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Master Thesis Marketing programme
Corporate social responsibility in Brand equity: A study on how CSR can increase local franchised fast food
restaurants brand equity.
Authors: Swedenborg, Jesper
Mattsson, Frans
Supervisor: Billore, Soniya
Examiner: Pehrsson, Anders
Semester: Spring 2015
Subject: CSR and Brand Equity
Level: Master
Course code: 4FE07E
Acknowledgments
This thesis was conducted during the last semester of the one-year master program in
marketing. The thesis purpose was to investigate the importance of philanthropic CSR
activities on local level and see if these activities can be used to strengthen franchised
fast food companies brand equity. The authors have in addition to contributing
research in the subject, received a broader understanding of the field. The authors
would like to express our graduates towards all those who have been engaged in the
process and helped us through our thesis. During the process there have been a few
people that we would like to give a special thanks to, the results have not been the
same without you. Foremost we would like to thank our tutor Soniya Billore that has
been helpful throughout the process. Also we are grateful to our examiner, Anders
Pehrsson that has provided valuable feedback and comments. Finally the authors want
to thanks all the respondents that have participated in the study. Without you the study
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could not have been executed, the authors are deeply grateful that they chose to
dedicate their time to the survey.
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Abstract
University: School of Business and Economics, Linnaeus University Växjö, Sweden.
Course: 4FE07E
Authors: Swedenborg, Jesper, Mattsson, Frans
Tutor: Billore, Soniya.
Examiner: Pehrsson, Anders.
Title: Corporate social responsibility in Brand equity: A study how CSR can increase
local franchised fast food restaurants brand equity.
Introduction: Research claims that it is hard to divide the responsibility for the local
community between the franchisee and the franchisor because of the franchisee does
not have clear understanding to what degree they should be committed to local CSR.
This research will study the importance of philanthropic CSR activities on local level
and see if these activities can be used to strengthen fast food companies’ brand equity.
Purpose: To further investigate the importance of philanthropic CSR activities on
local level and see if these activities can be used to strengthen fast food companies
brand equity.
Research questions: Research have shown that fast food companies are involved in
different kinds of philanthropic CSR activities, what part of brand equity has to be
dealt with first? What are the important factors in building brand equity with
philanthropic CSR activities? How important is the focus on local activities for
franchised fast food companies when it comes to the philanthropic CSR activities?
Methodology: This study is targeting the population of Kronobergs region between
18 and 64 years old. The literature review showed that the field of CSR effects on
brand equity needed further studies. A construction of four variables within
philanthropic CSR was matched towards brand equity with a sample size of 192.
Conclusion: There is a weak positive significant relationship between CSR and brand
equity in this study around fast food companies. As authors, we believe that the
customers’ awareness is too low, for CSR to affect brand equity the level of awareness
needs increase to motivate internal stakeholders for further investments in
philanthropic CSR and to get more response from local citizen.
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Keywords: Corporate social responsibility, Fast food restaurants, Franchise, Brand
Equity, Philanthropic CSR
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1 Introduction 9 .....................................................................................................................1.1 Current situation of the fast food companies 9 .............................................................1.2 CSR in media 11 .......................................................................................................................
2 Problem discussion 13 .....................................................................................................3 Purpose 16 ...........................................................................................................................4 Research Question 16 .......................................................................................................5 Delimitation 16 ...................................................................................................................6 Conceptual Framework 18 ............................................................................................6.1 CSR 18 .................................................................................................................................6.2 Philanthropic CSR 19 .............................................................................................................
6.3 Brand equity 22 ..............................................................................................................6.3.1 Brand image 22 ....................................................................................................................6.3.2 Brand Attitude 23 ................................................................................................................6.3.3 Brand identity 24 .................................................................................................................6.3.4 Brand awareness 25 ...........................................................................................................
6.4 Cause related marketing 26 ........................................................................................7 Hypothesis 27 .....................................................................................................................The analysis model 28 ..................................................................................................................7.1 Motivation of Hypothesis 28 ................................................................................................
8 Method 32 .............................................................................................................................8.1 Sampling and data collection -‐ Probability and nonprobability sampling 32 ....8.2 Survey design 33 .....................................................................................................................8.3 Operationalization 33 ...........................................................................................................8.3 Analysis method 33 ................................................................................................................8.4 Validity 35 ..................................................................................................................................8.5 Pilot test 35 ..............................................................................................................................8.6 Reliability 35 ............................................................................................................................
9 Analysis and results 37 ...................................................................................................9.1 Frequency test 37 ....................................................................................................................
10 Results 40 ..........................................................................................................................11 Discussion 43 ...................................................................................................................11.1 Brand Image 43 .....................................................................................................................11.2 Brand Identity 43 .................................................................................................................11.3 Brand Awareness 44 ...........................................................................................................11.4 Brand Attitude 44 .................................................................................................................11.5 Philanthropic CSR 45 ...........................................................................................................11.6 Strategic CSR 45 ....................................................................................................................11.7 Ethical CSR 46 ........................................................................................................................11.8 Altruistic CSR 46 ...................................................................................................................11.9 Environmental CSR 47 ........................................................................................................
12 Conclusion and contribution 48 ................................................................................12.1 Conclusion 48 .........................................................................................................................12.2 Contributions to the Vield 49 .............................................................................................
13 Managerial suggestion 50 .........................................................................................14 Limitation and further studies 51 .............................................................................15 Reference list 52 ..............................................................................................................
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Appendix 1 61 .........................................................................................................................1.1 61 .................................................................................................................................................1.2 61 ..................................................................................................................................................
Appendix 2 64 .........................................................................................................................Table 2.1 64 ......................................................................................................................................Table 2.2 65 ......................................................................................................................................Table 2.3 66 ......................................................................................................................................Table 2.4 67 ......................................................................................................................................Cronbach’s Alpha Test Tables 67 ...............................................................................................Strategic CSR 2.5 67 .......................................................................................................................Ethical CSR 2.6 67 ...........................................................................................................................Altruistic CSR 2.7 67 ......................................................................................................................Environmental CSR 2.8 68 ...........................................................................................................Brand Equity 2.9 68 .......................................................................................................................
ANOVA Test 68 ........................................................................................................................Table 2.10 68 ...................................................................................................................................
Pearson’s r 69 .........................................................................................................................Table 2.11 71 ...................................................................................................................................
Crosstab test 72 .....................................................................................................................Table 2.12 72 ...................................................................................................................................Table 2.13 73 ...................................................................................................................................Table 2.14 74 ...................................................................................................................................Table 2.15 75 ...................................................................................................................................
Frequencies test 76..............................................................................................................
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1 Introduction
Corporate social responsibility (shorten to CSR) is the responsibility a company has
towards itself and society (Lichtenstein et al., 2013). Ray Kroc founder of
McDonald’s said, “none of us is as good as all of us”. McDonald’s has been engaged
helping the community for over 35 years. It started with the Ronald McDonald House
of Children; a place for children who needs medical attention for a longer period of
time could stay closer to the hospital (Mcdonalds.com 2015). CSR has almost become
a necessity for companies today where many practice it more extensively than ever
(Sitkin, 2013). The companies that are in focus in this study are in the fast food
industry (McDonald's, Burger King, Max Hamburgers and Subway). All of the fast
food companies use a franchising business model where the majority of the
restaurants are owned and operated on local or regional level. Franchising is the
business relationship between two independent units involving the franchisor (the
head company) and the franchisee (the new store, shop or restaurant). The franchisees
pay the franchisor for the right to sell their products or services under the trademark
of the franchisor (Dant & Grünhagen, 2014).
1.1 Current situation of the fast food companies The majority of these fast food restaurants state on their main website (not everyone
on the website for the specific country, e.g Sweden) that they encourage the franchise
branch to work with CSR on local level. Subway headquarters work with franchisees
to try to eliminate the ethical issues in any kind of discrimination towards race,
gender, sexual orientation or religion (subway.com, 2015). On their Swedish website
they communicate their CSR such as minimization of environmental impact of their
food and just mentions small encouragement to supporting the local community
(ibid). Max Hamburgers are working with Samhall an organisation that involves
people with disabilities into society (max.se 2015). Burger King headquarters have a
consistently focus on environmental performance, they recycling 90% of all waste in
the restaurants. They have also a strong focus on ethical and qualitative requirements;
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they have continuous controls to ensure it fulfilments (Burgerking.se 2015).
McDonalds is the fast food company that work with locally focused CSR the most.
According to McDonalds Swedish website, they want to be the local company that
care for its community. They have examples of four different franchisees that are
involved in the local community. They engage in local youth sports, hiring people
with disabilities, building playrooms at hospitals, and helping security guards at night
which has lead to a decrease in crime rates (Mcdonalds.se 2015). According to Carroll
(1979), companies have a corporate responsibility to be involved in social issues
while they also have the responsibility to ensure that economic gains will be achieved.
One common concept in CSR is CRM (cause related marketing) that is about using
marketing strategies to supportive activities meanwhile they build business. These
activities are partnerships between businesses and e.g. charities to market a product or
services for mutual benefits (Adkins, 1999). Companies hope CSR will lead to good
reputation, employee and customer satisfaction, and long-term relationships and in the
end good performance (Skarmeas & Leonidou, 2013) i.e increase brand equity. If the
company dismiss this type of social responsibility it can have an impact on the profit
and their reputation can be harmed. There have been situations where consumer
groups have boycotted companies who do not practiced CSR (Snider et al., 2003).
Examples of boycotts in among food companies can be found in the appendix 1.1.
Researchers have long discussed the impact of CSR. The basic idea of CSR is that
companies should be a part of society, receive legitimacy in society and have an
obligation to work for social improvements (Fredrick, 1998). The philanthropic idea
is to go beyond the basics of the CSR pyramid of economics and legal requirements.
To reach the level of responsibility that CSR advocates, the local community and
company needs to be integrated with each other (Wood, 1991) i.e. CRM. This will
make it easier to achieve the community’s expectations and needs of corporate
contributions to the community because the company does not always know what is
expected from the local customers preferences and with an alignment between
contributions and need the outcome have a higher potential to be positive (ibid).
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Carroll (1979) and Woods (1991) both have the conclusion that there is a connection
between CSR and the customer.
1.2 CSR in media The importance today is where consumers, government and other corporate
stakeholders are becoming more interested in giving back to society (Skarmeas &
Leonidou, 2013). Many companies see CSR to the extent of “do well by doing good”
to reach its goals (Skarmeas & Leonidou, 2013). Companies are following the CSR
trend to feed of its benefits and avoid bad reputation. Media has the role of pointing
out companies’ wrongdoing on any scale, from environmental disaster (e.g. BP in the
Gulf of Mexico) to misconduct from employees (Skarmeas & Leonidou, 2013).
Misconduct of employees is where fast food companies, especially McDonald’s in
Sweden, have received a bad reputation from being investigated by media and other
authorities for different scandals. In 2007, SVT (Swedish television) “Uppdrag
Granskning” discovered that McDonalds had a cleaning staff that worked all night
every night with awful labour conditions and salaries (SVT, Uppdrag Granskning,
2007).
For companies to defend themselves from media and flaws of a company they interact
in activities that are beneficial for society. Groups in society have pointed out the fast
food industry to cause obesity among a population. An example is the documentary
Super Size Me where a person ate McDonalds every meal, every day for a month and
suffered health problems (Super Size Me, 2004). The major companies in the fast food
industry use CSR, together with other marketing tools i.e. CRM, to retrieve their
reputation of not only causing damage to society but also do good i.e. reclaim brand
equity. Many of them work on large scale with CSR but are franchised owned and
have a connection to the local community where they could implement more of its
CSR activities (Schwitzer et al., 2005). There are many stakeholders that are affected
by CSR activities. Business owners, business investors, customers and local citizen all
have their opinion about what level or type of CSR that should be implemented.
