Marketing Investments and Corporate Social Responsibility

Yura Kim, Taeyeon Kim and Hye-Jeong Nam
Additional contact information
Yura Kim: Business School, University of Seoul, Seoul 02504, Korea
Taeyeon Kim: Department of Fintech, Sungkyunkwan University (SKKU), Seoul 03063, Korea
Hye-Jeong Nam: Department of Accounting, Business School, Dongguk University-Seoul, Seoul 04620, Korea

Sustainability, 2021, vol. 13, issue 9, 1-12

Abstract: Although the short-term effects of marketing efforts that promote immediate consumer responses have been extensively investigated, the long-term impacts of marketing activities have received little attention. Marketing effects can be carried over time as consumers experience an emotional attachment to products and build trust and affection. In addition, a firm’s advertising spending not only improves customer awareness of the firm’s products and services but also serves to promote other company information, such as the firm’s corporate social responsibility (CSR), a long-term strategic commitment to improving the welfare of customers and society. This paper focuses on the long-term effects of marketing investments by examining the relation between advertising expenditures and a firm’s commitment to CSR, finding that firms with a higher advertising expenditure are more likely to have a higher CSR performance. The findings of this study demonstrate that marketing investments are related to a firm’s long-term sustainable activities. Additionally, the finding may indicate that a firm’s CSR initiatives are influenced by the extent to which the firm commits to advertising that promotes customer awareness of the firm’s products and services.

Keywords: corporate social responsibility; advertising; marketing investment (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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