The Effects on Corporate Reputation of Corporate Social Irresponsibility, Philanthropy, and Customer Value Orientation

Abstract

This study aimed to investigate whether philanthropy and customer-related corporate social irresponsibility influence the development of compliance, policies and rules, corporate image, and, indirectly, corporate reputation. We also aimed to verify whether the strategic orientation toward customer value influences compliance, image, and reputation. We proposed a structural model based on the literature, and a survey was carried out with 344 employees of large private companies using a questionnaire. We analyzed the data through structural equation modeling, with estimation by partial least squares. The results demonstrated that if a company invests in philanthropy and avoids cases of customer-related corporate social irresponsibility, it can stimulate the development of compliance. The adoption of compliance, combined with philanthropy, has the potential to impact the company’s image directly and reputation indirectly. We also observed that customer value orientation tends to be reflected in compliance, image, and reputation. In this way, we concluded that investing in philanthropy, avoiding irresponsible acts, and guiding the company to propose value to customers can increase the reputation of a large company.