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http://dx.doi.org/10.11627/jkise.2020.43.3.243

The Effect of Corporate Social Responsibility on Corporate Trust and Purchase Intention  

Nam, Hyun-Dong (Graduate School of Governance, Sungkyunkwan University)
Nam, Taewoo (Graduate School of Governance, Sungkyunkwan University)
Publication Information
Journal of Korean Society of Industrial and Systems Engineering / v.43, no.3, 2020 , pp. 243-253 More about this Journal
Abstract
As economic profits and social influences of firms grow with economic development and their organizational expansion, consumers increasingly require firms to have their social responsibility. Because social responsibility strongly influences corporate reliability, consumers' intention to purchase, customer loyalty to the products and the recognition of an ethical firm have gained attention as a concept of strategical importance. The prosperity of society should be proceeded for the sustainable development of a firm and the necessity of social responsibility should be emphasized to achieve virtuous circle structure that promotes growth. Additionally, the social responsibility should be proceeded to form trust on a firm. It is very important to change the recognition of consumers to purchase products and increase the profit of a company. This study aims to analyze how social responsibility properties of firms (economic, ethical, discretionary, and legal aspects as low-level factors of social responsibility which Carroll (1979) defined) affect corporate reliability and purchase intention. The analysis found that consumers trust in firms are positively influenced by ethical responsibility (0.391), economic responsibility (0.293), legal responsibility (0.251), and discretionary responsibility (0.248). The relationship between sub-factor of social responsibility and purchase intention is not significantly influenced by other explanatory variables. Corporate trust exerts a direct influence on purchase Intention (0.456). The social responsibility of a firm didn't influence a direct purchase intention. It was found that it brought positive effect on the purchase intention in the course of forming trust. This study suggests that firms should make efforts to understand the relationship between corporate trust and purchase intention along with the characteristics of social responsibility that consumers recognize and improve management strategies for mutual complementary interests.
Keywords
Corporate Social Responsibility; Corporate Trust; Purchase Intention; Rational Action Theory; Structural Equation Modeling;
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