Unit 3 Assignment

Assignment: Corporate Social Responsibility and the Value Chain (Do Not Use ANY references from the internet. Must use the attached documents, and key terms only as the reference.) Use the template for the document The purpose of the Unit 3 Assignment is to demonstrate a graduate level understanding of the impact of corporate social responsibility on the management of a firmâ??s value chain.DirectionsUse the APA formatted Microsoft Word document template in Course Documents titled â??Unit 3 Assignment Corporate Social Responsibilityâ? as the starting point. Download the template and save it as your own document, for example, YourNameUnit3GB570.docx.Write an APA formatted 4â??6-page paper, exclusive of the Title and References pages.In your paper, address the following requirements using the directions included within the Assessment template. Part One: Use the third person perspective.Make a compelling argument as to why the inclusion of policies of corporate social responsibility enhance the ability of a firm to effectively manage a value chain and the achievement of competitive advantage.Choose and analyze two examples of companies that have been successful in this integration.Choose and analyze two examples of companies that have not been successful in this integration and identify what the companies should have done in their value chains proactively to protect their value chains.Support your responseâ??s content with at least three applied and cited references. Accepted resources are: Library article(s), the textbook, and the chosen example companiesâ?? websites. No other internet references are acceptable for the Unit 3 Assignment. Apply and cite no more than one referenced sentence per paragraph. Not every paragraph requires use of a reference; originality is appreciated. Use APA in-text citations within the response and list the applied reference(s) at the end of the response using APA formatting. APA formatting resources are available in the Writing Center in the â??Research, Citation, and Plagiarismâ? area or in the Academic Tools area titled, â??APA Style Central.â?Include a conclusion summarizing the paperâ??s content without introducing any new information.Part Two: Use the first person perspective.Write a paragraph explaining your own critical thinking process that you used to complete Part One of the Assignment.Proofread your paper, confirm correct APA formatting, run spell check and grammar check, and proofread again. Submit your completed paper into the Unit 3 Assignment Dropbox.Access the rubric


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What we know about corporate social responsibility messaging
Corporate Social Responsibility
Communication Effects
A Comparison between Investor-Owned Banks
And Member-Owned Banks
Charlotte Lecuyer
For companies, communicating about socially responsible activities does not always lead
IUTB University of Lyon
to benefits. This article aims to contribute to a better understanding of the conditions in
Sonia Capelli
which such communications are valuable. The authors investigated the effect of corporate
social responsibility (CSR) communication on purchasing intentions, according to the focal
IAELyon University of Lyon
companyâ??s governance. Mentioning its member-owned business status in a CSR message
increased the efficacy of that communication, because of positive general attitudes toward
these organizations, and it reinforced the impact of the CSR communication on purchase
William Sabadie
intentions. For investor-owned businesses, both CSR and quality-based messages induced
IAELyon University of Lyon
similar purchase intentions.
to Victoriaâ??s Secret to Crédit Agricole, engage in
Investors, suppliers, consumers, and business part-
corporate social activities by investing in charitable
ners increasingly require companies to integrate
causes or environmental protection (Drumwright,
social and societal concerns beyond the economic
1994) and highlighting their prioritization of such
sphere, such as environmental protection, safe
activities (Sen and Bhattacharya, 2001).
working conditions, and the development of com-
Activities that eliminate or minimize harmful
munities. Such requirements also encourage the
effects on society and maximize long-term ben-
development of notions of corporate citizenship, cor-
efits to the community in which the company
porate social responsibility (CSR), and sustainable
does business constitute CSR (Mohr, Webb, and
development. Various companies, from Starbucks
Harris, 2001). Communicating about this social
When the company is a member-owned business, rather than an investor-owned business, and
communicates a corporate social responsibility (CSR) message, it evokes stronger purchase
If they seek to optimize their CSR communication strategies, member-owned businesses should
highlight their governance mode in their CSR communications, but investor-owned businesses
generally should not.
Received (in revised form) January 9,
2017; accepted January 12, 2017
A CSR message is as powerful for influencing attitudes as is a message based on quality.
In the banking field, European law increasingly imposes pricing and offer-alignment restrictions on
competitors, so CSR may be a good alternative that can make the difference in consumersâ?? mind.
