Also strategic CSR is the incorporation of a holistic CSR

perspective within a firm's strategic planning and core operations so that the firm is managed in the interest of a

broad set of stakeholders to achieve maximum economic and social return over medium to long term planning .

(Chandler, 2017)

It's essential to mention what is meant by stakeholders, stakeholder is defined as any individual, group or

institution that is affected positively or negatively by the achievement of an organizations purpose (freeman

1984)

The importance of this study in the Egyptian market

particularly where it would help us measure the influence of social corporate responsibility and its return

on business and its relation to brand equity and awareness consequently it would help different firms and

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businesses in Egypt to decide to which degree it would direct its investment on social corporate practice the

main scope to determine the impact of social returns on brand equity , also in this study would explain the

different theories of social responsibilities and the structure of the earlier concepts theories and elaborations ,

measuring the vulnerability and impact Of CSR on brand equity and strategic planning .

Literature review

Stakeholders: in a firm are individuals and groups that contribute voluntarily or involuntarily to its wealth

creating capacity and activities and who are therefore its potential beneficiaries and risk bearers (Open Journal

of Social Sciences, 2019, 7, 160-169)

Stake holders according to Weather and Chandler are based into three major groups' societal, economic and

organizational stakeholders

The societal stakeholders: include government communities third sector the external environment they also

affect the corporation performance indirectly through the involvement on business activates that require

interactions with those elements at certain piece of time

the economic stake holders is represented through shareholders consumers competitors suppliers the elements

that directly affect the financial position of the corporation where consumer , competitors , suppliers

shareholders are most relevant to the corporate and intensively affect its financial position even positively or

negatively relaying on the perception and degree of involvement of the organization to these factors as the

correlations between business strengthen and weaken according to influence of these elements on the financial

performance for instance consumers consider one of the most stakeholder that the corporation should focus

where providing better perception and image of the business in consumer mind and thinking is not an easy

manner it require effort and conscious and time toward to building reputation confidence strong brand image

with customer. (Benn et al., 2016, p. 5)

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 the product or service output marketing positioning is one of the major factors for consumer as stake

holder where corporate citizenship or social responsibility and creating shared value is considered a parallel to

marketing campaigns and indirect marketing practices (Benn et al., 2016, p. 5)

Organizational stake holder also influences the businesses as employee confidence in management and

their faith on its strategic decisions owners managers and unions perception of the organization as a hole, it's

essential to mention that the strong influence of stakeholder on corporate or businesses would indirectly affect

brand image and increase the value of the corporation in balance sheet and financial reports since increasing

(Benn et al., 2016, p. 5)

Intangible assets and brand value is subjected to financial figures in the financial statement most relevant

balance sheet. For instance brand appreciation or prostration is numerically figured in balance sheet where

increases and decrease in intangible assets would reflects on final figures of balance sheet consequently the

correlations between brand image and social returns affects the firms profitability explicitly and drastically

Nevertheless the reputation of a specific brand or is undertaken to the influence of all stakeholders where

poor brand image is relevant to weak strategic vision of the management to create strong instruments that

control brand image including creating shared value social return and adequate marketing campaign with

effective product or services provided .

Carrols Pyramid of Responsibilities Carroll's Pyramid of

Responsibilities

Carroll nternational Journal of Corporate Social

Responsibility (2016) 1:3 (Carroll, 2016, p. 4)

One of the earlier theories of CSR (Social

Corporate Responsibility) is Carroll's Domain

Theory and Carroll's pyramid of responsibilities

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 The literature review presents conceptual arguments for ranking ethical and legal responsibilities above

economic responsibilities and highlights how the precedence Carroll gave to economic responsibilities

potentially undermines the moral power of the CSR construct. However conceptual arguments alone have little

weight in practice unless they are supported by relevant stakeholders, which would include both business and

general society. In the following section, a study is presented which empirically tests the ordering of

responsibilities implied by Carroll’s pyramid of CSR to see if they are reflective of current views of business

responsibility. Samples of respondents drawn from both business and non-business backgrounds are compared

to determine if there are any differences between the business and the public’s perception of what business is or

ought to be responsible for. In addition, the potential moderating effect of perceptions relating to the adequacy

of the legal system to protect public welfare is explored in this proposal it is founded on Carroll,s theory and

pyramid of responsbilities the four major initiatives for CSR

1-Economical responsibilities 2-Legal responsibilities 3-Ethical responsibilities 4-Philantropic

responsibilities

1-Economic Responsibilities

As Carroll pyramid the economic responsibilities comes as the first priority where the firm or corporation

intensive for CSR is to maximize wealth and profits. this is very relevant to the study as it measure the impact

of CSR on financial performance and profitability levels, as any firm the expenditure for social return should

modify value to the financial position of the firm for instance e increase common stock price the matter would

lead to appreciation on capital of the organization through balance sheet and income statement and financial

reporting. (Carroll, 2016, p. 4)

The economic responsibility is the basic driver for social responsibility since if its conversely affects the

organization by other words it would lead to decrease profits and income the management would not give much

focus on social return as a trade off should be expository for the situation encompasses .

