An Investigation Into The Effect Of CSR On Brand Equity A Case Study On O2

CSR & Brand Equity A case study O2
An investigation into the effect of CSR on brand equity:
A case study on O2

CSR & Brand Equity Case Study on O2
2
Abstract
Research purpose: The researcher wanted to investigate the impact of CSR on brand
equity with respect to O2.
Research methodology: This was an Interpretivism-led survey-based business research
whereby mixed research design was applied to examine the impact of CSR on brand
equity with respect to O2.
Limitations: Research findings of this dissertation are relevant only to explore the
relationship between CSR and marketing variables with respect to O2. These findings can
at best extend to analyze different scenarios prevailing in the European
telecommunication industry. The researcher had followed Interpretivism-led research
philosophy; so it was believed that sample respondents will not always make rational
choices and their decision making model will be often cluttered by biases and hubris’s.
Research Findings: It is evident that an average customer feels that firm’s commitment
towards corporate social responsibility fulfillment is integral to brand loyalty, brand
satisfaction, brand recognition and brand association. So, an average customer believes
that brand equity and image built up through CSR initiatives are interlinked. It is also
evident through the discussion that O2’s customers are on an average satisfied to its
ethical compliance, social CSR, philanthropic CSR practices. Satisfaction level of these
customers did vary during the survey conduction; but more or less these customers were
satisfied.
Even though the sample respondents felt that CSR was important and they were fully
satisfied with O2’s CSR initiative, the research findings will not completely agree with the
survey results. Since the relationship between CSR initiatives and brand recognition is
not statistically significant, there are reasons to believe that there are numerous marketing
and strategic variable that also influence the brand equity development process. Even
though the sample respondents felt that CSR was important and they were fully satisfied
with O2’s CSR initiative, the research findings will not completely agree with the survey
results. Since the relationship between CSR initiatives and brand association is not
statistically significant, there are reasons to believe that there are numerous marketing
results. Since the relationship between CSR initiatives and brand loyalty is not
and strategic variable that also influence the brand equity development process.

3
Recommendations: It was evident from the FGD the basic focus of O2’s CSR program is
towards ensuring adequate corporate philanthropy budget. But earlier discussion suggests
that a business has ethical, social, philanthropic and economic responsibility to its
stakeholders. The researcher is recommending a detailed stakeholder planning whereby
the key stakeholder groups will be identified, their expectations will be evaluated, their
relevance to the firm’s core value will be defined and their interest will eventually be
addressed systematically.
CSR at O2 is still at its nascent phase, but CSR activism should be an integral part of
corporate risk management and it can also be made a part of value creation. So, CSR
planning needs to become a part of the functional, global and corporate level strategy.
Finally, since there is no statistical significance among CSR initiative and brand equity,
the firm should think of introducing affordable ways to circulate its initiatives. F-
commerce and e-commerce based sites can prove its worth in publicizing O2’s initiatives
at a very affordable price.

4
Table of contents
Particulars Page Number
Chapter one – Introduction
Introduction 7
Background of the study 8
Rational of the research 9
Research aim, objective and hypothesis 10
Organization of the report 10
Chapter two – Literature Review
Introduction 13
Overview of CSR 13
Concept of CSR 13
Theoretical underpinnings of CSR 14
CSR strategies 15
Competitive advantages of CSR 16
Effect of CSR on brand equity 16
Conclusion 22
Chapter three – Research Methodology
Introduction 24
Research nature 25
Research philosophy 25
Research approach 26
Research method 27
Research design 27
Data collection mechanism 27
Sampling framework 28
Research validity and reliability 28
Data access and ethical issues 29
Data analysis 29
Research limitations 29
Conclusion 30
Chapter four – Findings and Analysis
Introduction 32
Customer’s attitude to O2’s CSR practices 32
Relationship between CSR activism and brand recognition 37
Relationship between CSR activism and brand association 39
Relationship between CSR activism and brand loyalty 41
Conclusion 43
Chapter five – Conclusion and Recommendation
Summary of major findings 45
Implications of the findings 45
Coverage of research objectives 45
Recommendations 46
Limitation of the study 47

5
Scope for further research 48
List of tables
Particulars Page
Number
Table 1: Understanding CSR 7
Table 2: Customer satisfaction survey report 8
Table 3: Organization of the report 10
Table 4: Summarized results – Regression -1 37
List of figures
Particulars Page
Number
Figure – 1: Churn rate across mobile subscribers 9
Figure 2 – Research onion 24
Figure 3 – Types of Research nature 25
Figure 4 – Research philosophy genres 26
Figure 5 – Research approaches genres 27
Figure 6 – Level of satisfaction - philanthropic CSR 32
Figure 7 - Level of satisfaction – ethical compliance 33
Figure 8 - Level of satisfaction – social CSR 34
Figure 9- Level of satisfaction – economic CSR 35
Figure 10 - Relevance of CSR with respect to brand association 35
Figure 11 - Relevance of CSR with respect to brand recognition 35
Figure 12 - Relevance of CSR with respect to brand loyalty 36
Figure 13 - Relevance of CSR with respect to brand satisfaction 36
Figure 14 – A holistic approach to corporate social responsibility 46

6
Chapter One – Introduction

7
Introduction: People would hardly agree with this notation that being profitable is one
form of performing CSR (corporate social responsibility). Actually the concept of
corporate social responsibility talks about a trajectory – a firm needs to be economically
responsible, legally responsible, and then ethically responsible and finally it should also
conduct its philanthropic jobs properly (Demsetz, 2014). Generally, people can see the
face of CSR activism during the corporate philanthropy but until and unless a business
has made profit it cannot pay off its dues to the key stakeholders; an ethical business must
be a legal business to its every core; a business’s basic philosophy must be based on
justice and finally a business needs to adhere to the specific needs of the stakeholder
group through donations and corporate gifts (Andrew, 2011).
A business has a number of stakeholder groups – employees, stockholders, lenders, local
communities, government, customer etc. All these stakeholder groups do not have similar
bargaining power and these stakeholder groups are not equally relevant for the business
as well (Mason, 2015). Employees need job security, proper remuneration and the
opportunity to advance through their career. A business has economic, legal and ethical
responsibility to this group of stakeholders (Bain, 2015). A consumer wants better
product at a very reasonable price from the firm and a firm’s responsibility to this
stakeholder can be understood under legal and ethical dimensions (Andrew, 2011). A
firm has ethical and legal responsibility to its stockholder as it must ensure corporate
governance and remain profitable for the long-term prospect (Geread, 2016). Perhaps a
business has philanthropic responsibility to the local community, as it needs to fund the
local social events and provide jobs to the local qualified people (Howe, 2016). Firm’s
suppliers and firm’s lenders want the firm to remain profitable so that it can pay off the
dues in time and fair trade can be key proposition (Demsetz, 2014). In a nutshell, a
business CSR activism does not necessarily refer to only the philanthropic responsibility,
a business can remain socially responsible by only doing the just, by only remaining loyal
to the sovereign law and by only remaining profit. CSR engagement is integral to the
overall business model and it has a holistic shape. The following table bears the
testimony.
Stakeholder group Stakeholder’s concern Nature of responsibility
Employee Job security, career progression and remuneration Economic, legal and ethical
responsibility
Stockholder Dividend, capital gain, good governance Economic, legal and ethical
responsibility
Customer Better product, replacement & warranty Legal and ethical responsibility
Lender Payment of dues on time Legal and ethical responsibility
Supplier Payment of dues on time and fair trade Legal and ethical responsibility
Local community Sponsorship, job availability Philanthropic responsibility

