Who Really Cares About Corporate Social Responsibility?
Abstract
This study investigates the impact of Corporate Social Responsibility (CSR) on consumer behavior, focusing on actual purchasing decisions rather than stated intentions. Using a lab-based experimental design with 210 participants, the research tested four CSR domains Community & Philanthropic Support, Human Rights & Ethical Conduct, Employee Development & Support, and Environmental Sustainability - against a control condition. Results show that all CSR initiatives positively influence consumer purchasing behavior, with the strongest effects observed in the Employee Development and Environmental Sustainability domains. The findings support the business case for CSR and suggest that strategically chosen CSR initiatives can enhance sales performance by shaping consumer choices.
Key Findings
CSR positively influences actual
purchasing behavior. Consumers were more likely to buy products from companies with CSR initiatives than from those without.
CSR can be broken down into four main categories: Community & Philanthropic Support, Human Rights & Ethical Conduct, Employee Development & Support, and Environmental Sustainability.
The two most influential CSR activities when it comes to driving consumer purchases are Employee Development and Support and Environmental Sustainability.
CSR in Human Rights & Ethical Conduct and Community & Philanthropic Support also improves purchasing compared to no CSR, but had a smaller impact than the two domains above.
No significant gender or ethnic differences were found in how CSR affected purchasing behavior, therefore suggesting a broad appeal across demographics.
Opportunities for Further Research
Explore product type sensitivity, expanding beyond the low-cost tech product used for this study.
Explore whether CSR has a stronger or weaker impact on high-cost or emotionally significant products (e.g., apparel, food, vehicles).
Definitions
Corporate Social Responsibility (CSR): A broad range of corporate initiatives aimed at contributing to societal goals, going beyond profit-making. These can include environmental sustainability, ethical labor practices, employee well-being, and community engagement.
Community and Philanthropic Support CSR: Corporate giving and nonprofit partnerships, especially benefiting local communities.
Human Rights and Ethical Conduct CSR: Ethical supply chain practices and fair labor practices.
Employee Development and Support CSR: Internal policies focused on employee well-being, training, benefits, and work-life balance.
Environmental Sustainability CSR: Practices aimed at reducing environmental impact, such as waste reduction, emissions control, and green energy use.
About the Authors
Peter Frumkin is the Mindy and Andrew Heyer Chair in Social Policy at the University of Pennsylvania’s School of Social Policy & Practice. He serves as Faculty Director of the Center for Social Impact Strategy. His research focuses on philanthropy, nonprofit management, and social entrepreneurship. In 2023, he was appointed Academic Director of the Gradel Institute of Charity at New College, University of Oxford.
Yuan Tian is an Associate Research Professor at Pennsylvania State University’s Center for Molecular Toxicology and Carcinogenesis. Her expertise lies in analytical chemistry, with a focus on NMR and mass spectrometry techniques. She earned her Ph.D. in Analytical Chemistry and has over a decade of experience in the field.
ChiaKo Hung, PhD., is an Assistant Professor at the University of Pennsylvania’s School of Social Policy & Practice. His research encompasses nonprofit financial management, social entrepreneurship, philanthropy, fundraising management, collaborative governance, social equity, and social impact.
