Consumer Behavior and Social Responsibility for Human Rights

Question: Discuss about theConsumer Behavior and Social Responsibility for Human Rights. Answer: Introduction CSR or Corporate Social Responsibility is that particular concept which is concerned with the ways how enterprises at present addresses the needs and values of their customers and other stakeholders (Porter Kramer, 2019). Most of all, it covers business ethics, environmental problems, community relationships as well as human rights issues (welfare programs for the employees such as education or trainings on safety measures to be taken on workplace). It has eventually become one of the very important topics in business world as well as academic literature. The researchers have explained that CSR is highly responsible for influencing the financial performance of a company in positive ways. It supports the share prices of the firm, shores up the market values as well as provides competitive advantage to the same. At present, consumers not only expect from the businesses that they will conduct themselves in regards to ethics; but also to keep the products at a lower cost with the highes t level. Nepomuceno, Laroche and Richard (2014), have stated that the probability of purchasing a product increases when the consumers are given options for supporting social problems through purchasing those products. He found that in this way a firm can derive high benefits when the consumers and the other stakeholders perceive it to be a socially responsible. In context to publication of CSR focused research, there has been extensive growth in the developed countries, but in the developing nations, they have yet not investigated the affect of CSR so completely and inclusively. Chernev and Blair (2015) argued that though it is true that CSR is reaching its mature stage, but it is also a fact that the consumer response to the activities of CSR is not well researched. Their relationship is still debatable. This proposal discourses the evolving focuses as well as gaps in supplying a perfect view on the connection in amid these two i.e. CSR activities and consumer actions. This aims to explain the CSR relationships as the responses of the customers from the perspective of South Asia. It focuses on gaining a better and clearer insight view of behavioral insinuations in reaction to social ingenuities that are undertaken by the companies in current era. Problem statement Relationships between the CSR activities as well as customer retorts is arguable as either positive or negative. This proposal aims to give a clear view of their relationship. Not much research has been conducted within the developed nation on this perspective. Understanding of the hidden relationship between the CSR actions and consumer responses is very important for the economic expansion of the emerging countries. Aim and objectives The developing nations are more focused on the short-term rather than long-term therefore, in order to reduce the cost, they have still not made CSR a priority. Environmental and social crises are two of the biggest issues prevailing in these nations because of the weak government policies. Furthermore, they are also targeted by various MNCs (Multinational Companies) because of their available resources. With the same, most of the publications are focused on other factors like marketing and promotion of their products in order to lure customers. This research focuses on investigating whether the stature or reputations of the socially responsible companies have the potential to drag new customers towards themselves and whether it gives the customers the sense of demonstrating their responsibility while supporting a firm with high CSR. Research Questions The below mentioned questions will be addressed for this study: Does the purchase intentions of the customers are encouraged by the CSR activities of a company? What are the different elements of consumer behavior? What are the different elements of CSR? Theoretical framework The challenge for Corporate Social Responsibility (CSR) in developing countries is framed by a vision that was distilled in 2000 into the Millennium Development Goals- a world with less poverty, hunger and disease, greater survival prospects for mothers and their infants, educated children, equal opportunities for women, and a healthier environment (United Nations, 2006). Sadly, these hopes have still to be fulfilled in the developing nations. The corporations are yet not conscious about the effect of the CSR actions upon the attitudes of the customers and their purchasing behavior (Marquina Feldman Vasquez-Parraga, 2013). This research has proposed a link between the above discussed topic CSR and the actions of the customers. The prime motivation for firm to involve in the CSR activities to attract customers. The primary research questions for our study will be 1. How does the purchase intentions of the consumers are attracted by the CSR activities of a company? 2. What are the dif ferent elements of consumer behavior? 3. What are the different elements of CSR? Literature Review Numerous researches were conducted aiming analyzing the influences of the CSR in the behavior of the consumer in different places. According to Muhumed (2018), millions of dollars are kept aside by the banking industry (retail banks) for the CSR programs in order to strengthen their relations with the customers and stakeholders. A substantial amount of study has been handled in the trade banking sectors commitment to the Corporate Social Responsibility principles and their implications. In this era of high competition within the retail banks, the researchers are therefore now concentrated on finding out if the retail banks are promising sustainable business practice or not. The extreme vogue of microfinance amongst the several monetary institutions is because of the existing confidence that- the engagement in the microfinance programs will assist them greatly in retaining the credibility as development agencies. The business rewards that the CSR can provide is greater when social ini tiative are linked with a companys key competency and it is concerned with the problems that the consumers usually care about. According to Baumann-Pauly et al., (2013), the CSR has been related to large corporations and there are assumptions that the approaches of the CSR are grown for the large corporations. The speculation in the CSR enterprises is regarded as the source of competitive edge as well as a device for improving the financial performance. Notwithstanding, it is not clear whether the CSR initiatives can be used as a tool to attain the competitive advantage. Marquina Feldman and Vasquez-Parrage (2013) further stated that there is a great difference in the CSR initiatives of the institution as well as the characteristics of the other marketing mix. Research methodology Sample population About forty respondents in Peru, of age 15 to 50 years and having an income range of 150-1500 Rupees per day will be surveyed as the participants for this research. These respondents are the people who currently reside in Peru and have a good exposure to CSR activities or marketing and promotions of different products and services. Since, the research shall be direct; hence, an informed consent will be taken prior to the survey. In order to motivate them for participating, they will be provided with rewards and