8
Government Good governance, tax and VAT collection Legal and ethical responsibility
Table 1: Understanding CSR
Source: Researcher
Background of the study: Telefónica UK Limited (trended as O2) is the second
largest UK based MNO (mobile network provider). The very rebranded name O2 refers to
its essentiality in the customer’s life. One cannot necessarily breathe without Oxygen and
using this very analogy, O2 also proclaims its necessity to our life. Since its inception O2
has remain responsive to its CSR commitments and it has shown immense commitment
to its customer, to environment, to employees and to the local communities over the
decades (Howe, 2016).
Mobile subscriber 2010 2015
3/Three 67% 83%
EE Not available 79%
O2 82% 89%
Virgin Mobile 73.5% 78.5%
Vodafone 64% 74%
Sector Average 77% 78%
Table 2: Customer satisfaction survey report
Source: Geread (2016)
O2 is the official sponsor of England Rugby team and they have become the name
sponsor of Millennium dome and the O2 arena (Geread, 2016). O2 has partnered with Live
nation and academy music group and that partnership has allowed the firm to prioritize
their customers in these music festivities (Howe, 2016). Most importantly, the firm has
disbursed huge fortune to 54 NGOs to shape the life of the under-privileged segment of
the population (Mason, 2015). The O2 Foundation runs safety line and senior line to tailor
the social support needs of children and elderly people.
O2 is committed to reduce its carbon footprint and it is dedicated to reduce its water, gas
and electricity consumption level (Geread, 2016). It is the telecommunication firm to get
awarded for its commitment to reduce the carbon emission, that feet has been achieved
through introducing LED monitors, smart metering technology (Demsetz, 2014).
Workforce at O2 is diversified whereby women and physically challenged ones have their
key role to play. Work-life balance programs of the firm have allowed employees to
render part-time services and also it has allowed them to work at home by just remaining
connected. Its relationship with the customers has always been trustworthy. O2 is the
pioneer to introduce GPRS, 3G and LTE technologies into the market (Mason, 2015). So,

9
unlike other business relationship, O2’s relationship with its customers is more than just
offering discount points and free minutes.
Rationale of the study: There has been number of strategic moves in the
telecommunication industry which has made profit-making extremely difficult in UK
based telecommunication industry (Bain, 2015). Installation of 3G, 4G and LTE
technology has been very costly and many of the telecom operators have failed to recover
that huge investment (Andrew, 2011). Anti-trust vigilance has not been quite rampant and
merger and acquisition has become the rule of the game. Data revenue has emerged as the
new avenue of growth and the contribution of voice revenue is dripping all along
(Geread, 2016). Brexit should also change the structure, conduct and performance status
of the industry.
An industry whereby churn rate reduction and increase in ARPU (average revenue per
user) is the key to future success; brand equity is perhaps the biggest strategic asset.
Figure 1: Churn rate across mobile subscribers
Source Geread (2016)
Strong brand equity will eventually lead to superior brand recognition, brand association
and brand loyalty (Mason, 2015). O2 is committed to its social commitments and there
should be a positive linkage between CSR activism and building up brand equity. It is
also expected that with CSR-led strong brand equity, the firm will be able to score high
on brand recognition, brand association and brand loyalty (Demsetz, 2014). So, this
research is of epitome importance to understand the exact nature of association between
brand association, brand loyalty and brand recognition with CSR (Bain, 2015).

10
Research aim, objective and hypothesis
Research aim: The researcher wants to investigate the impact of CSR on brand equity
with respect to O2.
Research questions:
 What is the current attitude of O2 customers to its CSR activism?
 What is the relationship between CSR and brand awareness with respect to O2?
 What is the relationship between CSR and brand association with respect to O2?
 What is the relationship between CSR and brand loyalty with respect to O2?
 How can the existing CSR framework be improved?
Research objectives:
 To understand the current attitude of O2 customers to its CSR activism
 To define the relationship between CSR and brand awareness with respect to O2
 To examine the relationship between CSR and brand association with respect to
O2
 To examine the relationship between CSR and brand loyalty with respect to O2
 To understand how the existing CSR framework be improved
Research hypothesis:
H0: There is no association between CSR engagements and brand awareness.
H0: There is no association between CSR engagements and brand association.
H0: There is no association between CSR engagements and brand loyalty.
Organization of the report:
The following table represents the organization of the report.
Chapter name Chapter contents
Introduction Introduction part laid the foundation of the research, in this part of the study
the researcher has described the background of the study – the CSR activities
of O2 and CSR activities are related with ensuring greater brand equity, brand
recognition, brand awareness and brand loyalty. Research aim, research
questions, research hypothesis etc. have also delineated in this part of the
study.
Literature Review The primary motive of literature review is to identify the basis of a particular
study in a field with the help of significant observation and identifying well-
developed tools for better outcomes of the research. Similarly, literature
review of the study has provided an overview of CSR (Corporate Social
Responsibility), theoretical and strategic perspective of CSR, competitive

11
advantages of CSR, philanthropic CSR, environmental and social CSR,
economic CSR, and Resource Based View (RBV) of CSR. The literature
review has also analysed the chosen research topic and identified the literature
gap critically.
Research methodology This part of the dissertation has focused on the conceptual framework of the
business research. So, here the researcher discussed on research nature,
research philosophy, research approach, research method, research design and
the justification behind choosing a particular research nature, research
philosophy, research approach, research method, and research design.
Moreover, the researcher discussed the data collection method, sampling
framework related with the study. Ethical issues to be confronted during the
research were addressed in this part of the research.
Finding and analysis Through pie chart based graphical presentation, the researcher has tried to
evaluate the current attitude of O2 customers to its CSR activism. Through
OLS driven regression, the researcher has examined the relationship between
CSR and brand awareness with respect to O2, the relationship between CSR
and brand association with respect to O2, the relationship between CSR and
brand loyalty with respect to O2.
Conclusion and
recommendation
In this part of the study, the researcher has examined the extent to which
research objectives were met, the implications of the results, the scope for
further research. The researcher has also discussed the research
recommendations.
Table 3: Organization of the report
Source : Researcher

12
Chapter two – Literature review

13
Introduction
In the success of any academic project, a prior review of the relevant literature plays a
significant role and provides relevant information related to the topic (Webster and
Watson, 2002). It has been stated by Webster (2002) that an effective literature review
develops a firm knowledge, helps in developing appropriate theory, and determines the
research gap. The primary motive of the literature review is to identify the basis of a
particular study in a field with the help of significant observation and identifying well-
developed tools for better outcomes of the research (Sohn et al., 2003). Similarly, the
following literature review will provide an overview of CSR (Corporate Social
Responsibility), theoretical and strategic perspective of CSR, competitive advantages of
CSR, philanthropic CSR, environmental and social CSR, economic CSR, and Resource
Based View (RBV) of CSR. The literature review will further aim to analyse the chosen
research topic and identify the literature gap critically.
Overview of CSR
From the point of view of Lindgreen and Swaen (2009), corporate social responsibility
has become a reality from ideology, and it is considered as a necessary practice for all
organisations, as it helps the organisations by defining their social responsibilities
towards society. CSR also explains the ethical standards to the organisations, which
eliminate struggle in the business and helps in extending business towards success
(Lindgreen and Swaen, 2009). However, according to Portney (2005), CSR can be
understood as the social responsibility of an organisation having an objective, as well as
genuine concern towards the welfare of the society. CSR also controls the corporate
behaviour of the organisation and its employees so that they do not adopt unethical
activities for immediate profits and should contribute their potential towards the
betterment of humans (Portney, 2005). CSR activities contribute towards the sustainable
development of an organisation by providing a competitive advantage with the help of
different CSR strategies based on the ethical values, integrity, and well-being of the
society (Hay et al., 2010).
Concept of CSR
It has been identified by Aguinis and Glavas (2012) that CSR framework, policies, and
actions affect the external outcomes and internal outcomes of organisations resulting in
satisfying the stakeholders. The concept of CSR has become famous around the globe
(Aguinis and Glavas, 2012). The central concept of CSR is to improve the relationship of
the organisation with its customers and generate value based mediator variables. These
value based mediator variables have a direct impact on the people, price, place, and
profile of the customers (Aguinis and Glavas, 2012). On the contrary, Brammer, Jackson

14
and Matten (2012) stated that CSR has emerged as a significant business activity though
it has neglected the role of institutions. The institutional theories play a vital role in
understanding the concept of CSR and identifying it as a mode of governance. According
to Brammer, Jackson and Matten (2012), the organisations should understand the
political and historical determinants of the CSR activities and accept the social
responsibilities efficiently.
CSR is directly linked with the formal institutions, stakeholders’ participation, and
intervention of the government in the advanced economies. According to Caroll (2015),
the concept of CSR is not new, and the organisations have adopted it since the time of
post-world war II. CSR has grown as a vital concept after the behavioural changes came
among the community such as, people have became more aware and socially more
conscious regarding their civil rights. CSR activities have provided an innovative
language to the business that comprises of the concepts such as, business ethics,
corporate citizenship, stakeholder management, and sustainability to the business by
satisfying the customers (Caroll, 2015). CSR activities help an organisation by providing
sustainability in the global market as it has changed the older concept of business that is
money making and added a new dimension of stakeholders’ satisfaction and social
responsibility of the organisation towards people.
Theoretical Underpinnings of CSR
Parast and Adams (2012) explored the effects of CSR and benchmarking on the
performance level of an organisation. The authors have identified that management of an
organisation plays a significant role in maintaining the quality of the work and performs
as the main driver of CSR practices in an organisation. According to the literature, CSR
practices have a favourable effect on the internal quality results that is, operational
performance, but it does not have any impact on the external quality results that is, the
performance of the firm (Parast and Adams, 2012). The authors have also stated that the
economically drive factors works as prominent factor in an organisation for
implementing CSR practices effectively.
According to Edmans (2012), CSR practices play a crucial role in improving the stock
return. The author has explored that the theoretical benefits of CSR are clear, though
empirically documenting the benefits of CSR is comparatively harder. It has been further
observed by Edmans that CSR practices aid the recruitment of the employees helping in
enhancing the CSR ratings. According to the “Slack Resource Theory”, financial
performance of an organisation and CSR are linked together and possess a bi-directional
relationship which works as a simultaneous relation (Edmans, 2012). On the contrary,
Mcwilliams and Siegel (2001) argued that there is a neutral relationship between CSR
and financial performance. It has been observed by the authors that CSR capability of a

