Monday, April 30, 2012

Study of the psych of consumers towards Corporate Social Responsibility(CSR)


Sachin Raj Singh Chauhan (B Tech, MBA, NET Qualified, Faculty, IAIT, New Delhi)

• Dig deeper into consumers’ perceptions towards CSR.
• How consumers perceive and define “corporate social responsibility”
• The impact of a organization's intiative for capacity building and community development or  CSR activities on consumers’ purchase      behavior and their opinion formation about that organization

What is CSR:

CSR as business' commitment to contribute to sustainable economic development, working with employees, their families, the local community, and society at large to improve their quality of life.

Executive Summary:
  • Project was titled to conduct a unique benchmark survey :
  • It would assess consumer attitudes toward and behaviors regarding corporate social responsibility (CSR).
  • The role of media and technology play in informing people about what companies are doing to be socially responsible.
  • We conducted a quantitative and qualitative survey with 800 consumers at  Noida, NCR Delhi comprising  adults (18 years of age or older) through primary as well as secondary methods.
Additionally, the survey questionnaire was designed to examine the public’s opinions of CSR by asking respondents to designate the importance or influence of assorted CSR-related issues under a variety of circumstances.

Among the findings, four themes emerged as an most prevailing indicator :

•Indian companies ’ CSR program is community development oriented.
•Education and guidance are two main pillar of a community development.
•Consumers prefer the purchasing of goods/services from socially responsible company.
•Technology is changing the landscape in which consumers gather and communicate information about how well companies are being socially responsible.


The researcher used both primary and secondary research techniques:
  • Web based research
  • Review of print literature
  • Visits to selected sites to witness CSR within the context of children’s issues.
  • Interviews/ group discussions with selected representatives of  industry, members from IT industry representatives from foundations and trusts floated by corporations to promote CSR.
Data Analysis & Interpretation :
Profile of Survey Participants:
In addition to demographic data, the profile also indicates the extent to which consumers have been involved with social causes,     have access to and use of the Internet, their knowledge of online or CSR-related terms.
Q.1  What does the phrase “corporate social responsibility” focus on ?
  1. Community development
  2. Quality products
  3. Employees
  4. Environment
  5. Donations & charitable contributions

Q.2 If you want to buy a product or service, how influential, would it be to know that
a particular company meets global standards for being socially responsible?
  1. Extremely influential
  2. Very
  3. Somewhat
  4. Not very
  5. Not at all influential

Q.3 If you want to buy products or services of high quality, which one of
the following other characteristics of a product or service is most likely to
make you a loyal follower of a particular brand or company?
  1. Lower price
  2. Easily available
  3. Prestige
  4. Socially responsible
  5. Quality

Q.4 If you are looking to invest in and buy a particular company’s stock, how
influential would the company’s record of being socially responsible be on
your decision regarding whether to invest in this company:
  1. Extremely influential
  2. Very
  3. Somewhat
  4. Not very
  5. Not at all influential

Q.5 Which of the following industry is much socially responsible ?
  1. Pharmaceutical
  2. Telecommunication
  3. Financial Services
  4. Food
  5. Clothing or footwear
  6. Automotive
  7. Technology

Q.6 If you want to learn more about a particular company’s record for being
socially responsible, which of these sources would you most likely use?
  1. Articles
  2. TV
  3. Radio
  4. Web site
  5. Company reports
  6. Internet search engines
  7. Virtual company

Q.8 Why rural area’ students lag behind the urban area’s students?
  1. Lack of Guidance
  2. Lack of ability
  3. Lack of Resources
  4. Lack of Confidence

Q.9 How can we enhance slum area’s students ability and awareness?
  1. Seminars
  2. Career Counseling
  3. Workshops

Q.10 Which program is most beneficial in slum area?
  1. Sports Program
  2. Education Program
  3. Health-Awareness Program
  4. Environmental Protection Program

  • Corporate social responsibility focus on community development program. 
  • Consumers prefer the purchasing of goods/services from socially responsible company. 
  • Socially responsible company attracts consumer at large who is looking to invest in and buy a particular company’s stock.
  •  Technology industry is much more socially responsible.
  •  Internet technology is the main source for consumer to search about CSR.
  •  Lack of guidance is main reason of illiteracy.
  •  Career counseling and education is the main pillar for community development
  • CSR activities should be focused on slum area development. 
  • Industrialist should examine the CSR activities due to its bad implementation. 
  • A complete framework should be designed for CSR activities. 
  • Corporations should be committed to employee welfare , safety and security. 
  • Corporation should provide better quality product and service.

  • The survey was conducted in a short span of time.
  • Problems during analysis of company CSR activities due to management interfere.
  • Lack of resources was the main reason for the management trainees.
  • Due to very large size of the population, only a selected sample of customer could be contacted.

  • Kotler Philip, Kerin Lone Keller, “Marketing Management”, Pearson education, (Singapore) Pvt. Ltd. Indian branch, 4th Edition.
  •  Malhotra K. Naresh, “marketing research”, Pearson Education Asia, 3rd Edition.
  • Agarwal Dr. P. K., "Research Methodology", Vishal Prakashan Mandir, Meerut, 2nd Edition.

By: Sachin Raj Singh Chauhan

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