Retailer corporate social responsibility: Shedding light on CSR’s impact on profit of intermediaries in marketing channels

Abstract

Purpose

The purpose of this paper is to contribute to knowledge on the impact of corporate social responsibility (CSR) activities on retailers’ performance. An analysis using a comprehensive conceptualization of CSR reveals that CSR has positive implications for retailers’ firm performance and illustrates which CSR dimensions are the most important to focus on. It becomes clear that retailers must care about both downstream- and upstream-oriented CSR dimensions in the value chain. The paper highlights the impact of CSR communication activities for company success both in terms of general communication to the stakeholders and relating to in-store communications.

Design/methodology/approach

The authors conducted a survey among retailers. Data analysis was performed applying partial least squares structural equation modeling.

Findings

While CSR generally has positive effects on retailer performance – despite cost associated with CSR implementation, the authors show that diverse dimensions have different effects. Also, both downstream (customer-oriented) as well as upstream (suppler-oriented) activities count. Also, CSR communications, thus talking about what good a retailer does, is of high relevance.

Originality/value

This paper offers both theoretical implications on CSR dimensions in retailing as well as practical help for retailers on how and why to implement and communicate CSR activities.

Citation

Schramm-Klein, H., Morschett, D. and Swoboda, B. (2015), "Retailer corporate social responsibility: Shedding light on CSR’s impact on profit of intermediaries in marketing channels", International Journal of Retail & Distribution Management, Vol. 43 No. 4/5, pp. 403-431. https://doi.org/10.1108/IJRDM-04-2014-0041