Corporate Social Responsibility And Its Impact On The Food...

Overview: Corporate social responsibility is of high relevance in the food industry, as this sector has strong impact and high dependence on the economy. CSR threats and responsibilities are increasingly shifting from single firm level to the food chains and network. Over the past decade, there has been substantial evolvement in CSR as a response to perceived limitations of governmental regulations such as privatization and globalizations. Another main reason for rising relevance of CSR is shift in values and preferences of more affluent citizens in western society as well as revolution in communication technology. Civil society and media are requesting companies to be more transparent and open with respect to their actions and also†¦show more content†¦CSR and Financial Performance: Over past four decades, relationship between CSR and Financial performance has been analyzed by large number of empirical studies. These results indicate that there is positive relationship between CSR and corporate financial performance (CFP). The result shows that misdeeds of the corporation negatively had negative impact on shareholder’s wealth. The relationship between CSR and CFP depends upon firm, industry and timings. It also includes the relationship with company’s stakeholders. Investments, which take into consideration social, environmental and ethical issues, fall under Socially Responsible investments (SRI). SRI is a rapid growing market. It indicates that some shareholders prefer to invest in a firm that has record of acting responsible. Consumer perception and behavior: Over past 15 years a research has gradually evolved understanding the relationship between CSR and consumer perception and behavior. The research indicated that responsible firm conduct attracted consumer outcomes such as consumer loyalty, product consideration, company and product evaluation, purchase intention and willingness to pay. However, consumers are not willing to sacrifice product quality for CSR. The result suggests that consumers’ reaction to firms responsible conduct is an important incentive for companies to engage in CSR. As food enterprises