15
firm is directly dependent on the size of the organisation, level of diversification and
R&D (research and development) level, consumer income, advertising, labour market
condition, as well as on the industry life cycle (Mcwilliams and Siegel, 2001).
Cheng, Ioannou and Serafeim (2014) has also expressed contradictory views and stated
that according to the agency theory, employing the resources of the firm in the CSR
practices results in developing significant managerial benefits for the organisation instead
of developing financial benefits for the firm's shareholders. CSR practices increase the
firm's cost unnecessary and place the firm in a position of competitive disadvantage with
its competitors (Cheng, Ioannou and Serafeim, 2014).
CSR strategies
Chiara and Spena (2011) have stated that CSR principles had a crucial impact on MNC
firms and improved the decision-making capability for managing foreign activities
excellently around the globe. On the contrary, according to Groza, Pronschinske and
Walker (2011), CSR activities works toward developing a proactive and reactive
consumer responses, which helps the customers to identify the organisational motives in
a positive manner. CSR activities help in developing pleasant attitude among the
customers and stakeholders with the help of improving the complexities of the global
supply chain management efficiently (Groza, Pronschinske and Walker, 2011). It has
been identified by Galbreath (2006) that majority of corporate strategies works to
improve the working pattern of an organisation instead of providing guidance regarding
what a firm should do to improve its performance.
CSR is an integrated part of the strategic management and adopting CSR practices
provides a competitive advantage to the firm. CSR practices protect an organisation from
financial consequences by enlightening the organisation about their responsibilities
towards society and environment (Galbreath, 2006). CSR comprises of four strategic
options, which are, shareholder strategy, altruistic strategy, reciprocal strategy, and
citizenship strategy (Galbreath, 2006). The author has identified the goal of these CSR
strategies that are, to gain profit, contributing towards the upliftment of the society, and
developing public relations in the form of sponsorships, community activity, and
partnership. CSR strategy also helps in developing a responsible attitude in the
organisation towards its stakeholders and environment by maintaining transparency and
holding accountability of the action. CSR strategy helps in providing a competitive
advantage to the organisation and developing a sustainable business (Galbreath, 2006).
However, according to Miles, Munila and Darroch (2006), engaging stakeholders in the
CSR strategy making process will enhance the motivation level of the stakeholder and
minimise their concern towards the working of the organisation resulting in better
outcomes.

16
Competitive advantage of CSR
McWilliams and Siegel (2011) worked to identify the private, as well as social values of
the organisation that have adopted CSR practices efficiently. According to the authors,
CSR practices helps in achieving a sustainable competitive advantage and enhancing the
business activities. It has been explored by McWilliams and Siegel that resource-based
theory can be utilised for determining the strategic value of CSR, which contributes
towards the sustainable development of the organisation by achieving competitive
advantage in the global market. According to the literature, CSR can also be referred as,
“private provision of public goods” (McWilliams and Siegel, 2011). On the
contrary, according to Greening and Turban (2000), skilled workforce in an organisation
works as an important factor towards achieving competitive advantage. It has been
identified by the authors that the corporate social performance activities help in attracting
well-qualified and suitable job applicants, which works towards enhancing the production
of the organisation resulting in achieving competitive advantage around the globe and in
achieving desired objectives (Greening and Turban, 2000).
According to Swift and Zadek (2002), CSR has emerged as a response to the imbalances
raises due to the increase in the globalisation. The companies that integrate their social
and environmental concerns in their actions and operations on a voluntary basis help in
satisfying the stakeholders and achieving competitive advantage (Swift and Zadek, 2002).
CSR activities focus on the resources available to an organisation and business options
available in the market. It has been observed that CSR practices also works towards
understanding the present public policies and regulation, and existing law in a nation that
helps in making the business sustainable and provides a competitive edge over the
competitors (Swift and Zadek, 2002). CSR can be undertaken as a complementary action
in response to complex laws, but cannot be regarded as a substitute for the hard law
(Swift and Zadek, 2002).
However, it has been identified by Saeidi et al. (2015) that there are different factors,
which indirectly influences the relationship between corporate social responsibility and
firm performance. According to the authors, sustainable competitive advantage,
customer, and reputation works as a mediator between firms’ financial performance and
its CSR practices. CSR has a positive effect on the three mediators and enhances the
financial performance level of the organisation to a great extent (Saeidi et al., 2015).
Effect of CSR on Brand Equity
According to Torres et al. (2012), CSR plays a significant role in generating global brand
equity. The CSR activities performed by an organisation for its stakeholders, such as
customers, employees, suppliers, shareholders, and community has a positive effect on
the brand equity. The main aim of the CSR activities is to satisfy the community and

17
interest of people (Torres et al., 2012). The global brand that follows “Local Social
Responsibilities” in different countries helps in obtaining competitive advantage for the
organisation by the generation of brand equity by adopting effective CSR policies
focusing customers. According to the authors, it is important for global brands to identify
CSR policies that will help in generating brand equity and combining these policies with
the global strategies of the company in order to satisfy the local communities (Torres et
al., 2012).
However, Berens, Riel and Bruggen (2005), explored the corporate association and the
responses of the consumers in the light of moderating role of corporate brand dominance.
The authors have stated that the association of the CSR policies with a company's
corporate ability influences the product evaluation and positively affects the responses of
the consumers, which has a direct impact on the brand equity. CSR association with the
company policies affects the attitude of the product and perception of the customers
positively.
Brand Identity
It has been identified by Fan (2005) that ethical branding also plays a crucial role in
affecting the corporate reputation of an organisation. According to the author, the value
of brand equity of a product can be measured and defined by evaluating the economic
performance of the product in the global market. The foundation of brand equity is based
on two fundamental elements that are, legality and ethics, which implies that a good
brand is supposed to be legal, as well as ethical, which works to satisfy its customers to a
great extent. According to Fan, corporate brand equity correlates with the attitude and
association of the stakeholders perspective regarding the company and brand as a whole
instead of a single product. Fan (2005) argued that many companies adopt CSR activities
as a corporate PR, instead of identifying it as a genuine approach for changing the
company’s interaction process with the community. The literature also identified that
CSR activities which are driven by risk management approach, does not provide any
positive result to the company and is perceived as a failed approach (Fan, 2005).
However, according to He and Li (2010), CSR has a moderating effect on the brand
identification, Service Quality (SQ), and brand performance of the company. The authors
have identified that effective CSR practices and service quality works together and have a
direct impact on the brand identifications, customer satisfaction, and indirect impact on
the service brand loyalty. It has been explored by He and Li that service quality helps in
enhancing the effects of CSR activities and its impact on the brand identification. There
are three perspectives of service brand performances in a general framework, which
works in predicting customer satisfaction and service brand loyalty. These three

