CORPORATE SOCIAL RESPONSIBILITY EFFECT ON CORPORATE IMAGE.

 

Corporate Social responsibility effect on corporate image.

Businesses have been incorporating a lot of Corporate Social Responsibility (CSR) activities in their operations. Corporate Social responsibility has advanced into a strategic instrument for a firm’s sustainability as well as its brand image (Beckman, Colwell & Cunningham, 2009; Chen & Hung-Baesecke, 2014; Chung & Yang, 2016; Austin & Gaither, 2017). Firms all over the world have made attempts to align CSR with their strategic plans in response to the responsibilities placed on them by the society and are investing heavily in strategic CSR (Brammer, Millington & Rayton, 2007). The responsibilities of the organizations to the society in terms of CSR can be classified into four main groups that form the layers of CSR Pyramid – economic, legal (statutory), ethical and charitable (philanthropic) couched by Carroll (1991). According to the European Competiveness Report, published in 2008, the significance of CSR cannot be overstressed, particularly in times of financial crisis. The Vice-President of the European Commission, Günther Verheugen (Trapp 2009), added, that socially responsible firms will have a better position in the future than those that have not yet adopted a CSR policy, because they will enjoy more profits, including loyalty of employees, which they can rely on.

The banking sector responded relatively late to the challenges of CSR, it first considered environmental, then social issues (Viganò ‒ Nicolai, 2009). In developed market economies, financial institutions, searching for a way out, started to focus more on corporate social responsibility. Even their financial statements now pay attention to the social, economic and environmental impacts of their operations. Bank’s stable financial position, increasing economic performance, ethical and transparent activities as well as responsible financial services ensures its predictable and reliable operation. This also makes banks acknowledge and serve the interests of society to a larger degree.

Pomering and Johnson (2011) describe corporate image as the totality of perceptions of the stakeholders about the way in which the organization operates.  On the other hand, Treadwell and Harrison (1994) define the corporate image as a set of cognitions which consists of occurrences beliefs, mindsets the organizational behavior that persons have on the organization. Corporate image can also be defined as the aggregate of conceptions that stakeholders (such as customers, suppliers, employees and the society) have about the organization.  Corporate image as lauded by many leads to a competitive advantage since it builds the image of the brand in the minds of the consumers, which is formed over a period. Applauding corporate image can increase the sales and the customer loyalty as well as attract new investors and employees. The Economic responsibility is said to be a primary condition or requirement for existence of a business according to Carroll’s CSR Pyramid. The Focus of this research will base on Carroll’s (1991) four (4) dimensions. The purpose of this research therefore is to explore the effects that Corporate Social Responsibility has on the Corporate Image of some selected banks in Ghana.

 CORPORATE SOCIAL RESPONSIBILITY IN GHANA  

In Ghana, the communist direction of her first president Dr. Kwame Nkrumah gave the impression maybe appropriately or wrongly that State Owned Enterprises (SOEs) had the option to take care of cultural issues (Amponsah-Tawiah, 2012). This, in a way constrained corporate organisations‟ social commitments to the installment of expenses. In any case, as of late there has been a clarion approach associations to attempt social projects, as government alone can't deal with cultural issues. This has influenced the execution of the idea in the nation. CSR exercises in Ghana are led by huge scale global organizations (Amponsah-Tawiah, 2012). The multi-faceted issues of the nation low per capita salary, powerless money, capital flight, low profitability and low investment funds make it practically unthinkable for indigenous organizations, the vast majority of which are occupied with the retail and in the creation of essential wares, to embrace social activities (Amponsah-Tawiah, 2012). Enormous scale assembling, media transmission and mining organizations, for example, MTN, Valco, Goldfields, and AngloGold have been instrumental in the social improvement of the nation (Amponsah-Tawiah, 2012). Be that as it may, similarly as it is universally, extractive ventures whose tasks have direct sway on nature and nearby networks are consistently in the news for evident reasons-they are either rupturing a portion of the precepts of the CSR motivation or satisfying them decisively (Ibid).

