Overview: Determining a minimum threshold population for your quantitative study is critical for achieving a quality study. Conversely, qualitative studies focus less on a minimum population; instead, they have a greater focus on the concept of data saturation and knowing when to cease data collection. Understanding these procedures is paramount in completing both your IRB application and effectively writing the sampling procedures portion of chapter three. In this discussion board, you will have the opportunity to conduct either a G*Power Analysis (quantitative) or a explore data saturation (qualitative).
Directions: Select the prompt below based on your dissertation’s chosen methodology.
Quantitative: Using the G*Power analysis tool, calculate the minimum sample size needed for your study. Then, write a “mock” write-up for the power analysis using your expected population. Feel free to use the example below as a guide. You will post your “mock” write-up to the discussion board and reply to one of your classmates providing feedback on their post. (G*Power User Manual).
Example:
The initial target population for the study was 420. The final sample size for the study was 520 which exceeded the minimum sample size of 55, it was determined by a G*Power analysis, a priori to establish a rigorous sample size (power = .80; effect = .15; α = .05).
Qualitative: Review the article Are We There Yet? Data Saturation in Qualitative Research. Additionally, you may use the university databases to further review the concept of saturation in qualitative studies. Then, write a proposal for determining saturation of data in your study. You will post your proposal for data saturation procedures to the discussion board and reply to one of your classmates providing feedback on their post.
i Corporate Social Responsibility: A Case Study Brand Image and Implementation Dissertation Manuscript Submitted to Northcentral University School of Business Administration in Partial Fulfillment of the Requirements for the Degree of DOCTOR OF BUSINESS ADMINISTRATION by TAJREEN HAQ La Jolla, California March 2023
Approval Page By Approved by the Doctoral Committee: Dissertation Chair: INSERT NAME Degree Held Date Committee Member: INSERT NAME Degree Held Date Committee Member: INSERT NAME Degree Held Date
ii Abstract This study aims to understand the topic of Corporate Social Responsibility. The purpose is to determine whether the brand image of Macy’s and other giant corporations is affected by their commitment to social responsibility. Many retailers face societal pressure to implement Corporate Social Responsibility programs. Most corporations improve their brand image by utilizing efficient resources to build solid brands and foster long-term relationships with consumers to gain a competitive advantage in the retail industry. This qualitative study determines the relationship between corporate social responsibility implementation, corporate reputation, and consumer purchasing behavior. Stakeholder theory is the foundation for this research. Stakeholders illustrate corporate social responsibility as a drive for the corporation’s involvement by focusing on human rights, corporate governance, health and safety, and environmental effects. The questionnaires were administered to 100 participants with questions discussing Macy’s and consumers’ satisfaction, purchasing behavior, and brand image. The participants answered questionnaire one before receiving a presentation on Macy’s corporate responsibility initiatives over the years. Questionnaire two was responded to after completing the course on corporate social responsibility, and lastly, the participants answered questions in the focus group discussion. There was a positive relationship between corporate social responsibility and brand reputation; however, social initiatives by the corporation did not affect a consumer’s purchasing decision. The results imply that consumers found Macy’s trustworthy after learning about its sustainability initiatives but were not more or less likely to purchase from the company due to social enterprises. Further research can improve the study by using a larger sample and a more defined demographic. Another logical step would be to differentiate the demographic profiles into groups based on gender, income, and educational background.
i Table of Contents Chapter 1: Introduction ……………………………………………………………………………………………………. 4 Statement of the Problem ……………………………………………………………………………………………. 6 Purpose of Study ……………………………………………………………………………………………………….. 7 Introduction to Theoretical or Conceptual Framework ………………………………………………….. 9 Introduction to Research Methodology and Design ……………………………………………………… 11 Research Questions ………………………………………………………………………………………………….. 13 Significance of Study ……………………………………………………………………………………………….. 13 Summary ………………………………………………………………………………………………………………… 14 Chapter 2: Literature Review ………………………………………………………………………………………….. 15 Database and Search………………………………………………………………………….15 Theoretical Framework ……………………………………………………………………………………………. 16 Literature Review…………………………………………………………………………….19 The Influence of Corporate Social Responsibility in Small and Medium Enterprises…………..19 Small and Medium-Sized Enterprises’ Vulnerabilty to Risk…………………………..19 Small and Medium-Sized Enterprises’ Limitations…………………………………….21 Small and Medium-Sized Enterprises’ Financial Loss…………………………………24 The Influence of Corporate Social Responsibilty in Small and Medium Apparel Retailors..27 CSR Initiatives and Brand Image……………………………………………………..27 Consumer’s Purchasing Decision and Brand Image………………………………….29 The Creative of the Fashion Industry…………………………………………………30 The Fashion Industry Strengthens Relations with Communtities…………………….36 How the Supply Chain affects Retail Corporations…………………………………..39 The Eco-Friendly Industry……………………………………………………………39 The Influence of Corporate Social Responsibilty on Local Retailors……………………….40 Local Retailors Strenghten Their Relationship with Communties…………………….40 Global Pandemic Challenges for Local Retailors……………………………………….43 Local Retailors Gain Customer Loyalty……………………………………………….50 Summary ………………………………………………………………………………………………………………… 52 Chapter 3: Research Method …………………………………………………………………………………………… 54 Research Methodology and Design ……………………………………………………………………………. 58 Population and Sample …………………………………………………………………………………………….. 59 Instrumentation ……………………………………………………………………………………………………….. 60 Study Procedures …………………………………………………………………………………………………….. 61 Data Analysis ………………………………………………………………………………………………………….. 62 Assumptions………………………………………………………………………………….63 Limitations ……………………………………………………………………………………………………………… 63 Delimitations…………………………………………………………………………………64 Ethical Assurances …………………………………………………………………………………………………… 64 Summary ………………………………………………………………………………………………………………… 65
ii Chapter 4: Findings ……………………………………………………………………………………………………….. 67 Trustworthiness of the Data ………………………………………………………………………………………. 70 Results ……………………………………………………………………………………………………………………. 73 Evaluation of the Findings ………………………………………………………………………………………… 86 Summary ………………………………………………………………………………………………………………… 87 Chapter 5: Implications, Recommendations, and Conclusions ……………………………………………. 88 Implications…………………………………………………………………………………………………………….. 89 Recommendations for Practice ………………………………………………………………………………….. 92 Recommendations for Future Research ………………………………………………………………………. 93 Conclusions …………………………………………………………………………………………………………….. 94 References ……………………………………………………………………………………………………………………. 96 Appendix A……………………………………………………………………………………..105 Appendix B………………………………………………………………………………………112
iii List of Figures Figure 1A.1 CSR vs. Brand Image…………………………………………………………74 Figure 1A.2 CSR vs. Tax/Capitalism Benefits……………………………………………..75 Figure 1A.3 Sentiment Analysis……………………………………………………………76 Figure 2B.1 The Importance of Big Corporations Spending on CSR Initiatives…………..77 Figure 2B.2 Macy’s CSR Strategy…………………………………………………………78 Figure 2B.3 Sentiment Analysis……………………………………………………………79 Figure 3C Macy’s Policies vs. The Value of CSR………………………………………….81
4 Chapter 1: Introduction Corporate social responsibility (CSR) impacts the brand image of retail corporations in the United States. Scholarly research studies suggest that socially responsible programs affect a corporation’s brand image through its culture and economic environment (Mishra and Modi, 2016). Many retail corporations in the United States have found CSR activity challenging to implement as corporations do not have the funding to implement socially responsible programs. Afram (2012) noted that retail corporations were irresponsible when implementing social initiatives. They utilized the funds towards other projects in their organization rather than investing them in social enterprises. This research study will address the shortage of funding to implement CSR initiatives that affect Macy’s brand image at Herald Square in New York and suggest how retailers face societal pressure to implement CSR programs. Retail corporations in the United States made it their primary goal to focus on strategies to achieve the company’s vision by maintaining and earning a well-deserved brand image globally (Duffy, 2019). Duffy (2019) noted that management and executives from corporations worldwide, specifically in the United States, focus on the skills needed to utilize their weaknesses and build strategies to implement social responsibility programs to better their company. Corporations consider practical ways to implement greener practices within the organizations. The greener practices within corporations will consider mitigating global warming issues and increasing recycling and renewable energy funding. Duffy (2019) noted that when corporations are involved with greener practices, this helps promote better environmental policies. As corporations focus on better methods to mitigate environmental issues, this helps create a positive and well-deserved image globally. Previous research studies demonstrated that corporate social responsibility initiatives ensure the corporation’s growth and community well-