18
perspectives are CSR association, service quality, and brand identification (He and Li,
2010).
Brand Awareness
Servaes and Tamayo (2013) worked to analyse the impact of CSR activities on the firm
value and customer awareness. According to authors, corporate social responsibility and
firm value are linked together positively and plays a vital role in customer awareness, that
is, a firm with low customer awareness comprises of a negative relationship between
CSR policies and firm value. It has been identified that CSR policies can add value to the
firm but only under certain conditions. It has been acknowledged by the authors that
intensive advertising plays a significant role in creating brand awareness among the
stakeholders by reducing the gap between the firm and its customer. According to
Servaes and Tamayo, effective CSR policies not only satisfy the customers but also
enhance brand loyalty.
On the contrary, Brønn and Vrioni (2001) worked to explore Cause-Related Marketing
(CRM) in which CSR practices are adopted along with innovative marketing
communication in order to create brand awareness among the customers and other
stakeholders. CSR policies require timely investment in the exchange of which it
provides measurable outcomes. It has been identified by the authors that there are four
major attributes that decide a companies’ relationship with its stakeholders; these
attributes are, quality of product and services; ability to attract, develop, and retain
talented employees; responsibility towards environment and community; and quality
management. CSR practices work to manage a balance between these activities resulting
in enhanced brand awareness (Brønn and Vrioni, 2001).
However, Booth and Matic (2011) supported the views of Bronn and Vrioni (2001) and
explored that, toady organisations are involving in CSR activities excessively and are
adopting innovating tools and methods of communication in order to convey the
information to the customers and enhancing brand awareness (Booth and Matic, 2011).
CSR exhibits the internal attributes of the company as well as it focuses on the motives of
the company that have a direct impact on the external stakeholders of the company, by
enhancing brand awareness and customer loyalty. External attributes comprise of
company's profit, improved reputation of the company, and enhanced stakeholder
satisfaction (Booth and Matic, 2011).
Brand Loyalty
Corporate social responsibility has emerged as a significant part in the modern times, as
CSR practices directly affect the loyalty of the customers in a positive manner (Martínez,
and Del Bosque, 2013). It has been identified by the authors that CSR works to enhance

19
customer loyalty in the cutthroat competitive environment by satisfying the customer.
CSR has been identified as an important attribute of the corporate image that works to
attract consumers and influences their purchasing decision. CSR affects the social
exchange variables, such as trust and satisfaction, which plays a vital role in obtaining
positive responses of the consumers and obtaining consumer loyalty.
Vlachos et al. (2009) also supported the above arguments stating that trust and customer
satisfaction plays a mediating role in enhancing brand loyalty among the customers with
the help of effective CSR practices. Effective CSR frameworks help in monitoring
customer trust, which helps in regulating the effects of consumer attribution and
perspective regarding the brand image. It has been analysed by the authors that excellent
service quality has a positive impact on the customer trust and their behavioural
outcomes, which affects customer loyalty positively (Vlachos et al., 2009). Thus, it has
been derived by Vlachos et al. that stakeholders driven attributes of CSR influence the
intention and trust of the customers in a negative manner, though it has no effect on the
recommendation intentions.
Perceived CSR
Marin, Ruiz and Rubio (2009) have provided insight of the role of CSR and identity
salience on the consumer behaviour. According to the authors, social identity theory
plays a significant role in depicting consumers’ perspective, requirements, influencing
their choices, and obtaining consumer loyalty and trust. An active identity salience helps
in affecting consumer reactions towards the product stimuli and enhancing consumer
loyalty to a great extent.
Skarmeas and Leonidou (2013) has further explored the topic of the role of CSR and
stated that CSR activities are focused on the community and consumers. It has been
analysed by the authors that CSR activities adds value to the reputation and goodwill of
the company, provide employee and customer satisfaction, and loyalty to the company
(Skarmeas and Leonidou, 2013).
On the contrary, Choi and Yu (2014) worked on exploring the influence of perceived
CSR practices on the employees, as well as on the organisational performance. Perceived
CSR practices can be understood as the degree to which the employees and customers
perceive the company and support CSR practices that are being performed by the
company in the form of trust and loyalty. Perceived CSR activities have a positive impact
on the organisational commitment of the employees, which improved the working of the
organisation (Choi and Yu, 2014).

20
Philanthropic CSR
Yu and Lee (2012), worked to examine the concept of CSR and what type of CSR and
reputation interact to affect the consumers evaluation of the firm. There are three major
activities of the CSR has been identified that will be studiues in the literature and provide
an in-depth understanding of role of CSR. These three CSR activities are, sponsorship,
Cause-Related Marketing (CRM) and philanthropy. Philanthropic responsibility of an
organisation can be understood as, voluntary actions of the oragnsiation which
contributes towards the betterment of the society and improve the overall life of the
people living in the community (Yu and Lee, 2012). The authors have identified that
philanthropic CSR activities are very effective and works towards enhancing the
corporate reputation with the help of brand association.
Lee et al., (2013) also worked to identify the impact of CSR activities on the employees
organisational trust, job satisfaction, and customer orientation. CSR strategies affect the
internal (employees) and external (customers) attitudes in a positive manner. Lee et al.,
analysed the CSR dimensions, such as, economic, ethical, legal and philanthropic.
According to the authors, philanthropic dimension of the CSR activities addressees the
voluntary activities of the companies in order to improve the well-being of people by
means of donations and voluntarism activities for a social cause (Lee et al., 2013).
Environmental and social CSR
Jamali and Mirshak (2007) have emphasised the importance of understanding the concept
of corporate social responsibility in context to the global economy. The organisations all
over the world have realised that government is not solely responsible for protecting the
environment, but it is also the prime duty of companies to ensure that their business
activities are harmless to society and environment. In this relation, the authors have
prescribed a three-dimensional conceptual model of corporate performance (Jamali and
Mirshak, 2007). This model includes a description of CSR practices which is based on
various dimensions namely, legal, ethical, discretionary, and economic that are integrated
with another model considering the motivational principles of a firm for performing in a
socially responsible manner along individual, organisational, and institutional constructs
(Jamali and Mirshak, 2007).
On the contrary, Weber (2008) has demonstrated the positive association of CSR
practices with the competitive advantage for the business organisations. The study
includes ample discussion of the theories supporting CSR practices (Weber, 2008). Apart
from highlighting the advantages of business benefits provided by CSR activities, the
important role played by these activities in stakeholder involvement has also been
evaluated by the author. Weber (2008) has also examined the potential indicators of CSR
activities in reference to brand value, employee motivation, and customer recognition for

21
the product or service provided by the company. In addition, the primary and secondary
value drivers have also been studied, subdividing them into one-time and continuous
costs (Weber, 2008).
Economic CSR
Paul and Siegel (2006) have performed a deeper evaluation of implications of CSR
practices by relating these practices to motivational strategies for the organisation. The
authors have mentioned the imperative nature of empirical research performed in this
regard. Therefore, the purpose of this study is to explore the economic viewpoint of
corporate socially responsible activities, and thus, the authors have justified the economic
influence of determining the production and inputs (Paul and Siegel, 2006). The authors
have also mentioned the importance of conducting a quantitative analysis in this relation
by considering firm level data to explore wider implications of corporate social
responsibility on the economic performance of the organisations.
Podnar and Golob (2007) have performed an investigative study to determine the relation
between the corporate socially responsible activities undertaken by firms and their
affirmation towards performing these activities for the establishment of an effective
relationship with the company with its stakeholders (Podnar and Golob, 2007). In this
relation, the study comprises of a quantitative analysis through the means of conducting
an online survey on a sample with the majority of females from varying backgrounds.
The statistical tools, such as factor analysis and descriptive analysis have revealed that
the expectations from CSR activities bear a positive influence on the support provided by
customers in relation to CSR activities adopted by the firms (Podnar and Golob, 2007). In
addition, the study has also pointed out the importance of these ethical activities of social
interest being followed by organisations from the viewpoint of achieving competitive
advantage (Podnar and Golob, 2007).
Resource bases view (RBV)
llego-Alvarez, Manuel Prado-Lorenzo and García-Sánchez (2011), worked to analyse the
bidirectional relationship between CSR practices and innovation in an organisation
according to resource-based theory. Bidirectional model can be understood as innovation
is a part of effective CSR practices (Gallego-Alvarez, Manuel Prado-Lorenzo and García-
Sánchez, 2011). Resource-based theory hold importance for analysing the CSR practices,
as this theory emphasises on identifying the importance intangible resources and
capabilities. Resource-based theory considers intangible resources as most important
resources of the company and provides a competitive advantage in the global market.
In this part of the study the researcher is going to discuss the impact of CSR initiatives on
corporate brand image, brand recognition and brand equity. There is an association