JOURNAL OF ADVERTISING RESEARCHâ??December 2017 DOI: 10.2501/JAR-2017-051
Corporate Social Responsibility Communication Effects thearf.org
responsibility does not lead necessarily to
and thereby improve the complementarity
and Malaria. So far, RED has raised $47 mil-
beneficial effects in terms of consumersâ??
between the â??whatâ? (message content) and
lion for the Global Fund, and RED products
perceptions of the company or its products,
the â??whoâ? (company status) in their CSR
have provided more than $100 million in
howeverâ??much less to greater intentions
profit for the companies that sell them. As
to purchase those products (Chernev and
The study sought to answer a key ques-
these examples and previous studies have
Blair, 2015; Sen and Bhattacharya, 2001).
tion: Do some companies benefit more from
shown, CSR communications can increase
Companies often suffer from criticism
CSR communication than others, depending
company revenues and contribute to social
related to their CSR activities; in turn, they
on their governance? To do so, the authors
welfare (Varandarajan and Menon, 1988), as
need ways to communicate their CSR more
drew on a large, nationally representative
long as marketing managers communicate
efficiently to their stakeholders (Bhattacha-
sample in France to test the effect of CSR
their companyâ??s CSR effectively.
rya and Sen, 2004; Ã?berseder, Schlegelm-
communication on consumersâ?? purchase
ilch, and Gruber, 2011) and inform them
intentions, taking company governance
Communicating About CSR
effectively about corporate social initia-
into account. The findings offer guidelines
Many researchers have studied the effects
tives (Gruber, Kaliauer, and Schlegelmilch,
for companies worldwide: If they seek to
of CSR initiatives on various stakeholdersâ??
2015; Polonsky and Wood, 2001).
optimize their CSR communication strate-
behaviors (Brown and Dacin, 1997; Creyer
Communicating about corporate social
gies, member-owned businesses should
and Ross, 1996; Ellen, Mohr, and Webb,
initiatives can induce consumer skepti-
highlight their governance mode in their
2000; Murray and Vogel, 1997; Sen and
cism about the underlying motivations
CSR communications, but investor-owned
Bhattacharya, 2001; Turban and Greening,
(Vanhamme and Grobben, 2009; Webb and
businesses generally should not.
1997; Waller, 2010). Corporate social ini-
Mohr, 1998). To be effective, CSR advertis-
tiatives generally appear to have positive
ing and the advertiser must be perceived as
effects on consumersâ?? attitudes toward the
truthful and sincere, rather than seeming to
Since the early 1990s, marketing research-
company and its products (Luo and Bhat-
exploit the focal cause. The motive attribu-
ers have focused particular attention on
tacharya, 2006; Marin, Ruiz, and Rubio,
tion that targeted consumers adopt thus can
CSR activities and communication (Du,
2009; Page and Fearn, 2005), as well as on
determine the efficacy of CSR communica-
Bhattacharya, and Sen, 2009), which
consumersâ?? purchase intentions (Berens,
tions (Capelli and Sabadie, 2005). To make
reflects such activities increasing promi-
Van Riel, and Van Rekom, 2007; Brown and
such inferences, consumers often use sig-
nence in practice. American Express, for
Dacin, 1997; Creyer and Ross, 1996). These
nals provided by executional cues, includ-
example, ran a campaign to raise funds to
apparent links, however, may be overly
ing the type of appeals, the chosen cause,
restore the Statue of Liberty, such that each
and the importance they attribute to it, as
time a card holder charged a purchase,
Several experiments have shown that
well as the advertiserâ??s status, such as non-
American Express donated a penny to the
communicating about CSR to consumers
profit or for profit. In this paper we address
fund. For each new credit-card application,
does not always lead to better attitudes
the latter signal in particular to investigate
the company donated $1. As a result, the
toward the companyâ??s products (Cher-
how advertiser status might determine
Statue of Liberty Foundation received $1.7
nev and Blair, 2015; Sen and Bhattacharya,
CSR-advertising efficiency.
millionâ??and American Express realized a
2001). The effect of CSR communication
Prior research indicates that consumers
28 percent increase in credit-card use and a
on product-purchase intentions actually is
tend to perceive nonprofit organizations
45 percent increase in credit-card applica-
quite complex, because CSR efforts affect
as essentially devoted to causes, whereas
tions (Bailey, 1987).
consumers both directly and indirectly
for-profit organizations appear to use
The RED campaign, cofounded by U2
(Sen and Bhattacharya, 2001). Effective
causes to ensure their own profit. No prior
lead singer Bono, provides financial sup-
CSR communications, however, can incul-
studies, however, have accounted for the
port for African AIDS clinics, using a simple
cate positive corporate associations and
specific status of different for-profit com-
concept: Persuade youth-oriented brands,
purchase intentions (Groza, Pronschinske,
panies, such as those owned by members
such as Apple, Converse, and The Gap, to
and Walker, 2011). If a CSR campaign can
versus those owned by investors. The cur-
produce a product line in the color of red so
improve attitudes toward the brand (Lii
rent study, therefore, seeks to determine
that it aligned with the campaign; split the
and Lee, 2012) and company (Nan and
how managers should adapt their CSR
proceeds; and then share the profits with
Heo, 2007), as well as behavioral intentions
communications to their governance mode
the Global Fund to Fight AIDS, Tuberculosis
(Lii and Lee, 2012), then companies have a
December 2017
What we know about corporate social responsibility messaging
clear need for a better understanding of the
key issues surrounding CSR communica-
establishments on that continent. Similarly,
determinants that ensure the efficiency of
tion, especially from consumersâ?? point of
in the United States, the member-owned
CSR communication.
