THE EFFECT OF CORPORATE SOCIAL RESPONSIBILITY ON BRAND IMAGE: A STUDY ON HOLLAND DAIRY PROCESSING COMPANY IN ADDIS ABABA

Abstract

This researchwas aimed to examine the effect of corporate social responsibility on brand image in the case of Holland Dairy Processing Company in Addis Ababa. Both qualitative and quantitative research approaches along with descriptive and explanatory research design were applied. Customer (consumers, retailers and distributors) were considered as a study population. Primary data were collected from a total sample size of 315 sample respondents through structured self-administered questionnaires. The scale comprised four corporate social responsibility dimensions and brand image questions measured with Likert Scale. The relationship between components of the corporate social responsibility and brand image was examined using both descriptive and inferential analysis techniques. The results descriptive statics (mean and standard deviation) of both independent variables and dependent variable shows that the respondents have positive perceptions, high variability were also observed.Theinferential analysis was analyzed by using Pearson correlation and multiple linear regression models.The resultsregression analysis showed that all the four corporate social responsibility dimensions had positive and significant effect on brand image. Specifically, economic and legal social responsibilities had the highest contribution to brand image. But philanthropic and ethical social responsibilities had less effect. The four dimensions of social responsibility aspects can be summed up as being reliable indicators of brand image that could help in creating positive attitude in the minds of the consumers. Therefore the corporate and marketing managers of Holland Dairy are advised to exert maximum effort on the improvement ofCSR as well as implementation of appropriate communication with their customers.The corporate and marketing managers of Holland Dairy are advised to exert maximum effort on the improvement ofCSR as well as implementation of appropriate communication with their customers.