22
between CSR activity and brand equity in telecommunication industry. Brand equity is a
holistic and integrated concept – a term that encompasses brand recognition, brand
association and brand loyalty (Podnar and Golob, 2007). A successful brand image
eventually leads to superior customer satisfaction (satisfied customers use
telecommunication services in a multifold way; from a satisfied lot of customer a
telecommunication company should expect more voice revenue, more data revenue and
more business client revenue) and lower churn rate (churn rate is the yardstick of
customer loyalty in the telecommunication industry) (Yu and Lee, 2012).
Gap in LR and Conclusion
It has been identified that research gap can be recognised from the previous studies and
researches conducted by the scholars. It has been identified that CSR practices have been
analysed from the past practices that lack to provide the role of CSR practices in the
present time (Carroll, 2015). It has been observed that a number of studies have been
conducted on the role of CSR activities in obtaining a competitive advantage in the global
market by enhancing profits and customer satisfaction (Parast and Adams, 2012; Edmans,
2012; McWilliams and Siegel, 2001; Cheng, Ioannou and Serafeim, 2014). However, the
studies on the effect of CSR practices on brand equity and behavioural perspective of
customers along with philanthropic CSR is lacking, which has created a research gap.
From the above literature review, it has been observed that CSR practices are in existence
since many years. The concept and strategies of CSR have been changed according to the
demands of consumers, the expectation of the society, and motives of the organisations,
though the main focus of CSR activities is still the same that is, acting for the well-being
of the community. The role of CSR is to provide a competitive advantage to the
organisation by means of satisfying the internal and external stakeholders. It has been
analysed that various theories support different CSR practices and helps in interlinking
them with management practices in order to improve the service quality of the
organisation and business ability around the world. Resource-based theory helps the
organisations to identify their intangible resources and providing a competitive advantage
in the global market. Thus, it can be concluded that brand equity, brand image, customer
awareness, financial resources, and brand identification play a significant role in
obtaining a competitive advantage with the help of adopting effective CSR practices.

23
Chapter three – Research methodology

24
Introduction: CSR activities of firms can be segregated into four basic genres –
philanthropic CSR, ethical CSR, economic CSR and legal CSR. Company must earn the
required bottom line, as it has the financial capability to run the errands, pay off its
creditors in time and provide job security for its employees. It has to fulfill its ethical
compliances with respect to customer care and human resource management. It has to
adhere to the environmental and social laws and these laws are not very often written in a
written form. Finally it provides gifts and donations to local community, caters
specialized needs of stakeholder groups. The primary objective of the researcher will be
to understand the relationship between CSR activism and brand equity.
Business research is a process made up of interlinked activities, it starts from defining
research idea, question and objectives (Hinton, 2004). Once the research idea, questions
and objectives are narrowed down, the researcher develops his or her insight related to
the research area of interest and builds up tentative hypothesis. These hypotheses are
tested based on the collected information (Bryman and Bell, 2011). Generally through
survey led strategies primary data is collected; at times the researcher will be need of
secondary data as well (Hinton, 2004). Based on the collected information and based on
the tested hypothesis, researcher gathers the in-depth knowledge regarding the area of
interest and sets out the platform for further in-depth business research (Easterby-Smith,
et al., 2008).
Figure 2: Research onion
Source : (Bryman and Bell, 2011)
This part of the dissertation will focus on the conceptual framework of the business
research. So, here the researcher will discuss on research nature, research philosophy,
research approach, research method, research design and the justification behind
choosing a particular research nature, research philosophy, research approach, research
method, and research design. Moreover, the researcher will discuss the data collection

25
method, sampling framework related with the study. Ethical issues to be confronted
during the research will also be addressed in this part of the research.
Research nature: Business researches are of three generic types – exploratory
research, descriptive research and causal research. Exploratory business research is
generally done under an uncertain atmosphere, whereby the research idea and objectives
are not even properly developed (Bryman and Bell, 2011). Descriptive business research
is a journey towards more certainty and a casual research is obviously a very certain start
towards integrating key knowledge (Hinton, 2004). In fact it is exploratory business
research which sets the foundation for future descriptive business research and the
findings of descriptive business research sets the foundation for future causal business
research. In case of descriptive research, researcher tries to understand the true nature of
key research variables by answering a number of ‘what’, ‘when’, ‘where’ and ‘how’ that
are revolving around the research area of interest (Hinton, 2004).
Figure 3 : Types of Research nature
This is a descriptive business research, since the researcher has tried to focus on the exact
nature of linkage between CSR activities and business success with respect to O2
(Easterby-Smith, et al., 2008). The research idea, question and objective of this business
research are precisely defined and the conceptual framework of the research is
empirically tested.
Research philosophy: Research philosophy defines the researcher’s focal point and
perspective to the research and the exact way of conducting the business research
(Easterby-Smith, et al., 2008). Ontological studies focus on definition of reality – what is
reality, how things actually are, how things really work (Easterby-Smith, et al., 2008). On
the other hand, epistemological studies focus on the knowledge of this reality and the
relationship between the truth and truth-seeker. From these above-mentioned drifts in

26
ontological and epistemological philosophy, three redefined approaches named as
positivism, realism and Interpretivism is stemmed from (Easterby-Smith, et al., 2008).
Research philosophy is the guideline for conducting the business research and
Interpretivism and positivism are the two guidelines often used in business research. In
case of positivism, it is believed that sample respondents will make rational decisions and
there are no cognitive biases and no hubris’s while conducting the business research
(Easterby-Smith, et al., 2008). On the other hand, in case of Interpretivism it is believed
that sample respondents will not always make rational choices and their decision making
model is often cluttered by biases and hubris’s. There is no need to incorporate the help
of social scientists in case of a positivism-based study; on the other hand in case of
Interpretivism, it is believed that the need for a social scientist is a must (Smith, 2008).
Figure 4: Research philosophy genres
This will be a social business research and generally social researches are of
Interpretivism type. So, statistical data, facts and figures will not be taken at its face value
in case of this study (Bryman and Bell, 2011). The researcher believes that sample
respondents will not always make rational choices and their decision making model will
be often cluttered by biases and hubris’s (Smith, 2008).
Research approach: Research approaches deal with the mechanism to build up null
hypothesis and testing these null hypotheses. Induction and deduction are the basic
genres of research approaches (Smith, 2008). In case of deductive study, null hypothesis
are built up and these hypothesis are tested based on the collected information. Theory
generally works at the backdrop of the business research and theory formulation is not the
objective of the researcher (Smith, 2008). On the other hand, in an inductive business
research, theories are formed through generalization of the themes. An inductive business
research is conducted to build up academic theories (Denzin and Lincoln, 2013).

27
Figure 5: Research approaches genres
Theory formulation will not the objective of the researcher. The researcher will build up
null hypothesis and test these hypotheses with respect to the collected information. So, it
will be a deductive study.
Research method: It will be a mixed research method to be used in this business
research, since a mixed research method incorporates the element of both qualitative and
quantitative business research. In case of quantitative business research, it is easier to
build up null hypothesis and it is easier to test these hypotheses (Hinton, 2004). It is
easier to test research validity and reliability in case of quantitative business research
(Smith, 2008). On the other hand, in case of qualitative business research, it is difficult to
test the research validity and research reliability. It is difficult to build and test null
hypothesis. But in-depth data collection is much easier here and it is far easier to get
quality data (Denzin and Lincoln, 2013). A mixed business research is devoid of all these
problems and it incorporates the good parts of qualitative and quantitative business
research.
Research design: This was a case study based research study since through mere
observation and survey it was impossible to understand the respondent’s perception
regarding the impact of CSR activities on brand equity. Experiments are more suitable for
scientific business researches. This business research will focus on a static time frame,
not a time-series one or a cross-sectional one (Denzin and Lincoln, 2013).
Data collection mechanism: For conducting the research, the researcher will need
both primary and secondary data. For collecting primary data, the researcher will use
survey technique and FGD (focus group discussion) technique. For collecting the
secondary data related to the research area of interest the researcher will out for Internet
mediated data collection sources. Since reliability and relevance of Internet sources are
often questioned, the researcher will cross-reference the collected data (De Vaus, 2013).