view. The current study sought to enrich
banks called credit unions represent 44 per-
Consumers also express a lack of trust
previous models (Du et al., 2009; Gruber
cent of all credit establishments, with more
and cynicism toward companies and their
et al., 2015) by investigating the moderating
than 92 million members in 2014.1
motivations for communicating about
role of corporate governance as a key stake-
CSR activities (Mohr et al., 2001), which
holder characteristic.
Investor-owned and member-owned
businesses exhibit distinct characteristics that consumers can perceive easily.
can harm their attitudes and intentions
to purchase the companyâ??s offerings (Laf-
Role of Corporate Governance
Member-owned businesses allocate power
ferty and Goldsmith, 1999). Still, provid-
Corporate governance is the system that
and the value created to different stake-
ing information about the companyâ??s CSR
directs and controls companies (Cadbury,
holdersâ??consumers in a customer cooper-
efforts is critical, as a means to attract con-
1992; Tihanyi, Graffin, and George, 2015).
ative, employees in a worker cooperative,
sumersâ?? attention (Ã?berseder et al., 2011).
It is one of the most important components
providers in an agricultural cooperative. In
By undertaking CSR activities and report-
of a company (Daily, Dalton, and Cannella,
investor-owned businesses, the value gets
ing about them, an organization seeks to
2003). Corporate governance also relates to
divided among stockholders. A member-
prove to stakeholders that it is socially and
stakeholder contingency factors, because
owned model provides secure, agreeable
morally accountable for its actions (Gray,
it reveals how stakeholdersâ??consumers,
working conditions and seeks to maintain
Kouhy, and Lavers, 1995).
employees, shareholdersâ??work to control
an image of public responsibility (Knights,
Murray, and Willmott, 1993; Leca, Gond,
Despite the importance and challenge
and Cruz, 2014).
associated with communicating effec-
Companies spend millions on CSR cam-
tively about CSR, relatively few insights
paigns. For example, Bank of America, the
Member-owned businesses also tend to
are available (Gruber et al., 2015). The
second-largest American bank in terms of
be perceived as more ethical than investor-
term â??corporate social responsibility com-
revenues, invested around $61 billion in
owned businesses (Diacon and Ennew,
municationâ? was coined â??as an evolving
community development and $200 mil-
1996). They more likely will include ethical
concept that refers to corporate commu-
lion in philanthropic investments in 2014.
practices in their missions, and will be more
nications about sustainability issues,�
It thus becomes urgent to determine the
dedicated to the importance of socially
including societal, environmental, and
efficacy of companiesâ?? communication
responsible behaviors. Such favorable atti-
business aspects (Signitzer and Prexl, 2007,
campaigns. In France, the member-owned
tudes toward member-owned governance
p. 2). A helpful synthesis of the key parts of
bank Crédit Mutuel started issuing a gov-
and positive perceptions of ethicality should
the CSR communication process in a con-
ernance argument in 2012, with the slo-
increase the credibility of CSR messages by
ceptual framework still does not provide
gan, â??A bank owned by its clients makes
member-owned businesses, because these
empirical evidence (Du et al., 2009).
the difference.� The U.S. Denver Commu-
organizations serve the community as part
This framework suggests that effective
nity Credit Union uses a slogan (â??We care
of their essential character. That is, skepti-
CSR communication can be differentiated
about our ownersâ?? accountsâ?) that commu-
cism toward CSR claims might be reduced
by message content and message channel
nicates its cooperative governance.
by a mention of the companyâ??s member-
(Gruber et al., 2015). It also proposes some
To investigate this relatively new com-
contingency factors that may affect the com-
munication strategy, the current study
munication, reflecting both company char-
distinguished two governance forms:
acteristics (i.e., industry, CSRâ??company fit,
stock or investor-owned businesses, which
source of information about the companyâ??s
reflect a traditional shareholder model, and
sage induces better attitudes
CSR, company reputation) and stakeholder
member-owned businesses, which include
toward advertising when the
characteristics (i.e., stakeholder type, con-
business organizations that also might be
sumersâ?? CSR orientation, issue support, and
called cooperatives, mutual organizations,
by a member-owned (versus
social value orientation). Combined, these
or credit unions. Member-owned banks
investor-owned) business.