Until the year 2006 when the Ghana Business Code (GHBC) was propelled through the joint effort of the relationship of Ghana Industries (AGI), Ghana Employers Association (GEA) and the Ghana National Chamber of Commerce and Industry (GNCCI) to present and develop the act of CSR in business tasks, there was no set standards to manage the direct of business and adequate norms with respect to the earth and anticorruption in business (Amponsah-Tawiah, 2012). The GHBC, which is demonstrated along the lines of the United Nations (UN) Global Minimized, centers around the triple main concern (benefit, planet and individuals) as execution proportions of organizations working in the nation (Amponsah-Tawiah, 2012). The GHBC has ten noteworthy standards all of which underscore the substance of CSR and are designed subsequent to existing laws in Ghana. Curiously, associations are not obliged by law to join to the GHBC. It is a deliberate measure, which enables the activities of associations to be inspected along four expansive classifications human rights, work norms, condition and hostile to defilement (Amponsah-Tawiah, 2012). Part associations are granted testament of good practice when their activities are observed to be in accordance with the remedies in the GHBC. Due to its willful nature, relatively few associations have joined to it (Amponsah-Tawiah, 2012). Of the numerous Small and Medium Size Ventures (SMEs) and huge scale producing businesses that have a place with the GNCCI and the AGI, under 60 had joined to the GHBC as at 01-04-2011. This is maybe because of the dread of examination that goes with the accreditation process and mirrors the degree of adequacy and valuation for the idea in Ghana (Ibid).

PROBLEM 

Corporate Social Responsibility is becoming an increasingly important activity for organizations in emerging markets because the expectations and the requirements of consumers are also increasing (Maruf, 2013). Researchers and advertising professionals reiterate the relevance of corporate social responsibility (CSR) in consumers’ decision making process (Maruf, 2013). Due to the fact that social responsibility is becoming more pronounced on global scale, Corporate Social Responsibility is seen as vital in constructing attractive corporate image (CI), providing competitive advantage and differentiation, leading to business success accentuating the actuality of the chosen topic. 

Ailawadi et al. (2011), Green, Peloza (2011), Lindgreen, Swaen (2010), Banyte, Brazioniene, Gadeikiene (2010), Yeo, Youssef (2010), Lizarraga (2010), Spitzeck (2009), Malmelin, Hakala (2009), Herstein, Mitki, Jaffe (2008), Chattananon et al. (2007), Visser (2006), Sciulli, Bebko (2005), Flavian, Guinaliu, Torres (2005), van der Heyden, van der Rijt (2004), Abratt, Mofokeng (2001), Moir (2001), Teng Fatt et al. (2000), Van Heerden, Puth (1995), LeBlanc, Nguyen (1995) and others agree that corporate social responsibility is a significant indicator constituting corporate image. There are various dimensions to corporate social responsibility and that of Carroll (1991) is the most dominant. Though dominant, very few researchers have examined Carroll’s dimensions.

In the Ghanaian context, studies due on corporate social responsibility and corporate image are very few focusing on the banking sector. It is crucial to emphasize that a lack of theoretical and empirical researches on causality between corporate social responsibility and corporate image provide the scientific problem examined in this article (Maruf, 2013).  This research paper seeks to examine which of the dimensions of CSR by Carroll (1991) aids in the enhancement of corporate image on selected banks in Ghana which includes Ghana Commercial Bank, Fidelity Bank and Barclays Bank. The research seeks to also examine the perceptions that customers have about the corporate image of the selected banks in relation to CSR activities.

CSR AND CORPORATE IMAGE.