incentives. Research Philosophy Five types of research philosophy are considered in academic research. They include positivism, pragmatism, inter-pretivisim, post-positivism and realism (Silva, 2014). Positivism refers to the philosophy where the hidden facts and finding are identified through relevant observation. Pragmatism on the other hand, accepts all the doctrines that are available and it facilitate in conducting both the qualitative and quantitative analysis of data (Katz, 2015). While Interpretivism is usually used in the secondary analysis of data in which the journals are used to identify the relevant findings. Apparently, the post-positivism usually rejects all the assumptions that are made by positivism and it considers both daily and scientific approach. Lastly, Realism consists of both direct and critical realism in which the personal sense of the human beings is accepted by one and is rejected by another. However, in this study, the philosophy of positivism is chosen. Research Design A total of three in-depth interviews along with three focus groups shall be conducted at first for understanding the purchasing behavior of the consumer towards the corporations, which are incorporating CSR actions. It is to be assuming that the consumers who are earning not more than $1.46 a day are price sensitive and therefore, they are least bothered about the CSR activities of the firm. Hence, there shall be restrictions on the quantitative research sample to the customers belonging from the socio-economic classes. All the respondents will be approached personally in the interviews at Peru. They will be given materials, which will include small introduction regarding a hypothetical company, its services, produces, operations and some positive record of CSR activities. The respondents shall be free from asking any questions related to the company. A total of 20 valid interviews shall be conducted for the same. The constructs that are under consideration in this research are: Customer satisfaction Customer perception Corporate reputation Corporate brand/influence Customer purchasing Customer attitude Customer choice Research Materials A color pamphlet or leaflet of the hypothetical company, which consists of a basic introduction about the specific company and its different services and activities. The interview will require a total set of two pretested questionnaires for an in-depth group interview. Research approach This research shall be using exploratory approach to understand the statistics which is composed qualitative secondary data by using the academic journal article as well as the academic websites. It includes research which covers the barriers for the entrepreneurs to go global. It includes the opportunities and effort to get the important primary qualitative data through interviewing the entrepreneurs from the home country who opened brnches abroad. Data Collection methods This method of data collection is considered to be the technique of gathering and measuring the data over the directed variables in systematic ways (Papamitsious Economides, 2014). This method is divided in two sets, namely primary method and secondary method. The former method focuses on conducting several questionnaires, survey and interviews with small groups of people (Palinkas et al., 2015). On the other hand, the later one uses the past researches to collect data from the sources such as the peer-reviewed journal. In this research, the primary data collection will be taken into consideration by conducting a small group interview of about twenty valid interviewers. Letter of consent shall be provided to the participants and they will be collected three days before the interview. A profile of a particular company shall be presented prior to the dispersal of questionnaire to the participants. Protection of Human Rights Participants will be requested to affirm their accord five days before this interview day and they will be free to quit their participation from the survey at any while. These interviews shall be nameless and the confidentiality of the topic will be safe by any means. Each of the participants will be provided a copy of this survey after it is finished. Managerial Implications The involvements that are expected from the research are that consumers shall take the CSR actions positively and they will be engaged in the purchasing behavior accordingly. Higher marketing effort is expected in order to ensure that the customers will link the CSR campaign along with the products and services. The customers belonging from the low income groups are expected not to be conscious of the CSR activities and they do not ponder much about the same during their purchasing. Increase in the CSR activities shall be advantageous for the companies in such a competitive market (Homborg, Stierl Torsten, 2013). Limitations The questionnaires shall be designed on the pattern that will not disclose the name of any company. They will not particular to only single product line because this may not lead to clear results. This research paper shall put emphasis on the geographical areas of Peru. This paper will help to the emerging countries to supply a better comprehension of consumer viewpoint in Peru. References: Baumann-Pauly, D., Wickert, C., Spence, L. J., Scherer, A. G. (2013). Organizing corporate social responsibility in small and large firms: Size matters.Journal of Business Ethics,115(4), 693-705. Chernev, A., Blair, S. (2015). Doing well by doing good: The benevolent halo of corporate social responsibility.Journal of Consumer Research,41(6), 1412-1425. Homburg, C., Stierl, M., Bornemann, T. (2013). Corporate social responsibility in business-to-business markets: How organizational customers account for supplier corporate social responsibility engagement.Journal of Marketing,77(6), 54-72. Katz, J. (2015). A theory of qualitative methodology: The social system of analytic fieldwork.Mthod (e) s: African Review of Social Sciences Methodology,1(1-2), 131-146. Marquina Feldman, P., Vasquez-Parraga, A. Z. (2013). Consumer social responses to CSR initiatives versus corporate abilities.Journal of Consumer Marketing,30(2), 100-111. Marquina Feldman, P., Vasquez-Parraga, A. Z. (2013). Consumer social responses to CSR initiatives versus corporate abilities.Journal of Consumer Marketing,30(2), 100-111. Muhumed, Q. M. (2018). Corporate social responsibility strategies and competitive advantage of commercial banks in Kenya: Case of Equity Bank Kenya Limited.International Academic Journal of Human Resource and Business Administration,3(1), 27-51. Palinkas, L. A., Horwitz, S. M., Green, C. A., Wisdom, J. P., Duan, N., Hoagwood, K. (2015). Purposeful sampling for qualitative data collection and analysis in mixed method implementation research.Administration and Policy in Mental Health and Mental Health Services Research,42(5), 533-544. Papamitsiou, Z., Economides, A. A. (2014). Learning analytics and educational data mining in practice: A systematic literature review of empirical evidence.Journal of Educational Technology Society,17(4), 49. Porter, M. E., Kramer, M. R. (2019). Creating shared value. InManaging Sustainable Business(pp. 327-350). Springer, Dordrecht. Silva, T. (2014). On the philosophical bases of inquiry in second language writing: Metaphysics, inquiry paradigms, and the intellectual zeitgeist. InSecond language writing research(pp. 19-32). Routledge.