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 It has taken much time to measure economic influence of social return on business profitability as each

dollar or unit of spending should contribute in maximizing corporate earnings, increases common stock value

and also add value to the organization. However organizations provide much spending on direct marketing but

the effect on consumer perception on social return relevant o the organization is much more powerful according

to Carroll's theory or pyramid he founded social return on five main bases the wide base is the economic

motive where spending in social responsibilities would influence the organization profits indirectly as result to

increase customer base and loyalty , besides complying with legal ethical and philanthropic aspects are the

upper foundation of the pyramid (Nalband & Kelabi, 2014, p. 237)

Measuring CSR and social impact is important where we should relate each dollar spending in social

activity to its effect in financial statements. social accountability has been developed to measure the social

retune impact on the performance of the organization social return on investment is a key factor for measuring

social impact on organization performance as the total benefit of social return or main aim of the social

planning should be related to total investment value in order to be able to measure the influence and control

social spending without these tools the corporations and business entities would disabled from measuring

social return of its strategic planning and consequently would not implement effective plans that helps to

improve the goodwill and financial position of organization (Carroll, 2016, p. 4; Nalband & Kelabi, 2014, p.

238),

Actually measuring social retune on investment should be implemented according to previous backgrounds

and theory of change that indentify the approach evaluating activities , projects services on long term bases

this approach reinforce Carroll's theory That has titled the economic initiative for social corporate

responsibilities as the base ground therefore the theory of change reinforce Carol's pyramid as the following

procedures should be applied for instance indentify the desire impact, recognize necessary intermediate

outcome, develop indicators for outcome, develop required activities and write a narrative account those five

main steps are the main steps for economic initiative for social corporate responsibility

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 First the enterprise or corporation should indentify the desired impact for its social impact for instance

Home Grown Kenya had implemented its vision for CSR in horticulture products. Actually the horticultural

practices require the firm to comply several aspects such as integrated crop management past management

transportation storage traceability also the main aim of homegrown products to ensure that their production

systems were socially and environmentally sound (Nalband & Kelabi, 2014, p. 237)

The environment is a major stakeholder understating the environment is a major stakeholder is essential

for the sustainability levels of a responsible corporation, business need to accept trade off for the environment

but rather minimize its environmental impact as sustainability can improve a business relationship with

consumer, create employee engagement and lower costs

Also Homegrown had realized the importance of GREEN Economy as result improve human wellbeing

and social equity while significantly reducing environmental risks and ecological scarcities Usually refers to a

holistic business management approach, where environment is taken into account as well as economy Home

grown apply past management as a kid of CSR and Green Economy Sector to save worker Health and human

health from pesticides also the effect on the environment Enhance labor economic and social conditions.

(Nalband & Kelabi, 2014, p. 237)

One of the ethical standards that Homegrown had complied is enhancing workers and farmer economic

conditions since the wages was in minimum levels as it was known from NGO,S (Non Government

Organization) low wages were subjected to poor working conditions as horticulture industry was known by its

law wages and NGO,S were paying the minimum legislative wages 26$ per month but homegrown had raised

the farmers wages also solved the problem of non permanent employees and hosing facilities

Also Sexual harassment was another worker and farmer's problem that Homegrown had taken into

consideration while applying business ethics since most of horticulture lacked formal structure through which

workers particularly women could voice their concerns, consequently not all incidences of sexual harassment

were reported in horticulture farms (Nalband & Kelabi, 2014, p. 237)

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Based on the previous case study illustration it refers to the importance of indentifying the desired impact for

the organization before setting a CSR strategy

Recognizing necessary intermediate and developing indicators for outcome sometimes the organization

would collaborate on charity organization as intermediate to implement its strategic social responsibility such as

Tata power Delhi which has developed a partnership with training centers to enhance educational levels and

awareness among rural areas in Indian market that has social return in reducing electricity theft and creating

appropriate billing system through increasing awareness education and knowledge about importance of

electricity and the formulation of billing system. The partnership with NGO nongovernmental organization to

provide the training for the dwellers and rural areas was finance by Tata power limited as a part of its CSR

strategy to raise education that helps to organize payments and consumption and their fore reduces thefts and

late payments consequently increases aggregated collection level per month and income the wide strategic

vision for CSR in Tata power Delhi Distribution limited was aiming to increase income through increasing

awareness level among customers as rural society in Indian market (Kwatra et al., 2016, p. 18)