5 being. Jamali and Karam (2016) noted that corporations in South East Asia were financially secure in their industry and experienced long-term financial growth after their association with CSR initiatives. Corporations in South Asia also found it beneficial to participate in CSR initiatives and ensure the communities’ well-being (Jamali and Karam, 2016). As corporations compete in a globalized market, organizations must keep a presentable name in society. Corporations implement strategies into their company’s vision to maintain a well-deserved reputation globally. Robinson’s (2018) research found a positive correlation between corporate brand image and CSR initiatives. The general problem in retail corporations in the United States is the shortage of resources to build strong brands in the market and foster long-term relationships with consumers resulting in the loss of competitive advantage in the retail industry (Robinson, 2018). Scholars from around the world stressed the importance of CSR initiatives in corporations. According to Gugler and Shi’s research study (2008), Sub-Saharan corporations found it challenging to implement CSR programs into corporations due to their limited resources. The organizations experienced weakened conditions and a lack of efficient resources to implement corporate social responsibility programs (Gugler and Shi, 2008). Gugler and Shi (2008) noted that the corporations’ brand image in Sub-Saharan Africa was affected due to a lack of efficient resources. According to Gugler and Shi’s study (2008), after increasing CSR initiatives’ fair practices within the organizations, the corporations experienced an improvement in their operational efficiencies, financial performance, firm reputation, capabilities to maximize their wealth, and, most importantly, improved brand image. The research study analyzes how corporate social responsibility affects Macy’s brand image in this discussion. The scholarly review will understand how CSR initiatives impact retail
6 corporations’ branding and why it is essential for retail corporations in the United States to be socially responsible. Statement of the Problem Retail corporations in the United States focus primarily on increasing corporate social responsibility initiatives to improve their brand image (Robinson, 2018). According to Luenendonk’s study (2019), corporate social responsibility is considered one of the best business practices to improve the company’s brand image and advertise the company (Luenendonk, 2019). Luenendonk stated that a company’s willingness and involvement in CSR initiatives represent its brand name as it embodies the consumers’ perception of the corporation. According to Kumar’s research study (2015), branding in a corporation is an asset and a long-term investment. A corporation’s brand image is perceived by consumer preference’s loyalty, assuming its expectations are met (Kumar, 2015). Robinson (2018) states that corporate social responsibility is vital for retail corporations’ leaders to increase a positive brand image. The corporate social commitment aims to help its brand image through philanthropy and charity (Robinson, 2018). Robinson noted a positive correlation between CSR initiatives and successful brand image, confirming that consumers optimized brand imaging. However, the general problem retailers face societal pressure to implement CSR programs. Macy’s, located in Herald Square, New York, engages and volunteers in ethically-oriented practices to better their community. The specific problem addressed will be the shortage of funding to implement CSR initiatives that affect Macy’s brand image at Herald Square in New York (Trentmann, 2020). According to Zoeller (2020), a corporation’s positive brand image is related to societal approval from consumers’ positive feelings about the corporation. An increasing number of retail
7 corporations are associated with CSR initiatives, which help the organization achieve brand loyalty for its products or services (Zoeller, 2020). According to Jesper and Frans (2015), corporations gain a positive brand image from their consumers. Companies are more involved with their communities through philanthropic and ethical initiatives (Jesper and Frans, 2015). The results from Jesper and Frans’ study found that it is essential that businesses implement corporate social responsibility to minimize the risk of losing talented employees to other competitors utilizing CSR strategy. Corporations that practice CSR create a workplace where employees enjoy working for their employer, which helps retain their current employees for a more extended period (Jesper and Frans, 2015). Organizations that practice CSR strategies have more satisfied employees than organizations that do not partake in CSR initiatives. Employees feel that working for a socially conscious company gives them a purpose to fulfill. Many businesses that do not practice CSR risk losing talented employees to their competitors and losing out on competitive advantage in their industry. Purpose of Study This exploratory qualitative case study aims to understand how retailers face societal pressure to implement CSR programs. The study will support the shortage of funding to implement CSR initiatives that affect Macy’s brand image at Herald Square in New York. The brand image of Macy’s and other giant corporations is affected by their commitment to social responsibility. The study will affect how society perceives Macy’s after implementing corporate social responsibility. As Macy implements corporate social responsibility, this will help the company in the long run (Harris and He, 2020). A corporation’s commitment to CSR allows society to perceive the company more sincerely, locally and globally. According to Harris and He (2020), successful implementation of CSR will help Macy’s in the long run, as consumers
8 feel proud to be associated with a brand that supports and cares about their employee’s and society’s wellbeing. CSR helps a corporation build a strong lifetime bond with its consumers, which helps prevent corporations from collapsing even at the brink of a crisis. The CSR initiatives at Macy’s in Herald Square will benefit the company enough to evoke trust, influence consumer choices, and help develop consumer loyalty and confidence in the retail industry (Salpini, 2018). In this section, I address that the research study method will administer questionnaires provided to the consumers. The questionnaires delivered to consumers frequently purchase products and services from the Herald Square Macy’s website (Yang and Yan, 2020). According to Yang and Yan (2020), the data collected from every third customer is picked from an online database. Those consumers will fill out the questionnaire—the random and unbiased sampling method administered to 100 participants across multiple age groups. Yang and Yan (2020) noted that every third shopper would participate in this questionnaire and consent to answer each scenario when they believed Macy’s was socially and non-socially responsible for its company policies on CSR initiatives. The questionnaires’ focus will be to analyze the effects corporate social responsibility has on Macy’s brand image and observe and address the shortage of funding to implement CSR initiatives that affect Macy’s brand image at Herald Square in New York. The corporation’s brand image will be observed and predicted through the value of the consumer. Scholarly research studies have shown that one-time consumers value a corporation’s products and services lower than lifetime-valued consumers (Thomas, 2020). According to Thomas’s research study, Macy’s is actively associated with civic organizations and empowers diverse groups. Thomas’ Study noted that Macy’s supports organizations in educational empowerment and mentoring
9 young males and females for a better future. Macy’s is engaged with the National Urban League, Black Enterprise, and The Asian American Business Development Center, to which they donated $15 million to these organizations in 2018. As Macy’s brings a meaningful difference to improving education among the youth, consumer expectations have exceedingly grown over the years. Macy’s CEO stated that after implementation, consumers were satisfied with anything representing their brand (Wilson, 2019). According to Wilson’s study, Macy’s started advertising with an equal representation of gender, ethnicity, and age. The reflection helps Macy’s represent their consumer base more diversely and fairly. Wilson (2019) noted that allowing a full spectrum of diverse consumers helps Macy’s gain more respect, trust, and loyalty to address its CSR initiatives and maintain a positive brand image in the retail industry. Theoretical Framework Corporations adopt a stakeholder-influenced CSR strategy. To increase the corporate reputation and improve business performance, shareholders ensure the stakeholders’ best interests (Fordham and Robinson, 2018). According to Fordham and Robinson (2018), stakeholder theory suggests that an individual is affected by a company’s actions. The three main questions that stakeholders always consider before implementing CSR strategies are What are the legitimate claims of the business? What rights do they have concerning the company’s actions? And What kind of responsibilities can they justifiably impose on a particular industry? By and large, stakeholder theory supports that a corporation’s actions influence a consumer’s life. According to the stakeholder theory, corporations aim to maximize profit without costing human welfare. Company managers and directors maximize profit by prioritizing consumer
