The effects of corporate social responsibility of fast-food restaurants on corporate reputation

Abstract

In order to accommodate the fast-paced and sophisticated lifestyle of increasingly affluent urban populations, the fast-food industry is growing rapidly in most major cities around the world, including Hong Kong. As such, fast-foods chains face severe competition and aim to differentiate their organisations by encompassing nontraditional, contemporary elements of demarcation. One such element is corporate social responsibility (CSR) as an initiative aimed at enhancing corporate image and reputation. However, there is a dearth of studies on how CSR and the concept of reduce, reuse, and recycle (3R) contribute to corporate reputation and the direct consequence of this on fast-food marketing. To fill this gap in the body of knowledge, this research examined the relationship between CSR activities and 3R, and subsequently their relationship with corporate reputation in Hong Kong’s fast-food industry. Data was collected from 350 such customers by using a fully structured and close-ended questionnaire to measure four constructs with a 7-point Likert scale. The questionnaire encompassing 21 items in measuring the three constructs in this research model. The research reveals that there is a positive correlation between CSR and 3R, indicating that consumers of fast-food restaurants opine that CSR and 3R are interrelated. CSR provides a competitive advantage for fast-food restaurants as it plays a big role in enhancing positive corporate image and reputation. Fast-food operators need to identify CSR activities that best reflect their particular industry, making it easier for customers to comprehend and evaluate.