Developing required activities such as in Tata power Delhi Distribution limited it had focused in activities

that it believe it would increase its patience goodwill and reputation besides profitability it has implemented

partnership with local education centers to help local dwellers and rural users from to use billing system and

organize consumption and also reduce late payment these affirmative action's had increased the profitability in

the long term as return of philanthropic initiative also associations with organizations such as women's

conference and school education (Carroll, 2016, p. 4)

Write a narrative account which means down line and narrow down the account needs into divisions that

enable the corporation to deal with for instance the wide strategic planning should be narrowed down to small

divisions that enable the corporation to implement its CSR strategy in the future (Kwatra et al., 2016, p. 20)

2-Legal responsibility

another major base and initiative for a company in CSR strategy is to obey and comply with regulations

and roles such as environmental protection for instance Exxon Mobil has a partnership with waste disposal

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companies company for industrial waste disposal that reflects from gas stations daily operations to comply

with Egyptian general petroleum corporation regulations about environment protection as industrial waste

considered hared materials for the environment that should be disposed safely through its partnership with

waste disposal companies. (Western Kentucky University, 2009)

Comply with regulation and encompasses all activities made by the organization to follow the regulation

that would reflect in annual rewarding by the government (Western Kentucky University, 2009)

Although the matter is requirement by the local authorities but achieving the highest standards of safety and

provide the appropriate budget and expenditure for the implementation would consider a major point in CSR

strategy according to Carroll's Pyramid of responsibilities legal responsibility comes in the second initiative

for company in applying CSR which would reflect in enhancing reputation of the business and brand image as

well

Nevertheless Petroleum companies comply to Carols legal responsibilities since it has scored ISO 9000 is

the world's most best known quality management standard for companies and organizations. ISO9000

ISO 9001 sets out the criteria for a quality management system and is the only standard in the family that can

be certified to (although this is not a requirement). It can be used by any organization, large or small, regardless

of its field of activity. In fact, there are over one million companies and organizations in over 170 countries

certified to ISO 9001. (ISO 14000 family - Environmental management., Western Kentucky University, 2009)

Moreover ISO 1000 that concern with environment protection as a direct implementation of carols theory

of legal responsibility toward the organization as a kind of social corporate responsibility that would lead to

sustainable planes for environment protection and safeguarded the external environment through

Environmental management systems , Environmental auditing and related environmental investigations

environmental performance evaluation Life cycle assessment and Greenhouse gas management and related

activities through implementing these environmental protection plans required by SO 14000. According to the

CEO, the company’s strategic planning (Western Kentucky University, 2009)

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 The corporation CSR team has concerned the or department has realized that controlling the gas emissions

from its liquid products specially oils lubricants and gasoline that refined using the most advanced technology

to ensure they are controlling the emissions and also controlling industrial waste disposal through a

partnership with standard oils corporation which is the official authority responsible for managing Residuals

and oil wastes through environmental protection plans that moves oil wastes to be safely disposed off those

wastes include manufacturing oils gasoline refining that remains from converting crude oil into gasoline also

solid materials off oil and gas station are environment friendly managed this consider ISO14000 certificate

concerns as part of the company social corporate responsibility strategy to meet legal responsibilities ,

unpublished manuscript Apr 2016).

Furthermore Exxon Mobil also apply its CSR social corporate responsibility strategies through applying

adequate occupational health and safety management since it had achieved OHSAS 18000 (ISO 14001:2015,

2020)

OHSAS 18000 is an international occupational health and safety management system specification.

OHSAS helps in variety of respects it helps minims' risk to employees improve existing occupational health

and safety management systems demonstrates diligence and gains assurance the benefit of all this can be

substantial to the business

For instance manufacturing oils, gasoline also distributing oils and gasoline through gas stations require safety

standards manipulated by civil defense and fire management the guide lines of safety standards has been

accomplished by chevron r petroleum to achieve OHSAS standard petroleum industry is hazardous to flame

and fire by nature the matter require that corporation to be very precise an careful through oil and gasoline

storing warehousing and distributing (Western Kentucky University, 2009)

Considering employees and labors occupational health and safety consider one of the legal responsibilities

the corporation has had meet during its business involvement under the supervision of General Petroleum

Corporation that consider and frame work and guide line for all petroleum companies in the market

