Corporate Social Responsibility

A number of companies recognize the significance of balancing profitability and creating a favorable public image by shouldering social responsibility (Mozes, Josman, & Yaniv, 2011). CSR is a “company’s status and activities with respect to its perceived societal obligations” (Brown & Dacin, 1997, p. 72). CSR is an important management tool concept from the perspective that companies should make contributions directly or indirectly to society via socially responsible behaviors that advance social welfare (Y. K. Lee et al., 2012; H. Park, Choi, & Kim, 2014). Carroll (1979) provided a useful perspective for current research that conceives of CSR as multidimensional: philanthropic, ethical, legal, and economic responsibilities. According to Carroll (1979), philanthropic responsibilities are a firm’s activities that contribute to human welfare and goodwill by giving back financial or nonfinancial resources to society. Ethical responsibilities go beyond legal obligations or regulations and reflect implicit social norms and values as well. Legal responsibility refers to a company’s obligation to obey rules and regulations and run the business within legal boundaries. Finally, economic responsibility is related to the belief that firms should produce profitable and competitive products or services to meet customers’ and society’s needs (Carroll, 1979). In the restaurant industry context, S. Y. Park and Lee (2009) pointed out that in spite of the fact that the initial cost of CSR practices is greater than the benefits the company obtains from an accounting perspective, CSR ultimately attracts customers and motivates restaurant’s employees to commit to their work. S. Lee et al. (2013) suggested that managers in restaurants should consider CSR as an investment in product quality, safety, employment, and corporate governance because it creates corporate value and a competitive advantage, especially during recessionary periods. A corporation’s participation in CSR initiatives to conserve the environment enhances customer satisfaction with its services (Gao & Mattila, 2014). In accordance with the preceding perspectives, CSR effectively creates company identification and builds long-term relationships with customers. For example, customers’ awareness of CSR programs is a driver of company–customer identification and trust in quick-service restaurants (Swimberghe & Wooldridge, 2014). Similarly, Siu, Zhang, and Kwan (2014) suggested that customers’ perceptions of a firm’s reputation based on CSR initiatives facilitate customer identification in the restaurant industry. CSR creates a halo effect around a firm that enhances the company’s positive image (H. Park et al., 2014).