Todd Green Proposed Table of Contents BUS982 September 26th, 2010 TABLE OF CONTENTS Heading Abstract General Dissertation Introduction Description General introduction of the three papers including discussion of different methodologies being used to examine CSR from the point of view of consumers and firms Begins with discussion of growing importance of CSR in the corporate and size of markets such as eco-friendly products and fair-trade that are included in the CSR umbrella. Page Number (s) 2 3-6 I next used a commonly agreed definition from the CSR literature to introduce the concept and how I have chosen to define it: McWilliams and Siegel (2001) define CSR “actions taken by the firm intended to further social goods beyond the direct interests of the firm and that which is required by law.” Discussion of variety of CSR activities that firms engage in and the literature that has examined the consumer response to CSR. Paper 1: Title Page Introduction General introduction to each of the three papers included in the dissertation. WHEN THE GOING GETS TOUGH, DO THE TOUGH KEEP GIVING? ADVERTISING CORPORATE SOCIAL RESPONSIBILITY DURING A RECESSION The recent global recession represented harsh economic conditions not experienced since the Great Depression of the 1930’s and resulted in businesses having to make difficult tradeoffs and shift their priorities. The decision to remain committed to corporate social responsibility (CSR) initiatives such as corporate donations, employee volunteerism, and green energy initiatives represent examples of the difficult decisions managers were faced with during the recession. (Note: this is a direct excerpt from the introduction). The introduction section continues 7 8-11 Literature Review: a) CSR communications in a Recession and b) Changes in CSR strategy during a recession to discuss how recessions have tended to diminish the level of interest in CSR and that currently there are mixed messages amongst managers as to whether CSR will remain a high priority. Moving beyond whether CSR itself is important, different forms of CSR (different activities) such as philanthropy have been shown to be less strategic. This section outlines the contributions to the literature such as providing a complement to Green and Peloza’s (2011) study of CSR and the consumer response to the recession and the systematic review of actual firm behaviour through examining their advertisements overcomes the attitude-behaviour gap. These sections examine how advertising is impacted during a recession in general (i.e. tends to decrease); also examine the different levels of importance of different forms of CSR. The discussion leads to the following hypotheses at the end of each respective section: 11-16 H1: The ratio of CSR-related messages to non-CSR messages in advertisements will be lower during recessionary periods than in periods of economic growth. H2: The ratio of product-related CSR-related messages that create self-oriented value to those that provide otheroriented value with be higher during recessionary periods than in periods of economic growth. Method Sample Coding Categories Unit of Analysis Data Analysis Discussion of content analysis in terms of general description of why it is appropriate, how it has been used before in marketing and CSR specifically Discussion of the magazines selected to be included in this study and why magazines represent a good advertising mechanism to study. This includes discussion of how independent judges will be trained to code a set of advertisements and reliability measures will be taken. I have developed coding categories across the types of CSR activities, industry, type of advertisement (CSRrelated vs. non-CSR related), before, during, after recession and the type of product in the advertisement. This outlines the statistical treatment to be completed on the data. Examples include chi-square test to determine if the proportion of CSR-related advertisements decreased during the recession compared to before and will also be conducted on the proportions of the types of CSR activities advertised during the recession. 