28
For collecting the primary data, the researcher will use questionnaire-based survey. The
sampled respondents will be approached through e-mail and questionnaires will be sent
electronically. The response rate should be moderate but the overall data collection
process will be brisk and smooth (Bryman, 2012). There will be a prevalence of closed-
end questions in the questionnaire, even though part of the questionnaire will focus on the
open-ended questionnaire whereby the respondents could express their intimate thoughts
on brand (Denzin and Lincoln, 2013).
For collecting data through the FGD (focus group discussion), different stakeholders
(regulators, company officials and advertisement agency personals) will be approached.
The researcher will moderate these FGDs and while conducting these focus group
discussions the researcher will understand the linkage between brand equity and CSR
efforts with respect to telecommunication industry.
Sampling framework: Customers using this mobile network under different
capacities will be the population. This huge population will be impossible to reach out
for; there will not be any population frame available and it will take enormous time and
cost. That is why the researcher will eventually settle in for sampling (Cassell and
Symon, 2012).
In case of probability-based sampling, respondents coming from the population share
equal or unequal opportunities to get selected as a part of the sample (De Vaus, 2013).
Whereas in case of non-probability based sampling, some chunk of the population never
gets the opportunity to get selected (De Vaus, 2013). Stratified random sampling is a
probability based sampling tool whereby the population is at first segregated into
different groups (Bryman, 2012). Within the elements of the population, there is
homogeneity and across these groups there will be heterogeneity. In case of stratified
random sampling, the components of each meaningful group get the equal chance to be
selected for (Denzin and Lincoln, 2013).
The population base of this telephone operator will obviously be diverse but the
researcher will group the population based on the meaningful groups – B2B clients, B2C
clients, customers more focused to voice services, customers more focused to data
services. The researcher will collect primary data from 100 customers and they will
represent different groups on a disproportionate basis. 100 are an adequate number to
reduce any sampling biases.
Research validity and reliability: This research will have representative reliability
since all types of sample respondents will understand the survey questions in the same

29
way (De Vaus, 2013). It is assumed that CSR initiatives would be positively linked up
with brand equity; the research result should correlate with this statement. So, this
research will have equivalence reliability. Respondents’ answers will not change with
respect to context; this is a symptom of test-retest reliability (Bryman, 2012).
The research will incorporate the desired concepts in the research process; so it will be a
research along with face validity. The desired outcome set in the research area of interest
and the ultimate research results will not be different; so this research will have content
validity (Denzin and Lincoln, 2013). The results will match up with the empirical results;
so it will have predicative validity.
Data access and ethical issues: Physical access to key data points will be required
to collect the primary data. Secondary data will be collected from different internet
sources and the authenticity of these sites will be verified with proper caution. For
collecting the primary data, the researcher will use university authorized permission
form. These forms will be sent on an earlier basis through e-mail and respective persons
will be contracted only on confirmation. Date and venue of the FGD (focus group
discussion) will be prearranged and permission will be looked out at an earlier basis
(Cassell and Symon, 2012).
Participants in the focus group discussion and in the survey will come voluntarily. They
will have a pre-conceived notion about the objective of the survey. The researcher will
have the objective clear to them before the actual data collection starts (De Vaus, 2013).
They will have the right to withdraw their consent at any time during the researcher. The
collected data will be handled with extreme care, access to this information will be
limited and only the researcher and the supervisor have the access to the data (Bryman,
2012). After the collection of the data and information, this information will be destroyed
digitally and from the printed format. At the time of the FGD all the participants will be
handled with equality (De Vaus, 2013).
Limitations of the study: Research findings of this dissertation is relevant only to
explore the relationship between CSR and marketing variables with respect to O2. These
findings can at best extend to analyze different scenarios prevailing in the European
telecommunication industry. The researcher had followed Interpretivism-led research
philosophy; so it was believed that sample respondents will not always make rational
choices and their decision making model will be often cluttered by biases and hubris’s.
Data analysis: The regression driven analytical framework with respect to this study
will be an OLS (ordinary least square) and the researcher will interpret the very simple
linear regression outputs. Before running the regression the researcher will check out the

30
extent of autocorrelation in the data set, the degree of Heteroscedasticity in the error
terms, the nature of the error distribution etc. While interpreting the regression results the
researcher will focus on r-square, F-value, t-value and the model’s constant and slope
(Easterby-Smith, et al., 2008).
In addition to the regression study, the researcher will derive frequency tables and cross-
tables to properly understand the surveyed customers’ perspective regarding CSR
activism and its brand equity level.
Conclusion: Business research conduction is a gradual journey and the way the
researcher has presented the steps of the business research it looks like that the
aforementioned gradual trajectory will be maintained all along. But due to data
unavailability concerns and due to resource shortages the researcher may actually fail to
follow the gradual steps as it has been embedded at the initial phase of the chapter
(Bryman, 2012).
It will be a phenomenology-led business research, whereby the researcher will use
deductive research approach to build up null hypothesis and check these hypotheses with
respect to the collected information (Bryman and Bell, 2011). The data collection tool
will mostly be survey and the researcher will go with stratified random sampling to
collect data.

31
Chapter four – Findings and Analysis

32
Introduction: Data analysis and findings portion of the dissertation will focus on the
survey results, FGD results and also the data analysis conducted on time-series data.
Through pie chart based graphical presentation, the researcher has tried to evaluate the
current attitude of O2 customers to its CSR activism. Through OLS driven regression, the
researcher has examined the relationship between CSR and brand awareness with respect
to O2, the relationship between CSR and brand association with respect to O2, the
relationship between CSR and brand loyalty with respect to O2.
Customer’s attitude to O2’s CSR practices (Research objective – one): In
order to understand customer’s attitude towards O2’s CSR practices, the researcher had
conducted a survey and the following research results are derived from these survey.
Question: Evaluate your level of satisfaction regarding the CSR practice
(philanthropic CSR) of O2.
Figure 6 – Level of satisfaction - philanthropic CSR
Source – Survey results
It has been evident from the sample survey results that only 16% of the respondents are
actually dissatisfied about O2’s CSR activism regarding the above-mentioned dimension.
On the other hand, around 82% of the sample respondents are satisfied at this CSR
activism at different level (23% of the respondents seem to be moderately satisfied, 42%
of the respondents seem to be satisfied, 17% of the respondents seem to be extremely
satisfied with CSR initiatives. It can be concluded that customers are all together satisfied
with the CSR practice of O2 with respect to this dimension.
Question: Evaluate your level of satisfaction regarding the CSR practice (ethical
compliance) of O2.
5%
11%
23%
42%
17%
2%
Very dissatisfied
Dissatisfied
Moderately satisfied
Satisfied
Extremely satistifed
No comments

33
Figure 7 - Level of satisfaction – ethical compliance
Question: Evaluate your level of satisfaction regarding the CSR practice (social
CSR) of O2.
Figure 8- Level of satisfaction – social CSR
3% 6%
31%
42%
14%
4%
Very dissatisfied
Dissatisfied
Satisfied
2% 4%
34%
35%
25%
0%
Very dissatisfied
Dissatisfied
Satisfied
No comments

34
Question: Evaluate your level of satisfaction regarding the CSR practice (economic
CSR) of O2.
Figure 9- Level of satisfaction – economic CSR
Question: How much importance would you put on CSR practice while getting
associated with brand?
Figure 10 - Relevance of CSR with respect to brand association
Based on the sample survey results it can be concluded that customer gives ample
relevance or importance to CSR initiatives while getting associated with a brand. Only
3% of the sample respondents feel that while getting associated with a brand, CSR
practices is very irrelevant; for 4% of the respondents it is just irrelevant. But majority of
the customers believe that CSR initiatives play a pivotal role in developing brand
association – a key stage in developing the brand equity. For 43% of the sample
1% 4%
32%
41%
19%
3%
Very dissatisfied
Dissatisfied
Satisfied
No comments
3% 4%
43%
29%
21%
Very irrelevant
Irrelevant
Moderately relevant
Relevant
Extremely relevant

35
respondents, CSR is moderately relevant, for 29% of the customers it is relevant and for
21% customers it is extremely relevant.
Question: How much importance would you put on CSR practice while recognizing
a brand?
Figure 11 - Relevance of CSR with respect to brand recognition
relevance or importance to CSR initiatives while getting recognized with a brand. Only
6% of the sample respondents feel that while getting recognized with a brand, CSR
practices is very irrelevant; for 4% of the respondents it is just irrelevant. But majority of
the customers believe that CSR initiatives play a pivotal role in developing brand
recognition – a key stage in developing the brand equity. For 37% of the sample
respondents, CSR is moderately relevant, for 23% of the customers it is relevant and for
30% customers it is extremely relevant.
Question: How much importance would you put on CSR practice while becoming
loyal to brand?
Figure 12 - Relevance of CSR with respect to brand loyalty
6% 4%
37%
23%
30%
Very irrelevant
Irrelevant
Moderately relevant
Relevant
Extremely relevant
3% 7%
25%
40%
25%
Very irrelevant
Irrelevant
Moderately relevant
Relevant
Extremely relevant

