Corporate Social Responsibility and Branding: The Ghanaian Perspective

Abstract

Corporate social responsibility is a concept practiced all over the world to ensure that businesses behave socially responsible in the communities in which they operate. Although there is no common shared definition of Corporate Social Responsibility (CSR), the underlying principle CSR is looking beyond maximizing profits and concentrate on satisfying the aspirations of stakeholders as well as how best they can contribute to addressing the environmental challenges within which they operate. The concept of corporate responsibility has gradually gained currency in Ghana and resulted in the launch of a national policy in 2016. However, many organizations in Ghana are yet to determine the impact of CSR on their brand image. The objective of this study was to explore the practice of corporate social responsibility in Ghana and how it affects brand image. The study employed the use of quantitative research design where questionnaire was administered to 200 people drawn from four key suburbs in Accra using stratified sampling technique. The study showed that most respondents had knowledge on the practice of corporate social responsibility initiatives by some organisations. Key among the sectors where these initiatives are channelled were; education, health and the sports. Respondents indicated that it was extremely important for organisations to practice corporate social responsibility because it has a positive influence on brand image. Although majority of the respondents said a CSR initiative can influence their affection towards a brand, a few respondents said an initiative cannot influence their attitude towards a brand rather quality of service is always their reference point for purchases. It emerged that most respondents are willing to punish bad corporate citizens by switching to a competitive brand and reward good corporate citizens by staying loyal to the brand. Almost all respondents in the study expressed that corporate social responsibility contributes to the development of the country as well as the financial performance and legitimacy of the business operations of each organisation. The findings of the study indicate that corporate social responsibility can influence the affective, cognitive and conative attitude of consumers towards a brand which can lead the consumer to act favourably towards a brand. However, not all consumers are influenced by a CSR initiative. This means that although most consumers are likely to be influenced by organisations that act socially responsible, organisations should also focus of the delivery of quality products and services since not all consumers can be influenced by their CSR initiatives. The study recommended that organisations should make it a point to effectively communicate their CSR initiatives since that is the safest way for consumers to be aware of their good deeds in the community. This study has been useful in providing information on the role of corporate social responsibility on brand image, and the extent to which the concept is practiced in Ghana. Further studies should be carried out on the income rates of organisations when they behave socially responsible and when they do not behave socially responsible.