Corporate only focus on their short-term economic and legal

Corporate
social responsibility (CSR) originated with the traditional compliance to
economic and legal responsibility, has transcended to non-mandatory ethical and
philanthropic responsibility, and continues to show evolutionary trend (Lee,
2008). In a more specific context, CSR also stretches its implementation to
mining companies, where they implement policies which mitigates the adverse
effects of such and extractive and exploitative industry. Moreover, CSR caters
to the broad array of stakeholders that corporations need to attend to – not
only to the shareholders and managers, but also to the workers, participants in
the supply chain management, and the community. This has elucidated the fact
that corporations should not only focus on their short-term economic and legal
goals, but also the practice of a sustainable and responsible corporate behavior
(Mahajan, 2011).  When the public views
the company in a lens that is altruistic and socially responsible, it affects
its corporate image (Ailawadi et al., 2011).

According
to Pomering in 2009, a corporation’s incentive in implementing CSR is in order
to shape positive public perception towards the company’s image. Company image
is built from the total stakeholders’ impression of the firm’s reputation
(Hayward, 2005). The disposition of these stakeholders to either offer or deny support
is generally influenced by the company’s image. Company’s actions affect the
stakeholders in the same way stakeholders’ actions affect the company (Ind,
1992).

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

In 2010,
Finavante found out that corporations are shifting towards the consideration of
CSR as a viable option in the development of marketing strategies. This is
manifested in the integration and implementation of philanthropic activities in
the creation of corporate branding. The positive effect of marketing strategies
complemented with CSR concepts includes creation of customer trust and loyalty,
increase in sales, and the attraction of new investors (Pina et al., 2006).
Furthermore, Swaen in 2010 argued that the visibility of a socially responsible
company encourages positive attitude towards the corporation and thus
encouraging consumer’s intention to repetitively buy. 

Varadarajan
and Menon (1988) defines CSR fit or congruency as perceived link between the
firm’s product line, brand image, brand positioning, or target market and the
cause’s needs. When both the brand and social cause share the same value, fit
is considered high (Nan & Heo, 2007). It is explained by Hoeffler &
Keller (2002) that high-fit CSR initiatives will result to a more favorable
image for the company since stakeholders distinguish the organization as more
capable. Environment restoration is a high-fit CSR initiative to be associated
with mining industry because it alleviates the effects of environment
exploitation caused by mining.

x

Hi!
I'm Brent!

Would you like to get a custom essay? How about receiving a customized one?

Check it out