36
relevance or importance to CSR initiatives while getting loyal with a brand. Only 3% of
the sample respondents feel that while getting loyal with a brand, CSR practices is very
irrelevant; for 7% of the respondents it is just irrelevant. But majority of the customers
believe that CSR initiatives play a pivotal role in developing brand loyalty– a key stage in
developing the brand equity. For 25% of the sample respondents, CSR is moderately
relevant, for 40% of the customers it is relevant and for 25% customers it is extremely
relevant.
Question: How much importance would you put on CSR practice while getting
satisfied with brand?
Figure 13 – Relevance of CSR with respect to brand satisfaction
relevance or importance to CSR initiatives while getting satisfied with a brand. Only 8%
of the sample respondents feel that while getting satisfied with a brand, CSR practices is
very irrelevant; for 7% of the respondents it is just irrelevant. But majority of the
customers believe that CSR initiatives play a pivotal role in developing brand satisfaction
– a key stage in developing the brand equity. For 21% of the sample respondents, CSR is
moderately relevant, for 29% of the customers it is relevant and for 35% customers it is
extremely relevant.
It is evident from the above discussion that an average customer feels that firm’s
commitment towards corporate social responsibility fulfillment is integral to brand
loyalty, brand satisfaction, brand recognition and brand association. So, an average
customer believes that brand equity and image built up through CSR initiatives are
interlinked. It is also evident through the discussion that O2’s customers are on an
average satisfied to its ethical compliance, social CSR, philanthropic CSR practices.
Satisfaction level of these customers did vary during the survey conduction; but more or
less these customers were satisfied.
8%
7%
21%
29%
35%
Very irrelevant
Irrelevant
Moderately relevant
Relevant
Extremely relevant

37
Relationship between CSR activism and brand recognition: (Research
objective – two): The researcher will like to discuss the regression assumptions before
starting interpreting the regression-based results.
Particulars Value
Independent variable CSR activism or CSR initiatives is referred as the independent variable
of this regression equation. It was a ratio variable; so any kind of
statistical proceeding is possible with this variable. Data about CSR was
collected from the secondary sources, company’s annual report. It was
not size adjusted, even though the researcher has taken the year-to-year
changes for properly understanding the dynamism of this variable.
Dependent variable In this regression, brand recognition was used as the independent
variable. Brand recognition level cannot directly be observed and that is
why it was measured through a proxy; O2’s investment in F-commerce
was taken as the proxy variable. It should be noted that the proxy
variable data was collected from the secondary sources, company’s
annual report. It was not size adjusted, even though the researcher has
taken the year-to-year changes for properly understanding the dynamism
of this variable.
Expected sign As per the literature review suggests there should be a positive
relationship between the independent and dependent variable.
Regression equation Y = 3.61 + 32.30 X
Adjusted R-square 23%
T-value and associated p-value 1.08 (92.8%)
F-value and associated p-value 3.67 (64.7%)
Unit root test results Unit root was needed to check out whether the time series data – for
dependent and independent variable was stationary or not. As per ADF
(Augmented-Dickey Fuller test), it was revealed that the data set is non-
stationary at level I (base level); but by de-trending the researcher has
converted the data set into a stationary one.
Autocorrelation test result These time-series data was significantly auto correlated at its first lag.
Since annual data was used there were no real way to test the presence of
seasonality in the data set.
Jarque-Bera test By conducting the standard J-B test, it was ascertained that the errors of
the model is asymptotically normally distributed.
Johansen co-integration test It was established that the Johansen co-integration test that there lies a
long-term equilibrium relationship between the variables.
VECM test It was established that the vector-error correlation model that there lies a
short-term equilibrium relationship between the variables.
Granger causality test It was established that the relationship is unidirectional and the

38
functionality is stemming from the independent variable.
Usage of dummy variable Both of the independent and dependent variables are ratio data; any type
of statistical analysis can be conducted with the data set. There was no
need to use a regression dummy variable.
Table 4 – Summarized results – Regression -1
Source – Researcher
Interpretation of regression equation: The literature review confirms that there will be
a linear and positive relationship between the variables. OLS is a linear regression model
and the researcher has not actually tested whether this linearity assumption holds good or
not. But the regression sign is a positive one; so the academic model and the actual
research results match up with each other. It is expected that with each unit change in the
independent variable the dependent variable will change as per the given regression co-
efficient. So, for a unit increase in the independent variable, the dependent variable will
increase by the regression co-efficient; for a unit decrease in the independent variable, the
dependent variable will decrease by the regression co-efficient.
Interpretation of adjusted R-square: R-square or adjusted r-square refers to the
explanatory power of the regression equation. The explanatory power of the regression is
too low. So, the researcher must bring about additional factors into the equations so that
the regression model becomes a robust one.
Interpretation of t-value and associated p-value: T-value in the regression model
summary report actually refers to the statistical significance of the factor. Higher the t-
value and lower the associated p-value, greater will be the statistical significance of the
factor. The null hypothesis is that the factor beta is zero or insignificant. The null
hypothesis was tested under a 95% level of confidence. Since the p-value was more than
5%, it was deduced that the factor beta is actually statistically insignificant and there
were no statistical proof to reject the null hypothesis.
Interpretation of F-value and associated p-value: F-value in the regression model
summary report actually refers to the statistical significance of the model. Higher the F-
model. The null hypothesis is that the regression beta is zero or insignificant. The null
5%, it was deduced that the model beta is actually statistically insignificant and there
Overall comment: So, even though the sample respondents felt that CSR was important
and they were fully satisfied with O2’s CSR initiative, the research findings will not

39
completely agree with the survey results. Since the relationship between CSR initiatives
and brand recognition is not statistically significant, there are reasons to believe that there
are numerous marketing and strategic variable that also influence the brand equity
development process.
Relationship between CSR activism and brand association: (Research
objective – three): The researcher will like to discuss the regression assumptions
before starting interpreting the regression-based results.
Particulars Value
Dependent variable In this regression, brand association was used as the independent
variable. Brand association level cannot directly be observed and that is
why it was measured through a proxy; average revenue per user was
taken as the proxy variable. It should be noted that the proxy variable
data was collected from the secondary sources, company’s annual report.
It was not size adjusted, even though the researcher has taken the year-to-
year changes for properly understanding the dynamism of this variable.

40

41
and brand association is not statistically significant, there are reasons to believe that there
are numerous marketing and strategic variable that also influence the brand equity
Relationship between CSR activism and brand loyalty: (Research
objective – four): The researcher will like to discuss the regression assumptions
before starting interpreting the regression-based results.
Particulars Value
Dependent variable In this regression, brand loyalty was used as the independent variable.
Brand loyalty level cannot directly be observed and that is why it was
measured through a proxy; churn rate was taken as the proxy variable. It
should be noted that the proxy variable data was collected from the
secondary sources, company’s annual report. It was not size adjusted,
even though the researcher has taken the year-to-year changes for
properly understanding the dynamism of this variable.

42

43
and brand loyalty is not statistically significant, there are reasons to believe that there are
numerous marketing and strategic variable that also influence the brand equity
Conclusion: Even though the regression beta signs have matched up with the expected
signs, none of the regression model was statistically significant. There can be a number of
factors that can be associated with this performance. May be the researcher has failed to
understand the exact nature of functionality between the variables, may be a few key
variables were left out from the model; may be a wrong proxy variable was used. In the
following discussion, the researcher will try to find out why the regression equations
were proven out to statistically inadequate.