However is their one problem regarding the responsibility for the local community
between the franchisee and the franchisor, the reason is that the franchisor does not
have a clear understanding to what degree they should be committed in CSR (Barkays
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2013). As mentioned earlier media mediate one image of a company that influence the
attitude and awareness of customers. Brand equity and cause related marketing
(shorten to CRM) are closely related in these areas. Brand equity is a combined mind-
set of aspects that people have in their mind about when they think of a company
(Huang & Sarigüllò, 2015). As consumers have taken control of both their media
choices and the commercial messages they choose to receive, a firm's communication
activities can contribute to the brand knowledge by creating awareness and positive
associations among its customers (Keller, 2009). One of the key objectives for CRM
programs is to generate a positive attitude towards the brand (Palazon-Vidal &
Delgado-Ballester 2005; Brito & Hammond 2007). Furthermore, sponsorship is well-
known and powerful platform for building a brand's image and recognition (Cliffe &
Motion 2005). Companies engage in sponsorship for a variety of brand-related
objectives such as increasing brand awareness and establishing, strengthening or
changing brand image (Farrelly & Quester 2005). There are examples where fast food
companies sponsor sport teams to gain recognition. During the world cup 2014,
McDonald's sponsored the Swedish ski team (kostdoktorn.se 2014) and Max
Hamburgers sponsors Jon Olsson Big Air in Åre (max.se 2015). As authors of this
paper, it shows that CRM is more than just sponsorship of individuals or teams and it
can also be expanded into the local community in different ways. Franchise
restaurants can build brand equity by being involved in CSR activities. This paper’s
goal is to get a better understanding of how franchised fast food companies work with
CSR to increase the customers brand equity in the forms of cause related marketing
with emphasis on philanthropic CSR activities, their interaction on local level and the
response of the customers. With CSR companies can integrate social and
environmental concerns in their business operations and interactions with their
stakeholders (Porter & Kramer, 2011). Companies have something to gain when they
care for the local markets well-being. Over the past decade consumers have become
more and more interested in corporate social responsibility (Carrigan & Attalla 2001).
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2 Problem discussion
In this chapter are the authors describing the problem surrounding franchise
companies CSR activities and how they could use CSR in to build brand equity to
connect to the local community.
Many larger companies have ignored the importance of CSR on local level (Sitkin,
2013). Barkay (2013) is a spokesperson to the problem with the responsibility for
CSR within the local market. Barkays (2013) research claims that it is hard to divide
the responsibility for the local community between the franchisee and the franchisor
because of the franchisee does not have clear understanding to what degree they
should be committed to local CSR (ibid). The study’s findings show that the local
communities are exposed to two forces. The first one is the company’s willingness to
increase sales by disillusioned branding strategies. The second one is the company’s
response to the public interest for the benefit to the stakeholders within social
responsibility. The idea is that corporate values shall be emphasized in community
programs in a capitalist ideology, which will gain profits for the company (Barkay,
2013). What is experienced is an unequal balance between the corporation local
responsibilities and the stakeholders’ (business owners and investor) interest of return
on investments. The difference between the capitalistic ideology and the socialistic
ideology is that the capitalistic is undertaking the opportunity of value creation. It sets
a price on everything and calculates the return on the investment to make the
company or individual wealthier while the socialistic advocates the stability for the
many peoples best interest (Marques, 2005).
Meiseberg and Ehrmann (2012) present a linkage between CSR and franchisee and
what the CSR relationship is between franchisee and franchisor. The study explores
prevalence, performance and outcome of CSR in franchising. When the franchise
systems behave in a socially responsible manner and the performance effects of CSR
initiatives. If the franchisee makes a mistake can it affect the brand and influence the
whole organization's reputation i.e. decrease brand equity. Examples can be found for
McDonalds employee scandals were only a few restaurants did something wrong but
it affects the whole Swedish organization. The other way around is if the company
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does something good it generates something good for the whole company. The article
is targeted towards various stakeholders and presents a view of strategic CSR, a use
that not only serves philanthropic motives but create competitive advantages,
advantages that will lead to increased reputation enhancement, ability to charge
premium price, better recruits and retain high quality workers i.e. brand equity. The
franchisee plays an active role in the implementation of CSR initiatives within the
company (ibid). Meiseberg and Ehrmann (2012) also raise the question of customer’s
reaction to local adaptation versus system wide campaigns in CSR strategies. Albaum
and Duerr (2011) makes a further statement than Meiseberg and Ehrmann that there is
a lack of the local franchisees engagement in non-market strategies, this is due to the
franchisor does not know to what degree they should be committed to non-market
strategies activities in their region (Albaum & Duerr 2011). They advocates that there
is an amount of social responsibility operations on a headquarter level but not at the
local franchisees level. This seems to be a problem on the local market because of the
social responsibility delegated from the company’s headquarter is not reaching the
local customer (ibid).
Dougherty and Olsen (2014) article of adapting CSR strategies points to an increase
in value of CSR and that there is an importance of adaptation to the local community
rather than a one size fits all model. Dougherty and Olsen suggest that focus should
be on customer’s reaction to local adapted CSR rather than reaction to system wide
CSR strategies that Meiseberg and Ehrmann suggested in 2011. Therefore it is
important to understanding the local culture and threats of entrance for the local
stakeholders (customers and citizen) i.e. CRM. In their study about CSR and gold
mining industry in Guatemala, the local threats to the stakeholder were when mining
companies entered the area was water pollution and occupation of farmland
(Dougherty & Olsen, 2014). Previous authors statements remain of the importance of
local CSRs adaptation increase value but what is interesting is finding out what is
important in a socialistic and well-developed country as Sweden. In many parts of
Sweden we do not have the same problems they have in Guatemala i.e. CRM.
Perez (2009) conducted a study of consumer identification towards a company’s CSR,
where attitude and affective commitment to the company were measured. Perez found
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that there is a positive relationship between the consumer, the attitude and the
commitment to the company based upon the company's CSR (Pérez, 2009) i.e brand
equity. In contrast to Perez, the conclusion of Öberseder (2011) was that CSR only
had a limited role in the purchase decision of customers and that managers could only
communicate CSR that are aligned with the company's core values. The difficult
factor to investigate for Öberseder was the personal concerns that customers had in
their purchase decision (Öberseder et al., 2011). Menon and Kahn (2003) have found
that consumers are more likely to support firms that have a given social issue than
firms that does not have one i.e. CRM. Customers find it interesting to support
companies that engage in cause-related marketing in comparison to firms that works
with normal advertising (price and product related advertising) (Menon & Kahn,
2003). There is research that shows that not all consumers perceive all forms of CSR
in the same manner, research shows that customers are more dedicated to purchase
from a company when there is a “win-win” situation. This means that the companies
needs to “win” trust of the consumer and the consumer must feel they receive value
from the exchange and understand the company’s contribution of CSR to the
community (Green, T., & Peloza, J. 2011).
To narrow the problem down to a problem conclusion; the franchisor does not have a
clear directions of how they should promote their engagement in the local
community’s CSR. This can be a problem on managerial level of the franchisor or the
attitude of the franchisee that they do not see the investment pay off. Previously
knowledge from research shows that different stakeholders reaction on CSR
strategies. Owners and investors want a high rate of return on their investment but
they also want to do by doing good. While the other two stakeholders (customers and
citizens) have more public interests. Regarding the introduction it is clear that there is
a positive relationship between CSR and attitude and that media influence the image
of a company i.e. brand equity.
Local franchisors can engage in local CSR questions to change the brand equity of the
company. Local communities with its inhabitants have different values of what they
consider needs to be improved on and what companies can support. Then companies
could use the local CSR as a marketing tool to change the brand equity of customers
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to gain a competitive advantage. Within philanthropic CSR there are different
components, environmental, altruistic, strategic and ethical that the consumers can
consider more or less important and affect their brand attitude on local level.
3 Purpose
To further investigate the importance of different philanthropic CSR activities on
local level and see if these activities can be used to strengthen fast food companies
brand equity.
4 Research Question
Research have shown that fast food companies are involved in different kinds of
philanthropic CSR activities, what part of brand equity has to be dealt with first?
What are the important factors in building brand equity with philanthropic CSR
activities?
How important is the focus on local activities for franchised fast food companies
when it comes to the philanthropic CSR activities?
5 Delimitation
Out of three different CSR models (concentric circles and intersecting circles) this
papers delimitation are narrowed down to the top two categories of third model, the
CSR pyramid, ethical CSR and philanthropic CSR. Due to the bottom (economic and
legal) two categories are more focused on generating profit back to the company
rather than just do something good for society. The delimitation of not being profit
focused has lead to not focus on owner and investor and just focus on customers and
people in Kronoberg region. With the emphasis on the local community and the time
limitation of this project is it only going to focus on Kronoberg region. Different
regions can have different values of what can influence their opinion about a company
and the CSR activities. The authors have limited this research down to just brand
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equity towards franchised fast food companies due to the connection with the local
community. Instead of the attitude towards nations wide CSR philanthropic strategies.
Öberseder (2011) problem was how personal concerns and CSR activities affected the
purchasing behaviour. The authors are interested in personal concerns and CSR
activities but not how it affects purchasing decision. It considering more interested in
how those two affect the brand equity. Brand equity can be divided in different
categories or branches. To our thesis the authors have chosen brand image, brand
identity, brand awareness and brand attitude as our cornerstones of brand equity.
There are brand equity models including brand knowledge, brand association, brand
loyalty and brand preference to mentions some. Cornerstones for philanthropic CSR
are strategic CSR, altruistic CSR, ethical CSR and environmental CSR. These four
fitted the best into our project where CSR and Brand equity are going to match.
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6 Conceptual Framework
This chapter contains the theoretical framework, which the project is built upon. All
the material is collected from books and academic papers concerning CSR and Brand
Equity different components
6.1 CSR
Corporate social responsibility (CSR) is the responsibility a company has towards
itself and society. CSR involves economic (business need to produce goods or
services that society wants and sell them with profit), legal (they need to obey the
law), ethical (need to exhibit ethical norms and behaviours) and discretionary (they
may play a voluntary roles driven by social norms) responsibilities (Lichtenstein et
al., 2013). There are CSR activities that are not always beneficial for the company
economic situation. The activities can be seen as immoral towards the company’s
internal stakeholders. Stakeholders are mostly interested in the company’s economic
success and the highest rate of return on their investment. These activities are more in
the lines with the philanthropic motives such as care, justice and utilitarianism. These
activities are not required by the company and should only be taken into action when
a company can be beneficial and enhance the value to the company (Lantos, 2002)
(see fig. p16 ).
There are three different models of CSR, the CSR pyramid (hierarchy of separate
responsibilities), intersecting circles (non hieratical set of intersecting Circles) and
concentric circles (integration of responsibilities; all sharing a central core) (Geva,
2008).
The pyramid divides CSR in different terms of social expectation that responsible
corporations should strive to meet. The first three parts, economic where profit
making is the emphasis, legal responsibilities to obey the law and ethical where the
social expectations are met that is not covered by the legal framework. The last one is
philanthropic were voluntarily interaction in society is where the bottom three narrow
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down to (Geva, 2008). Other models do not match the research, do to their focus on
economic profit or sustainability (sd-network.eu).
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CSR Pyramid (Carroll 1991)
6.2 Philanthropic CSRThe role of philanthropy in CSR is that it goes beyond the first three, economic, legal
and ethical. It exceeds the bare minimum of CSR and distinguish itself from the
neoclassical view and more of the new notion of citizenship that emphasis on the
companies giving back (Geva, 2008). The subcategories of philanthropic CSR are
ethical, altruistic, strategic and environmental, see fig. on pg 22.
