How Do Corporate Social Responsibility Engagements Drive Consumer–Company Identification in Singapore?

Abstract

Companies expend significant financial resources on corporate social responsibility (CSR) activities to enhance their image. This study had two objectives. By drawing on three fundamental consumer values as moderators, the first aim was to discover how a company’s CSR engagement influences consumer–company identification (CCI) and consumers’ purchase intention for its products and services. The second was to uncover the type of consumer likely to identify with a company engaging in CSR activities. This study presents an exploratory analysis of social media postings by eight companies. An empirical study is conducted using partial least squares structural equation modelling (PLS-SEM) based on survey data from 217 questionnaires collected in Singapore. This study is one of the first to consider what type of consumer would likely identify with a company performing CSR activities. Results show that local-community-focused CSR tends to influence the CCI of egoistic consumers, while environment-focused CSR activities, such as the creation of environmentally-friendly products, drive biospheric consumers’ identification. Broader humanity-focused CSR, such as fair-trade initiatives, significantly influences the CCI of egoistic consumers, but not of altruistic consumers. These findings demonstrate to other economies the significance of local and global companies’ CSR practices and how such activities should be aligned to the CCI of their customer base unique to the region.