The corporation can benefit from legal responsibilities in its CSR strategies indirectly as its goodwill

business reputation among competitors, prospects current customers and internal corporate employees and

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labours would sound positively in business environment also it would get government support through initiative

planes such as reducing taxes, provide tax exemptions for the cost of this activities the matter would affects its

profitability in mid and long term. (Lambooy, 2014, p. 2)

In addition implementing and comply to legal concerns would but the corporation in the presumption of

government support in different aspects where it would benefit for future growth and sustainability through

providing priority for the corporate in carrying out future projects and schemes which that would

consequently lead to increases business volume and profitability. Therefore applying CSR strategies consider

essential and a different kind from promotional and marketing activates that sound indirectly and would lead to

growth and profitability as it affected the internal and external environment stronger that marketing promotions

and campaigns. (Lambooy, 2014, p. 2)

3-Ethical Responsibilities

The normative stakeholder theory in CSR which draws its philosophy from Ethics, affirms that business

corporations are “morally” responsible to look after the concerns of a larger group of stake holders which could

include owners, customers, vendors, employees and community rather than its stockholders i.e. the owners of

the business alone (Goel & Ramanathan, 2014, p. 56)

Business Ethics covers the areas of moral principles and decision making, governance issues and codes of

conduct when we speak about the ethics it's the territory of morality norms practiced by a firm. Corporation has

its societal stake holders, economic stake holders and organizational stake holders as described earlier societal

stake beholders includes the government communities environment and third sector , also economic

stakeholders includes shareholders , consumers , competitors and suppliers while organisational stake holders

includes unions managers owners and employees therefore ethical issue and norms code of conduct where the

corporation should stand in the same distance from parties influence the organization when it come to business

ethics and organization (Goel & Ramanathan, 2014, p. 56)

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 The normative stakeholder theory in CSR which draws its philosophy from Ethics CSR has been part of

ethical and responsible business practices for long. However, the concept has gained added attraction in the

wake of the globalised nature of the economic environment today. One of the main bases of the normative

stakeholder theory is the concept that an organization's internal processes affects it's identified stakeholders and

must be based on moral philosophy and ethics. All decision making has to take into account the impact on all

its stake holders and must have moral worthiness of its own outside of the firm's financial profits (Donaldson

and Preston 1995 as cited in Parmar et al 2010).

Which mean that corporations and business firm should meet there ethical obligations to gain local and

local and global credibility that would affect its stakeholders indirectly and consequently role the financial

position of the firm on the mid and long term strategies. Business ethics and environment culture are very

common now a day's whoever organization culture would differ from entity to another but business ethics

should be standardized across business sectors.

Furthermore provide adequate financial reporting to the government and public sectors and cooperation

public authorities such as taxes authority providing realistic financial figures about business volume consider

one of the important business ethics also publishing the financial statements in business journals for

stockholders and the government consider one of the major ethical rule of the organization increases its

credibility and transparency in the market

For instance banks t has published recently its cash flow statement , income and balance sheet and owners

equity to provide the shareholders and interested parties to evaluate and review .Providing precise information

external audit consider a part of transparency and business ethics that the corporation had to comply to provide

a realistic review about its financial and business volume in the market without fraud or changing facts of

current position also would help the investors to make their decision clear about the organization and involve

them in financial scheme and portfolio the corporate had drawn for its long and short term planning sharing

such information consider one of the most important factors of business ethics that consider a part of social

corporate responsibility due to Carroll's theory and pyramid (Burton & Goldsby, 2007, p. 90; Western

Kentucky University, 2009)

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4-Philanthropic responsibilities

Philanthropic means person or organization seeking to promote the welfare of others; generous and

benevolent (Cambridge Dictionary, 2020) The meaning of philanthropic is the most sophisticated part of

corporate social responsibility where the firm resources and capabilities are partly directed and serving

charitable donation.

Being benevolent and charitable organization while achieving profitability is a very challenging situation

for any organization as social spending is directly financing poor patterns that require suitable budget

financing and management for the organization to control where its funds have spent and managed even it has

been spent in the way would affect the organization positively in the future or it has wasted its resources this

situation is much more complicated when it's difficult to measure the social return on investment and the

business entity direct part of its resources to charity rather than , therefore the corporation think out of the box

when it try to enhance its reputation among competitors in different marketing activity although the expenditure

on philanthropic activates is much bigger than marketing and advertising campaigns such as billboards

newspapers social media and televisions that consider a short term project begins with pre launching to

saturation of the campaign and also measuring its influence on customer behavior and sales volume the social

responsibilities consider another form of marketing what require heavier expenditure and larger budget to

influence large scale on the society 1–3; Carroll, 2016

Opposing opinion against CSR

On the other hand there are some opposing opinions toward CSR as they belief that it's not beneficial for

business and it would waste resources such as time“Our Company is too busy surviving hard times to do this.