Philanthropic responsibility deals with corporate humanitarians contribution that are
not required or expected by society. Instead have a company choose to engage in
philanthropic projects like aiding poor in developing countries, build houses for
people in need, sponsoring local communities or events, donations to charitable etc.
However, CSR philanthropy can be seen as help to create a better world by actively
engaging in programs to promote human welfare and goodwill (Carroll, 1991). The
communities firms desire that firms should contribute with their money, facilities and
time to humanitarian programs or purpose, but if the firms not will fulfil the
communities desire will they not regard the firms as unethical. It is stressed that the
philanthropy is more discretionary or voluntary on the part of businesses even if their
will always be a societal expectation from the communities. One notable reason to
making a distinction between philanthropy and ethical responsibility is that some
Philantropic CSR
Ethical CSR
Legal CSR
Economic CSR
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firms feel that they are just socially responsibility to be good citizens in the
community. There's one critical factor with philanthropic CSR, their might see as an
conflict between companies a firm's concern for profit and their concern for the
society. The firms want to be engaged in the society and assist to create a better world,
but at the same time need they to focus on their profit to be sure that the business will
survive. When it came to the shareholders who want to maximize the profit is it easy
that the management forget their responsibility to the society and only focusing on the
profit. This is the critical factor with philanthropy CSR, in the theory is it a very good
idea but when it comes to the implementing on the company needs they to voluntary
want to give the society a favour (Carroll, 1991).
6.2.1 Ethical CSR Within philanthropic CSR sub categories, ethical CSR is morally required and goes
beyond fulfilling a company’s internal economic and legal obligations, to its ethical
external responsibilities to avoid harm or social injuries, even if the business might
not appear to benefit from this. Examples are to prevent crime and help homelessness
or sick people. Hence, a corporation is morally responsible to any individuals or
groups where it might inflict actual or potential injury from a particular course of
action (Lantos, 2002). Zhu et al (2014) investigated the effects of ethical leadership in
199 tourist firms in China. They found that it modified the firm's reputation indirectly.
The direct effect was that it positively influenced the firm's performance and
reputation. The conclusion on the study was that ethical CSR in the form of leadership
was only positive when the firm was strong.
6.2.2 Altruistic CSR Altruistic CSR is the philanthropic responsibilities and involves contributing to the
good of various community stakeholders, even if this sacrifice parts of the business’s
profit. Companies practicing altruistic CSR help to alleviate various social problems
within a community or society, such as lack of sufficient funding for educational
institutions, inadequate funding for the arts, chronic unemployment, urban blight,
drug and alcohol problems, and illiteracy, among others. The explanation lies in the
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fact that the modern corporation has been entrusted with massive economic and
human resources and has the power to affect many parties beyond the participants in
its transactions. Thus, there is an implicit corporate social contract between business
and society, whereby firms agree to be good stewards of society’s resources (Lantos,
2002). Altruistic CSR from the companies’ side is often met by gratitude from the
consumers. Algoe and Haidt (2009) study show that gratitude brings people together
and strengthen ties and move beyond an exchange relationship into a communal
relationship. Not just the communal relationships were strengthened; the image and
the attitude were also strengthened and the company received positive word of mouth
feedback (Romani et al., 2013).
6.2.3 Strategic CSR Strategic CSR involves caring of the corporate community service activities that
accomplish strategic business goals, e.g. city developments and create new jobs in the
community. Here, corporations contribute to their constituencies, not only because it
is a kind and generous thing to do but also because they believe it to be in their best
financial interests to do so, thereby fulfilling their fiduciary responsibilities to the
stockholders (Lantos, 2002). Porter and Kramer (2006) make a case of strategic CSR
that companies benefits from a strategic approach to CSR. They should align the
corporate plan with a social issue that could carry a competitive value. Quoted from
the Porter and Kramer (2006) “no business can solve all of society’s problems or bear
the cost of doing so”. That is why companies have to choose one that is aligned with
the company’s core beliefs.
6.2.4 Environmental CSR Environmental CSR relates to contribution of the well being of the biotic community,
the coherence of land and ecosystems and the risk of letting threats damaging the
biodiversity. It concerns the existing living and non-living creatures within earth’s
biodiversity (Safit, 2013).
Shareholders are sensitive towards revealing bad and harmful corporate behaviour.
Flammer (2013) study show that the environmental impact can reflect in decreased
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stock value. This have over times made companies more interested in environmental
CSR to eliminate their carbon footprint. By engagement in environmental concerns
can generate competitive resources, and then see the environment as a resource. The
backside is that a company’s environmental CSR lower the profit in the short term
because of the cost of involvement, and have caused managerial implications but have
shown positive signs for innovation in the long term. The revealing of positive
environmental CSR both gives an increase in stock value for shareholders and a
positive image for the company in the long term. The investments in environmental
CSR have to be coherent with the shareholders of the company (Flammer, 2013).
6.3 Brand equity
Within the concept of brand equity are identity, image, attitude and awareness, which
reflect on the company’s economic and social system. It is an indicator of the level of
acceptance from the stakeholders. Keller (2002) states that brand image plays out a
big role in the consumer purchase decision process on different levels of
psychological, sociological and economical. Strategically incorporated CSR has
strong influence on the brand image. This makes a combination of what company
does in terms of products, operations, and behaviour in the competitive environment
and later the profit made for the company and value generated for the society (Popoli,
2011). In the conducted research of Popoli (2011) many articles have proved a strong
link between social behaviour and profitable performance. See fig. pg 22.
6.3.1 Brand imageBrand image can be defined as how a brand is represented in people’s minds. The
image is a perception that a target group associates the specific brand with (Echeverri
& Edvardsson 2002). The perception can be created in two different ways, logical and
emotionally. Because of this the brand also have a symbolic meaning that affects the
image. People see the “M” or the “golden arches” of McDonalds and associate it with
food. The associations to the brand can be perceived through service, advertising,
experience, media and reputation (Holger et al., 2002). If the company has succeeded
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with their brand products, then the brand image should convey a distinctive message
that communicates the product’s benefits (Kotler et al., 2003). An advantage with
having a strong brand image is that it can be protected from competition and establish
a good market position for the company. A strong brand image cannot be created over
a night; it takes time to create a strong brand image. The company needs to have a
clear view over which signals they want to communicate to the customer and not
forget that the image should both be geared towards to customers and the employees
(Echeverri & Edvardsson 2002). Everything the company communicate with the
public needs to be matched with the brand image, if the public view of the brand
image reflects differently from the company's core values the brand can experience
setbacks from both clients and customers (Kotler et al., 2003). According to Maio
(2003), it is important to see it in a long term perspective, their needs to be a strategic
long term company plan to create a clear message that share the right image of the
brand. In the study of Blombäck and Scandelius (2013) presents the studies that
corporation in CSR’s communication is positively related to brand image according to
the customer’s options. The connection between the brand and CSR activities
increases the customer’s ability to more easily remember and recognize the brand
image. The main reason is that CSR entails trust is because it is a critical and an
important factor when it is represented in people’s minds (ibid). From a customer's
perspective has it been verified that a company with a credible CSR activities is more
successful to generate longer terms consumers purchase intentions and loyalty.
Similar with brands that have a CSR identity, they can easier attract and changes a
consumer's perception to the brand (Blombäck & Scandelius, 2013).
6.3.2 Brand AttitudeThe customer’s attitude is the connection between the customer and the product
(Olsen et al., 2014). The concept brand attitude included what the customers think the
product does, how well they found it useful and how well the brand treats their
employers and the community (ibid). If a person having a strong attitude towards a
brand it affects the brand consideration, purchase intention and brand choice. By
having a strong attitude all key factors from a company's point of view are met to
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maintain customers loyalty (Park et al., 2010). The attitude is based on earlier
perceptions to the brand and external sources that influence the customer. The
external sources can be things that media writes or example things that the brand do to
support the community (Olsen et al., 2014). Previous research has shown that
companies who work with CSR have a positive impact on the consumer's attitude.
Thanks to the increased loyalty that is carried when a brand works with CSR will
brand identity be affected very positively (ibid). Research has also been found that
when a company are introducing a new product on the market can CSR influences on
the products credibility positively. Because of the knowledge and awareness
customers have about CSR creates automatically a sense of security to the brand when
they know that a brand support the community (Olsen et al., 2014). A person's attitude
to a brand influences also from the people that are close to you, because of people's
increased willingness to work against pollution have this become a topic that are
considering to be very important. Just like people are categorization themselves in
different groups are brand also doing the same, if a person's group identity are similar
to a brand's identity will the person directly feel a connection to the brand thanks to
their similar identity (Woo Jin & Winterich 2013).
6.3.3 Brand identityAccording to Ghodeswar (2008) the concept brand identity is to create unique
associations between the brand and the customers. An association can be a name or a
symbol that reflect the products differentiations in relation to the competitors. Brand
identity works as a protection against the company’s competitors, it is important that
the core identity in a brand constitutes the essence in the company’s identity. When a
company builds its brand identity it is important to have a good knowledge about the
customers understanding, their attitude and how the product differentiate itself from
other similar products and who the competitors are. A strong brand identity needs to
match the customer expectations, values, characterizes and items that customers
consider being distinctive and creates value for them. Because of the market constant
development of products and services and the increased competition companies need
to strategically position the brand identity to easier create a strong identity around its
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brand. This creates a strong relationship between the customer and the brand in terms
of they feel connected and engaged in the brand (Ghodeswar, 2008). According to
Morsing and Roepstroff (2015) is there a clear connection between CSR and
associations that can reflect a brand. The influence that CSR have on the brand helps
the customer to unconsciously create associations and trust to the brand. The more
associations that a customer can connect to brand the stronger will the correlation be
between them. The articles focus is to develop a conceptual framework to understand
how a company's CSR identity becomes defined with helps from political activities
and if it can create a strong identity-relation with the customers. The survey has been
made with corporations with IKEA to get a deeper understanding how a brand will be
affected if they implement CSR (Morsing & Roepstorff 2015).
6.3.4 Brand awarenessBrand Awareness is defined as the consumer’s awareness of the product or a company
and how familiar they are with the brand or if the company gives a feeling of
acquaintance. If the customer recognize the brand and experience a relationship to it
the company succeeded with their brand awareness (Kotler 2010). Early memories
from a brand can attach the customer to the store, this happen because the consumer
feels a reassurance to the brand. Because of the awareness and the information the
customer possesses, this affects the purchase decision and creates a higher affinity to
the brand. The primary sources to awareness are advertising, Internet, the staff in the
stores and personally contacts, but the strongest impact on the consumers is still the
media. The media impact is much stronger than the others, if media writes something
negative that have a connection to the brand it can influence the sales in a negative
way (ibid). A hot topic when media report companies activities is their social
responsibility. Media is a channel of information that makes people aware of company
activities in the world. Bad publicity can quickly reach the target group of the
company and hurt the brand. There's also a strong relationship between CSR and the
consumers awareness regarding to the article. A company's willingness to apply CSR
increases the customer’s willingness to pay more and choose the product that is
environmentally friendly instead for the substitute (Hartmann et al., 2013).
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6.4 Cause related marketing
CRM (cause related marketing) is about using marketing strategies to supportive
activities meanwhile they build business. These activities are partnerships between
businesses and e.g. charities to market a product or services for mutual benefits
(Adkins, 1999). When a company introduce cause related marketing is it with the
purpose to increase customers goodwill and improve the company's image, which will
influence the reputation (Koschate et al 2012). The general responses of CRM are
positive and contributes to consumers are more willing to purchase the company’s
product (Adkins, 1999). Because of the effort that the firms do increases the
relationship between the company's donation and the customers willingness to
purchase the company's products. Further research has also shown that there is a
connection between a company's donations and the customer’s willingness to pay
more. If a company give something back to the society is not only the purchase
decision that will increases, also the customers willingness to pay more for the
product comparing to substitute who does not give something back to the society
(Koschate et al., 2012). However is there a disadvantage with donation, donating
more involves greater cost for the company, which will reduce the profitability.