10 benefits (Fordham and Robinson, 2018). For example, according to Fordham and Robinson (2018), stakeholders work with their board of directors to learn input from local environmentalists about limiting pollution. They seek advice from their local consumers on improving products and services. Consumers have a voice in the eye of stakeholders, as their input brings social change. Corporations implement corporate social responsibility as a business approach that provides economic, social, and environmental benefits to their stakeholders (Hamrin, et al., 2020). According to Hamrin et al. (2020), corporate social responsibility drives a corporation’s community involvement by focusing on human rights, corporate governance, health and safety, and environmental effects. The Journal on Public Health states that corporate social responsibility is an organization’s contribution to sustainable development goals. A corporation maximizes its benefits and minimizes its challenges by focusing on the economic, social, and environmental impacts. A corporation’s essential component to its business strategy is implementing corporate social responsibility (Hamrin, et al., 2020). According to the Journal of Public Health, companies strategically implement CSR initiatives into their business strategy to achieve remarkable goals with the corporation’s stakeholders. A theoretical framework is a structure that supports the theory of a research study and explains why the problem exists under the study (Hamrin, et al., 2020). The proposed study adopts a theoretical framework to explore how CSR initiatives are integrated into the retail industry and contribute to Macy’s corporation. Stakeholder theory is a theoretical framework that reflects that the behavior and relation between external stakeholders and consumers are responsible for adding value to the firm, society, and the environment
11 (Camilleri 2017). According to Camilleri (2017), corporations use their skills and resources to better society. The expectation from CSR developed to improve a company’s image and reputation by differentiating its products and services in the market (Camilleri, 2017). Research Methodology and Design This research study will conduct a two-part exploratory qualitative case study analysis. In the first part of the study, there 100 participants will be selected to participate in the study. Each participant will voluntarily enroll in this research study as a part of the focus group. The research study will be one month, including two detailed questionnaires and a focus group interview. A qualitative research study consists of interviews with their participants, which is beneficial as it captures the corporation’s attitudes, preferences, and expectations. A qualitative research study is helpful as it highlights issues of interest from the interview process and identifies constraints in further research studies (Woodliffe, 2021). The facilitator will contact the corporate communications manager at Teachers Federal Credit Union to use their online employees as the participants in this study. The 100 participants selection is random across multiple age groups, and the customers selected will be every third customer who recently purchased their online database. Those consumers will fill out a questionnaire before understanding what corporate sustainability entails. Then over a week, each participant will be asked to enroll in a short half an hour course that teaches corporate sustainability principles in retail organizations. Each participant will have to complete the course successfully. After two weeks, each participant will fill out the questionnaire and consent to answer each scenario when they believe Macy’s was socially responsible. The questions are structured to help each participant understand the sustainability program of Macy’s and how the CSR initiatives would influence the brand image of Macy’s.
12 This qualitative study will conduct an exploratory case study analysis for one month. The participants have two questionnaires. The first questionnaire is before their CSR course, and the second is after completion. There will be a follow-up focus group interview at the final stage of the research study. The participants are engaged in learning about CSR in retail organizations and CSR initiatives at Macy’s. It is essential to have a corporate social responsibility in a firm’s routine business process. Corporate sustainability helps the corporation with growth and development and allows the company to earn a good reputation in the market (Essay Company, 2018). The researcher will work with the participants for one month to understand how CSR initiatives contribute to the brand image of Macy’s. Macy’s is a well-known retail corporation that increased its visibility by maximizing the corporate benefits by being socially responsible. Corporate social responsibility helps the organization reduce harmful effects and helps the company positively impact its community. Sustainability in organizations helps the company obey laws and codes of conduct (Essay Company, 2018). However, the shortage of funding to implement CSR initiatives affects Macy’s brand image at Herald Square in New York. Therefore, from this analysis, the researcher will work with the participants to understand the correlation between implementing CSR initiatives and the brand image of Macy’s in Herald Square, New York. From the analysis, the researcher can understand the correlation between consumer purchasing decisions, the influence on the corporation’s brand image, and how corporate sustainability positively influences consumers’ motivation.
13 Research Questions RQ1. What is the effect of implementing CSR initiatives on the brand image of Macy’s in Herald Square, New York? RQ2. What is the effect between consumers’ purchasing decisions and the corporation’s brand image? RQ3. How does corporate sustainability positively influence the motivation of consumers? Significance of the Problem In today’s globalized economy, it is essential for organizations to be socially responsible (Moreira, 2017). According to Moreira (2017), global competition is rising in new markets—businesses such as Macy’s need to prioritize corporate social responsibility. Similarly, Moreira stated that Macy’s is a well-known retail corporation that increased its visibility by maximizing corporate benefits and being socially responsible. Moreira’s research findings found that for Macy’s to improve its brand image, increase consumer loyalty, and gain consumer trust in the retail industry, Macy’s is involved in CSR initiatives. The shortage of funding to implement CSR initiatives affects Macy’s brand image at Herald Square in New York. Macy’s in Herald Square, New York, uniquely holds a strong position in the market as they have increased its environmental sustainability policies over the years. The study by Moreira (2017) noted that when Macy’s is environmentally responsible, they have stood out in the national market as an organization with good morals and fair business practices to increase its brand image. During the pandemic, many corporations were unprepared and adapted to new strategic policies to help their communities. This year has been critical and crucial for organizations to
14 practice social responsibility (Yang and Yan, 2020). According to Yang and Yan, Macy’s suffered a substantial financial loss due to Covid-19; however, they have participated in CSR initiatives despite the limitations in funding. Yang and Yan’s study found that involvement in CSR initiatives helped consumers view the corporation’s products and services with excellent value. Summary The problem to be addressed with this qualitative Study is understand how retailers face societal pressure to implement CSR programs and address the shortage of funding to implement CSR initiatives that affect Macy’s brand image at Herald Square in New York. The purpose is to determine how CSR initiatives at Macy’s in Herald Square will benefit the company enough to evoke trust, influence consumer choices, and help develop consumer loyalty and confidence in the retail industry (Trentmann, 2020). The qualitative research study administers through questionnaires. The sampling method is random and unbiased, distributed to 100 participants across multiple age groups. Every third shopper will participate in this questionnaire and consent to answer each scenario when they believe Macy’s was socially and non-socially responsible for its company policies on CSR initiatives. The answers will be analyzed using comparative analysis to discuss the relationship between consumers’ choices, purchasing behavior, and brand image. Previous research methods will help explore and reinforce corporate resources’ foundation for corporate social responsibility initiatives (Yang and Yan, 2020).
