Corporate Social Responsibility and Consumer Psychology: A Competitive Advantage

Abstract

In this post-COVID era, consumer presence is felt more than ever, especially in the corporate world. Consumers should embrace the more positive and distinctive identity of a company that engages in corporate social responsibility, which bound companies to focus more on their moral, ethical, and social obligations beyond their economic interests. Consumers are more likely to act favorably toward a company that has acted to benefit its customers as opposed to just delivering quality products. Recent research finds that CSR can reduce anger and negative word-of-mouth following service failures and increase behavioral loyalty along with a favorable attitude and intrinsic motivation to facilitate the brand. These findings suggest the role of company involvement (donating funds, providing/developing corporate capabilities), and their precise structure, such as cause-related marketing, corporate social marketing, corporate philanthropy, and socially responsible business practices, are required. In this chapter, we will try to understand the impact of CSR on consumer behavior. Also explore the science of consumerism by exploring the key areas of consumer psychology and its relationship with the perceived corporate value, trust, and commitment, which, in turn, results in an increase in satisfaction, loyalty, and consumer well-being.