Chinese Consumers’ Perceptionof Corporate Social Responsibility (Csr)
Journal of Business Ethics (2009) 88:119–132 DOI 10.1007/s10551-008-9825-x
Ó Springer 2008
Chinese Consumers’ Perception of Corporate Social Responsibility (CSR)
Bala Ramasamy Mathew Yeung
ABSTRACT. The findings of this article increase our understanding of corporate social responsibility from the consumers’ perspective in a Chinese setting. Based on primary data collected via a self-administered survey in Shanghai and Hong Kong and results of similar studies conducted in Europe and the United States, we provide evidence to show that Chinese consumers are more supportive of CSR. We also show that Carroll’s pyramid of responsibilities can be applied in China. We evaluated the importance placed by Chinese consumers on the four responsibilities of firms – economic, legal, ethical and philanthropic – and find that economic responsibilities are most important while philanthropic responsibilities are of least importance. The nature of these differences is important for firms intending to use corporate social responsibility for strategic purposes. KEY WORDS: corporate social responsibility, China, Hong Kong, Chinese consumers
Introduction CSR has made its mark as an important area in business literature. The increasing number of articles in leading business journals and dedicated journals to the area provide ample evidence to this effect. At the same time, the social responsibility of businesses is also gaining popularity among other stakeholders. For instance, the 2006 Cone Millenial Cause Study found that 61% of the millenials (those born between 1979 and 2001) feel that it is their responsibility to make the world a better place, while 78% believe that companies have a responsibility to join them in their efforts (www.coneinc.com). The popular talent show, American Idol, showcased poverty in Africa in its 2007 season, and called for participation of its viewers (individuals and businesses) to help eradicate it. In a recent survey by McKinsey, 89% of
Ó Springer 2008
Chinese Consumers’ Perception of Corporate Social Responsibility (CSR)
Bala Ramasamy Mathew Yeung
ABSTRACT. The findings of this article increase our understanding of corporate social responsibility from the consumers’ perspective in a Chinese setting. Based on primary data collected via a self-administered survey in Shanghai and Hong Kong and results of similar studies conducted in Europe and the United States, we provide evidence to show that Chinese consumers are more supportive of CSR. We also show that Carroll’s pyramid of responsibilities can be applied in China. We evaluated the importance placed by Chinese consumers on the four responsibilities of firms – economic, legal, ethical and philanthropic – and find that economic responsibilities are most important while philanthropic responsibilities are of least importance. The nature of these differences is important for firms intending to use corporate social responsibility for strategic purposes. KEY WORDS: corporate social responsibility, China, Hong Kong, Chinese consumers
Introduction CSR has made its mark as an important area in business literature. The increasing number of articles in leading business journals and dedicated journals to the area provide ample evidence to this effect. At the same time, the social responsibility of businesses is also gaining popularity among other stakeholders. For instance, the 2006 Cone Millenial Cause Study found that 61% of the millenials (those born between 1979 and 2001) feel that it is their responsibility to make the world a better place, while 78% believe that companies have a responsibility to join them in their efforts (www.coneinc.com). The popular talent show, American Idol, showcased poverty in Africa in its 2007 season, and called for participation of its viewers (individuals and businesses) to help eradicate it. In a recent survey by McKinsey, 89% of
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China E-mail: bramasamy@ceibs.edu Mathew Yeung School of Business, Open University of Hong Kong, 30 Good Shepherd Street, Homantin, Kowloon, Hong Kong E-mail: myeung@ouhk.edu.hk Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.