Reduced profitability leads to dissatisfaction among internal shareholders that can
lead to reduce donations because of their desire to increase their profit. That is why it
is important to find a connection between the donation and the customers willing to
purchase the company’s product (ibid). There are different types of genre of CRM
from companies, from altruistic motivation to social motivation but what they all have
in common is that there needs to be a relationship towards the personal values of the
consumer (Nan & Heo, 2007). This means that the customer must feel a connection
between the donation and himself, either that the donation has affinity with the
customer’s value (Koschate et al., 2012). According to Jahdi (2014) CSR have
become a very important tool to consider; due to the growing importance of creating a
sustainable community. This is a concept that the consumers demand from the firms.
To fulfil the customer's expectations regarding donations and the society is a
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combination of CRM and CSR something that complementing each other very well.
CRM ensure that the firms will fulfil the expectations regarding donation and CSR
ensure that the firms will get something back in terms of higher profit and higher
demand from the customers (Jahdi 2014)
�
Figure 2: Summery of the concepts and sub concepts that will be research in this paper.
7 Hypothesis
To achieve the stated purpose, the following hypotheses were formulated and
visualised in the research model
H1 There is a significant relationship between brand equity and Strategic CSR
H2 There is a significant relationship between brand equity and Ethical CSR
H3 There is a significant relationship between brand equity and Altruistic CSR
H4 There is a significant relationship between brand equity and Environmental CSR
After the first four hypotheses were tested for significance more hypothesis were
added to find out more about the relationship. If the relationship is positive or
negative.
H5 There is a positive relationship between altruistic CSR and brand equity.
H6 There is a positive relationship between ethical CSR and brand equity.
H7 There is a positive relationship between strategic CSR and brand equity.
H8 There is a positive relationship between environmental CSR and brand equity.
For further understanding of the relationship and after a second round of hypotheses
were tested for a positive or negative relationship between the different kinds of CSR
and brand equity a third set hypothesis were added to the investigation. These
Philanth
Ethical Alturisti Strategic Envirom
Brand
Brand Brand Brand Brand
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hypothesis are conducted regarding respondents high and low level of importance of
brand equity.
H9 There is a significant relationship between high brand equity and environmental
CSR.
H10 There is significant relationship between low brand equity and strategic CSR.
H11 There is a significant relationship between low brand equity and altruistic CSR
H12 There is a significant relationship between high brand equity and ethical CSR
�
The analysis model A model of how the hypotheses are created. There are the four different variables of
Philanthropic CSR against Brand Equity. What questions are included in each variable
can be seen on pg. 28 ch. 8.3.
7.1 Motivation of Hypothesis The hypotheses are designed through hypothesis null method, in null hypothesis the
theories are assumed to be true by the researcher and then it will be used as a base of
an argument (Bryman and Bell 2011). In other words, null hypothesis is a statement
created by the researchers based on the theories and literature review of the research
(ibid).
H1 Companies that implement altruistic CSR help to alleviate various social problems
within a community or society. Companies that implement altruistic CSR consider to
also increases their customers brand equity. The customers are aware about the
different social problems that existing in the community and tending to increase their
trust to a brand when they know that a company prevent and help alleviate various
social problems in the community.
Brand Equity
Alutristic CSR Ethical CSR Enviromental CSR
Strategic CSR
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H2 The revealing of positive environmental CSR both gives an increase in stock value
for shareholders and a positive image for the company in the long term. By having a
strong environmental CSR gives advantages that can protect the brand from their
competition and establish a good market position for the company. This advantages
increases the brand equity.
H3 Ethical CSR is morally required and goes beyond fulfilling a company’s economic
and legal obligations, ethical responsibilities to avoid harm or social injuries, provide
crimes and help homelessness or disease people. This entails to benefits that will
increase the brand equity, when a company do operations in the competitive
environment will the value be generated to the society and increase their trust to the
brand.
H4 Strategic CSR involves caring of the corporate community service activities that
accomplish strategic business goals. Corporations contribute to their constituencies,
not only because it is a kind and generous thing to do but also because they fulfilling
their fiduciary responsibilities to the stockholders. By fulfilling their fiduciary
responsibilities will this affect the customers brand equity, the equity tending to
increases when a brand indicates that they care about the community.
H5 Altruistic CSR involves philanthropic responsibilities and contributing to the good
of various community stakeholders, even if this sacrifice parts of the business’s
profitability. By giving something back to the community even if it sacrifices parts of
the business's profitability will the customers perceiving this, as goodwill and it is
assumed to affect the band equity.
H6 Ethical CSR is morally required and goes beyond fulfilling a company’s internal
economic and legal obligations, to its ethical external responsibilities to avoid harm or
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social injuries, even if the business might not appear to benefit from this. By taking
external responsibilities that the company might not, as it appears, benefits from this
shows that the company not only cares about profit, they also want to contribute to a
correct ethical community which is assumed to impact the brand equity positivity.
H7 Strategic CSR involves caring of the corporate community service activities that
accomplish strategic business goals, e.g. city developments and create new jobs in the
community. By contributing to new jobs and development cities will the customers
associate the company with caring of the corporate community which is assumed to
increase the brand equity.
H8 Environmental CSR relates to contribution of the well being of the biotic
community, the coherence of land and ecosystems and the risk of letting threats
damaging the biodiversity. By contribution of the well being of the biotic community
will the brand awareness increases which is assumed to affect the brand equity
positive.
H9 According to previous studies is CSR environmental something that the customer’s
finds very important and can increase a company's brand equity. By having a high
brand equity are the customers more aware about the company's activities and also
their impact on the environment.
H10 By not having high brand equity shows this that the customers not have a high
awareness but they care about things that have impact in their life and the city they
live in. Strategic CSR is about creating new jobs and develop cities is assumed to
have a relationship with low brand equity.
H11 Altruistic CSR is to help alleviate various social problems within a community or
society, such as lack of sufficient funding for educational institutions. This is assumed
to have a relationship with low brand equity because it focusing more on problem that
is around the customers instead of example environmental problem.
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H12 It’s assumed that there is a significant relationship between high brand equity and
ethical CSR because this is about customers that have a high involvement and cares
about problem in the whole world not only in the city they live in.
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8 Method
The following chapter provides empirical analysis. This comprises of the following
phases: survey design; pilot testing and the sampling and data collection.
8.1 Sampling and data collection - Probability and nonprobability samplingAccording to Bryman and Bell (2011) sampling is the process where the researcher
chooses representatives from a population in order to get its empirical data. There are
two types of samples, non-probability and probability (Saunders et al., 2003). In non-
probability the researchers do not do random selection of sampling while in
probability sampling the researchers choose the samples randomly (ibid).
This study has chosen a probability sampling method and targeting the population in
Kronoberg region in Sweden to get a to get a broad opinion. The target sample was to
find people between 18 and 65 for the questionnaire. The collected sample of
respondents was between 18 and 64 years old. The way the sample was collected
were through handing out questionnaires manually to people downtown in Växjö, at
the shopping mall Grand Samarkand and at the Linneaus university. The survey had a
few people answering the questionnaire online through shared link on Facebook.
According to Bryman and Bell (2011), surveys are the best options to conduct
questionnaires for a quantitative study. Surveys are used in order to gather primary
data in many areas; this method is also commonly used in business studies (ibid).
Furthermore surveys are normally used in studies that contain two or more variables,
in this paper the authors are using five variables, thus conducting survey is suitable
for this paper. The survey will be conducted offline (i.e hard copies of the survey will
be handed out to people within the sample segment), in order to have a larger
response rate. Convenient sampling method has been chosen for this research,
convenience sampling is a root in non-probability sampling technique normally
conducted when researcher wants to choose the target groups that is easiest to reach
out to. In other words the researcher chooses the most convenient population to gather
its data from (Beheshti et al., 2014; Saunders et al., 2003).
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8.2 Survey design The survey was composed out of the questions regarding the different categories of
philanthropic CSR and the components of brand equity. The questions are made up by
what different CSR activities fast food companies are involved in based on research
(appendix 1.2) and what they can contribute to in the local community i.e. CRM.
The brand equity questions are based on the theory of brand equity and its different
components of identity, image, awareness and attitude that match the topic of fast
food restaurants.
Questions 1 to 3, are designed to make sure the diversity of the respondents are
representable for this area. Questions 4 to 9, are created to get a general opinion of the
problem in this area and later be able make conclusion, contribution and managerial
suggestions in the industry.
A five point likert scale and “Yes/No or both” questions were used to answer the
survey.
8.3 OperationalizationIn the table below are the five variables illustrated that are used in this study
For more details about the questions please see the questionnaire in appendix (pg. 54)
8.3 Analysis methodSince this is a quantitative study, descriptive statistic analysis has been chosen as the
method of analysis (Bryman & Bell, 2011). The author’s mention that descriptive is a
method that is often carried out with SPSS (ibid). Hence, the analysis will be made
with the use of SPSS. According to Hair et al., (2006) descriptive analysis allows the
researcher to translate raw data from the survey to a more understandable form, it also
gives the investigator the ability to track the missing data. When the surveys were put
T h e o r y a n d
constructs:
Questions:
Strategic CSR 10, 11, 12 V1
Ethical CSR 13, 14, 15 V2
Altruistic CSR 16, 17, 18 V3
Environmental CSR 19, 20, 21 V4
Brand Equity 22, 23, 24, 25, 26, 27, 28, 29 V5
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in SPSS, 34 questionnaires were invalid for not being complete or the respondent did
not live in Kornberg’s region, which resulted in a sample size of 192. Additionally,
the mean value and frequency test will be calculated too to investigate trends within
our sample size. An Anova test between the four variables and brand equity has been
carried out with the sample size of 192 respondents. An Anova test is used when there
are more than two variables in each category while a crosstab test are used when there
are two variables (e.g. yes/ no) tested against more than two ( e.g. 1 to 5 scale)
(Bryman & Bell, 2011). Anova will tell us if weather the scores significantly differ
across the table. It also allows us to investigate more than one independent variable.
The dependent variable comprises data measured at interval or ratio level. The
independent variable measures random samples from taken from a population. When
SPSS perform ANOVA test, the output reports the exact p value for that particular F-
ratio. F-ratio will be a number greater or less than one dependent on the ratio of the
variance. An F-ratio equal to or less than one indicates a non-significant result as it
shows that scores were equally affected or more affected by a nuisance variables. The
significant level is set to p< 0,05 due to the sample size. The level of significance can
differ depending on the sample size. When the sample size is smaller (less then 150)
then level of significance can be set to p<0,1 (Brace et al., 2012)
Pearson’s r has also been used to carry out a parametric test of correlation between the
variables of CSR and brand equity. The aim is to see if there are positive correlations
in the variables of CSR and brand equity. The test was carried out in a two-tailed
significance. A one-tailed test is used if only deviations in one direction are
considered possible. The value of r indicates the strength of the correlation. As a rule
of thumb from the book SPSS for Psychologists (2012) r-values from 0-0.2 are
generally considered weak, 0,3-0,6 moderate and 0,7-1 strong. Large to very large
sample sizes (over 100) can be considered statistically very strong but then the r-value
still has its significant role. 0,2 is than still considered weak correlation (Brace et al.,
2012).