We can't afford to take our eye off the ball - we have to focus on core business” Baker, M. (2008, May 23).

This one of the opinion against CSR strategy as they focusing in core business is much more important for the

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organization as product or service development moreover as the product mix have higher priority to consider

rather than CSR.

In Addition some point of view see that CSR is more relevant to politicians, who care more about the society

and the environment rather than business sector which care about increasing market share customer satisfaction

and profitability “It's the responsibility of the politicians to deal with all this stuff. It's not our role to get

involved” . Baker, M. (2008, May 23).

Nevertheless this opposing opinion consider CSR spending would not be allocated in the right direction due

to management fraud or theft as its difficult to measure rather than marketing campaign that is easier to control

therefore people in the contrary and sceptics endorse the idea of difficulty to control CSR while focusing in

core business they believe that benevolent and philanthropic activities is not one of the core business values

they should conserve or initiate these opinions demonstrate that marketing is much more beneficial to the

organization as a way to boost sales since measurement would be much easier to measure the impact before

and after marketing campaign in the contrary the CSR is very correlated and difficult to measure and would

lead the corporation or enterprise to spend higher budget in a risky phase that its complicated to analyze its

dimension and variables and also to relate it to core business and productivity levels this considered the threats

against effective CSR strategy Baker, M. (2008, May 23).

Strategic CSR

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 (Haski-Leventhal, 2018, pp. 1–3)

The strategic CSR should consider five main elements that influence its core business

1- People as a part of societal stakeholder its not logic that all people would be satisfied with a specific

product but the respect and good recognition should be built while comparing the product to other competing

similar products for instance by other words the corporate should have a positive reputation among people from

different tastes this could be built through different CSR strategies that care about people such as voluntary

efforts philanthropic and social involvement sponsoring important event s provide support and subsidies as a

part of profit expenditure on healthcare and hospitals these actions would help the public to create a positive

response toward the organization such as the educational program of TATA power Limited in India (Haski-

Leventhal, 2018, pp. 1–3; Kwatra et al., 2016, p. 2)

2-supply chain another important stakeholder should be considered is supply chain building a long

term and strong relationship with supply chain and marketing distribution management and supply channels

require the organization to consider the supply chain as a part of economic stakeholders , the influence of

supply chain raises from covering the corporation needs and distribution in a regular base that would not lead to

failer in distribution or supply consequently losing market share to other,. Therefore considering the supply

chain as a part of economic stakeholder is very important for the organization in order not to lose its superior

17
position among competitors due to lake of distribution or week supply even poor materials would be considered

while focusing o b2b business to business sector.

(Figiel et al., 2018, p. 477; Kwatra et al., 2016, p. 12)

3-Environment: polarization of environment acceptance and consider the environment as a part of societal

stakeholder is a requirement while developing a comprehensive CSR strategy that affect brand image and

perception among customers. The efficient disposal of the waste would raise the environmental protection

standards. Some companies had archived ISO 14000 is the standards provides practical tools for companies

and organizations of all kinds looking to manage their environmental responsibilities. The matter that

influence its brand image in the quote of environment protection as a part of CSR strategy

(ISO 14000 Family — Environmental Management, 2015; ISO 14001:2015, 2020; Kwatra et al., 2016, p.

13)

4-community the word community is very wide but its difference from people as stakeholder definitions the

community consist of foundations entities and institutions that influence the business directly or indirectly the

holistic perspective of CSR strategy should carry weight to different organizations as an influencer role in

business potential and profitability providing partnership with charity and philanthropic activities and

associations such as food bank ,UNCEF United Nations International Children's Emergency Fund , the social

rule of some corporations l in refurbishment and enhancing rural houses provide potable water sources

consider a very strong part in brand image while associating it with CSR strategies (Muthiah, 2011b, p. 13)

Customer according to buyer behaviour there are different types of customers innovators , early adapters

early majority , late majority and laggards regardless those types of customers the prospect or potential

consumer should not feel he or she is exploited by the company and the product should carry value added to

the customer as rewarding loyal customers, purchase points as in telecommunication industry good well

extended warrantee ,the matter would help the customer to build a positive brand image and enhance reputation

of the product and corporation among different competitors .