44
Chapter five – Conclusion and Recommendation

45
Summary of major findings: It is evident that an average customer feels that firm’s
commitment towards corporate social responsibility fulfillment is integral to brand
loyalty, brand satisfaction, brand recognition and brand association. So, an average
customer believes that brand equity and image built up through CSR initiatives are
interlinked. It is also evident through the discussion that O2’s customers are on an
average satisfied to its ethical compliance, social CSR, philanthropic CSR practices.
Satisfaction level of these customers did vary during the survey conduction; but more or
less these customers were satisfied.
Even though the sample respondents felt that CSR was important and they were fully
satisfied with O2’s CSR initiative, the research findings will not completely agree with the
survey results. Since the relationship between CSR initiatives and brand recognition is
not statistically significant, there are reasons to believe that there are numerous marketing
results. Since the relationship between CSR initiatives and brand association is not
results. Since the relationship between CSR initiatives and brand loyalty is not
and strategic variable that also influence the brand equity development process.
Implications of the findings: It was established that CSR activism is widely
considered to be relevant and that is why it should get as much as publicity. But the
positive image driven through CSR engagement does not necessarily increase market
share or sales revenue. That are a number of strategic issues like innovation, customer
response time, efficiency, effectiveness that influence purchase decision making process
and development of brand equity. So, CSR activity will only be successful in raising the
brand awareness, brand association and brand loyalty when it is a part of the core value
chain and properly guided.
Coverage of research objectives:
Understanding customer’s attitude towards CSR initiative: An average customer feels
that firm’s commitment towards corporate social responsibility fulfillment is integral to
brand loyalty, brand satisfaction, brand recognition and brand association. O2’s customers

46
are on an average satisfied to its ethical compliance, social CSR, philanthropic CSR
practices.
Relationship between O2’s CSR initiatives and brand recognition: The relationship
between CSR initiatives and brand recogntion is not statistically significant; there are
reasons to believe that there are numerous marketing and strategic variable that also
influence the brand equity development process.
Relationship between O2’s CSR initiatives and brand association: The relationship
between CSR initiatives and brand association is not statistically significant; there are
reasons to believe that there are numerous marketing and strategic variable that also
influence the brand equity development process.
Relationship between O2’s CSR initiatives and brand loyalty: The relationship between
CSR initiatives and brand loyalty is not statistically significant; there are reasons to
believe that there are numerous marketing and strategic variable that also influence the
brand equity development process.
Recommendations: It was evident from the FGD the basic focus of O2’s CSR
program is towards ensuring adequate corporate philanthropy budget. But earlier
discussion suggests that a business has ethical, social, philanthropic and economic
responsibility to its stakeholders (Andrew, 2011). The researcher is recommending a
detailed stakeholder planning whereby the key stakeholder groups will be identified, their
expectations will be evaluated, their relevance to the firm’s core value will be defined
and their interest will eventually be addressed systematically (Parast and Adams, 2012).
Figure 14 – A holistic approach to corporate social responsibility
Source - Researcher
CSR
Government
Suppliers
Stockhol
ders
Employees
Community
Customers

47
CSR at O2 is still at its nascent phase, but CSR activism should be an integral part of
corporate risk management and it can also be made a part of value creation (Andrew,
2011). So, CSR planning needs to become a part of the functional, global and corporate
level strategy.
Figure 15 – CSR framework
Source - Researcher
Finally, since there is no statistical significance among CSR initiative and brand equity,
the firm should think of introducing affordable ways to circulate its initiatives (Andrew,
2011). F-commerce and e-commerce based sites can prove its worth in publicizing O2’s
initiatives at a very affordable price.
Limitation of the study: This business research has focused on exploring the
connection between CSR and brand equity. Since brand equity was a broader philosophy,
the researcher has narrowed down brand equity into three segments – brand loyalty,
brand association and brand recognition. This research results and findings are only
suitable in explaining O2’s case. At best these research findings can be used to understand
the relationship between CSR and brand equity with respect to mobile network operator’s
case.
The researcher has failed to adjust the size effects while understanding the time-series
dynamics of major research variables like average revenue per user (ARPU), churn rate,
CSR budget. The proxy variable used to understand brand loyalty, brand association,
CSR engagement and brand identification were average revenue per user, churn rate,
CSR budget and f-commerce budget size. But these proxy variables may fail to express
the true dynamism of the research variables. Perhaps a panel (pooled or fixed effects or a
random effects model) would have done a better job in understanding the exact nature of
functionality among these research variables.
Defining the value proposition
Understanding stakeholder's value
Designing the value delivery system
Managing the stakeholder'ssatisfaction level

48
The researcher has tried to understand the possible loopholes in the CSR framework
through FGD and FGD comments can be biased and driven by the irrational decision-
making model of the FGD participants. The researcher has tried to understand the
attitudes of sample respondents about the CSR activities of O2 through survey and survey
responses can be biased and driven by the irrational decision-making model of
participants.
Scope for further research: This was a descriptive business research and through
conducting this business research, the researcher had found answers to a number of
‘what’, ‘when’ and ‘how’. This research has laid up the foundation of a number of future
business researches in the following genres.
 An industry-based exploratory business research can be conducted regarding the
current status of CSR practices.
 A cross-sectional or panel regression-led business research can be performed to
understand the exact nature of relationship between CSR activism and brand
equity.
 Currently CSR activities have fairly limited operational or strategic impact. But
properly guided CSR can add business value as well. So, a robust business
research should be conducted to understand the possible scope of CSR is risk
mitigation and value-addition.

49
References
Aguinis, H. and Glavas, A. 2012. What we know and don’t know about corporate social
responsibility a review and research agenda. Journal of management 38(4), pp.
932-968.
Andrew, W. (2011) Dot-Dash to Dot.Com: How Modern Telecommunications Evolved
from the Telegraph to the Internet. Springer.
Bain, J. (2015) ‘The relation of profit rate to industry concentration’ American
Manufacturing, 2013-1940. Quarterly Journal of Economics , 65,(3); 293-324.
Berens, G., Riel, C.B.V. and Bruggen, G.H.V. 2005. Corporate associations and
consumer product responses: The moderating role of corporate brand dominance.
Journal of Marketing 69(3), pp. 35-48.
Booth, N. and Matic, J.A. 2011. Mapping and leveraging influencers in social media to
shape corporate brand perceptions. Corporate Communications: An International
Journal 16(3), pp. 184-191.
Brammer, S., Jackson, G. and Matten, D. 2012. Corporate social responsibility and
institutional theory: New perspectives on private governance. Socio-economic
review 10(1), pp. 3-28.
Brønn, P.S. and Vrioni, A.B. 2001. Corporate social responsibility and cause-related
marketing: an overview. International journal of Advertising 20(2), pp. 207-222.
Bryman, A. and Bell, E. (2011), Business Research Methods, 3rd edition, Oxford: Oxford
University Press.
Bryman, A. (2012), Social Research Methods (4th ed.), Oxford: Oxford University Press.
Carroll, A.B. 2015. Corporate social responsibility. Organizational Dynamics 44(2), pp.
87-96.
Cassell, C. and Symon, G. (2012), Qualitative Organisational Research: Core Methods
and Current Challenges, London: Sage.
Cheng, B., Ioannou, I. and Serafeim, G. 2014. Corporate social responsibility and access
to finance. Strategic Management Journal 35(1), pp. 1-23.

50
Choi, Y. and Yu, Y. 2014. The influence of perceived corporate sustainability practices
on employees and organizational performance. Sustainability 6(1), pp. 348-364.
De Chiara, A. and Russo Spena, T. 2011. CSR strategy in multinational firms: focus on
human resources, suppliers and community. Journal of Global Responsibility
2(1), pp. 60-74.
De Vaus, D.A. (2013), Surveys in Social Research, 6th edition, London: Routledge.
Demsetz, H. (2014) ‘Industry Structure, Market Rivalry and Policy’ Journal of Law and
Economics vol.16 No.1 , pp. 1-9.
Denzin, N. and Lincoln, Y (Eds) (2013), 4th edition, Collecting and Interpreting
Qualitative Materials, Thousand Oaks, California: Sage.
Easterby-Smith, M., Thorpe, R., and Jackson, P.R. (2008), Management Research,
London: Sage.
Edmans, A. 2012. The link between job satisfaction and firm value, with implications for
corporate social responsibility. The Academy of Management Perspectives 26(4),
pp. 1-19.
Fan, Y. 2005. Ethical branding and corporate reputation. Corporate communications: An
international journal 10(4), pp. 341-350.
Galbreath, J. 2006. Corporate social responsibility strategy: strategic options, global
considerations. Corporate Governance: The international journal of business in
society 6(2), pp. 175-187.
Gallego-Alvarez, I., Manuel Prado-Lorenzo, J. and García-Sánchez, I.M. 2011. Corporate
social responsibility and innovation: a resource-based theory. Management
Decision 49(10), pp. 1709-1727.
Geread, G. (2016) Global Mobile Media. New York: Routledge
Greening, D.W. and Turban, D.B. 2000. Corporate social performance as a competitive
advantage in attracting a quality workforce. Business & Society 39(3), pp. 254-
280.

An Investigation Into The Effect Of CSR On Brand Equity A Case Study On O2

An Investigation Into The Effect Of CSR On Brand Equity A Case Study On O2

Recommended

Recommended

More Related Content

Similar to An Investigation Into The Effect Of CSR On Brand Equity A Case Study On O2

Similar to An Investigation Into The Effect Of CSR On Brand Equity A Case Study On O2 (20)

More from Andrea Porter

More from Andrea Porter (20)

Recently uploaded

Recently uploaded (20)

An Investigation Into The Effect Of CSR On Brand Equity A Case Study On O2