CORPORATE SOCIAL
RESPONSIBILITY
AND CONSUMER ETHICS
FROM THE PERSPECTIVE OF
YOUNG CONSUMERS IN
CROATIA
Blaženka Knežević
University of Zagreb, Croatia
Faculty of Economics and Business
E-mail: [email protected]
CONTENTS
Introduction
Corporate social responsibility
Consumer ethics
Primary research
Conclusion
INTRODUCTION
❖ yet in 15th century, topics such as: ethics, poverty
reduction and responsibility of businessmen
towards different stakeholders, were addressed by
scientists (ex. Benedetto Cotrugli, 1458., Ancient
Dubrovnik, devoted 2 large chapters of his book
„On trade and prefrect tradesman” to those issues)
❖ corporate social responsibility (CSR) and consumer
ethics are now highly important as concepts and
components being incorporated into or addressed
by the corporate strategy
❖ there is a wide range of research studies in both areas
around world, but there is a scarcity of primary
research in CEE and SEE region, which would answer
how future managers percieve issues in this field.
Corporate Social Responsibility
❖ Comprises initiatives and policies when
companies integrate social and environmental
issues in their business operations and
strategies on a long run
❖ i.e. it refers to companies taking responsibility
for their impact on society (European
Commission, 2002 )
Corporate Social Responsibility
❖ in literature - various perspectives from the
stakeholder view towards the triangle of
sustainable development, including a bunch
of studies on its impact on business
performance
Balancing between
3 imperatives
and various
stakeholders
Economic
Social
Environmental
❖ ATBEQ (Attitudes Toward Business Ethics
Questionnaire) that consist 30 statements
on business attitudes was developed and
applied on the sample of management
students in USA and Israel (see Preble,
Reichel 1988).
❖ Used by other researchers at other
markets, see: Shields et al. (2013) Japan
and USA; Fatoki, Chillya (2012) SME
owners in South Africa; Nguyen, Pham
(2015), US and Vietnam …
Consumer ethics
❖ refers to the ethical consumer’s behaviour of
while purchasing in retail stores or online
❖ i.e. to the ethical issues that arise when
ordinary consumers acquire, use, and
dispose conventional consumer products
❖ Research streams: (1) consumer’s shopping
malpractices, (2) ecologicaly related
consumption or sustainable consumption,
(3) consumer boycotts and their
consequences
❖Consumer Ethics Scale CES
developed by Muncy, Vitell (1992)
❖succesfuly applied to research
different markets: Egypt, Austria,
Ireland, Lebanon, South Africa and
USA (see Polonsky et al. 2001).
Section
Primary research
– methodology
Number and
type of
Objective
questions
Sociodemographi
c
description
of
respondents
Literature
used for
question
construct
modified
according to:
Renko et al.
(2009)
1. Personal
information
3, single
choice
❖ main objectives: (1) to
understand how students as
future managers perceive
CSR in general; (2) to
investigate what are their
attitudes towards consumer
ethics issues
2. Attitudes
towards
Business
Ethics and
CSR
ATBEQ as in:
Preble,
Reichel
to examine (1988),
30
general
Shields et al.
statements, attitudes
(2013),
Likert scale towards
Fatoki,
CSR issues Chillya
(2012),
Bageac et al.
(2011)
❖ Electronic questionnaire
❖ 4 sections, 48 questions
3. CSR
stakeholders
to
investigate
the
1, single
perception
choice
of
4 statements,
importance
Likert scale
of
stakeholder
s groups
4. Consumer
ethics
Selected
questions
3, single
to evaluate
from CES –
choice
ethics of
Muncy, Vitell
behaviour
7
(1992);
statements, of young
Babakus et
consumers
modified
al. (2004),
Likert scale in retail
Polonsky et
al. (2001)
❖ ATBEQ (sec. 2)
❖ CES (sec. 4)
own
construct
based on
literature
review
described in
chapter 2.2.
of the paper
Primary research – sample
❖ N = 224
Characteristic
Gender
Study
programme
Employment
Options
Males
Females
Bachelor
Master
Postgraduate
Associate
I usually work
I work occasionally
I don't work
Relative
Frequency
22.3%
77.7%
38.8%
22.8%
0.4%
37.9%
32.1%
37.5%
30.4%
Results – CSR
General attitudes towards CSR
Importance of stakeholders of CSR
owners and
investors
4%
local
community
and
environment
30%
suppliers
1%
consumers
33%
employees
32%
Attitudes towards business ethics
10 Selected statements out of ATBEQ list
Average
The business world has it own rules.
3.562
True morality is first and foremost self-interested.
3.294
A good business person is a successful business
person.
3.048
Business decisions involve a realistic economic
attitude and not a moral philosophy.
3.036
For every decision in business the only question is
"Will it be profitable?"…
2.924
Conditions of a free economy will serve best the
needs of society…
2.912
The only moral of business is making money.
2.807
The lack of public confidence in the ethics of business
people is not justified.
2.474
"Business ethics" is a concept for public relation only. 2.259
Moral values are irrelevant to the business world.
1.684
MOD
agree
agree
agree +
strongly
agree
61.6%
51.3%
agree
37.9%
agree
38.4%
disagree
35.7%
neutral
disagree
31.7%
34.0%
disagree
disagree
strongly
disagree
12.5%
9.8%
1.7%
Results – Consumer Ethics
Shopping malpractices
During the shopping I intentionally
damaged the product or packaging so I…
During the shopping I opened and
consumed a product, but I did not pay…
I didn't say anything when the cashier
returned more money than she/he…
I didn't say anything when the cashier
miscalculated bill in my favor.
I've bought a product and used it then I
returned it in a legal deadline (for…
I cut in when there was a line at the cash
register.
I've searched for a detailed information
on products in one store, but I had…
0%
Never
20%
A couple of times
40%
60%
Frequently
80%
100%
Expectation of return for active
ethical behaviour
1%
7%
54%
38%
A rewards in
products or
discounts
A reward in
cash
At least one
kind of
appraisal
Nothing, that
is my personal
satisfaction
And what about Sunday?
Do you shop on Sunday?
Would you be willing to
work on Sunday?
Conclusions
Future managers in Croatia (nowadays students):
❖ understand that contemporary society demands
from companies to solve social problems.
❖ perceive that companies committed to CSR have a
potential to be more profitable on a long run.
❖ believe that Business Ethics is not a concept for
public relations only (i.e. it is a real concept).
❖ think that companies have ethical responsibility
towards all stakeholders.
❖ would prefer to work for a company with
implemented Sustainability and CSR concepts.
❖ As consumers they have high personal ethical
standards and majority of them do not expect any
material reward when actively act ethically.
Thank you for attention