Most workers would concur that an organization that is known for its corporate social duty would have a superior picture than the one that isn't (Dowling, 2001). A case of the significance of CSR to the workers can be found in the exploration led by Rodrigo and Arenas (2008). One of the respondents depicted the reasons he went after the position in the organization is a direct result of the organization's notoriety in the market. In the wake of joining the organization, he understood that the explanation for such notoriety is expected to CSR duty of the association. The organization see genuineness, quality and obligation to society and condition as the organization trademarks that turned into the manner in which they work together. Representatives' impression of the association is created through their own understanding, relational correspondence or broad communications correspondence with the association. The association's CSR practices will pass on its authoritative qualities, (for example, genuineness, respectability, obligation and assorted variety) to its workers. These practices will impact the representatives' recognition about their association. This impression of their association turned into the psychological picture of the representatives known as corporate picture. How representatives see their corporate picture is significant in light of the fact that the workers work in the association and their association's corporate picture speak to them as they are a piece of the association. In the event that they see their association picture as great, this will imply that they are in the same class as the association. On the off chance that they see their association's corporate picture as poor, the representatives may disassociate themselves.

Economic responsibility & corporate image

When examining themes like morals and corporate picture it is critical to remember that these are two extremely complex issues. For instance, the meaning of morals can fluctuate from company to organization as well as from individual to individual. The Oxford Dictionary characterizes morals as "good rules that administer an individual's conduct or the directing of an action", yet this simply prompts another predicament.  The ethical standards of people can change radically crosswise over for instance societies, mainlands, and religions. The exceptionally same difficulty applies to the idea of business morals; an organization situated in Finland may have an altogether different thought of profound quality and morals than, for instance, a business situated in China. These issues, combined with the way that our thoughts of what moral conduct is will in general change after some time, now and then quickly, make morals and profound quality a provoking subject to think about. In any case, regardless of how complex an issue may appear, by survey it from a few applicable edges and considering the way that in the case of something is moral may frequently be more a matter of feeling instead of actuality, no theme is too hard to even think about tackling.

When embarking to inquire about a subject that incorporates the nearby considering of business morals, one first needs to choose which meaning of morals to pick. As referenced before, the Oxford Dictionary characterizes morals as "good rules that oversee an individual's conduct or the directing of a movement" a clear clarification of the idea, no doubt. After looking into it further, however, we rapidly keep running into another situation; how would we characterize profound quality and standards? Regardless of whether we characterize profound quality as the capacity to recognize good and bad or great and awful, despite everything we don't have an authoritative answer as these things frequently mean various things to various individuals. Accordingly, when leading exploration on a specific subject, we need to pick the definition that we need to utilize.

Kozlowski (2008) features in his book that "morals is about the great and human ideals while financial aspects concern the plan of human establishments dependent on self-interest and monetary objectivity". Following this rationale, consolidating the ideas of morals and financial aspects is right around a conflicting demonstration in itself; all things considered, ethicality regularly manages benevolence and doing great, while then again it could be contended that, at its center, the goal of any business is to create however much incentive to its partners as could reasonably be expected. With the two ideas apparently conflicting with one another in a serious intense way, how is it that in the 21st century numerous organizations are finding that joining the two is an extraordinary method to discover accomplishment in the business field and addition the trust of shoppers. The idea of morals is looked distinctively in changed pieces of the world as well as in various examinations also. For instance, Velentzas and Broni (2010) decide business morals as "an arrangement of good standards applied in the business world". They likewise recommend that one reason why it's an especially intriguing point is that it joins different regions of study, for instance, theory and law now and again an organization probably won't concur with the profound quality of nearby law, however they are compelled to maintain it. 

Then again, by and large, laws have a major influence in keeping certain organizations running in an increasingly moral way. Velentzas and Broni (2010) contend that business morals in its most fundamental structure were made simultaneously with exchange itself; tradesmen and clients needed to concur on a typical arrangement of standards that everybody would pursue from setting costs to the nature of the item. In a substantially more current sense, business morals as a piece of working together that organizations need to truly focus on has been around for around 100 years. Thus, not exclusively does the meaning of morals in business change from region to zone however it has additionally changed starting with one timespan then onto the next. Velentzas and Broni (2010) additionally contend that it's not as of not long ago that organizations have needed to truly concentrate on maintaining a moral business; the enormous crowd didn't turn out to be especially keen on (and mindful of) regardless of whether an organization is being run morally until the 70s. What's more, it's not until as of late, for the most part with the presentation of the web, that the regular shopper has had the option to acquire data about organizations successfully and precisely.

