The Effect of Corporate Social Responsibility on South

Abstract

In today’s competitive business environment, a company which understands the reasons why consumers chose to purchase their product or service instead of their competitors’ should be able to use these reasons to gain competitive advantage. As more consumers are becoming aware of social causes and believe that businesses should play their part to improve the country’s social welfare, companies in South Africa are looking at ways to become more socially responsible. The question in the minds of these companies though, is whether their participation in social projects increases consumer loyalty, or whether brand, price and quality still play a pivotal role in the decision making process. This exploratory study investigated the key attributes that impact on consumers’ behaviour in respect of corporate social responsibility, brand, quality and price. Furthermore the research determined, out of eight kinds of social activities, which were the most important in the mind of the consumer. Applying the conjoint analysis technique, the study established that corporate social responsibility was the highest rated attribute, far exceeding the other attributes of brand, price and quality. The study also reflected that child welfare was the highest rated social cause. These findings illustrate the necessity for companies to invest in social activities, which will assist with the creation of a favourable corporate image among their consumers