16 17 17-18 18-19 19-20 Implications Paper 2: Title Introduction Lit review Study 1: Study 2: Discussion of implications for managers and researchers. One example is that previous CSR research has found that commitment to CSR is an important variable when determining consumer attributions of why the company engaged in CSR. For example, a company that chose to discontinue CSR in the recession could be viewed as not being committed to CSR and receive an egoistic attribution as to why they previously engaged in CSR. THE IMPACT OF ORGANIZATION SIZE ON THE CONSUMER RESPONSE TO CSR Discussion of consumer support for CSR based on literature; general trend towards monitoring how companies are behaving, specifically their social responsibility and this trend is magnified for large firms; despite focus on large firms in the literature, evidence exists that small firms are also engaging in CSR; outline of contributions i.e. consumer response has not been examined in previous literature and based on the sheer size of the small business sector in the US alone (29 million companies), it is an important sector to examine. Early discussion of the role of expectations and attributions in CSR literature and differences between small and large firms. Discussion of expectations and attributions from the CSR literature i.e. what role does expectations play, how has it been studied, some high level findings and same for attributions but also includes discussion of the types of attributions consumers have and the impact on the consumer response to CSR. This includes discussion of the objectives of the first study. In recent discussions I have had with John, this might become a pre-test to determine that expectations are generally lower for small businesses compared to large when it comes to engaging in CSR. Another objective is to show that consumers rate small businesses as socially responsible without them doing anything (i.e. halo effect of being small). I also will incorporate interview findings from my study before that suggested expectations are much lower for small businesses. This section will also outline how I will conduct the study, the # of participants, the measures (i.e. company evaluations, expectations adapted from previous studies, purchase intentions) The purpose of this study is to examine how consumers respond to small and large firms when they either have a positive third-party evaluation of their CSR record or a 20-22 23 24-27 27-33 33-35 36-38 Study 3: Study 4: Implications Paper 3: Introduction Lit Review Study 1 negative evaluation of their CSR record. Another objective is to introduce the role of attributions that consumers make as to why firms engage in socially responsible or irresponsible behaviour and examine the differences in attributions between small and large firms. This study will follow the methodology and procedure of Study 2 but instead will use a repeated-measures design and use a choice task as an outcome variable in order to address the attitude-behaviour gap. Currently this study is included to examine whether large businesses are evaluated more positively when they engage in local-level CSR activities versus nation-wide. Initially, it was going to be a 2x2 with small/large x local/national but I think this might come out to be honest and I will discuss this in class further if it makes sense. This will naturally flow from the findings but I think one implication will be for future research to consider including small businesses in the literature. CARROTS AND STICKS: THE EFFECTS OF FRAMING ON CONSUMER CONSERVATION BEHAVIORS Discussion of my own personal motivation to conduct the paper related to introduction of plastic bag fees at Shoppers’ Drug Mart and discussion of how I don’t tend to bring my own mug and the interest to better understand this. Discussion of how CSR activities can be intended to change consumption behaviour that results in a positive environmental outcome and how firms can choose to frame these initiatives as a gain or loss. I will also outline the contributions included a unique methodology Discussion of initial use of prospect theory (Tversky and Kahneman); how prospect theory has been used in marketing studies and CSR more specifically. So far I have read one instance of prospect theory being related to CSR and it is related to the idea of a reference point for consumers (being ethical) and exceeding expectations is viewed as a gain by consumers and not meeting them is viewed as a loss by consumers. I will also include the discussion of carrots