Philanthropic responsibility & corporate image

At the most noteworthy purpose of the pyramid, devouring the tiniest space is generosity. Organizations have for quite a while been rebuked for their carbon impression, their part in defilement, using trademark resources and that is just a glimpse of something larger (Carroll, 1991). To adjust these negatives, they should "offer back" to the system they take from. They are guided by business' yearning to check out social activities that are not requested, not legitimately fundamental, and not all things considered expected of business in an ethical sense (Carroll, 1991). Having said that, a couple of associations do give to some extent out of an ethical motivation. That is, they have to settle on the savvies choice for society (Carroll, 1991). Riordan, et al. (1997) portrayed corporate image as a person's discernments about the activities, exercises and achievement of an association. It along these lines turns into the partner's general view of the association, at any rate incompletely dependent on its capacity to meet or accommodate his/her specific needs and interests. All the above creators have a typical concurrence on corporate picture, that is, corporate picture is about the complete partner impression of the association got from their coming into contact with the association. Also, their picture of the association will hence shape the representatives' demeanors and practices (Dutton and Dukerich, 1991; Peterson, 2004) that are vital to this examination. 

Economic responsibility & corporate image

The most decreased level of the pyramid addresses a business' first obligation, which is to be helpful. That is the reason it was made in any case; not out of voracity, yet a couple of associations have been accused for having unquenchability at their inside. Nevertheless, associations are made to be the work of their owners (Carroll, 1991). It's the manner in which the owners take care of their own one of a kind tabs. That goes for its theorists, also. Regardless of the way that the business may not be the sole occupation of the monetary pros, they contributed with the longing for benefitting (Carroll, 1991). Everything considered, their advantages are tied up around here, so getting salary from it is the reward for contributing. Associations in like manner ought to be productive to have the alternative to pay their agents, shippers and impermanent specialists (Carroll, 1991). If it isn't beneficial, these people will be impacted, shippers won't offer to them, laborers will stop and the business will miss the mark (Carroll, 1991). Riordan, et al. (1997) portrayed corporate image as a person's discernments about the activities, exercises and achievement of an association. It along these lines turns into the partner's general view of the association, at any rate incompletely dependent on its capacity to meet or accommodate his/her specific needs and interests. All the above creators have a typical concurrence on corporate picture, that is, corporate picture is about the complete partner impression of the association got from their coming into contact with the association. Also, their picture of the association will hence shape the representatives' demeanors and practices (Dutton and Dukerich, 1991; Peterson, 2004) that are vital to this examination.

Riordan, et al. (1997) portray picture acknowledgments as essential to both the accomplices what's more, the association since they in effect promote trades, for instance, clients' impression of significant worth level for items or organizations, work searchers decisions to apply for work, decisions to place assets into the firm and agent outlooks/rehearses toward their affiliation. A poor legitimate picture may inconveniently influence an agents' self-thought and accordingly, may achieve lower various leveled duty (Peterson, 2004). Corporate picture has the going with impacts to a definitive value (Treadwell and Harrison, 1994): Images are accepted to be related to people and non-part loaded with inclination and lead responses to the affiliation. Pictures give information about the character of affiliations and are thusly inclined to be critical in summoning and keeping up the unwaveringness of people, potential people and the people who are to some extent included. Similar picture or the sharing of a picture by legitimate people can be fundamental to definitive upkeep and working. What it means is that these common pictures empower the social affair to encourage or act with bound together purposes. Thusly, managing this image perception is critical. Further composition review concurs with this dispute. Youngsters (2007) found that laborers who have positive points of view on their affiliation will by and large similarly have positive view in the affiliation's uprightness, heading, forcefulness in the business focus and are happy of their affiliation. Koh and Boo (2004) found that, laborer who sees their relationship to be good are moreover at risk to consider their to be as being sensible for them. Carmeli and Weisberg (2006) found that laborers who interpret the eminence that the contenders and customers attribute to their relationship as incredible, itemized loaded with inclination obligation that mirrors a sentiment of rapture rising up out of the relationship as a social class (work). This finding infers the essentialness of regulating corporate picture to ensure positive legitimate duty is cultivated. This assessment endeavor is to discover corporate social obligation impacts on corporate image.