15 Chapter Two: Literature Review This exploratory qualitative case study aims to understand how retailers face societal pressure to implement CSR programs. The Study will observe and address the shortage of funding to implement CSR initiatives that affect Macy’s brand image at Herald Square in New York. The CSR initiatives at Macy’s in Herald Square will benefit the company enough to evoke trust, influence consumer choices, and help develop consumer loyalty and confidence in the retail industry (Salpini, 2018). Retail corporations face societal pressure to implement corporate social responsibility into their organizations. According to Robinson (2018), corporations engage in social responsibility to increase the organization’s brand image. The specific problem to be addressed is the limitations in funding to implement corporate social responsibility at Macy’s in Herald Square and how it affects Macy’s brand image (Trentmann, 2020). Scholarly research studies will discuss how corporate social responsibility influences small and medium enterprises through vulnerability to risks, limitations, and financial loss. The influence of corporate social responsibility in small and medium apparel retailers will focus on CSR initiatives and brand image. It also focuses on consumers’ purchasing decisions and brand image, the creativity of the fashion industry, how the fashion industry strengthens relations with communities, how the supply chain affects retail corporations, and how eco-friendly the industry is. The influence of corporate social responsibility on local retailors will discuss how they strengthen their relationship with communities, the global pandemic challenges that local retailors experienced, and how they gain customer loyalty. Database and Search The databases used for this research study are scholarly journals from the North Central University Library and the Google search engine. The research study investigated a positive correlation between CSR initiatives and successful brand image, confirming that consumers
16 optimized brand imaging. The databases are helping define the general problem of how retailers face societal pressure to implement CSR programs. Robinson (2018) noted that corporate social responsibility is vital for retail corporations’ leaders to increase a positive brand image. The specific problem addressed will be the shortage of funding to implement CSR initiatives that affect Macy’s brand image at Herald Square in New York (Trentmann, 2020). The databases and the google search engine are helping define the purpose of this qualitative case study to understand how retailers face societal pressure to implement CSR programs. The study will observe and address the shortage of funding to implement CSR initiatives that affect Macy’s brand image at Herald Square in New York. The CSR initiatives at Macy’s in Herald Square will benefit the company enough to evoke trust, influence consumer choices, and help develop consumer loyalty and confidence in the retail industry (Salpini, 2018). Worldwide research studies found that CSR initiatives found a positive relationship between brand image and consumer trust and loyalty. The research methodology and design, sample population, instrumentation, and data analysis discuss how retailers face societal pressure to implement CSR programs. The study will observe and address the shortage of funding to implement CSR initiatives that affect Macy’s brand image at Herald Square in New York from 2020 to 2022. Theoretical Framework Corporations implement social responsibility through a business approach of stakeholder theory. For their stakeholders, it provides economic, social, and environmental benefits (Hamrin, et al., 2020). Organizations are involved with corporate social responsibility by delivering equal human rights, corporate governance, proper health and safety measures, and environmental conservation. According to the Journal of Public Health (2020), corporations implement these
17 CSR initiatives to meet sustainable development goals. An organization can fulfill its benefits and minimize challenges by focusing on sustainable development and growth. Stakeholder theory is an important concept that signifies incorporating societal interests into business operations. Stakeholder theory is an essential part of corporate social responsibility as it stresses how a company and its community operate with one another. The companies work with their local communities by focusing on their needs (Dmytriyev and Freeman, 2017). According to Dmytriyev and Freeman, a company will help fight disease or alleviate poverty in certain nations, even if the company has no expertise in that area. Thus, each company is purpose-driven. Stakeholders of a corporation drive to meet the corporate vision, mission, and strategy. The stakeholders achieve these key points when corporate social responsibility initiatives are met. According to Harrison, et al. (2015), the stakeholder theory states that stakeholders depend on the corporation to achieve their goals, and the corporate leaders rely on the stakeholders. A corporation is a business community where the stakeholders and shareholders work together to meet organizational goals. According to the stakeholder theory, the core values of a corporation are essential to conducting business and retaining a positive brand image (Harrison et al., 2015). Retail corporations will maximize their potential growth and minimize their challenges by focusing on sustainable development constructed by the shareholders and stakeholders of the organization. Corporations in the retail sector need to participate in CSR initiatives to influence small and medium enterprises, small and medium apparel retailers, and local retailers in the United States. Stakeholders invest in business practices that focus on opportunities to increase corporate sustainability. The active engagement of stakeholders helps create a collective value for the
18 company and its consumers (Camilleri, 2017). Stakeholders seek proposed strategies to pursue new business opportunities in the new markets to improve profitability and help the corporation’s competitiveness. Stakeholders of corporations must have sustainability policies in effect to avoid calamities (Camilleri, 2017). According to Camilleri (2017), when corporations do not have sustainability policies, this can hurt the company’s image. For example, the Rana Plaza factory collapse in Bangladesh could have been prevented if the corporation had taken responsibility beforehand. The stakeholder theory defines a stakeholder as a group or individual who can affect the organization’s objectives (Freeman et al., 2015). A business organization is a community where the stakeholders and shareholders work together to meet the corporation’s objectives. According to Freeman et al. (2015), the stakeholders depend on the corporation to achieve their goals, and the corporate leaders rely on the stakeholders. The stakeholder theory assumes that a corporation’s values are necessary when conducting a business and retaining a positive brand image (Freeman et al., 2015). The values created by the corporate leaders share with the stakeholders. According to Freeman et al. (2015), the theories’ assumptions understand the corporation’s purpose and corporate leaders’ responsibility to the stakeholders. From the stakeholder theory, since values are essential to business, the corporation must create and share the importance of multiple stakeholders. The stakeholders share a fundamental responsibility to cooperate and support the corporation. As a corporation is involved in its community by focusing on human rights, corporate governance, health and safety, and environmental effects, this helps achieve an organization’s contribution to sustainable development goals. Freeman et al. (2015) noted that a corporation like Macy’s
19 would maximize its benefits and minimize its challenges by focusing on its shareholder’s and stakeholders’ economic, social, and environmental impacts. Literature Review Corporate Social Responsibility Corporate social responsibility has had various definitions throughout the 20th century. CSR initiatives are vigorous and have changed retail corporations’ social and economic environment (Welford, 2019). Retail corporations practice social responsibility to exercise the corporations’ core values by engaging in environmental conservation, building relationships with employees, meeting and exceeding consumer expectations, and building a more robust positive brand image. Razalan (2014) holds that corporations in the retail sector need to participate in corporate social responsibility to define an organization’s mission statement. It allows the organization to impact its employees and consumers positively. The core values identify an organization and exemplify a positive brand image in its industry. The Influence of Corporate Social Responsibility on Small and Medium Enterprises Small and Medium-Sized Enterprises’ Vulnerability to Risk Small and medium enterprises are defined in various ways in Europe and America. According to Ward, small and medium enterprises are ranked smaller: legal offices, trucking companies, personal care services, dentists’ offices, restaurants, and bars. The European Union has fewer than 250 employees, and an American enterprise has 1,200 employees (Ward, 2020). Small and medium enterprises are vulnerable to more risk and failure than giant corporations. According to the research study by Erazo, García, Rama, and Quezada (2020), small and medium enterprises can successfully carry out their business objectives quickly as they encounter higher risk than giant corporations. Subject matter experts found that only 40% of
20 small and medium enterprises can successfully carry out their businesses. Only 66% of these retailers add employees to the organizations that can carry out their business within the first six years (Erazo, García, Rama, and Quezada, 2020). Smaller and medium enterprises can implement corporate social responsibility initiatives by expanding employment and increasing corporate growth. About 66% of these enterprises add employees within the first six years of their business, leading to the corporation’s expansion and growth (Erazo, García, Rama, and Quezada, 2020). The subject matter experts found that smaller and medium enterprises follow a philanthropic approach, which improves the corporation’s image and reputation. According to Erazo, García, Rama, and Quezada (2020), the organization’s reputation increased the employee’s morale. The employees’ morale helped the enterprise experience improved financial performance. As more enterprises participate in social events, the corporation is involved in higher expenditures that cannot always recover, leading to corporate loss. Small and medium enterprises are more vulnerable to internal and external risks. The company’s internal chances are often manageable; however, the external threats are often beyond the corporation’s control and capacity to manage. According to the World Economic Forum, many companies have been assessed as a global risk since 2005 and held uncertainty on how it will impact the company in the long term (Asgary, Ozdemir, and Özyürek, 2020). Asgary, Ozdemir, and Özyürek (2020), small and medium enterprises face significant risks. Smaller and medium enterprises are less prepared to manage the risks and are more vulnerable than giant corporations. Smaller and medium enterprises worldwide are not ready to meet risk management, business continuity, and other crises.