Advice from professor Anders Pehrsson at Linneaus University in Växjö after results
from the first four hypotheses were tested. For further investigation of the correlation
� 34
between the variables of CSR and brand equity a crosstab test were made. To be able
to make a crosstab test the variables have been recorded to a two by three matrix to
differentiate the low and high importance of brand equity and CSR. To divide the
brand equity respondents in high and low the mean value was used as cut line. Those
respondents that scored above mean value in each brand equity category were
considered “high” and those below were considered “low”. When this was carried out
into a new variable 74 were considered low and 118 were high. The CSR categories
were slimmed down from five variables to three. The “not important” and “less
important” became “less important”, “neither” remained the same and “important”
and “very important” became “important”. For the Pearson's chi square the significant
level was set to 0,05.
8.4 ValidityAccording to Ghauri and Grønhaug (2005) validity is the process that an expert in the
area test to see how accurate the table of operationalization is measuring what is
intended to measure. The construct and face validity of this study has been done
through a pilot test. Both validity of questions and constructed measurement validity
has been made and the results are presented in the pilot test.
8.5 Pilot test After completing the survey questions, a pilot test was carried out to seven
participants due to the risk of getting invalid data. Two of the participants were
professors at Linneaus University in Växjö. One was a marketing research student at
Linneaus University and four other students. All participants read through the survey
and provide us with valuable feedback. The pre-test had both negative and positive
feedbacks; the most crucial and common feedback was to add more info regarding the
questions to the survey. After completing the pilot test stage, all the feedbacks of the
participants were used to improve the survey questions.
8.6 ReliabilityBryman and Bell (2011) state that reliability has two ways to be measured;
repeatability (when the research gets the same outcomes or results if it was made by
� 35
another researcher through the same procedures) and internal consistency. Internal
consistency is measured by Cronbach alpha, this method shows how the
intercorrelations exist in a sample of items on scale of 0 and 1, it must be also
mentioned that this value must be over 0.6 in order to give reliable internal
consistency (Bryman & Bell, 2011). For repeatability validity researchers can run the
study freely in order to test if the investigation gives them the same results. For
internal consistency reliability, it examined the reliability by executing a Cronbach
alpha test to test the results. The results showed that all five variables was reliable as
Cronbach's alpha > 0,60 level (Strategic CSR; =0,601, Ethical CSR; =0,626,
Environment CSR; =0,835, Altruistic CSR =0,877 and Brand Equity =0,710).
According to Bryman and Bell (2011), if the Cronbach alpha is over 0.6, the results
are reliable. (Appendix 2, Cronbach’s Alpha test tables 2.5- 2.9).
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9 Analysis and results
9.1 Frequency test(Fast food companies’ questions 4, 5, 6, 7, see tables in appendix)
Within the question of what the respondents overall impression of the fast food
companies McDonald’s, Max, Subway and Burger King. On the question, answered
out of 192 respondents 74 (39%) that they like McDonald’s (table 2.36). Regarding
Max answered 116 (61%) respondents that they had a good overall impression to the
brand (table 2.37), Subways was a little lower with 88 (46%) respondents who
admitted that they had a good overall impression (table 2.38). For Burger King said
75 (39,5%) of the respondents that they had a good overall impression to their brand
(table 2.39). The mean value in brand attitude is 3,28 and the standard deviation is
0,62 within 95% confidence interval (table 2.1).
(Philanthropic question 8, 9)
Questions regarding theories of philanthropic CSR was made to investigate the
respondent's opinion regarding franchise companies engagement in taking social
responsibility and if they rather seen a local engagement than a worldwide. Out of 192
respondents, 158 (83%) respondents answered that the philanthropic CSR
engagement was something that they found important (table 2.40). Regarding if the
respondents rather seen a local engagement than a worldwide answered 125 (66%)
that they prefer engagement in both of this categories and 49 (26%) that they would
like to see a local engagement (table 2.41). The mean value in CSR Philanthropic is
4,24 and the standard deviation is 0,79 within 95% confidence interval (table 2.2).
(Strategic CSR questions 10, 11, 12)
This theory contain of three different questions, develop Växjö city with example
finer parks, create more jobs in Växjö and preserve cultural objects in Växjö. Create
more jobs in Växjö was something the respondents really cared about, out of 192
respondents 166 (86%) answered that this was something they found important (table
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2.16). Regarding the other two questions develop Växjö city and save the culture in
Växjö answered only 78 (41%) (table 2.15) respondents that they found it important
and only 88 (45%) respondents that they found it important to save the culture in
Växjö (table 2.17). The mean value in CSR Strategic is 3,54 and the standard
deviation is 0,66 within 95% confidence interval (table 2.3) i.e. CRM.
(Ethical CSR questions 13, 14, 15)
Within ethical CSR there is also three different questions, prevent crime, work against
discrimination and create more jobs for disabled. These three questions was
something the respondents considered important. The first question, what the
respondents think about franchise companies that are trying to prevent crime
answered out of 192 respondents 138 (71%) that this was something they considered
important (table 2.18). The second question regarding work against discrimination
answered 172 (90%) respondents that this was something they found important for
companies to work against (table 2.19). The last question in ethical CSR was to create
more jobs for disabled answered 154 (81%) respondents that this was something the
found important (table 2.20). The mean value for ethical CSR is 4,16 and the standard
deviation is 0,664 within 95% confidence interval (table 2.3) i.e. CRM.
(Altruistic CSR questions 16, 17, 18)
In altruistic CSR were the three questions about support local sport clubs, support
local unions and support local events. The respondents did not find these questions as
important as the previous questions. The first question regarding support local sport
clubs answered out of 192 respondents 124 (65%) that they found it important (table
2.21). The second question regarding support local unions was almost the same, 122
(63%) respondents answered that it was important (table 2.22). The last question
about support local events was almost similar to, 132 (69%) respondents answered
that this is something they care about (table 2.23). The mean value for altruistic CSR
is 3,83 and the standard deviation is 0,83 within 95% confidence interval (table 2.3)
i.e. CRM.
(Environmental CSR questions 19, 20, 21)
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Within environmental CSR, the three questions were about preventing environmental
impact, protecting the nature and recycling. All this three questions was very
important according to the respondent’s opinions. Preventing environmental impact
answered out of 192 respondents 170 (88%) that they found important (table 2.24).
Regarding protect the nature answered 164 (85%) respondents that they conceded it
important (table 2.25). Regarding recycling answered 176 (92%), almost all the
respondents that this is something that is important (table 2.26). The mean value in
CSR Environmental is 4,44 and the standard deviation is 0,66 within 95% confidence
interval (table 2.3) i.e. CRM.
(Brand Image questions 22, 23)
The two questions that concern brand image was if the fast food restaurants reputation
was important for the respondents when they choose fast food restaurant and if their
choice of fast food restaurant was influenced by media reports. Regarding the first
questions if the fast food restaurant's reputation has influence on the respondents
answered out of 192 respondents 137 (71%) that it influences their choice of fast food
restaurant (table 2.27). The second question was not as important for the respondents,
only 120 (62%) respondents influences by medias reporting (table 2.28). The mean
value for brand image is 3,66 and the standard deviation is 0,90 within 95%
confidence interval (table 2.4) i.e. Brand Equity.
(Brand Identity questions 24, 25)
The questions involving brand identity was regarding if the respondents thought it
was important to have the same values as the fast food restaurants and if their
confidence in the fast food restaurant would increases if they were engage in the
society. On the first question answered only 105 (54%) out of 192 respondents that
they found it important (table 2.29). The second question answered 135 (72%) of the
respondents that their confidence would increases if the restaurants were engaged in
the society (table 2.30). The mean value in brand identity is 3,59 and the standard
deviation is 0,82 within 95% confidence interval (table 2.4) i.e. Brand Equity.
(Brand Awareness questions 26, 27)
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Regarding the questions that concerned brand awareness did the respondents have low
awareness and interest? The first question if the respondents knew of any fast food
restaurants that works with social responsibility. Only 25 (13%) out of 192
respondents answered that they are aware of fast food restaurants that work with
social responsibility (table 2.31). The second question was if the respondents are
interested to know more about the fast foods restaurants local social responsibility.
Only 83 (42%) respondents answered that they want to know more about the
franchise restaurants local social responsibility (table 2.32). The mean value in brand
awareness is 2,55 and the standard deviation is 0,89 within 95% confidence interval
(table 2.4) i.e. Brand Equity.
(Brand Attitude questions 28, 29)
The last two questions had connection to brand attitude and was about if it was
important for the respondents that the fast food restaurant live up to their expectations
and if they considered it important that the local franchise companies treat their
employees well. The first question did only 134 (69%) out of 192 respondents agree
with (table 2.33). The second question answered 170 (89%) of the respondents that
they found it very important that the company treat their employees well (2.34). The
mean value in Brand Attitude is 4,11 and the standard deviation is 0,72 within 95%
confidence interval (table 2.4) i.e. Brand Equity.
10 Results
An ANOVA test was used to test the first set of hypotheses (H1 to H4 ). All the
hypotheses were significant at the level of p< 0.05. Which shows that there is a
relationship between different kinds of CSR and Brand Equity.
The levels of significance were 0.001 for Strategic CSR with a F value of 2,508, sig.
0,003 for Ethical CSR and a F value of 2,237, sig. 0,010 for Altruistic CSR with a F
value of 1,962, and sig. 0.014 for Environmental CSR with a F value of 1,894.
(Appendix 2, Table 2.10)
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The Pearson's R (correlation for H5 to H8) shows us wheter there are positive or
negative relationship between the different kinds of CSR and brand equity. The
correlation will indicate if the correlation is weak, moderate or strong according to the
rule of thumb scale from the Brace et al (2012). The hypotheses were stated that there
is a positive relationship between these. The results of the hypothesis were all
significant when the bivariate correlation tests were executed. The two tailed
correlation significant level were set to 0,01.
In strategic CSR vs brand equity there was a sig. level of 0,000 and a moderate
positive correlation of 0,345. For ethical CSR vs brand equity the sig. level where
0,001 and there was a weak positive correlation of 0,238. In altruistic CSR vs brand
equity was the sig. level of 0,004 and there was a weak positive correlation of 0,206.
For environmental CSR vs brand equity was the sig. level of 0,003 and there was a
weak positive correlation of 0,211. (Appendix 2, table 2.11)
Crosstab tests were conducted to strengthen the correlations of the third set of
hypotheses (H9 to H12). Where the variables were recoded to low and high importance
of brand equity and the different CSR variables were reduced to less important,
neither and important (see analysis method). The level of significance were set to
p<0,05 to measure Pearson Chi square. When respondents were divided up in the
categories of what was considered low brand equity and high brand equity, 74 ended
up in low brand equity and 118 in high brand equity. Further these were tested against
the different types of CSR.
Results between brand equity and environmental CSR were p= 0,064. Of the
respondents in low brand equity, 59 of the total 74 (79,7%) considered environmental
CSR important. Of the respondents in high brand equity 103 out of the 118 (87,3%)
considered environmental CSR important (see further statistics in table 2.11)
Results between brand equity and strategic CSR were p= 0,076. Of the respondents in
low brand equity, 22 out of 74 (29,7%) considered strategic CSR important. Of the
respondents in the high brand equity category 46 out of 118 (38,9%) considered
strategic CSR important (see further statistics in table 2.12).
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Results between brand equity and altruistic CSR were p= 0,520. Of the respondents in
low brand equity, 41 out of 74 (55,4%) considered altruistic CSR important. Of the
respondents in the high brand equity category 67 out of 118 (56,7%) considered
altruistic CSR important (see further statistic in table 2.13).
Results between brand equity and ethical CSR p= 0,099. Of the respondents in high
brand equity 97 out of 118 (82,2%) considered ethical CSR important. Of the
respondents in the low brand equity, 51 out of 74 (68,9%) considered ethical CSR
important (see further statistics in table 2.14).
