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The Advertising Effects of Corporate Social Responsibility on Corporate Reputation and Brand Equity: Evidence from the Life Insurance Industry in Taiwan

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Abstract

This study investigates the persuasive advertising and informative advertising effects of CSR initiatives on corporate reputation and brand equity based on the evidence from the life insurance industry in Taiwan. The study finds, first, policyholders’ perceptions concerning the CSR initiatives of life insurance companies have positive effects on customer satisfaction, corporate reputation, and brand equity. Second, the advertising effects of the CSR initiatives on corporate reputation are only informative. Third, the impacts of CSR initiatives on brand equity include informative advertising and persuasive advertising effects. This study contributes the literature by explicit defining the advertising effects of CSR initiatives. Following the first step made by McWilliams et al. (Journal of Management Studies 43(1):1–18, 2006), the hypotheses of this study crystallize their conceptual framework. The obtained results in this research first identify the informative advertising effects and persuasive advertising effects of CSR initiatives.

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Notes

  1. This paragraph was added based on the comments of the anonymous JBE reviewer.

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Acknowledgments

The author would like to thank the anonymous JBE reviewers for their comments on the prior version of this article, but assumes responsibility for all errors that remain.

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Authors and Affiliations

  1. Department of International Business, National Taichung University of Education, 140 Min-Shen Road, Taichung City, 40306, Taiwan

    Ker-Tah Hsu

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Appendix

Appendix

Corporate Social Responsibility (CSR)

  • csr 1. My life insurance company is very concerned with local community.

  • csr 2. My life insurance company is very concerned with environment protection.

  • csr 3. My life insurance company is very concerned with policyholders’ benefits.

  • csr 4. My life insurance company is very concerned with the rights of female and disabled employees.

  • csr 5. My life insurance company actively participates in social initiatives.

  • csr 6. My life insurance company is committed to using a portion of its profit to help nonprofits.

  • csr 7. My life insurance company gives profits back to the communities where it does business.

  • csr 8. My life insurance company integrates charitable contributions into its business activities.

Customer Satisfaction (SAT)

  • sat 1. My choice to purchase the service offered by this life insurance company was a wise one.

  • sat 2. I think that I did the right thing when I purchased the service offered by this life insurance company.

  • sat 3. This facility is exactly what I need for this service.

  • er 1. The service offered by this life insurance company makes me feel good.

  • er 2. The service offered by this life insurance company gives me pleasure.

  • er 3. The service offered by this life insurance company gives me a sense of joy

  • er 4. The service offered by this life insurance company makes me feel delighted.

  • er 5. The service offered by this life insurance company gives me happiness.

Corporate Reputation (RP)

  • rp 1. This life insurance company has good reputation.

  • rp 2. This life insurance company is well respected.

  • rp 3. This life insurance company is well though of.

  • rp 4. This life insurance company has status.

  • rp 5. This life insurance company is reputable.

Brand Equity (BE)

  • baw 1. I can recognize this life insurance company among other competitors.

  • baw 2. I am aware of this life insurance company.

  • bas 1. Some characteristics of this life insurance company come to my mind quickly.

  • bas 2. I can quickly recall the symbol or logo of this life insurance company.

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Hsu, KT. The Advertising Effects of Corporate Social Responsibility on Corporate Reputation and Brand Equity: Evidence from the Life Insurance Industry in Taiwan. J Bus Ethics 109, 189–201 (2012). https://doi.org/10.1007/s10551-011-1118-0

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  • DOI: https://doi.org/10.1007/s10551-011-1118-0

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