Legal responsibility & corporate image

Corporate Social Responsibility (CSR) has turned into an outstanding idea in the course of the most recent decade and a half. Workers, government delegates, scholastic researchers, NGOs and global associations have been pondering which job they need to play in respect of CSR. Laws have been drafted that advance socially capable conduct by companies.3 International associations have advanced standards. Organizations have embraced CSR statements of purpose and programs, and are sharing their endeavors through manageability reports. NGOs have reached organizations and called attention to how they can work in an increasingly dependable manner, and scholastics have examined all. CSR is a subject that has joins with numerous territories of law, including worldwide law and European law, corporate law and corporate administration, tort law and contract law, procedural law, work and environmental law, and criminal law. These regions contribute significantly to the advancement of CSR, and at last to react to the genuine difficulties that this world countenances. This exceptional issue of the Journal of International and European Law covers a few of these zones and offers intriguing bits of knowledge with regards to the developing course of the lawful parts of CSR. When comprising CI, the most significant objective is to frame uplifting disposition towards the organization among present and potential customers. CI is contained making a constructive corporate character, showcasing correspondences and channels just as steady criticism from the intended interest group. Worcester (2009), Pina et al. (2006), Meehan et al. (2006), Flavian, Guinaliu, Torres (2005), Abratt, Mofokeng (2001), Teng Fatt et al. (2000), Stuart (1997) and others stress the significance of making and overseeing CI. These creators concur that CSR has positive effect on CI. Lizarraga (2010), Pina et al. (2006), van Heerden, Puth (1995) express that positive CI furnishes organization with individual highlights that lead to mark acknowledgment, improve purchaser and worker dependability just as corporate notoriety.

Christensen, Askegaard (2001), Flavian, Guinaliu, Torres (2005), Chattananon, Lawley (2007) express that CI is the comprehension about the organization by any partner. CI is dictated by the components given by controllable and wild wellsprings of data. Worcester (2009) noticed that CI comprises of item picture, brand picture and brand customer picture. Yeo, Youssef (2010) express that CI is a wellspring of upper hand: because of the way that CI must be framed over quite a while, it ends up hard to copy. Other than CI makes purchaser trust and hinders contenders from entering the market. Pina et al. (2006) accentuate that positive CI can raise deals, client steadfastness, pull in new financial specialists and representatives.

LeBlanc, Nguyen (1995) note that CI is dynamic and it can change on account of specific occasions, moves in consumer’s condition or his character. Rindell, Edvardsson, Strandvik (2010) express that CI can be partitioned into picture being used and picture legacy. Picture legacy depends on purchaser past experience and made by buyer himself. Picture being used is the consequence of company’s picture framing exercises. CI must be checked on continually and refreshed by popular conclusion, convictions and qualities (Herstein, Mitki, Jaffe, 2008). Wei (2002) states that organization which can change, is viewed as creative, open and winds up extraordinary in its business sectors. Rindell, Edvardsson, Strandvik (2010), Flavian, Guinaliu, Torres (2005), LeBlanc, Nguyen (1995) express that the more extended the collaboration among organization and buyer, the more grounded consumer‟s CI. Leblanc, Nguyen (1995) characterize 5 components which Constitute CI: corporate personality, singularity, physical condition, administration offering and contact faculty.

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