and sticks literature I have read related to curbing consumer behaviour, specifically related to the environment. This experiment is intended to determine whether a CSR activity that is framed as a gain or a loss is more effective in terms of its impact on consumers’ behaviour. Participants will be invited to be involved in a taste test in exchange for $2 and a chance to be involved in tasting a 38-39 TBD 40-42 43-46 46-54 55-57 Study 2 Implications Reference List new flavour of coffee that is being introduced on campus. The participants will be divided into either a gain condition (they get $2.10 if they bring their own mug) and a loss condition (they get $1.90 if they don’t bring their own mug). The company description will not vary outside of whether they provide a discount or a surcharge for the use of your own mug or using one of their own. I will record the proportion in each condition that brings the mug and capture company evaluation measures, attributions and taste evaluations I plan to replicate this study but in a cafe setting with consumers outside of the student population and follow the same procedure. Again, these will flow out of the findings but the high level implication I envision including here is related to how framing impacts the compliance by consumers to engage in behaviour that has a positive impact on the environment and how firms are viewed who choose to either try to invoke change through either a carrot or stick approach. Sorry for the mess everyone but I have been working on each paper individually (maybe a bad idea) and have listed the references by paper. The framing paper has a bunch more that I have been drawing from and have not yet listed. 57-59 60-62 62-74 REFERENCES (Content Analysis Paper) Aaker, David A., Rajeev Batra and John G. Myers (1992), Advertising Management, Engelwood Cliffs, NJ: Prentice Hall Aguilera, Ruth V., Deborah E. Rupp, Cynthia A. Williams, and Jyoit Ganapathi (2007), “Putting the S back in corporate social responsibility: A multilevel theory of social change in organizations,” Academy of Management Review, 32 (3), 836-63. Ang Swee Hoon, Siew Meng Leong, and Philip Kotler (2000), “The Asian Apocalypse: Crisis Marketing for Consumers and Businesses,” Long Range Planning, 33, 97-119. Auger, Pat, Paul F. Burke, Timothy M. Devinney, and Jordan J. Louviere (2003), “What Will Consumers Pay for Social Product Features?” Journal of Business Ethics, 42: 281-304. Auger, Pat, Timothy M. Devinney, Jordan J. Louviere and Paul F. Burke (2008), Do social product features have value to consumers? International Journal of Research in Marketing, 25, 183-191. Barnett, Michael L. (2007). Stakeholder influence capacity and the variability of financial returns to corporate social responsibility. Academy of Management Review, 32 (3), 794-816. Bhattacharya, C. B., Daniel Korschun and Sankar Sen (2009), "Strengthening Stakeholder– Company Relationships through Mutually Beneficial Corporate Social Responsibility Initiatives," Journal of Business Ethics, 85, 257–272 Bhattacharya, C.B., and Sankar Sen (2004) “Doing Better at Doing Good: When, Why, and How Consumers Respond to Corporate Social Initiatives,” California Management Review, 47 (1), 9-24 Brown, Tom J. and Peter A. Dacin (1997), "The Company and the Product: Corporate Associations and Consumer Product Responses," Journal of Marketing, 61 (January), 6884. Carrigan, Marylyn and Ahmad Attalla (2001) "The Myth of the Ethical Consumer - Do Ethics Matters in Purchase Behaviour? Journal of Consumer Marketing, 18 (7), 560-577. Castaldo, Sandro , Francesco Perrini, Nicola Misani, and Antonio Tencati (2009), "The Missing Link Between Corporate Social Responsibility and Consumer Trust: The Case of Fair Trade Products " Journal of Business Ethics, 84, 1-15. Chou, Ting-Jui and Fu Tang Chen (2004) “Retail Pricing Strategies in Recession Economies: The Case of Taiwan.” Journal of International Marketing, 12 (1), 82-102 CNNMoney.com (2009), “Surprising survivors: Corporate do-gooders,” (January 20, 2009), [Available at: http://money.cnn.com/2009/01/19/magazines/fortune/do_gooder.fortune/index.htmhttp:// money.cnn.com/2009/01/19/magazines/fortune/do_gooder.fortune/index.htm] Cone Inc. 2008. Cone Cause Evolution Study. [Available at: http://www.coneinc.com/stuff/contentmgr/files/0/deb4642e2d1bd5c2318798b306b1ca50/ files/cause_and_cr_endure_despite_recession_march_2009.pdf.] De Boer, Joop, (2003), “Sustainability labelling schemes: The logic of their claims and their functions for stakeholders,” Business Strategy and the Environment, 12, 254-264. Drumwright, Minette E. (1996), “Company Advertising with a Social Dimension: The Role of Noneconomic Criteria,” Journal of Marketing, 60 (October), 71-87. Du, Shuili., C.B. Bhattacharya, and Sankar Sen (2010), “Maximizing Business Returns to Corporate Social Responsibility (CSR): The Role of CSR Communication,” International Journal of Management Reviews, 8-19. Economist (2009), “A Stress Test for Good Intentions,” May 14. Ellen, Pam S., Deborah J. Webb and Lois A. Mohr, (2006) “Building Corporate Associations: Consumers Attributions for Corporate Socially Responsible Programs,” Journal of the Academy of Marketing Science, 34 (2), 147-157. Green, Todd and John Peloza, (2011) “How Does Corporate Social Responsibility Create Value For Consumers?,” Journal of Consumer Marketing, 28 (forthcoming). Halme, Minna and Julia Laurilla, (2009), “Philanthropy, Integration or Innovation? Exploring the Financial and Societal Outcomes of Different Types of Corporate Responsibility,” Journal of Business Ethics, 84, 325-339. Hillman, Amy J. and Gerald D. Keim (2001), “Shareholder Value, Stakeholder Management and Social Issues: What’s the Bottom Line?” Strategic Management Journal, 22, 125-139. Huhmann, Bruce A. And Timothy P. Brotherton (1997), “A Content Analysis of Guilt Appeals in Popular Magazine Advertisements,” Journal of Advertising, 26 (2), 35-45. Holbrook TBD. Kassarjian, Harold H. (1977), “Content analysis in consumer research,” Journal of Consumer Research, 4(June), 8-18. Katona George (1974), “Psychology and Consumer Economics,” Journal of Consumer Research, 1 (1), 1-8. Kolbe, Richard H. and Melissa S. Burnett (1991), “Content-analysis research: An examination of applications with directives for improving research reliability and objectivity,” Journal of Consumer Research, 18(Sept), 243-250. Lantieri, Tara and Larry Chiagouris (2009). “Brand trust in an age without trust: expert opinions.” Journal of Consumer Marketing, 26 (2), 78-86. Luo, Xueming and C.B. Bhattacharya, (2006), “Corporate Social Responsibility, Customer Satisfaction, and Market Value,” Journal of Marketing, 70 (October), 1-18. Maignan, Isabelle. (2001), “Consumers” Perceptions of Corporate Social Responsibilities: A Cross-Cultural Comparison,” Journal of Business Ethics, 30 (1), 57-72. Maignan, Isabelle, and O.C. Ferrell (2004), “Corporate Social Responsibility and Marketing: An Integrative Framework,” Journal of the Academy of Marketing Science, 32 (1), 3-19. Maignan, Isabelle and David A. Ralston (2002), “Corporate Social Responsibility in Europe and the United States: Insights from Businesses’ Self-Presentations,” Journal of International Business Studies, 33 (3), 497-514. McWilliams, Abagail, Donald S. Siegel and Patrick M. Wright (2006), “Corporate Social Responsibility: Strategic Implications,” Journal of Management Studies, 43 (1), 1-18. Mohr, Lois. A., and Deborah J. Webb (2005), “The effects of corporate social responsibility and price on consumer responses,” Journal of Consumer Affairs, 39 (1), 121-147. Mohr, Lois. A., Deborah J. Webb and Katherine E. Harris (2001), “Do consumers expect companies to be socially responsible? The impact of corporate social responsibility on buying behavior,” Journal of Consumer Affairs, 35 (1), 45-72. Morsing, Mette, Majken Schultz and Kasper Ulf Nielsen (2008), “The ‘Catch 22’ of communicating CSR: Findings from a Danish Study,” Journal of Marketing Communications, 14 (2), 97-111. Navarro, Peter (2009), “Recession-Proofing Your Organization,” MIT Sloan Management Review, 50 (3), 45-51 Osterhus Thomas L. (1997), "Prosocial Consumer Influence Strategies: When and How Do They Work?" Journal of Marketing, 61(4), 16-29. Peattie, Ken and Andrew Crane (2005), "Green marketing: legend, myth, farce or prophesy?," Qualitative Market Research: An International Journal, 8 (4), 357-70 Peloza, John (2009), “The challenge of measuring financial impacts from investments in corporate social performance,” Journal of Management, 35 (6), 1518-1541. Picard, Robert G (2001) “Effects of Recession on Advertising Expenditures: An Exploratory Study