Corporate and managers, but also to the

Corporate
social responsibility (CSR) originated with the traditional compliance to
economic and legal responsibility, has transcended to non-mandatory ethical and
philanthropic responsibility, and continues to show evolutionary trend (Lee,
2008). In a more specific context, CSR also stretches its implementation to
mining companies, where they implement policies which mitigates the adverse
effects of such and extractive and exploitative industry. Moreover, CSR caters
to the broad array of stakeholders that corporations need to attend to – not
only to the shareholders and managers, but also to the workers, participants in
the supply chain management, and the community. This has elucidated the fact
that corporations should not only focus on their short-term economic and legal
goals, but also the practice of a sustainable and responsible corporate behavior
(Mahajan, 2011).  When the public views mining
companies in a lens that is altruistic and socially responsible, it positively affects
its corporate image (Ailawadi et al., 2011).

According
to Pomering in 2009, a corporation’s incentive in implementing CSR is in order
to shape positive public perception towards the company’s image. Company image
is built from the total stakeholders’ impression of the firm’s reputation
(Hayward, 2005). The disposition of these stakeholders to either offer or deny support
is generally influenced by the company’s image. It entails that the willingness
of consumers, for example, to consume the goods is to an extent hinged on the
visibility of CSR practices of a company. The idea of consumerism with relation
to the ethical background of a corporation is described in this statement: “ethical
purchasers… have political, religious, spiritual, environmental, social or
other motives for choosing one product over another… The one thing they have in
common is that they are concerned with the effects that a purchasing choice
has, not only on themselves, but also on the external world around them”
(Harrison, Newholm, and Shaw, 2005). This clearly elucidates that consumers
have a preference in consumption towards companies which integrates better corporate
responsibility.

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Varadarajan
and Menon (1988) defines CSR fit or congruency as perceived link between the
firm’s product line, product mix, brand image, brand positioning, or target
market and the cause’s needs. When both the brand and social cause share the
same value, fit is considered high in relation to CSR (Nan & Heo, 2007). Mining
companies, as similar to other corporate entities, are perceived as CSR fit
when they can incorporate their CSR to their marketing activities. It is explained
by Hoeffler & Keller (2002) that high-fit CSR initiatives will result to a
more favorable image for the company since stakeholders distinguish the
organization as more capable and responsible not only to its shareholders, but
also to the communities where mining companies operate in.

In 2010,
Finavante found out that corporations are shifting towards the consideration of
CSR as a viable option in the development of marketing strategies. This is
manifested through the integration and implementation of philanthropic activities
in the creation of corporate branding. The positive effect of marketing
strategies complemented with CSR concepts includes creation of customer trust
and loyalty, increase in sales, and the attraction of new investors (Pina et
al., 2006). Furthermore, Swaen in 2010 argued that the visibility of a socially
responsible company encourages positive attitude towards the corporation and
thus encouraging consumer’s intention to repetitively buy. 

      The mandatory implementation of Corporate
Social Responsibility in mining industry improves the company’s image because stakeholders
respond positively to good and altruistic company deeds. CSR draws positive attention
from the entire market. Additionally, it creates persuasive ad campaign for the
corporate entity. 

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