21 Asgary et al. (2020) found that many small and medium enterprises do not have the appropriate resources to focus on internal and external shocks. These companies are more vulnerable to disruptive shocks, which disable them companies from participating in CSR initiatives. These companies must assess and enhance their business continuity management to minimize these risks. Asgary et al. (2020) stated that small and medium enterprises focus on different goals to minimize risks and maximize their attributes. The enterprises examine the likelihood of global risks occurring. They also discuss the small and medium enterprises’ risk ranking compared to the rest of the world. Enterprises involved with manufacturing are assessed as having a higher global risk than other corporations. Asgary et al. (2020) found that in 2008 socioeconomic factors impacted small and medium enterprises worldwide. Smaller and medium enterprises are more vulnerable to risks; therefore, these companies have lower participation in CSR initiatives. When smaller and medium enterprises encounter troubles, it is more difficult to recover from those risks. Thus, these companies will likely not participate in CSR initiatives due to the higher stakes. For example, the 2008 economic crisis affected companies worldwide and was beyond the risk expectations of economists. As more companies closed and downsized, the number of new projects decreased. Small and medium enterprises experienced reduced revenues and a more stressful working environment. The vulnerability of the companies prevented them from participating in CSR initiatives in the long term. Small and Medium-Sized Enterprises’ Limitations Small and medium-sized corporations encounter restricted financial and human capital. Due to limitations in the capital, many smaller and medium-sized corporations lack the
22 proactiveness to engage in CSR activities (Williams, 2020). Owners of small and medium-sized companies are motivated to implement philanthropic motives; however, due to the restrictions, many enterprises lack competitiveness in their business environment and community (Williams, 2020). According to Williams’s research study, smaller and medium enterprises form relationships with their community, which builds stronger brand loyalty. CSR activity is essential to these organizations; however, these corporations are at a higher risk of loss. Owners of smaller enterprises are innovated and create strategies to implement CSR initiatives into their corporations to build brand loyalty. Building solid relationships is essential for a corporation to grow brand loyalty and increase competitiveness. However, when smaller and medium-sized corporations encounter higher financial risks and limited capital, corporations are prevented from practicing CSR initiatives. The lack of proactiveness hurts the brand image of the corporations. Corporations weigh the risks much higher than the brand image; therefore, many small and medium-sized enterprises prevent themselves from practicing long-term CSR initiatives. Williams (2020) stated that cultivating social relationships increases brand loyalty and interpersonal networking. Interpersonal networking in these enterprises helps generate trust within their community to conduct business. Corporate sustainability also helps these organizations achieve ethical behavior by maintaining and increasing competitiveness. According to Williams, increasing corporate social responsibility in smaller and medium enterprises benefits the organizations; however, these corporations face financial risk and are vulnerable to more risk and failure than giant corporations. Research studies observed and reported that CSR initiatives created positive profitability in the short term; however, the lack of capital made a significant and negative financial impact in the long run.
23 Corporate social responsibility is a crucial part of tourism enterprises in Egypt. About two percent of tourism enterprises across the world practice social responsibility. However, many of the tourism enterprises in Egypt cannot implement social responsibility. Despite the benefits of social responsibility, many decision-makers cannot implement CSR as the results from CSR initiatives have limited availability (Abdulsamie, 2016). Practicing CSR helped enterprises become successful financially and socially. According to Abulsamie (2016), many tourism enterprises understand the importance of implementing CSR initiatives. However, smaller and medium-sized enterprises cannot implement CSR initiatives as decision-makers of these corporations are hesitant about the outcome. The limitations include decreased philanthropic sector funding due to the limited budget to implement these CSR programs. Over the last few years, tourism has become the leading indicator for implementing CSR initiatives (Abdulsaime, 2016). One reason is that small and medium-sized enterprises want to contribute to economic development significantly. Another reason being small and medium-sized businesses are owner or managerial-owned, in which management wants to build a strong partnership with their local communities. Abdulsamie (2016) stated that smaller and medium-sized companies are willing to implement CSR initiatives; however, many enterprises cannot make long-term commitments due to a lack of resources. The social practice of looking after communities will help them gain a competitive advantage and help these enterprises grow. Corporate social responsibility is more common in giant corporations than in small and medium-sized enterprises. More giant corporations can attract CSR, which protects and triggers media attention to preserve their system (Smith, 2013). According to Smith, local communities
24 expect CSR initiatives; however, many CSR programs in the local communities have limited resources, ranging from protecting jobs to skills development and infrastructure improvement. Smith stated that more giant corporations are known to make riskier decisions than smaller ones. The smaller companies encounter reputational pressures; for example, this reduces the smaller and medium companies’ efficiency as they suffer an enormous financial loss than other corporations. Smaller and medium-sized enterprises suffer more losses due to limited resources and funding. The limited financing decreases the enterprise’s chance to be socially and environmentally responsible. Small and Medium-Sized Enterprises’ Financial Loss In small and medium enterprises, corporate social responsibility is essential to improve their economic environment, contributing to a better life. CSR initiatives have also improved their local communities (Farooq and Zafar, 2014). According to Farooq and Zafar (2014), most small and medium enterprises implemented CSR to practice fair trade, improve human rights, and improve ethics to improve the community’s betterment. Smaller and medium enterprises have been vital for the development of change. Since these enterprises implemented CSR initiatives, there have been positive changes within the community, such as bringing good governance policies. It has been difficult for smaller and medium companies to implement CSR, as these enterprises are at more risk of encountering a financial loss than larger organizations. However, many of these enterprises are willing to pay a higher cost to attract more stakeholders, customers, and suppliers (Farooq and Zafar, 2014). Many of these enterprises’ reputation is vital to bringing innovation and reducing production costs. Subject matter experts experienced organizational
25 benefits by increasing CSR initiatives. According to Farooq and Zafar (2014), a company’s reputation shows the customer’s and suppliers’ high devotion to the organization. Farooq and Zafar (2014) state that as more enterprises are engaged in CSR initiatives, they increase their engagement with their consumers. As more enterprises are involved in CSR initiatives, the community is doing socially and financially better. According to Farooq and Zafar (2014), CSR initiatives increased the financial security of these organizations throughout the years. Most importantly, the company built a stronger foundation to improve the reputable name of the organization. Many small and medium enterprises experienced disruptions when Covid-19 started (Cusmano and Raes, 2020). In the survey by Cusmano and Raes (2020), many companies worldwide showed that 41 enterprises experienced a financial impact due to Covid-19. These enterprises faced severe losses to their revenue and profit. One-third of the small and medium enterprises lost their business within the first month and many within the first three months. According to the international trade center, small and medium enterprises’ business operations worldwide are impacted due to the pandemic. According to the survey by Cusmano and Reyes (2020), over 5,800 businesses in the United States have suffered a significant financial loss. About 43% of small and medium enterprises had to temporarily close down, which reduced the workforce by 40%. The disruption caused about 25% to 36% of small businesses to shut down permanently. It has been difficult for smaller and medium enterprises to implement CSR as they experienced a financial loss compared to more giant corporations. The OECD data, about 50% of employment comes from the OECD countries, and 75% comes from the small and medium enterprises in the OECD countries. Cusmano and Reyes (2020) stated that the small and medium enterprises that were impacted by the pandemic were
26 the transportation, manufacturing, construction, retail, food services, and personal services industries. The pandemic affected nations across Europe and the United States, and enterprises suffered a profit and revenue loss, which prevented these organizations from contributing to CSR initiatives. Covid-19 impacted small and medium enterprises around the world. The Organization for Economic Cooperation and Development found that firms with fewer employees are affected much more than giant corporations (Herbert, 2020). Enterprises in the United States that Covid-19 impacted engaged less than 500 employees. According to Herbert (2020), small and medium enterprises in manufacturing, construction, air transportation, retail, food services, and professional services experienced a significant impact. Due to lockdowns worldwide, businesses did not make enough revenue and profit to invest in CSR programs. Due to social distancing guidelines, the lockdowns negatively impacted the hospitality and tourism industries. When the pandemic started, the supply chain was affected as it caused a shortage of raw materials. A research study by Herbert found that the supply side was impacted due to illnesses, quarantines, lack of childcare, and reduced resources in these small and medium enterprises. Compared to more giant corporations, it was more difficult for the smaller enterprises to recover from a financial loss. According to Herbert’s research study, there was a decrease in consumer spending, which drastically decreased the revenue of small and medium enterprises. The decline in revenue caused a substantial financial loss for these companies. All businesses experienced low demand, which reduced their workforce and increased unemployment. The income that the companies lost prevented many of these enterprises from taking in CSR initiatives. Many times, smaller enterprises encountered reputational pressures to implement CSR initiatives. However, these