of Economic Downturns in Nice Developed Nations,” The Journal of Media Economics, 14 (1), 1-14 Podnar, Klement (2008), “Communicating Corporate Social Responsibility,” Journal of Marketing Communications, 14 (2), 75-81. Pomering, Alan and Sara Dolnicar (2009), “Assessing the Prerequisite of Successful CSR Implementation: Are Consumers Aware of CSR Initiatives?” Journal of Business Ethics, 85, 285-301. Pracejus, John W., G. Douglas Olsen, and Norman R. Brown (2004), “On the prevalence and impact of vague quantifiers in the advertising of cause-related marketing (CRM),” Journal of Advertising, 32 (4), 19-28. Quelch, John (2008) “Marketing Your Way Through a Recession.” Harvard Business School: Working Knowledge. Reisch, L. (2006) “Communicating CSR to consumers: An empirical study. In Strategic CSR communication, edited by M. Morsing and S.C. Beckmann, 185-211. Copenhagen: DJOF Publishing. Sammer, Katharina and Rolf Wustenhagen (2006), “The Influence of Eco-Labelling on Consumer Behaviour – Results of a Discrete Analysis for Washing Machines,” Business Strategy and the Environment, 15, 185-199. Sen, Sankar, and C.B. Bhattacharya (2001), "Does Doing Good Always Lead to Doing Better? Consumer Reactions to Corporate Social Responsibility," Journal of Marketing Research, 38 (May), 225-43. Sen, Sankar, C.B. Bhattacharya and Daniel Korschun (2006). The role of corporate social responsibility in strengthening multiple stakeholder relationships: A field experiment. Journal of the Academy of Marketing Science, 34 (2), 158-166.Smith, N. Craig (2003), “Corporate Social Responsibility: Whether Or How?” California Management Review, 45 (4), 52-76. Sharma, Avraham (1978), “Management & Consumers in an Era of Stagflation,” Journal of Marketing, 42, 3 (July), 43-52. Srinivasan, Raji, Arvind Rangaswamy and Gary L. Lilien (2005), “Turning Adversity Into Advantage: Does Proactive Marketing During a Recession Pay Off?”, International Journal of Research in Marketing, 22, 109-125. Webb, D. J., & Mohr, L. A. (1998), “A typology of consumer responses to cause-related marketing: From skeptics and socially concerned,” Journal of Public Policy & Marketing, 17 (2), 226-238. Willis, James and Diane B. Willis (1993), New directions in media management, Boston: Allyn and Bacon. Yale, Laura and Mary C. Gilly (1988), “Trends in Advertising Research: A Look at the Content of Marketing-oriented Journals from 1976 to 1985,” Journal of Advertising,17 (1), 12-22. REFERENCES (for Org Size Paper) Bhattacharya, C.B., and Sankar Sen (2004), Doing Better at Doing Good: When, Why, and How Consumers Respond to Corporate Social Initiatives," California Management Review, 47 (1), 9-24 Boulstridge, E. And Marylyn Carrigan (2001), “The myth of the ethical consumer – do ethics matter in purchase behaviour?” Journal of Consumer Marketing, 18(7), 560-577. Brown, Tom J. and Peter A. Dacin (1997), "The Company and the Product: Corporate Associations and Consumer Product Responses," Journal of Marketing, 61 (January), 6884. Brunk, Katja, H. (2009, in press), “Exploring origins of ethical company/brand perceptions – A consumer perspective of corporate ethics,” Journal of Business Research. Carrigan, Marylyn, and Ahmad Attalla (2001), "The Myth of the Ethical Consumer - Do Ethics Matters in Purchase Behaviour?" Journal of Consumer Marketing, 18 (7), 560-77. Creyer, Elizabeth and William T. Ross Jr. (1997), “The Influence of Firm Behavior on Purchase Intentions: Do Consumers Really Care about Business Ethics?” Journal of Consumer Marketing, 14(6), 421-432. De Pelsmacker, Patrick, Liesbeth Driesen, and Glenn Rayp (2005), "Do Consumers Care About Ethics? Willingness to Pay for Fair-Trade Coffee," Journal of Consumer Affairs, 39 (2), 363-85. Doane, Deborah (2005). “Beyond corporate social responsibility: minnows, mammoths and markets.” Futures, 37, 215-229. Dragon International (1991), Corporate Reputation: Does the Consumer Care? Dragon International, London. Hoeffler, Steve and Kevin Lane Keller (2002), “Building Brand Equity Through Corporate Societal Marketing,” Journal of Public Policy & Marketing, 21 (2), 78-89. Industry Canada (2005), “What is an SME?” Accessed online at: http://www.smefdi.gc.ca/eic/site/sme_fdi-prf_pme.nsf/eng/01256.html Jenkins, Heledd (2006). “Small Business Champions for Corporate Social Responsibility,” Journal