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The relationship between brand equity and corporate social responsibility

The premise that there is a relationship between brand equity and corporate social responsibility is quite

obvious and measurable as well. Inferring the relationship between those two aspects with their theories as

discussed earlier in this paper the different theories and opinions about CSR , nevertheless we should elaborate

the relationship between those aspects

Brand equity ''Brand equity is the additional value that a recognizable brand name adds to a product offering.

Other words that are used to describe brand equity are ‘sway’, ‘good standing’, or ‘commercial value’. Brand

equity is linked to brand recognition as a customer must be aware of the brand name initially, but it differs from

it as brand equity emphasizes the added value that the brand-name provides to the product''(Joshi & Garg,

2020b, p. 1)

The importance of brand equity has been recognized in the marketing literature for at least three decades as an

intangible asset that promotes fiis rm performance. Brand equity has been shown to make an impact on brand

loyalty and the financial value of the company (Joshi & Garg, 2020b, p. 1)

This study aims to understand how corporate social responsibility (CSR) toward, environment, employment,

and community affects the dimensions of brand equity. It also examines the roles of size, segment, and brand

identity in the relationship between CSR and brand equity. A set of surveys with hypothetical CSR situations

was used. The results of analyses indicate that CSR has a positive impact on brand equity depending on brand

size, segment, and identity as well as a type of CSR. This study suggests social responsibilities should not be

simplified with a single measure of CSR as each type of CSR builds a particular aspect of brand equity. Brand

attributes such as brand size, segment, and identity also extend the understanding of the CSR-brand equity

relationship. (Joshi & Garg, 2020b, p. 1)

During the last decades, brand equity has been a priority topic for both practitioners and academics. In

accordance with the structural changes in the economic settings caused by the so-called “new economy”,

corporations being confronted with a shift on perceived business value structure from tangible assets to

intangibles. On the other hand firms increasingly are adopting more responsible behaviour towards their

19
societies. In this context, one critical question is to understand how corporate conduct may affect brand equity.

The purpose of this study was to find the effect of corporate social responsibility on brand equity.

The empirical part is conducted as a quantitative case study. The case company is. To measure through

quantitative research the influence of corporate behaviour on brand image The results reveal that consumers’

CSR awareness is essential if companies desire to become perceived as responsible. Consumers’ CSR

awareness, which is their knowledge of companies’ CSR targets, can be increased through companies CSR

information and responsibility filled marketing messages. The study revealed that all the indicators explaining

corporate social responsibility from the perspective of the customers apparently. The study therefore makes

some recommendations in general. During the last decades, brand equity has been a priority topic for both

practitioners and academics. In accordance with the structural changes in the economic settings caused by the

so-called “new economy”, corporations being confronted with a shift on perceived business value structure

from tangible assets to intangibles. (Joshi & Garg, 2020a, p. 2, 2020b, p. 1)

On the other hand firms increasingly are adopting more responsible behaviour towards their societies. In this

context, one critical question is to understand how corporate conduct may affect brand equity. The purpose of

this study was to find the effect of corporate social responsibility on brand equity. The empirical part is

conducted as a quantitative case study. The results reveal that consumers’ CSR awareness is essential if

companies desire to become perceived as responsible. Consumers’ CSR awareness, which is their knowledge of

companies’ CSR targets, can be increased through companies CSR information and responsibility filled

marketing messages. The study revealed that all the indicators explaining corporate social responsibility from

the perspective of the customers apparently indicated

The endorsement of the relationship between brand equity and emotional value of a brand and CSR can be

proved through different illustrations and examples. For instance in the automotive industry when a prospect

customer see the brand Land rover vehicles he or she would perceive that he would search in the category or

luxury and prestigious cars since the brand image of Land rover is associated with comfort luxury reliability

and uniqueness , these features are initiated by the corporate strong image among different competitors since

it provide differentiated and sophisticated features in their vehicles , (Berger, 2016, pp. 1–3)

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 Moreover the brand image in customer perception when a prospect hear the name of the brand also refers

to an expensive car compared to its competitors , this mean that there is association between brand image in

consumer mind and what the corporate is willing to deliver through its physical product.