All of the third sets of hypotheses (9 to 12) were rejected at the p< 0,05 significance
level.
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11 Discussion
11.1 Brand ImageBrand image is defined as how a brand is represented in people’s minds. The
associations to the brand can be perceived through service, advertising, experience,
media and reputation (Holger et al 2002) i.e. Brand equity. In the survey, 62% of the
respondents said that media does have influence on their choice of fast food
restaurant. This shows that there is correlation between the theory of Holger et al
(2002) regarding media's influences and the respondent’s answers that confirm the
influence of media. There are 38% that are not or to little extent influenced by media.
According to how an important the reputation is for the customers was it proven that
the reputation had an influence on the customer's choice when they choose fast food
restaurant. Of the respondents 72% answered that the reputation of the fast food
restaurant is important for them. Holger et al (2002) claim that a brand reputation
influence the customers are confirmed by the respondents i.e. Brand equity.
11.2 Brand IdentityAccording to Ghodeswar (2008) is the concept of brand identity to create unique
associations between the brand and the customers. A strong brand identity needs to
match the customer expectations, values, characterizes and items that customers
consider being distinctive and creates value for them i.e. Brand equity. In the survey
the respondents were asked if they found it important that the fast food restaurant
have they same value as them. It turned out that this was not something they really
cared about, only 54% of the respondents found it important that they needed to have
the same values as the fast food restaurant. Regarding to the respondents’ answers it
was proven that their opinions do not have a strong correlation to the brand identity
theory i.e. Brand equity.
According to Morsing & Roepstroff (2015) there is a clear connection between CSR
and associations that can reflect a brand. The influence that CSR have on the brand
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helps the customer to unconsciously create associations and trust to the brand. This
was something the respondents agreed with. The respondents have been asked if their
confidence will increases to a fast food restaurant if they were engaged in CSR. 72%
of the respondents answered that their trust will increase if a fast food restaurant
works with CSR i.e. Brand equity.
11.3 Brand Awareness The first question of brand awareness was if the respondents know any fast food
restaurants that work with CSR. Brand awareness is defined as the consumer’s
awareness of the product or a company, and if the customers are familiar with the
brands engagement proving this with a high connection between the brand and the
customer (Kotler 2010) i.e. Brand equity. The response from the question is very low,
only 13% of the respondents knew many fast food restaurants that work with CSR.
According to the theory brand awareness show that there is a very low correlation
between the respondents awareness regarding to what the fast food restaurants are
engaged in. The respondents proves that their awareness regarding the brands
engagement in CSR needs to increases, otherwise will the companies work with CSR
be for nothing.
The second question of brand awareness was if the respondents want to know more
about the local franchisers social responsibility. The answer was also low on this
question; only 42% wants to know more. This reinforces the low correlation between
the customer’s interests and awareness to know more about the fast food restaurants
CSR. According to Kotler (2010) who advocates the importance of that the costumers
needs to be familiar with the brands engagements shown the results from these two
questions that there is lack of knowledge from the customer's side.
11.4 Brand AttitudeRegarding if it is important for the customers that the company fulfil the expectations
thought 70% of the respondents that it was important. The concept of brand attitude
includes what the customers think the product does, how well they found it useful and
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how well the brand treats their employers and the community (Olsen et al, 2014). The
question shows that there is a strong correlation between the customers expectations
should be fulfilled and the theory brand attitude. The respondent’s answer confirms
the theory.
The last question in brand attitude is if it is important that the franchise companies
treat their employees well. Most of the respondents, 89% answered that this was
important. This have a strong correlation to the theory Brand attitude regarding to
Olsen et al (2014) that writes about the importance of that companies need to treat
their employees well because it have a huge influence on the customers attitude to a
brand.
11.5 Philanthropic CSRResults from the philanthropic CSR question where 83% of the respondents thought it
was important for companies to be involved in the community does correlate with
what Geva (2008) says about the importance of companies giving back to the
community.
In question nine where the respondents asked whether they like to see a local rather
than a world wide engagement in CSR the answer from 66% were; “both”. It goes
back to what Carrol said in 1991, that companies should contribute to both a better
world and society. All our fast food companies do give back to society and to different
projects around the world, which is all presented in the introduction.
11.6 Strategic CSRHypothesis shows that there is a positive moderate significant relationship between
strategic CSR and brand equity. Strategic CSR was conducted of questions regarding
city development. This category scored the lowest among the CSR categories in terms
of mean value. If a company should invest in this kind of CSR they should focus on
job creation which 86% of the respondents thought was important or very important
i.e. CRM. As Porter and Kramer (2006) says, a company can not solve all society's
problems and that they should only focus on one area, because it is not financially
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possible to solve them all. According to the crosstab test was the results between
brand equity and strategic CSR were p= 0,076. Of the respondents in low brand
equity, 22 out of 74 (29,7%) considered strategic CSR important. Of the respondents
in the high brand equity category 46 out of 118 (38,9%) considered strategic CSR
important. Both high and low brand equity had quite low connection to strategic CSR.
11.7 Ethical CSRHypothesis showed that there are a weak positive relationship between ethical CSR
and brand equity. According to Lantos (2002) companies have moral obligation to
help less fortunate people in society, people with drug addiction or disabilities. This
correlates with what the respondents thought about they considered important. Within
the ethical CSR there are three different questions, prevent crime, work against
discrimination and create more jobs for disabled. All this three questions was
something the respondents considering important i.e. CRM. The first question of what
the respondent’s thinks about franchise companies that are trying to prevent crime
answered 71% of the respondents that this was something they considered important.
The second question regarding work against discrimination answered 90%
respondents that this is something they found important for companies to work
against. The last question in ethical CSR was to create more jobs for disabled
answered 81% of the respondents that this was something the found important. In the
crosstab results between brand equity and ethical CSR p= 0,099. Of the respondents
in the low brand equity, 51 out of 74 (68,9%) considered ethical CSR important. Of
the respondents in high brand equity was it 97 out of 118 (82,2%) that considered
ethical CSR important.
11.8 Altruistic CSRThe results from the hypothesis show that there is a weak positive relationship
between altruistic CSR and brand equity. Questions of altruistic CSR were focused
on supporting and sharing with local clubs. As Lantos (2002) describes Altruistic CSR
are companies that are good stewards in their communities i.e. CRM. Which are then
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met with strengthen relationships within the community and also better image and
attitude from the community's side i.e. Brand equity. The respondents of the survey
thought this was third most important type of CSR companies should be involved in.
The highest score within this category that they found important was supporting local
events (69%), rather than sport clubs or other associations 65% and 63%. The results
between brand equity and altruistic CSR were p= 0,520. Of the respondents in low
brand equity, 41 out of 74 (55,4%) considered altruistic CSR important. Of the
respondents in the high brand equity category 67 out of 118 (56,7%) considered
altruistic CSR important.
11.9 Environmental CSRTesting of the hypothesis between environmental CSR and brand equity showed a
weak positive relationship. Environmental CSR is reflected in an increase in stock
value, a positive image of the company and show positive signs in innovation
(Flammer, 2013). The respondents’ level of importance was very high in this category
of CSR. Recycling measured a total of 92% from the respondents that either thought
this was important or very important. To care for the environment is something all of
the fast food companies does, and like to point out on their websites concerning CSR
activities. The results between brand equity and environmental CSR were p= 0,064.
Regarding to respondents in low brand equity, 59 of the total 74 (79,7%) considered
environmental CSR important. Of the respondents in high brand equity 103 out of the
118 (87,3%) considered environmental CSR important i.e. CRM.
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12 Conclusion and contribution
12.1 ConclusionThere is a positive significant relationship between CSR and brand equity in this
study around fast food companies. The relationship is weak according to Pearson's
correlations test. The ethical, altruistic and environmental relationships were weakly
positive except strategic whom is moderate positive.
The purpose was to investigate the importance of philanthropic CSR activities on
local level and see if these activities can be used to strengthen fast food companies’
brand equity. Research has shown that fast food companies are involved in different
kinds of philanthropic CSR activities i.e. CRM.
What part of brand equity has to be dealt with first? The fast food franchise
companies are already prioritizing the right things within philanthropic CSR
according to our survey (such as work against discrimination, creating jobs for
disabled and recycling etc.). Most of the other questions regarding brand equity had
between 55% to 70% of the respondents saying that it was important or very
important to them except the awareness questions. As authors, we believe that the
level of awareness is too low, for CSR to affect brand equity the level of awareness
needs increase to motivate internal stakeholders for further investments in
philanthropic CSR and to get more response from local citizen. To increase the
customers awareness of CSR activities can be done through advertising and other
information sharing channels.
What are the important factors in building brand equity with philanthropic CSR
activities? The results from the crosstab test show the relationship between “high” and
“low” brand equity and what the level of importance the CSR activities have to the
respondents. The strongest factor is the involvement in environmental CSR where the
frequency test showed importance between 85% and 90% in the different categories.
Where the crosstab test showed that 87.3% of high brand equity respondents also
considered environmental CSR important.
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Ethical CSR showed the same tendencies as environmental where 82,2% of those in
the high brand equity respondents thought that ethical CSR is important.
Regarding to the important factors in building brand equity with philanthropic CSR
activities, the most vital factor is that the customer with a high brand equity
considering the CSR activities more. The results from the crosstab test showed that
the respondents with high brand equity have easier to appreciate the engagement fast
food restaurants have in philanthropic CSR. Low brand equity respondents cannot be
excluded because many of them also consider philanthropic CSR important. As
previously mentioned there are different parts of brand equity that are also important
to work with within themselves.
How important is the focus on local activities for franchised fast food companies
when it comes to the philanthropic CSR activities? It was not a clear YES rather
“Both” on the questions that the respondents in Kronoberg would like to see a local
rather than a worldwide engagement in philanthropic CSR activities was the focus on
local activities not essential. What the fast food companies do is right with their
CRM, they focus their donations on ethical issues on local level and environmental on
broader scale.
12.2 Contributions to the fieldCause related marketing theory states that the CSR activities should be aligned with
the company's business to create a win win situation. The authors want to add CRM to
what Carroll (1979) and Wood (1991) about the importance of CSR activities
connection to customers, that company activities also are aligned with these. From
research during this project is it clear that all of the fast food companies are involved
in taking care of the environment since food and nature is closely related to the
environment. This makes our respondents opinion, the CSR activities and business
activities aligned within the fast food industry. With these aligned and an increase in
awareness will hopefully enhance brand equity.
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According to the theory there is a connection between the theory CRM and the
companys brand equity (Koschate et al 2012). The respondents answered that a
brand's reputation have an influence on their image to the brand and are a crucial
factor when they chose fast food restaurant. The connection between these two
theories shows that it is very important that the company focusing on the right activity
that the target market finds important, if the brand focusing on the wrong CSR
activities can this get negative effects on the market shares because this isn’t
something the customer considering important i.e. CRM. Regarding to the survey who
showed that the respondents had a high influence from the reputation which is an
important factor in CRM is the solution that the they brand needs to have a clear
knowledge about what the customers care about and finds important regarding CSR
activities when they works with CRM.
13 Managerial suggestion
For managers to take into consideration is that not all regions face the same problems
and the local adaptation is important. Managers have to address the social problems
and what stakeholders think is important aligned with the franchise company’s
business activities or affect on the community. Important for the respondents and for
the franchisor are working with ethical issues and discrimination at the local
restaurant i.e. CRM. This category score high on the importance scale.
The results indicated low level of awareness in our study of fast food companies’
involvement in CSR. The authors would like to give the suggestion to managers to
make the customers more aware of what the individual fast food company does for
the community and/or the world. This can be made through campaigns or different
kinds of advertising in different media channels or in the local restaurant. Regarding
to that the respondents rather seen a local and a worldly engagement in CSR thought
to be because the respondents think that we in Sweden already have a safe and fair
society and that's why they want the companies to have worldly engagement.
