The Effect of Corporate Social Responsibility on Brand Loyalty: The Case of One Water Brand of Mogle Bottled Water Manufacturing Plc.
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Date
2022-06
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Addis Ababa University
Abstract
Corporate Social Responsibility can be considered as a principle that obliges corporate entities to comply with regulations and to take voluntary steps to assure the best interest of society. Running a business is, thus, no longer just considering how to make profits, but also includes bearing certain corporate responsibilities in the society. This study sought to investigate CSR practices and its influence on brand loyalty taking One-Water brand of Mogle Bottled Water Manufacturing Company in Addis Ababa as a case. Explanatory research design was applied and a total of 233 sample respondents who bought or consumed One-Water brand were participated in the survey. Convenient non-probability sampling was used for selecting the targets to collect primary data through self- administered questionnaires. The data were coded and analyzed with the help of SPSS 21.0. The findings showed that the overall CSR practices accounted for 63.2% variation on overall Brand loyalty. It is evidenced that all the dimensions of CSR activities such as economic, social, ethical and philanthropic responsibilities had positive and statistically significant effect on brand loyalty. Specifically, philanthropic social responsibilities had relatively the highest effect on brand loyalty but ethical and economic social responsibilities had less contribution to the model. Substantially extra efforts of public relations management are required for further improvement in terms of disseminating information related to the company’s corporate social responsibility activities through appropriate media to create public awareness.
Keywords: Social Responsibility; Corporate Image, Mogle Bottled Water Company, Economic Responsibility, Philanthropic Responsibility