27 enterprises decreased their participation in CSR initiatives as they suffered a significant financial loss than other corporations. The Influence of Corporate Social Responsibility on Small and Medium Apparel Retailers CSR Initiatives and Brand Image Apparel retailers like Nordstrom are committed to making the world better by 2025. The company recently set social responsibility goals to improve its brand image by 2025. The company focuses on environmental sustainability, operations, and value chains, human rights to strengthen poor labor practices, and women empowerment. Nordstrom’s philanthropic initiatives are encouraged to serve their community better and improve their company image (Keenan, 2020). According to Keenan (2020), the CSR goals for 2025 are to work with external partners and ensure better business practices to impact the local communities positively. Nordstrom has dedicated its time to listening to customers, employees, company leaders, and investors to improve its CSR efforts. For example, Nordstrom is currently working with The Fashion Pact and the Sustainable Apparel Coalition to develop sustainable goals and the best practices within the retail industry to improve brand image. Keenan’s research study found that Nordstrom dedicated their time and listened to customer input to fulfill its responsibility towards its community needs. The company’s motto is interacting with consumers through sales transactions and creating long-term collaboration. Nordstrom works continuously to improve its CSR goals and create new opportunities for cooperation. The past year has challenged Nordstrom to improve business practices as its sales have decreased. However, the company has continuously contacted its local communities to help create new ideas and innovations. This past year, the brand image of Nordstrom improved from their sustainability efforts, and more importantly, they were the solution to many local
28 communities. From 2020 to 2021, consumers are incredibly proud to collaborate with Nordstrom, as their efforts to help their communities within the pandemic have been remarkable. Teenage apparel Brandy Melville is a well-known organization promoting CSR initiatives through social media. The organization’s goals, strategies, and objectives helped increase its brand loyalty and image. The company worked with its local communities to bring positive changes within their society (VanSlette and Waymer, 2016). According to VanSlette and Waymer (2016), Brandy Melville is a retail corporation that sells teen apparel at a competitive price. They aim to gain a larger market share, increase online traffic, and create an aspirational brand model on social media. The company made wise product choices, investment opportunities, and a respectable reputation among its stakeholders. Its reputation highly matters to its executives, which clearly articulates its consumers. Teenage consumers are incredibly proud to collaborate with this company, as Brandy Melville is associated with investing in long-term CSR programs. Brandy Melville is a well-known organization that eliminated many risk factors by positively influencing its audience by bringing sustainability changes to local communities. The recent research study by VanSlette and Waymer states that in times of crisis, the company invested in making their communities safer and communicated with their local community through social media. The company increased safety messages to their audiences quickly and efficiently. The company gained brand loyalty over the years as the organization benefitted from strong communication through social media platforms such as Twitter, Instagram, and Facebook. The corporation’s reputational risks minimize as they always take the appropriate steps to help increase sustainability awareness.
29 Consumer’s Purchasing Decision and Brand Image A corporation’s brand image and consumers’ purchasing decisions are essential factors influencing a company’s personality, and the brand image affects how a consumer associates with a corporation. Retail organizations such as Walmart analyzed situational, personal, psychological, and social factors that influence how consumers decide to form a relationship with a corporation (Holland, 2016). According to Holland, consumers with a long-term relationship with Walmart found that the situational factors influencing their purchasing power are the buying situation and the market offerings. Personal factors influence a consumer’s buying decision depending on their demographics, life stage, and lifestyle. The psychological factors influencing consumers to purchase with Walmart are their motivation, Maslow’s hierarchy of needs to marketing, and the consumer’s perception, learning, and belief. The social factors influencing consumers’ purchasing decisions are culture, subculture, social class, family, and reference groups. The culture of the consumers and the marketing techniques in various nations also influence consumers’ purchasing decisions. The research study by Holland found that the four critical factors influencing a consumer to form a long-term relationship with Walmart were situational, personal, psychological, and social. Consumers were motivated to purchase with Walmart because of the company’s brand personality. The brand managers at Walmart strive to cultivate solid and distinctive qualities to promote the company’s brand. Walmart formed strong consumer relationships by opening its doors to consumers and connecting its brand with consistency in its values and self-identity. Walmart was recognized as one of the largest and strongest retail corporations, which created a powerful brand personality.
30 The brand image is essential to make a company recognizable to its consumers. Famous jewelry companies known as Tiffany’s are recognizable to their consumers not because of their visual elements but also their speed, reliability, and quality. Over the years, the consistent brand image of Tiffany’s has helped them develop a recognizable consumer base (Thimothy, 2016). According to Thimothy (2016), Tiffany’s maintained a recognizable brand image throughout the years, which helped them maintain and increase consumer interaction. As a company, it is essential to form long-term relationships with consumers. Tiffany strongly encourages employees to build relationships with customers through their marketing campaigns. Tiffany strives to work with its consumers by improving its customer service. The company dedicates to delivering its brand image by training its employees on its core values and culture code. Each team member follows the corporation’s values to build long-term relationships with its consumers. The research study by Thimothy found that Tiffany understands the company’s core values to ensure that the company is making the best decisions to interact with customers. The brand image of Tiffany’s is essential to conducting business globally. Consumers purchase what Tiffany stands for when they buy Tiffany’s products or services. Thus, Tiffany must convey what they stand for, as consumers’ purchasing power depends on its brand image and core values. Tiffany’s brand managers promote its core values to maintain and increase its consumer base. The Creativity of the Fashion Industry Small and medium apparel retailers comprise the clothing, footwear, garment, and textile industries. Over the last few years, the fashion industry gained popularity in the United States and globally. This industry comprises technology, business, and arts (Johannsdottir and Thorisdottir, 2020). According to the research study by Johannsdottir and Thorisdottir (2020),
31 the fashion industry drives consumers’ desire to utilize newer products to enhance their lifestyles. The apparel industry is known for its creativity and increasing awareness of eco and greener designs. The fashion industry emphasizes sustainability through its transparent reporting in the production process. Designers worldwide are under constant pressure to decrease wastage in their approach and increase utilizing eco-friendly products (Johannsdottir and Thorisdottir, 2020). Design is often challenging for many designers as sustainability has become the top priority for many small and medium apparel retailers. The fashion industry also addresses improving sustainability by designing visual merchandise for retail stores with increased awareness of sustainable products. According to Johannsdottir and Thorisdottir, as eco-friendly products are visible in-store, they increase their sales. Furthermore, managers of apparel corporations suggested increasing sales; there should be an increase in creating product labels with environmentally friendly products. As apparel corporations become informative, this will help them differentiate themselves and gain a competitive advantage over their competitors in the industry. Market research has shown that consumers are motivated to desire sustainable designer wear. The fashion industry is one of the most polluting industries in the world. According to a research study by the Nordic Fashion Association, the fashion industry produces raw materials, fabrics, textile processing, manufacturing, and distribution. The disposal from the apparel industry hurts the environment with its heavy pollution. Using herbicides and pesticides also threatens the environment globally (Feng and Ngai, 2020). According to Feng and Ngai (2020), the apparel industry also contributes to numerous chemical substance usage, leading to many environmental issues. Over the years, global concern
32 has been about rising greenhouse emissions. Therefore, many fashion corporations are more concerned with environmental impacts. Many apparel corporations have begun to include environmentally sustainable initiatives in their business model. Feng and Ngai found that many corporations implemented sustainable development with CSR initiatives focused on production, managing water, waste, and sustainable resources. The management system monitors and evaluates pollution. The management system allows fashion corporations to make more responsible decisions and educate consumers about CSR policies. Feng and Ngai (2020) found that corporations such as Levi’s encouraged consumers to avoid laundering their jeans for about six months to reduce water and detergent usage. Studies show that environmental and sustainability commitment from fashion companies such as Levi’s helped the companies communicate better with their consumers and create a better brand image in the industry. The fashion industry plans to conduct business differently by addressing sustainability as its primary approach (Kutsenkova, 2017). Fashion companies take responsibility for improving sustainability by reducing stakeholder pressure and enhancing the company’s reputation. Fashion organizations address the scarcity of energy and water to increase social awareness in their communities. According to Kutsenkova (2017), corporations implement CSR initiatives to gain a competitive advantage in the industry. Organizations focus on supporting various charities and volunteering in community development programs. The CSR initiatives by fashion companies improve the social practices of the corporation. Their clothing and design have distinguished some fashion companies; however, sustainability changed how consumers perceive them.