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14 Limitation and further studies
Suggestions for further studies are to raise the communication and awareness aspect
of CSR to the customers of these fast food restaurants. In our survey answered 34%
that they did not know about any CSR activities from fast food companies. During the
time of research did the authors visit a few of these restaurants and the authors did not
see any obvious advertising or information of CSR activities in the restaurants. It
could be seen that McDonald's have information out about the Ronald McDonald
house for children in their restaurant. The rest of the fast food restaurants are keeping
the CSR information on their websites.
Our survey showed results that both local and worldwide CSR engagement was
important. We think it would be interesting to deeper into why people think this way
or those who said that companies should only focus on helping other countries. One
of our original thoughts were that it would be interesting to see if companies could
help out in the community where the government funds fell short. Is the standard of
living that high in Sweden that we should rather solve problems in other countries
then in our own?
Still further investigations needs to be made in the relationship between the franchisor
and franchisee.
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� 58
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� 60
Appendix 1
1.1 Such as KFC (Kentucky Fried Chicken) was boycotted for cramming birds into
small cages, or Canadian Farmed salmon who was treated with antibiotics whom
later leaked out in the sea and people were asked to boycott BlueQin tuna whom
was on the edge of extinction (ethicalconsumer.org).
1.2In the paragraphs above, the authors of the paper have stated the important benefits
and consequences of CSR, the lack of CSR in the franchise branches of companies a.
The companies that are in focus in this study are in the fast food industry
(McDonald's, Burger King, Max Hamburgers and Subway). All of these state on their
main website (not all on the website for the specific country, e.g Sweden) that they
encourage the franchise branch to work with CSR on local level. Subway
headquarters work with franchisees with ethical issues to eliminate any kind of
discrimination towards race, gender, sexual orientation or religion (subway.com). On
their Swedish website they communicate their CSR on larger scale such as
minimization of environmental impact of their food and just mentions small
encouragement to supporting the local community (subway.se). Max Hamburgers are
working with Samhall an organisation that intrigue people with disabilities into
society (max.se). Burger King headquarters have a consistently focus on
environmental performance, they recycling 90% of all waste in the restaurants. They
have also a strong focus on ethical and qualitative requirements; they have continuous
controls to ensure it fulfilments (Burger king Sweden 2015). McDonalds is the fast
food company that work with locally focused CSR the most. According to McDonalds
Swedish website, they want to be the local company that care for its community. They
have examples of four different franchisees that have a engagement in the local
community. They engage in local youth sports, hiring people with disabilities,
building playrooms at hospitals, and helping security guards at night which has lead
� 61
to a decrease in crime rates (mcdonalds.se). After research of academic articles and
these fast food companies’ websites there was a discovery of that there is a unclear
part of CSR that fast food companies do not market very well.
� 62
Questionnaire
1 What is you gender Demographics
2 What is your age
3 Do you live in Kronobergs län
4 McDonalds Franchised
5 Max fast food
6 Subway companies
7 Burger King
8 What do you think of franchise companies involvement in local CSR Philanthropic
9 Would you rather see local CSR involvement then World wide from franchise companies
CSR
10 Develop Växjö city Strategic
11 Create more jobs Växjö CSR
12 Cultivation of historical artefacts
13 Prevent crime and help drug abusers Ethical CSR
14 Work against discrimination
15 Create more jobs for disabled people
16 Support local sport clubs Altruistic CSR
17 Support local associations
18 Support local events
19 Prevent pollution Environmental
20 Protect environment CSR
21 Recycling
22 Is the restaurants reputation important to you when you choose fast food restaurant
23 Does media reports influence your choice of fast food restaurant
� 63
Appendix 2
Table 2.1
24 Is it important that you as a customer and the restaurants have then same values
25Would your confidence in to a fast food restaurant change if they were involved in local CSR
Brand Equity
26 Do you know any fast food restaurant that are involved in local CSR
27 Are you interested in knowing more about franchise restaurants local CSR activities
28 Is it important that a franchise company meet your expectations
29 Is it important to you that franchise companies treat their employees well
One-Sample Test
Test Value = 0
t df Sig. (2-tailed)
Mean Difference
95% Confidence Interval of the Difference
Lower Upper
FASTFOODNEW
73,399
191 ,000 3,28385 3,1956 3,3721
One-Sample Statistics
N Mean Std. Deviation Std. Error Mean
FASTFOODNEW 192 3,2839 ,61993 ,04474
� 64
Table 2.2
One-Sample Statistics
N Mean Std. Deviation
Std. Error Mean
What do you think of franchise
companies involvement in local
CSR
192 4,240 ,7893 ,0570
Would you rather see local CSR
involvement then World wide
from franchise companies
192 2,396 ,8740 ,0631
One-Sample Test
Test Value = 0
t df Sig. (2-tailed)
Mean Difference
95% Confidence Interval of the
Difference
Lower Upper
What do you think of
franchise companies
involvement in local
CSR
74,431
191 ,000 4,2396 4,127 4,352
Would you rather see
local CSR involvement
then World wide from
franchise companies
37,981
191 ,000 2,3958 2,271 2,520
� 65
Table 2.3
One-Sample Statistics
N Mean Std. Deviation
Std. Error Mean
Environmental CSR
192 4,4427 ,65803 ,04749
Ethical CSR 192 4,1632 ,64267 ,04638
Alutristic CSR 192 3,8264 ,83129 ,05999
Strategic CSR 192 3,5382 ,66206 ,04778
One-Sample Test
Test Value = 0
t df Sig. (2-tailed)
Mean Difference
95% Confidence Interval of the
Difference
Lower Upper
EnvironmentalCSR
93,552
191 ,000 4,44271 4,3490 4,5364
EthicalCSR 89,762
191 ,000 4,16319 4,0717 4,2547
AlutristicCSR 63,780
191 ,000 3,82639 3,7081 3,9447
StrategicCSR 74,052
191 ,000 3,53819 3,4440 3,6324
One-Sample Statistics
N Mean Std. Deviation
Std. Error Mean
Image 192 3,6563 ,89884 ,06487
Identitiy 192 3,5885 ,81701 ,05896
awareness 192 2,5547 ,89406 ,06452
attitude 192 4,1120 ,71937 ,05192
One-Sample Test
Test Value = 0
� 66
Table 2.4
Cronbach’s Alpha Test Tables
Strategic CSR 2.5
Ethical CSR 2.6
Altruistic CSR 2.7
t df Sig. (2-tailed)
Mean Difference
95% Confidence Interval of the Difference
Lower Upper
Image 56,364
191 ,000 3,65625 3,5283 3,7842
Identity 60,861
191 ,000 3,58854 3,4722 3,7048
Awareness
39,593
191 ,000 2,55469 2,4274 2,6820
Attitude 79,204
191 ,000 4,11198 4,0096 4,2144
Reliability Statistics
Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items
,601 ,598 3
Reliability Statistics
Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items
,626 ,635 3
Reliability Statistics
Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items
,877 ,877 3
� 67
Environmental CSR 2.8
Brand Equity 2.9
ANOVA Test
Table 2.10
Reliability Statistics
Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items
,835 ,838 3
Reliability Statistics
Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items
,710 ,718 8
ANOVA
Sum of Squares df Mean Square F Sig.
Strategic Between Groups 24,772 21 1,180 2,508 ,001
Within Groups 79,950 170 ,470
Total 104,722 191
Ethical Between Groups 19,461 21 ,927 2,237 ,003
Within Groups 70,441 170 ,414
Total 89,902 191
Altruistic Between Groups 29,180 21 1,390 1,962 ,010
Within Groups 120,389 170 ,708
Total 149,569 191
Environmental Between Groups 16,494 21 ,785 1,894 ,014
Within Groups 70,492 170 ,415
Total 86,986 191
� 68
Pearson’s r
� 69
Descriptive Statistics
Mean Std. Deviation N
Brand Equity 3,4779 ,58041 192
Strategic 3,5295 ,74046 192
Ethical 4,1441 ,68607 192
Altruistic 3,8003 ,88492 192
Environmental 4,4358 ,67485 192
Correlation
Brand Equity
Strategic Ethical Altruistic Environmental
Brand Equity Pearson Correlation
1 ,345** ,238** ,206** ,211**
Sig. (2-tailed)
,000 ,001 ,004 ,003
N 192 192 192 192 192
Strategic Pearson Correlation
,345** 1 ,446** ,308** ,366**
Sig. (2-tailed)
,000 ,000 ,000 ,000
N 192 192 192 192 192
Ethical Pearson Correlation
,238** ,446** 1 ,368** ,522**
Sig. (2-tailed)
,001 ,000 ,000 ,000
N 192 192 192 192 192
Altruistic Pearson Correlation
,206** ,308** ,368** 1 ,252**
Sig. (2-tailed)
,004 ,000 ,000 ,000
N 192 192 192 192 192
Environmental Pearson Correlation
,211** ,366** ,522** ,252** 1
Sig. (2-tailed)
,003 ,000 ,000 ,000
N 192 192 192 192 192
**. Correlation is significant at the 0.01 level (2-tailed).
� 70
Table 2.11
� 71
Crosstab test
Environment CSR and Brand Equity
Table 2.12
Crosstab
Brand Equity Total
Low High
EnviroCSR
Less important
Count 3 0 3
% within EnviroCSR 100,0% 0,0% 100,0%
% within brand equity 4,1% 0,0% 1,6%
Neither
Count 12 15 27
% within Enviro CSR 44,4% 55,6% 100,0%
% within brand equity 16,2% 12,7% 14,1%
Important
Count 59 103 162
% within Enviro CSR 36,4% 63,6% 100,0%
% within brand equity 79,7% 87,3% 84,4%
Total
Count 74 118 192
% within Enviro CSR 38,5% 61,5% 100,0%
% within brand equity 100,0% 100,0% 100,0%
Chi-Square Tests
Value df Asymp. Sig.
(2-sided)
Pearson Chi-Square 5,489a 2 ,064
Likelihood Ratio 6,421 2 ,040
Linear-by-Linear
Association
3,515 1 ,061
N of Valid Cases 192
a. 2 cells (33,3%) have expected count less than 5. The minimum
expected count is 1,16.
� 72
Strategic CSR VS Brand Equity
Table 2.13
Crosstab
Brand Equity Total
low high
stratCSR
less important
Count 15 11 26
% within strategic
CSR
57,7% 42,3% 100,0%
% within brand equity 20,3% 9,3% 13,5%
neither
Count 37 61 98
% within strategic
CSR
37,8% 62,2% 100,0%
% within brand equity 50,0% 51,7% 51,0%
important
Count 22 46 68
% within strategic
CSR
32,4% 67,6% 100,0%
% within brand equity 29,7% 39,0% 35,4%
Total
Count 74 118 192
% within strategic
CSR
38,5% 61,5% 100,0%
% within brand equity 100,0% 100,0% 100,0%
Chi-Square Tests
Value df Asymp. Sig.
(2-sided)
Pearson Chi-Square 5,151a 2 ,076
Likelihood Ratio 5,038 2 ,081
Linear-by-Linear
Association
4,180 1 ,041
N of Valid Cases 192
a. 0 cells (0,0%) have expected count less than 5. The minimum expected
count is 10,02.
