1. Introduction
1.1. Justification of the topic
1.1.1. Academic justification
Although, corporate social responsibility (CSR) is not a newly occurring concept it is getting progressively more attention by companies as well as consumers (Barrena Martínez, López Fernández & Romero Fernández, 2016). Nowadays, customers increasingly become aware of social responsible practices and therefore place greater emphasis on their own and with it also on a company’s social responsible actions (Kang & Namkung, 2017). This concept is called social responsible consumer behaviour (SRCB) (Abdeen, Rajah & Gaur, 2016). A re-sult of this is an increasing complexity and importance of the environment as well as CSR. For this reason companies are encouraged to develop …show more content…
However, in the long run it can bring additional economic value. Building brand equity can be the key for add-ing economic value as it helps establishing the brand value of a company and increases the organization’s competitiveness (Kang & Namkung, 2017). With regards to this, a balanced CSR strategy can positively influence the image of a company and thus can have an impact on consumers buying decisions. Especially, when the customer places great attention to CSR and wants to make an ethical purchase. Therefore, CSR can lead to a higher profit in the end (Barrena Martínez, López Fernández & Romero Fernández, …show more content…
The car producer admitted that it had installed software in its cars that had improved the emission tests in VW’s favour. In total, 11 million cars worldwide were affected by this scandal. As a result of this the company lost its customers’ trust and suffered a loss of 20% in the first quarter of 2016 (Riera & Iborra, 2017). In the present, VW is trying to regain trust from its customers, something that is usually connected with hard work and investments (Kollewe, 2016). After some time it became public that not only VW was involved in this scandal, nearly every German car manufacturer had also installed this software in their cars (Die Zeit,
1.1. Justification of the topic
1.1.1. Academic justification
Although, corporate social responsibility (CSR) is not a newly occurring concept it is getting progressively more attention by companies as well as consumers (Barrena Martínez, López Fernández & Romero Fernández, 2016). Nowadays, customers increasingly become aware of social responsible practices and therefore place greater emphasis on their own and with it also on a company’s social responsible actions (Kang & Namkung, 2017). This concept is called social responsible consumer behaviour (SRCB) (Abdeen, Rajah & Gaur, 2016). A re-sult of this is an increasing complexity and importance of the environment as well as CSR. For this reason companies are encouraged to develop …show more content…
However, in the long run it can bring additional economic value. Building brand equity can be the key for add-ing economic value as it helps establishing the brand value of a company and increases the organization’s competitiveness (Kang & Namkung, 2017). With regards to this, a balanced CSR strategy can positively influence the image of a company and thus can have an impact on consumers buying decisions. Especially, when the customer places great attention to CSR and wants to make an ethical purchase. Therefore, CSR can lead to a higher profit in the end (Barrena Martínez, López Fernández & Romero Fernández, …show more content…
The car producer admitted that it had installed software in its cars that had improved the emission tests in VW’s favour. In total, 11 million cars worldwide were affected by this scandal. As a result of this the company lost its customers’ trust and suffered a loss of 20% in the first quarter of 2016 (Riera & Iborra, 2017). In the present, VW is trying to regain trust from its customers, something that is usually connected with hard work and investments (Kollewe, 2016). After some time it became public that not only VW was involved in this scandal, nearly every German car manufacturer had also installed this software in their cars (Die Zeit,