Moreover the company can devote its resources and capabilities such as research and development purchasing

manufacturing and design and other factors to enhance this image in customer mind trying to direct his buying

behavior toward its products and try to influence the buyer through different specks and methods of attraction,

where they try to be updated by customer preferences and interest through producing the expected product fotr

its customer and try to reduce brand switching behavior. Berger, 2016, pp. 6–9 harvard business revierw

Besides the role of CSR a descried in Carrols theory and pyramid of responsibilities the economic legal ,

ethical and philanthropic responsibilities influence brand image and brand attributes , for instance BMW

engine development department has considered the Europeans slandered of contaminates and emission

"The BMW Group has a long tradition of minimising its impact on nature and the environment. Back in 1973,

we were the first automobile manufacturer worldwide to appoint our own environmental officer. We will

continue to lead the way as we steadily evolve. We are reducing our resource consumption, lowering emissions

and avoiding waste, We also take environmental factors into account in our choice of locations

www.bmwgroup.com , (BMW Focuses on Sustainable Production - Climate Action, 2016)

Through this statement it's obvious that BMW has considered the effect on the environment of its vehicles

and manufacturing techniques besides they mentioned the had apply the highest standards of occupational

health during manufacturing process www.BMWgroup.com

The matter reflect its legal and ethical responsibilities, and consider one of the CSR strategy it implements

that consequently affect brand image and brand identity

Also BMW has established a plant for car manufacturing in south Africa in Gauteng Province its operated

with solar energy and wind turbines and also they use solar thermal panels depending in biomass technology

than enable them to produce 300 cars a day using wind turbines and solar panels this was the first planet in

Africa to implement this technology that care about the environment as it turned to biomass technology to
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provide a source of CO2 rather than conventional sources of energy that produce polluted wastes and

remnants the previous example explain how BMW care about the environment as a part of its CSR planning

in manufacturing process where it try to provide the least impact on the environment and it hade considered the

environment as a part of societal stakeholder that influence its business while producing its vehicles around

the globe, the CSR planning illustrated in ethical , legal and economical responsibilities that initiate CSR since

the considering the environment protection and using clean energy is a part of ethical and legal responsibilities

that the corporate comply in its activity or manufacturing. www.BMWgroup.com, BMW Focuses on

Sustainable Production - Climate Action, 2016)

The brand image , identity , or equity is something intangible that is difficult to measure however some

companies would sell their commercial brand name for other companies through agreements and partnership

that reflects the strength of the brand some brands are sold by billions of dollars such as amzone , facebook

Tesla , Microsoft, Apple Sand DISK , Samsung and others , these companies had implemented product

attributes and CSR strategy that reflected its higher value among different competitors (Joshi & Garg, 2020b,

p. 1)

How to build brand equity

(| Cloudflare, 2016; Joshi & Garg, 2020b,
p. 1)

When discussing brand equity and

perceived value by its customer it's

important to mention the six factors affect

the brand equity and their relation to CSR

1- Brand awareness
22
 to create a strong brand awareness depends on several factors as brand logo , personality , brand story ,

marketing blog , social media acceptance , and word of mouse influence on other words what the current

customers think about the product while they speak with other people about it .Creating strong Brand

awareness is very relevant to core product and the value added the product or service provide to its

customers the product mix product , price , promotion , Distribution Marketing and packaging play

important role in brand awareness there foe CSR consider supporting element in product mix since

external and internal stakeholder such as environment employees and social stakeholders are a part of

product mix also brand slogan symbol and advertising play a major role in brand image while considering

brand awareness as a part of brand equity

The societal, economic and organizational stake holders should be satisfied to make the product succeed in

the market neglecting any of these stakeholders would affect product mix negatively. For instance consumer,

competitors suppliers need a plan as an economic stakeholder the corporation should indentify the perils raises

form wrong actions toward stakeholders is explicitly discussed in CSR theories as a part of Csr strategies such

as inclusive business or creating shared value (Cloudflare, 2016; Joshi & Garg, 2020a, p. 2)

2-Brand association

When assessing emotional associations, you are trying to discern how your brand makes people feel when

they are How about while they were using it after using it using your product. How did they feel about

purchasing your product for the first time do they think about your brand even when they aren’t in need of your

services If so how often , all this questions the firm should have an answer when it comes to brand association

3-Brand experience

Brand experience include all sequences from product delivery until product termination such as packaging

usage updates customer service maintenance , spare parts availability, durability, advertising social media

respond and store coverage and product delivery all these aspects and elements consider brand experience

from the time the prospect customer decide to purchase the product until it change or consume it involving

23
CSR strategies for instance Nestlé is a food and beverage company headquartered in Switzerland. It is the

largest food company in the world measured by revenues.

With a market capitalisation of US$239.6 billion, Nestlé was ranked as the 11 th largest company in the world by

in 2014 the Financial Times (‘Global 500’). Nestlé was one of the first companies that claimed to create shared

value and served as a case study It has a CSV Council and tries to implement the three key ways of CSV.

