The purpose of this study was to see the perception of the public on corporate social responsibility and which of the factors among corporate social responsibility actually have an effect on corporate reputation. In addition, study evaluated how diffe...
The purpose of this study was to see the perception of the public on corporate social responsibility and which of the factors among corporate social responsibility actually have an effect on corporate reputation. In addition, study evaluated how different types of the public(general public and NGO) view corporate social responsibility. As the power of NGO is becoming more influential, this study analyzed the perceptional difference between general public and NGO.
Subjects of the study was selected through series of reference studies, interviews with professionals in this area and a pre-research. Ten companies from five different categories of industries were selected. The ten companies are SK Telecom, Hanaro Telecom, Amorepacific, Charmzone, Dong-A Pharmaceutical, Kwang-dong Pharmaceutical, Lotte Confectionery, Crown Confectionery, P&G, and Yuhan-Kimberly. The five categories of industries are information & technology, cosmetics, pharmaceutical, confectionery and daily necessaries. Two companies that are different in its size were selected for each category.
To measure corporate social responsibility activities, this study developed and index called Corporate Social Responsibility Index(CSRI). CSRI is an index developed to objectively compare the social responsibilities of the ten companies. Average score of the three factors of corporate social responsibility-social cultural resource, social overhead resource, economical factor- were calculated and weight for each factor was added. This is a variation of a typical method used in yielding customer satisfaction index in marketing research area.
The results of this study can be summarized as following:
First of all, Yuhan Kimberly scored 63.01, the highest score among ten companies analyzed. SK Telecom took the second place scoring 58.94. In third, Amorepacific scored 52.70, Dong-A Pharmaceutical scored 51.67, and P&G scored 51.2. Hanaro Telecom scored 48.68, Lotte Confectionery 48.67, Kwang-dong Pharmaceutical 48.62, Charmzone 48.39, and lastly, Crown Confectionery 48.29. Looking into these indexes, overall, the size of the company is proportionate to the CSRI. In exception, Yuhan Kimberly scored better than P&G although the size of the company is smaller. Further more, Yuhan Kimberly scored highest among all ten companies. This is supposedly because Yuhan Kimberly's campaign managed to establish a firm 'environment friendly' image among the public.
In the case of environment conservation activities, while general public evaluated that companies are implementing environment conservation activities, NGOs negated comparatively. Both groups were negative about corporate social responsibility on program sponsoring, working expenses sponsoring, professional service activities and consulting activities. However, both were positive about advertising and marketing activities of the companies.
Lastly, discriminant analysis was implemented to see which of the factors of corporate social responsibility affect corporate reputation. As a result, supporting cultural activities, sponsoring working expenses, donation, supporting academic and consulting activities were identified as factors influencing corporate reputation.
This study made an attempt to clarify the relationship between corporate social responsibility and corporate reputation. Accordingly, conceptualized corporate social responsibility activities by three factors, social cultural resource, social overhead resources and an economical factor.
In Korea, conglomerates are carrying out various types of corporate social responsibility activities and this eventually leads to corporate reputation. Nevertheless, in order to proceed with more efficient social responsibility activities, companies should select the appropriate target audiences, the area, specific activities and should regard social responsibility activities more systematically with long-term view in mind.
In conclusion, for a corporate body to gain competitiveness in today's dynamic global environment, it should develop to become a "respected company" by consumer groups.