aspects largely determine communication
account for about 45 million members, 159
outcomes, such that marketing managers
million consumers, and 4,200 local banks in
need a deeper understanding of the related
Europe, or approximately half of all credit
owned status. The authors thus proposed
the following hypotheses:
A CSR (versus non-CSR) mes-
International Co-operative Alliance. (n.d.). â??Facts and
figures.� Retrieved March 10, 2016, from http://ica.coop/fr/
Corporate Social Responsibility Communication Effects thearf.org
A CSR (versus non-CSR) message induces higher purchase
intentions when the message is
Governance mode
(MOB vs. IQB)
communicated by a member-
Communication outcomes
owned (versus investor-owned)
According to the theory of planned behavior (Ajzen, 1985), behavioral decisions
result from a rational process in which
Internal outcome
Attitude toward
the advertising
Message content
(CSR vs. Non-CSR)
behavior gets influenced, indirectly, by
External outcome
Purchase intention
attitudes, such as those toward the advertisement, together with norms and perceptions of control. In the European banking
sector, the prevalence of member-owned
Note. MOB = member-owned business; IOB = investor-owned business; CSR = corporate social responsibility.
businesses suggests vast buying opportunities. The mimetic behavior that dominated banking choices in previous decades
is no longer the norm (Kim, Lataillade,
Figure 1 Conceptual Model: Factors Influencing Attitude
Toward the Advertisement and Purchase Intentions.
and Kim, 2011). Consumers tend to maintain relationships with several banks and
governance mode (member-owned versus
banks appeared in this qualitative study
shop around for the best rates. An effective
investor-owned banks) on attitudes toward
(See Appendix 1). French banks already
advertising campaign thus may help com-
the advertisement and purchase intentions
communicate about their CSR activities,
panies position their brands and influence
(See Figure 1), this study investigated the
and the advertisements were divided
consumersâ?? perceptions and beliefs, which
banking sector as the research field. Banks
approximately equally between member-
in turn influences consumersâ?? behaviors,
devote a lot of resources to CSR, and some
owned banks and investor-owned banks.
including their purchases.
member-owned banks already communi-
Respondents talked freely about their
Although some previous research
cate about their governance. Because cor-
attitudes and feelings toward these CSR
suggested marketing-communication
porate governance is a new topic in the
communications. The responses indi-
strategies for nonprofit organizations
CSR communication field, an exploratory
cate inferences about member-owned
(Henley, 2001), to the best of the authorsâ??
study took a qualitative approach. This
banks, which were perceived as socially
knowledge, no existing investigation has
was followed by the main study, which
responsible, whereas investor-owned
addressed the efficacy of CSR communica-
was based on an experiment to investigate
banks struggle to gain credibility in terms
tions in the for-profit sector according to
whether companies can benefit from high-
of their CSR image. Attitudes toward
different corporate-governance messages.
lighting their governance mode in their
the advertisement also were better for
To determine the impact on consumers
CSR communications.
the member-owned bank than for the
investor-owned bank.
who receive CSR messages from different
kinds of companies (i.e., member-owned
Pilot Study
versus investor-owned), the current study
As a first step, a series of 12 semistructured
Main Study
relied on prior work (Du et al., 2009;
interviews, an average of 45 minutes each,
To understand the impact of CSR commu-
Gruber et al., 2015) to derive the model
helped establish a grounded understand-
nication on attitudes toward the advertise-
and use it to test the hypotheses (See
ing of the influence of corporate govern-
ment and purchase intentions, taking the
Figure 1).
ance on CSR communication efficacy. The
moderating role of corporate governance
interviewees (six women, Mage = 38 years)
into account, the authors conducted a
were diverse in their background and
between-subjects experiment, using mes-
To understand the impact of the type of
demographic features. Television adver-
sage content (CSR versus non-CSR) and
message (CSR versus non-CSR) and the
tisements using CSR messages from French
governance mode (member-owned banks
December 2017
What we know about corporate social responsibility messaging
versus investor-owned banks) as the key
French-spoken area but unknown to the
factors. This methodological approach
respondentsâ??communications by Desjar-
Manipulation Checks
supported a clear comparison of the effect
dins and TD Banks, a member-owned bank
The manipulation checks indicated that
of governance mode, by controlling the
and an investor-owned bank, respectively,
the CSR message was perceived as signifi-
bias that could be induced by an in vivo
that conduct business in Canada.
cantly more socially responsible than the
Pretest. A pretest of the message contents
4.03), t(432) = 2.291, p < .05, according to a Experimental Material. To avoid poten- included 70 respondents (50 women, Mage 7-point Likert scale measuring the item â??In tial noise and bias due to brand-reputation = 25 years) and 10 messagesâ??five CSR this advertising, this bank uses a socially or brand-positioning effects, this study and five non-CSR messages, similar to responsible argument.â? ... Purchase answer to see full attachment

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