Today it no longer has a CSR report, but a CSV report (Nestlé in SocietyCreating Shared Value and Meeting

Our Commitments 2017, 2018)

Being a global leader brings not only a duty to operate responsibly, but also an opportunity to create long-

term positive value for society. We call this Creating Shared Value, and we embed it firmly across all parts of

our business (Nestlé in SocietyCreating Shared Value and Meeting Our Commitments 2017, 2018)

4-Perceived quality

the perceived quality for the product or services consider a main element in analysing brand equity and its

relation to social corporate responsibility , its worthless to provide a product or service with strategic CSR

while neglecting the importance of core product and value added to the customer consequently involving CSR

in every procedure or sequences of product and service production is essential to guarantee the success of the

commodity or product in the market and achieving bigger proportion r market share and profitability by

sequence (Cloudflare, 2016)

measuring perceived quality can be implemented by questionnaires, feedbacks , complains and return volume

among whole sales ratios the perceived quality are qualitative measurement as it measure how customer

perceive the firms product or services for instance in Egyptian market specially in telecommunication industry

when people speaks about WE telecommunication in mobile and cell phone services the first impression is for

customers is new penetration in the market prospects would wait for innovators patterns in market

segmentation to use this Mobile network and further more decide even to switch or not according to perceived

quality from existing users o buying patterns in different market segment

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5-Brand preferences:

The preferences of the brand is the ultimate options that the consumer realize while comparing a specific

product to its competitors as more reliable product and strong brand image would provide a better weight for

the product in customer perception as a customer looking to buy LCD screen or Televison with a specific

budget why he or she would buy Samsung rather than Sony , LG , Panansonic , Toshiba and other leading

brand in the market there fore the brand preferences is based on the earlier elements such as brand quality ,

brand experience , and brand association. (Luffarelli et al., 2019, p. 866)

6-Brand loyalty

Safeguard current customer is essential while building long term relationship with customer and creating

brand loyalty the obvious case for brand loyalty is Apple cell phones as customer switching from older version

to newer one where brand loyalty for apple corporation is granted by the customer since its rare that customer

shift between apple cell phones to other competitors but they upgrade to recent version such as I phone 7 and 9

apple had experienced brand loyalty among its customers as large segment from the market of smart phones

upgrade their cell phones to same brand but a more recent and least virgin, the matter that remarks this situation

as brand loyalty where the customer refuses to switch to other competing brands actually being market superior

and dominating the market would reflect in brand loyalty among different customers since they provide other

services such as I cloud that enable the customers and users to upload their important data with privacy to this

virtual platform all these specks had created brand loyalty among apple cell phone users where CSR strategy is

focused in value added to the customer through apple products , services exchange and maintenance

(Farjam & Hongyi, 2015, p. 27; Figiel et al., 2018, p. 477)

25
Conclusion

To conclude the previous lines the social corporate responsibility is a part of firm's regular conduct and

practices and part of business ethics where all business entities involved in legal, ethical and economic

motives according to Carroll's pyramid of responsibility that state the main responsibilities related to social

corporate responsibility strategic planning.

Moreover the association with brand equity is correlated since a good conduct of business motives and

considering the external environment as stakeholder that the corporation or entity is welling to deliver the best

value consequently would reflect positively in brand image and brand equity among different users.

Besides considering the stake holder weather societal, economic or organizational stakeholder as a part of firm's

strategic planning and sustainability is quite relevant to brand equity where it would create more loyalty and

correlation between brand value among different users. This study has focused on elaborating the correlations

between brand equity and CSR, and highlighting on the common factors a that initiate both CSR and brand

equity, the result states that factors influencing brand image such as brad awareness, brand association,

perceived quality, brand loyalty and brand preferences are correlated to CSR strategies since all factors endorse

CSR strategies to keep , brand awareness, perceived quality , brand association the matter that devoted the

study to figure out the common points between CSR and brand equity.

The process needs more illustration through hypotheses testing to illustrate a scientific methodology while

establishing correlation between CSR and brand equity. The methodology and hypothesise testing through

observation ,, questionnaire and design appropriate measurement unit to indentify the correlation between

CSR and brand equity and illustrate to what extend the relationship stands and the direction of the relationship

with respect to other influencing factors such as mediating or moderating factors that may influence the results.

26
Nevertheless the nature of correlation between brand image and CSR would need to develop a specific

experimental design to elaborate the similarities and relativity as discussed earlier in the paper , where we

need to stand on a solid frame that the correlation between both aspect is existing and influencing each others

The role of literature review is to describe and explain the previous studies and theories about the context and

also the further steps such as hypothesis development and resting are more recommended to consolidate our

findings and results, therefore the relationship between brand equity and CSR however it seem relevant but it

need more illustrations though further research design to endorse the correlation.

27
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