As active economic activities form the basis of the social mechanism and thus corporate activities have a greater impact on the society, a company is no longer a simple economic organization, but it has established itself as a key social organization ...
As active economic activities form the basis of the social mechanism and thus corporate activities have a greater impact on the society, a company is no longer a simple economic organization, but it has established itself as a key social organization that heavily impacts politics, society and culture. For this reason, corporate citizens have enjoyed more favors than other organizations of the society and at the same time, they are expected to take as much social responsibility.
In light of these expectations, companies have actively undertaken pre-and post-measures to fulfill their social responsibility, which helps improve their corporate image among the public. How faithfully companies honor their social obligations determines the corporate image and attitude the public develops toward the company, and it will be factored into when they make buying decisions. As responsible corporate actions have positive impact on consumers, a growing number of companies are adopting a strategic approach to this issue and using it as a marketing tool.
What is important, however, is that this strategic approach does not entail a genuine sense of responsibility and the philosophy of "live and let live" or co-prosperity. As a result, it is often reduced to nothing but a marketing tool and consequently, the original spirit is missing. PR is also a strategic activity aimed at creating and maintaining a mutually-beneficial relationship with the interested groups. The fundamental aim of all corporate activities is to maximize profit. Still, if PR campaigns are focused excessively on the profit-making objective, the interested public will view such PR efforts as hypocritical.
This thesis aims to establish that when a company utilizes its social responsibility as an instrument to expand their profit, the public will develop a negative perception and it will only cause a backlash against the company.
This thesis assumes that given the attribution theory that in the communication process, the receiver determines their attitude, based on how they perceive the intention of the communication, the public's attitude on a company's social responsibility-fulfilling activity can change according to how they view it. In addition, it intends to evaluate the influence of corporate activities done to meet their social duty by examining how the consumers' attitude toward a social responsibility-related activity affects the corporate image and their purchasing intention.
For the survey, a scenario-based questionnaire was used. To ensure the accuracy of the survey, a questionnaire included four different types of scenario, fictitious and actual. On the basis of research on the existing literatures, the purpose of socially responsible actions was divided into two categories; one is for profit and the other is for giving back to the society. Then, a set of criteria for determining the purpose was developed before the survey was conducted. Verification and reliability tests followed. In analyzing the survey data, T-test, regression analysis, ANCOVA and MANCOVA were used.
The analysis shows that those who perceived a corporate activity as one for the purpose of boosting profit, had a more negative attitude toward such activity than those who understood it as part of corporate efforts to give back to the society. In addition, the survey found the attitude developed as a result of this perception, was statistically significant
The findings of the survey imply that the public perception of the purpose for a social responsibility-based activity is a very important factor for companies to build a positive corporate image and for consumers to make a buying decision.
On the other hand, the attitude that consumers already have toward overall business operations of a company and its activities driven by the social responsibility, was found not to have a statistically significant impact on how the public perceives the purpose of the activity. So it can be concluded from the results that the existing attitude of the receiver is not a critical factor.
It is not an obligation for a company to get involved in activities that will help fulfil its social responsibility. However, the public will become more favorable and caring toward the company if it, as a key member of the society, pays attention to the local community and engages in these activities pro-actively and voluntarily. On the other hand, if it considers them simply as a marketing strategy, the public will perceive the company as hypocritical and even immoral.
This thesis seeks to suggest ways to prevent companies from becoming excessively opportunistic and profit-oriented in carrying out activities for the sake of taking social responsibility and to ensure that these activities are firmly put in place as a PR strategy.
By verifying the results of the survey, the thesis took one step further and suggested the intentional perception of the public as a parameter by which those activities positively affects the public and corporations alike
This thesis suggests the prerequisites for socially responsible activities to become a long-term and reciprocal strategy and measure the effects of these activities on corporations, thereby providing a basis for corporations to realize the importance and the necessity of these social activities.