Relationship between Corporate Social Responsibility (CSR) Initiatives and Brand Loyalty in Emerging Markets
DOI:
https://doi.org/10.47672/ijbs.1821Keywords:
Corporate Social Responsibility, Initiatives, Brand Loyalty, Emerging MarketsAbstract
Purpose: The aim of the study was to assess the relationship between corporate social responsibility (CSR) initiatives and brand loyalty in emerging markets.
Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries.
Findings: The relationship between Corporate Social Responsibility (CSR) initiatives and brand loyalty in emerging markets is a complex interplay of various factors. Studies suggest that CSR initiatives positively influence brand loyalty in these markets, as consumers tend to perceive socially responsible companies more favorably and are more likely to develop strong emotional connections with such brands. However, the effectiveness of CSR initiatives in building brand loyalty can vary depending on the specific context of the emerging market, including cultural, economic, and regulatory factors. Moreover, the authenticity and transparency of CSR efforts play a crucial role in shaping
consumer perceptions and trust towards the brand. Companies that genuinely integrate CSR into their business strategies and demonstrate tangible social and environmental impact are more likely to enjoy long-term loyalty from consumers in emerging markets. Additionally, engaging in community development programs and addressing local societal needs can further enhance brand loyalty by fostering a sense of goodwill and reciprocity among consumers.
Implications to Theory, Practice and Policy: Stakeholder theory, social identity theory and institutional theory may be use to anchor future studies on assessing the relationship between corporate social responsibility (CSR) initiatives and brand loyalty in emerging markets. Develop CSR initiatives that are tailored to the socio-economic, cultural, and regional contexts of specific emerging markets, aligning them with the prevalent concerns and values of local consumers to enhance brand loyalty. Implement policies that incentivize and encourage businesses operating in emerging markets to adopt CSR practices, recognizing the potential of CSR initiatives to drive brand loyalty while contributing to positive social and environmental outcomes.
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