� 73
Altruistic CSR vs. Brand Equity
Table 2.14
Crosstab
brandequity Total
low high
Altruistic
CSR
less important
Count 10 10 20
% within Autistic CSR 50,0% 50,0% 100,0%
% within brand equity 13,5% 8,5% 10,4%
neither
Count 23 41 64
% within Altruistic
CSR
35,9% 64,1% 100,0%
% within brand equity 31,1% 34,7% 33,3%
very important
Count 41 67 108
% within Altruistic
CSR
38,0% 62,0% 100,0%
% within brand equity 55,4% 56,8% 56,3%
Total
Count 74 118 192
% within Altruistic
CSR
38,5% 61,5% 100,0%
% within brand equity 100,0% 100,0% 100,0%
Chi-Square Tests
Value df Asymp. Sig.
(2-sided)
Pearson Chi-Square 1,307a 2 ,520
Likelihood Ratio 1,279 2 ,528
Linear-by-Linear
Association
,408 1 ,523
N of Valid Cases 192
a. 0 cells (0,0%) have expected count less than 5. The minimum expected
count is 7,71.
� 74
Ethical CSR vs Brand Equity
Table 2.15
Crosstab
Brand equity Total
low high
Ethic
CSR
less important
Count 4 3 7
% within ethic CSR 57,1% 42,9% 100,0%
% within brand equity 5,4% 2,5% 3,6%
neither
Count 19 18 37
% within Ethic CSR 51,4% 48,6% 100,0%
% within brand equity 25,7% 15,3% 19,3%
very important
Count 51 97 148
% within ethic CSR 34,5% 65,5% 100,0%
% within brand equity 68,9% 82,2% 77,1%
Total
Count 74 118 192
% within ethic CSR 38,5% 61,5% 100,0%
% within brand equity 100,0% 100,0% 100,0%
Chi-Square Tests
Value df Asymp. Sig.
(2-sided)
Pearson Chi-Square 4,627a 2 ,099
Likelihood Ratio 4,534 2 ,104
Linear-by-Linear
Association
4,402 1 ,036
N of Valid Cases 192
a. 2 cells (33,3%) have expected count less than 5. The minimum expected
count is 2,70.
� 75
Frequencies test
Develop växjö city table 2.15Frequency Percent Valid Percent Cumulative
Percent
Valid
Not
important
13 6,8 6,8 6,8
Less
important
36 18,8 18,8 25,5
Don’t care 65 33,9 33,9 59,4
Important 68 35,4 35,4 94,8
Very
important
10 5,2 5,2 100,0
Total 192 100,0 100,0
Create more jobs in Växjö table 2.16Frequency Percent Valid Percent Cumulative
Percent
Valid
Not important 5 2,6 2,6 2,6
Less
important
4 2,1 2,1 4,7
Don’t care 17 8,9 8,9 13,5
Important 100 52,1 52,1 65,6
Very
important
66 34,4 34,4 100,0
Total 192 100,0 100,0
Save cultural artefacts table 2.17 Frequency Percent Valid Percent Cumulative
Percent
Valid
Not important 10 5,2 5,2 5,2
Less
important
36 18,8 18,8 24,0
Don’t care 58 30,2 30,2 54,2
� 76
ValidImportant 59 30,7 30,7 84,9
Very
important
29 15,1 15,1 100,0
Total 192 100,0 100,0
� 77
Prevent crime table 2.18Frequency Percent Valid Percent Cumulative Percent
Valid
Not Important 4 2,1 2,1 2,1
Less Important 13 6,8 6,8 8,9
Don’t care 37 19,3 19,3 28,1
Important 81 42,2 42,2 70,3
Very Important 57 29,7 29,7 100,0
Total 192 100,0 100,0
Work against discrimination table 2.19Frequency Percent Valid Percent Cumulative Percent
Valid
Not Important 3 1,6 1,6 1,6
Less Important 5 2,6 2,6 4,2
Don’t care 12 6,3 6,3 10,4
Important 73 38,0 38,0 48,4
Very Important 99 51,6 51,6 100,0
Total 192 100,0 100,0
Create jobs for disabled people table 2.20Frequency Percent Valid Percent Cumulative Percent
Valid
Not Important 4 2,1 2,1 2,1
Less Important 4 2,1 2,1 4,2
Don’t care 29 15,1 15,1 19,3
Important 73 38,0 38,0 57,3
Very Important 82 42,7 42,7 100,0
Total 192 100,0 100,0
� 78
Sponsor youth clubs table 2.21Frequency Percent Valid Percent Cumulative Percent
Valid
Not Important 7 3,6 3,6 3,6
Less Important 12 6,3 6,3 9,9
Don’t care 49 25,5 25,5 35,4
Important 72 37,5 37,5 72,9
Very Important 52 27,1 27,1 100,0
Total 192 100,0 100,0
Sponsor other clubs table 2.22Frequency Percent Valid Percent Cumulative Percent
Valid
Not Important 5 2,6 2,6 2,6
Less Important 15 7,8 7,8 10,4
Don’t care 50 26,0 26,0 36,5
Important 71 37,0 37,0 73,4
Very Important 51 26,6 26,6 100,0
Total 192 100,0 100,0
Sponsor local events table 2.23Frequency Percent Valid Percent Cumulative Percent
Valid
Not Important 3 1,6 1,6 1,6
Less Important 11 5,7 5,7 7,3
Don’t care 46 24,0 24,0 31,3
Important 84 43,8 43,8 75,0
Very Important 48 25,0 25,0 100,0
Total 192 100,0 100,0
� 79
Prevent environmental pollution table 2.24 Frequency Percent Valid Percent Cumulative Percent
Valid
Not Important 2 1,0 1,0 1,0
Less Important 4 2,1 2,1 3,1
Don’t care 16 8,3 8,3 11,5
Important 59 30,7 30,7 42,2
Very Important 111 57,8 57,8 100,0
Total 192 100,0 100,0
Help the nature 2.25Frequency Percent Valid Percent Cumulative Percent
Valid
Not Important 2 1,0 1,0 1,0
Less Important 5 2,6 2,6 3,6
Don’t care 21 10,9 10,9 14,6
Important 58 30,2 30,2 44,8
Very Important 106 55,2 55,2 100,0
Total 192 100,0 100,0
Recycling table 2.26Frequency Percent Valid Percent Cumulative Percent
Valid
Don’t care 16 8,3 8,3 8,3
Important 59 30,7 30,7 39,1
Very Important 117 60,9 60,9 100,0
Total 192 100,0 100,0
� 80
Is the reputation important to you table 2.27Frequency Percent Valid Percent Cumulative Percent
Valid
Not Important 5 2,6 2,6 2,6
Less Important 16 8,3 8,3 10,9
Don’t care 34 17,7 17,7 28,6
Important 101 52,6 52,6 81,3
Very Important 36 18,8 18,8 100,0
Total 192 100,0 100,0
Are you influenced by media table 2.28Frequency Percent Valid Percent Cumulative Percent
Valid
Not Important 12 6,3 6,3 6,3
Less Important 22 11,5 11,5 17,7
Don’t Care 38 19,8 19,8 37,5
Important 89 46,4 46,4 83,9
Very Important 31 16,1 16,1 100,0
Total 192 100,0 100,0
Is it important that you and the fast food restaurant have the same values Table 2.29
Frequency Percent Valid Percent Cumulative Percent
Valid
Not Important 18 9,4 9,4 9,4
Less Important 11 5,7 5,7 15,1
Don’t care 58 30,2 30,2 45,3
Important 79 41,1 41,1 86,5
Very Important 26 13,5 13,5 100,0
Total 192 100,0 100,0
� 81
Faith in the restaurant change if involved in CSR Table 2.30 Frequency Percent Valid
Percent
Cumulative Percent
Valid
Not Important 6 3,1 3,1 3,1
Less Important 11 5,7 5,7 8,9
Don’t care 40 20,8 20,8 29,7
Important 105 54,7 54,7 84,4
Very Important 30 15,6 15,6 100,0
Total 192 100,0 100,0
Do you know any fast food restaurant working with CSR Table 2.31Frequency Percent Valid
Percent
Cumulative Percent
Valid
Not Important 64 33,3 33,3 33,3
Less Important 61 31,8 31,8 65,1
Don’t care 42 21,9 21,9 87,0
Important 23 12,0 12,0 99,0
Very Important 2 1,0 1,0 100,0
Total 192 100,0 100,0
Do you want to know more about fast food restaurant involvement in CSR Table 2.32
Frequency Percent Valid
Percent
Cumulative Percent
Valid
Not Important 36 18,8 18,8 18,8
Less Important 34 17,7 17,7 36,5
Don’t care 39 20,3 20,3 56,8
Important 69 35,9 35,9 92,7
Very Important 14 7,3 7,3 100,0
Total 192 100,0 100,0
� 82
Is it important that te restaurant live up to your expectations Table 2.33
Frequency Percent Valid
Percent
Cumulative Percent
Valid
Not Important 4 2,1 2,1 2,1
Less Important 5 2,6 2,6 4,7
Don’t care 49 25,5 25,5 30,2
Important 96 50,0 50,0 80,2
Very Important 38 19,8 19,8 100,0
Total 192 100,0 100,0
Important that the franchise company treat their employees well Table 2.34
Frequency Percent Valid
Percent
Cumulative Percent
Valid
Not Important 2 1,0 1,0 1,0
Less Important 5 2,6 2,6 3,6
Don’t care 15 7,8 7,8 11,5
Important 63 32,8 32,8 44,3
Very Important 107 55,7 55,7 100,0
Total 192 100,0 100,0
Statistics table 2.35McDonalds MAX Subway BurgerKing
NValid 192 192 192 192
Missing 0 0 0 0
Mean 3,010 3,604 3,323 3,167
Std. Deviation 1,0634 ,9207 ,9378 ,9939
Minimum 1,0 1,0 1,0 1,0
Maximum 5,0 5,0 5,0 5,0
� 83
� 84
McDonalds table 2.36Frequency Percent Valid Percent Cumulative
Percent
Valid
Bad 16 8,3 8,3 8,3
Less
important
50 26,0 26,0 34,4
Don’t care 51 26,6 26,6 60,9
Good 66 34,4 34,4 95,3
Very good 9 4,7 4,7 100,0
Total 192 100,0 100,0
MAX table 2.37Frequency Percent Valid Percent Cumulative
Percent
Valid
Bad 2 1,0 1,0 1,0
Less
important
25 13,0 13,0 14,1
Don’t care 47 24,5 24,5 38,5
Good 91 47,4 47,4 85,9
Very good 27 14,1 14,1 100,0
Total 192 100,0 100,0
Subway table 2.38Frequency Percent Valid Percent Cumulative
Percent
Valid
Bad 5 2,6 2,6 2,6
Less
important
32 16,7 16,7 19,3
Don’t care 67 34,9 34,9 54,2
Good 72 37,5 37,5 91,7
Very good 16 8,3 8,3 100,0
� 85
Total 192 100,0 100,0
� 86
BurgerKing table 2.39Frequency Percent Valid Percent Cumulative
Percent
Valid
Bad 8 4,2 4,2 4,2
Less
important
42 21,9 21,9 26,0
Don’t care 67 34,9 34,9 60,9
Good 60 31,3 31,3 92,2
Very good 15 7,8 7,8 100,0
Total 192 100,0 100,0
What do you think of companies involved in CSR tabel 2.40Frequency Percent Valid Percent Cumulative
Percent
Valid
Bad 1 ,5 ,5 ,5
Less bad 2 1,0 1,0 1,6
Don’t care 30 15,6 15,6 17,2
Good 76 39,6 39,6 56,8
Very good 83 43,2 43,2 100,0
Total 192 100,0 100,0
Local vs the world table 2.41Frequency Percent Valid Percent Cumulative
Percent
Valid
Yes 50 26,0 26,0 26,0
No 16 8,3 8,3 34,4
Both are
important
126 65,6 65,6 100,0
� 87
Total 192 100,0 100,0
� 88
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