33 Kutsenkova stated that many fashion organizations increased sustainability through education and raising awareness. Many businesses implemented a practical approach to improving marketing and social media communications. Organizations are raising awareness through the global environment as corporations focus on the ecological system by focusing on natural resources and utilizing environmentally friendly products. According to Kutsenkova (2017), corporations strive for CSR initiatives to meet their basic human needs due to many moral issues in the fashion industry. Sustainable fashion is improved through websites, which improved its brand name and provided consumers transparency about the environment and ethically friendly clothing. Today, many consumers expect brands to have a positive image and have a maximum positive impact on their communities. As corporate social responsibility is becoming more common among many companies, corporations must deliver sustainability. Corporations today focus on providing their consumers economic, social, and environmental benefits (Moschetti, 2019). According to Moschetti (2019), fashion brands promote corporate social responsibility campaigns through various channels. Companies improve their business practices as more stakeholders and consumers demand companies to participate in CSR initiatives. From the 2015 Global CSR study, about 90% of consumers stated they would not be involved with companies with poor business practices, and 91% expected companies to act responsibly with their involvement in social and environmental issues. Many fashion companies improved their communication techniques to promote their CSR campaigns globally. Moschetti (2019) stated that a sports fashion brand, Adidas, is known for its vocal CSR campaigns. The company collaborated with other brands to decrease the overall negative
34 environmental impact. Adidas partnered with Stella McCartney and Parley for the Oceans, which helped reduce little waste and reuse fabric. Adidas and Stella McCartney are well known for their CSR initiatives as they became a global initiative to bring positive environmental changes. Adidas also worked with Parley for the Oceans, which created a positive brand image for Adidas for promoting using recycled plastics from the ocean. Adidas successfully announced its CSR initiatives after collaborating with these two other companies. CSR has become a powerful tool for many fashion companies. Sustainable fashion is a new trend among many brands today. Fashion companies promote their CSR initiatives to spread their message globally to reach as many consumers as possible (Morgan, 2020). According to Morgan (2020), communication is vital for fashion brands to promote ethically and socially responsible initiatives. As fashion brands promote their CSR message to many platforms, this helps create a positive brand image and relationship with consumers and stakeholders. Morgan (2020) stated that the fashion industry had created trends to promote sustainability. Consumer preferences over the years have changed as more consumers are willing to wear recycled clothing made from eco-friendly products. Companies like Nordstrom sell clothing that uses and makes clothing from eco-friendly products. The research studies by Morgan show that 88% of consumers want their fashion brands to be environmentally friendly. Trends in fashion utilize wasteful products and have business practices that hurt the environment; many fashion companies implement CSR policies to become more environmentally friendly. The fashion industry releases 10% of the world’s carbon emissions and 20% of all water pollution. Projections indicate that if the fashion industry continues to produce a carbon footprint, by 2050, it will pay 26% of worldwide emissions. Therefore, many fashion companies implement CSR policies into their mission statement.
35 According to Morgan, fashion companies such as Tentee, Levi’s, and H&M promote CSR initiatives to improve their CSR image and produce better business practices. Tentree’s clothing is made from sustainable materials such as cork, coconut, and recycled polyester. Levi’s has too much water consumption to produce a pair of jeans. Therefore, Levi’s is now using 96% less water to make jeans and is committed to promoting sustainability using 100% recycled cotton. H&M’s conscious collection produces fabrics from organic cotton and recycled polyester. H&M is moving in a new direction and promoting sustainable materials by 2030. Social responsibility is a significant concern for many consumers. Corporations are becoming more conscientious about what products to buy and produce. There are growing concerns about how the fashion industry impacts the manufacturing and environmental sectors. Many retail corporations worldwide make moral decisions to be more socially responsible (Kimble, 2019). According to Kimble (2019), apparel corporations are more socially responsible. Companies such as Fruit of the Loom embrace social responsibility by balancing the company’s needs and consumers. At Fruit of the Loom, the company must adopt measures to mitigate the ecological impact. The company must abide by international and local laws to protect the environment. Fruit of the Loom is required to minimize energy consumption and waste while utilizing natural resources to produce their clothing. Kimble (2019) stated that Hanes is another apparel brand with high ethical standards to comply with social responsibility standards. Hanes takes social and environmental responsibility seriously, and the brand embraces community building and environmental stewardship. Hanes holds high ethical standards to keep their working environment healthy and safe. The company is committed to caring for its environment, eliminating carbon emissions, and promoting energy
36 consumption. As the company works toward renewable energy, it has helped them increase sustainability and improve its CSR image in the industry. The Fashion Industry Strengthens its Relationship with Communities Apparel corporations increased their CSR initiatives as their primary focus. Corporations focus on sustainable development by addressing issues to help better serve their community. Corporations focus on affordable fashion for consumers, reward responsible partners, focus on ethics and the climate, implement reducing reuse, recycle, use natural resources responsibly, and strengthen relations with their communities (Księżak, 2017). According to Księżak (2017), 60% of the apparel industry’s environmental impact is from fabric production and consumer use. H&M closely monitors its suppliers and communicates responsibly with its customers. Over the years, H&M introduced informing their consumers about the labels inside their garments. H&M took a responsible initiative, as the company directs their consumers on what type of organic material utilizes to produce their products. Apparel companies such as H&M are highly motivated to increase CSR initiatives in the company’s future. According to Księżak (2017), as H&M utilized organic cotton, this lessened the environmental impact by 46%. H&M uses recycled cotton fabric, which is highly sustainable for its consumers. Each piece of clothing is made from sustainable cotton and labeled with a conscious tag for its consumers. The company’s vision for 2020 was to introduce more sustainable apparel for its consumers through its recycling program. H&M presented affordable clothing for all consumers using recycled products without causing waste. Implementing corporate social responsibility programs helped the company grow successfully over the last few years.
