CORPORATE SOCIAL RESPONSIBILITY AND CONSUMER CHOICES: TESTING THE MEDIATION OF REPUTATION AND CAPABILITY

Abstract

Objective: The influence of Corporate Social Responsibility (CSR) on customer buying choices is substantial. Modern consumers increasingly prefer businesses engaged in ethical practices and contributing positively to society. Companies that actively participate in CSR programs often enjoy a favorable brand reputation, increased customer loyalty, and a competitive advantage. Purpose: This concise research endeavor seeks to examine the function of business reputation as a mediator and organizational capability in the connection between CSR and consumer purchasing behavior. The research employs the causal stages technique to assess mediation. Methodology: The objective of this study is to examine the role of business reputation and corporate capacity in influencing the connection between CSR and customer purchasing behavior. The researcher utilizes a simple random selection method to choose a total of 120 participants for the sample. Research Instrument: The questionnaire included of two sections. Part one consisted of four demographic profile questions that were assessed using nominal and ratio scales. The second section of the questionnaire pertained to the fundamental aspect of this study, with fourteen items that were assessed using a five-point Likert scale. Results: The study reveals that corporate reputation and corporate ability do not serve as mediators, meaning they do not have an indirect influence, between consumer purchasing behavior and corporate social responsibility. Nevertheless, Corporate Social Responsibility (CSR) has a direct and substantial impact on customer buying behavior.