of Business Ethics, 67, 241-256. Johnson, Richard A., and Daniel W. Greening (1999), “The Effects of Corporate Governance and Institutional Ownership Types on Corporate Social Performance,” Academy of Management Journal, 42 (5), 163-179. Lantieri, Tara and Larry Chiagouris (2009). “Brand trust in an age without trust: expert opinions.” Journal of Consumer Marketing, 26 (2), 78-86. Laroche, Michel, Jasmin Bergeron, and Guido Barbaro-Forleo (2001), "Targeting Consumers Who Are Willing to Pay More for Environmentally Friendly Products," Journal of Consumer Marketing, 18 (6), 503-20. Lepoutre, Jan and Aime Heene (2006) Investigating the Impact of Firm Size on Small Business Social Responsibility: A Critical Review. Journal of Business Ethics, 67, 257-273. Maon, Francois, Adam Lindgreen and Valerie Swaen (2009). “Designing and Implementing Corporate Social Responsibility: An Integrative Framework Grounded in Theory and Practice. Journal of Business Ethics, 87, 71-89. Mohr, Lois A., Deborah J. Webb, and Katherine E. Harris (2001), "Do Customers Expect Companies to be Socially Responsible? The Impact of Corporate Social Responsibility on Buying Behavior," Journal of Consumer Affairs, 35 (1), 45-72. --------------, and -------------- (2005), “The Effects of Corporate Social Responsibility and Price on Consumer Responses,” Journal of Consumer Affairs, 39 (1), 121-47. Padgett, Robert C. and Jose I. Galan, (2009, in press), “The Effect of R&D Intensity on Corporate Social Responsibility,” Journal of Business Ethics, DOI 10.1007/s10551-0090230-x Pearce, J.A. and J.P. Doh (2005) “The High Impact of Collaborative Social Initiatives,” MIT Sloan Management Review, 46 (3), 30-38. Ross, John K., Larry T. Patterson and Mary Ann Stutts (1992) “Consumer Perceptions of Organizations That Use Cause-Related Marketing,” Journal of Academy of Marketing Science, 20 (1), 93-97. Saad, Lydia (2009), “Americans’ Confidence in Military Up, Banks Down: Surge in confidence around presidency reflects new administrations,” Gallup Inc., accessed online on November 6th, 2009 at: http://www.gallup.com/poll/121214/Americans-ConfidenceMilitary-Banks-Down.aspx SCA and Harris Interactive (2008) Accessed online on October 25th, 2009 from: http://www.harrisinteractive.com/NEWS/newsletters/clientnews/2008_SCA.pdf Sen, Sankar, and C.B. Bhattacharya (2001), "Does Doing Good Always Lead to Doing Better? Consumer Reactions to Corporate Social Responsibility," Journal of Marketing Research, 38 (May), 225-43. Spence, Laura J. (1999) Does size matter? The state of the art in small business ethics. Business Ethics: A European Review, 8(3), 163-174. Spiggle, Susan (1994). “Analysis and Interpretation of Qualitative Data in Consumer Research.” Journal of Consumer Research, 21(3), 491-503. Strauss, Anselm L. and Juliet Corbin. 1990. Basics of Qualitative Research: Grounded Theory Procedures and Techniques, Newbury Park, CA: Sage Publications. Udayasankar, Krishna (2009). “Corporate Social Responsibility and Firm Size.” Journal of Business Ethics, 83, 167-175. Vlachos, Pavlos, A., Argiris Tsamakos, Adam P. Vrechopolous and Panagiotis K. Avrimidis, (2009). “Corporate social responsibility: attributions, loyalty, and the mediating role of trust,” Journal of the Academy of Marketing Science, 37, 170-180. von Weltzien Hoivik, Heidi and Domenec Mele (2009). “Can an SME Become a Global Corporate Citizen? Evidence from a Case Study. Journal of Business Ethics, 88, 551-563. References (work in progress for framing paper) Aaker, David A., and Richard P. Bagozzi (1991), “Attitudes toward Public Policy Alternatives to Reduce Air Pollution,” Journal of Marketing & Public Policy, 85-94 Coad, Alex, Peter de Haan, and Julia Sophie Woersdorfer (2009), “Consumer support for environmental policies: An application to purchases of green cars,” Ecological Economics, 68, 2078-2086. Pieters, Rik G.M. (1991), “Changing Garbage Disposal Patterns of Consumers: Motivation, Ability and Performance,” Journal of Public Policy & Marketing, 10 (2), 59-76. Tversky, Amos and Daniel Kahneman (1981), “The Framing of Decisions and the Psychology of Choice,” Science, 211 (4481), 453-458. Verbeke, Alain and Chris Coeck (1997), “Environmental Taxation: A Green Stick or a Green Carrot for Corporate Social Performance?” Managerial and Decision Economics, 18, 507-516.