How do CSR and perceived ethics enhance corporate reputation and product innovativeness?

Lin Geng, Xiaozhong Cui, Rabia Nazir and Nguyen Binh An

Economic Research-Ekonomska Istraživanja, 2022, vol. 35, issue 1, 5131-5149

Abstract: Market competitiveness is considered a core business objective besides profit-making in the current business environment, which instigates organisations to remain ethically and socially responsible. This leads to implied pressure on the organisation, whereas consumers expect to deal with ethically and socially responsible organisations. Therefore, this study explores the role of perceived corporate social responsibility (CSR) and ethics, which derives the organisational brand reputation and product innovativeness. The data was collected from 418 respondents, and partial least squares structural equation modelling (PLS-SEM) was applied for predicting the hypothesised relationships. The results revealed the positive and significant hypothesised relationships. As per findings, CSR and ethics positively correlated with product innovativeness, brand equity, and customer trust. Based on the results, organisations are advised to have transparency and higher compliance towards ethics and CSR strategies. In contrast, organisations need to have good communication of their adherence, which can further assist them in improving the customer base and maintaining the competitive advantage. These outcomes offer valuable policies.

Date: 2022
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DOI: 10.1080/1331677X.2021.2023604

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