The role of CSR in sustaining corporate brands in the global market: The perspective of telecommunication companies in Ghana

Abstract

AbstractIn recent years, the concept of corporate social responsibility (CSR) has gained significant attention. Companies now utilize CSR to strengthen their relationships with stakeholders and gain a competitive advantage. While CSR is more widely embraced in developed countries, developing markets like Ghana often overlook its potential benefits. This study examines the direct impact of CSR elements on brand sustainability. Additionally, it explores the moderating role of absorptive capacity in the relationship between brand sustainability and CSR. Data was collected from three hundred and fifty (350) questionnaires distributed to employees of Ghana's three most widely used telecommunications networks. The measurement model and hypothesis testing were evaluated using structured equation modeling PLS. The research findings indicate that CSR initiatives have positive and significant effects on the sustainability of social, environmental, and brand systems. Specifically, the economic dimension exhibited a negative correlation with brand sustainability in the MTN network, while the social dimension showed a positive relationship with each telecommunications network separately. The study concludes that absorptive capacity positively influences brand sustainability across all networks. Furthermore, the findings suggest that absorptive capacity beneficially modifies the environmental component of CSR and brand sustainability. Based on the study, it is recommended that service managers make concerted efforts to enhance customers' perception of the company's social concerns through various CSR initiatives.