37 It is essential to foster CSR initiatives in corporations in the retail industry. As there is an increase in retail corporations implementing CSR initiatives, stakeholders are obligated to expand these corporations’ business opportunities. Apparel corporations systematically foster responsibilities to promote an excellent value of equality and, most importantly, promote a positive attitude to increasing societal wellness (Francés and Moreno, 2015). According to Frances and Moreno (2015), three key factors help retail organizations promote CSR in their companies. First, retail corporations implement CSR as a long-term commitment to positively change the organization and the community. Secondly, the stakeholders build long-term relationships with consumers, reflecting and building a mutual relationship beyond a legal obligation. Thirdly, achieving consumer satisfaction is the key to its ultimate success as it retains brand loyalty. As retail corporations commit to CSR programs, this builds consumer trust and loyalty. Corporations’ social responsibility for environmental and social issues increases customer loyalty (Frances and Moreno, 2015). Customer loyalty is an effective business strategy to improve and expand the organization’s relationships and consumers. Frances and Moreno stated that as more consumers gain trust in the organization, this helps build a stronger brand image for the corporation. Many retail corporations achieved a successful brand name compared to their competitors. CSR initiatives are successful when customer retention and customer loyalty are successful. Corporate social responsibility is a crucial matter in the fashion industry. The fashion companies focus on environmental sustainability, pollution, climate change, clean oceans, and carbon footprints (Campbell & Heide, 2019). According to Campbell and Heide (2019), fashion companies focus on these sustainability issues to provide charitable giving within their
38 community. To ensure safety and wellness in their communities, fashion companies focus on other social problems: gun violence, human and animal welfare, sex trafficking, and unfair labor practices. Most importantly, CSR initiatives are essential to consumers. Consumers view fashion companies as an emerging factor that significantly impacts brand value. According to Campbell and Heide, CSR initiatives help corporations build a stronger brand image and value. The brand value helps the corporation stay relevant in the fashion industry by gaining a competitive advantage. The corporations also help their community by increasing wellness and sustainability in society. In many organizations, corporate social responsibility is rising in the apparel and textile industries. Many apparel corporations work on human rights conditions and environmental issues (Dordevic, Strbac, Urosevic, Vukovic, and Vukovic, 2019). The corporations examine these issues to protect factory employees and help improve climate change policies. Dordevic, Strbac, Urosevic, Vukovic, and Vukovic (2019) stated that environmental protection is significant as it helps organizations work with ecological agencies to improve environmental conservation in communities. According to Dordevic, Strbac, Urosevic, Vukovic, and Vukovic, fashion companies focus on environmental protection and philanthropic responsibility to help corporations profit from offering their consumers high-quality products and improving their reputation as an organization. As fashion organizations balance morality and profitability, they make vital decisions to serve their community better. Consumers were delighted that the apparel and textile industry helped serve their communities with very little harm to the world or people and improve human rights and environmental issues.
39 How the Supply Chain affects Retail Corporations The supply chain must be well-coordinated in retail corporations to reduce potential risks. Therefore, organizations aim to implement corporate sustainability into their business-related goals to impact their consumers negatively. Corporate sustainability is communicated, collaborated, and negotiated between the internal and external parties. CSR initiatives are essential to stakeholders as they increase consumers’ willingness to do business with a particular organization (Elg and Hultman, 2016). According to Elg and Hultman (2016), retail corporations encounter much societal pressure to retain competitiveness in the industry. It is detrimental for a corporation to fail to meet societal expectations as consumers lose trust and loyalty. For example, in 2013, Rana Plaza was a factory that collapsed in Bangladesh, killing many. The retail sector is the owner’s responsibility to ensure their employees’ health and safety. Retailers are accountable for their actions to ensure no disruptions in the supply chain. Elg and Hultman (2016) stated that the owner’s poor actions at Rana Plaza led to many consequences. Therefore, owners must comply with the proper code of conduct to ensure safety and not lose their competitive advantage. According to Elg and Hultman (2016), retail firms working with suppliers on CSR initiatives always have to ensure the willingness to comply with the proper code of conduct. Owners of factories can control, focus, and monitor their suppliers. Retail organizations practice CSR, and the Global Reporting Initiative creates standard CSR practices. Elg and Hultman (2016) stated that compliance is vital to meet societal expectations and fulfill business practices of corporate sustainability. The Eco-Friendly Textile Industry The textile industry has increasingly become globalized and is evolving its business throughout the United States and internationally. The textile industry is one of the largest in the
40 apparel sector, which drives economic success. Imported products increased due to globalization and grew by over $63.1 billion. International textile organizations work with businesses worldwide to improve partnerships and expand globally (Razalan, 2014). According to Razalan (2014), textile imports are essential for the growth of the U.S. economy. Therefore, many apparel corporations increased their import volume, which has helped boost U.S. consumption. The textile industry grew its sustainability in domestic apparel to improve its relationship with consumers. Many textile industries utilize eco-friendly products in the United States and globally. The textile industry’s annual sales are close to $9 million, consisting of 27% retail apparel firms. The textile industry caters to many global markets and works with smaller retailers (Razalan, 2014). Razalan (2014) stated that the textile industry underwent an industrial revolution and utilized sustainable paper products to cater to the elite and provide affordable products. As sustainability increases, there are amplified product trends and increased affordability. Razalan’s study found that globalization is evolving and demonstrates the textile industry’s idea of becoming more environmentally and socially developed in nations such as Europe and North America. The Influence of Corporate Social Responsibility on Local Retailers Local Retailers Strengthen their Relationship with Communities Local retailers are involved in CSR initiatives using various methods of giving back to their communities. Local retailers are much smaller than giant corporations; they still use monetary donations to promote community events. Many small organizations are motivated to help their communities to drive affection toward their community and maintain a good reputation (Bickle, Brosdahl, Park, and Razalan, 2017). According to the research study by Bickle, Brosdahl, Park, and Razalan (2017), many small retailers are involved with CSR initiatives to
41 genuinely contribute to their community and not stimulate sales and profit. Local retailers are concerned with community-building, better relations, and increasing positive connections within their local area. Every owner has a vision for their organization on their achievements. According to Bickle, Brosdahl, Park, and Razalan, many more giant corporations practice social responsibility to experience financial gains. However, local retailers cannot assume; local retailers aim to employ social responsibility. Research studies have shown that local entrepreneurs make it an integral part of their practice to achieve success by contributing to their community without financial gain as a primary focus. Bickle, Brosdahl, Park, and Razalan stated that local retail owners recognize their prestige and reputation. Local retailers gain potential customers while practicing CSR, leading to a sale or positive word of mouth. Small company owners practice CSR to do good without expecting a monetary return. Many local retailers in the United States make CSR their best practice, centered around helping their community for their happiness and well-being. A study by the University of Alabama found that positive change builds as local retailers engage in community development. CSR initiatives help consumers build trust within local retailers and increase long-term commitment. Consumer trust and confidence help improve the organization’s value as more products and services are sold (Rohan, 2018). According to Rohan (2018), community engagement is a strategic advantage for organizations as it helps them build long-term consumer relationships. Local retailers build consumer relationships, allowing organizations to stay engaged within the community. Consumers and retailers build long-term relationships, which helps retailers gain a positive brand image and competitive advantage.
42 Rohan (2018) stated that local retailers help their communities with donations to civic groups, fundraisers, employee volunteerism, scholarship grants, and sponsorships in community events. Community engagement has minimal effect in the short term but has valuable long-term benefits. Studies have shown that consumers who have built long-term relationships with local retailers are less likely to be price sensitive. According to the research study by Rohan, local retailers reshaped themselves as there has been a growth in e-retailing. Many local retailers changed their strategies to market their products and services. Findings have shown that customer relationships improved as retailers improved community engagement, which benefits the organization and consumer. Relationship quality is essential in maintaining a positive relationship between a company and its consumers (King, So, Sparks, and Wang, 2016). According to the research by King, So, Sparks, and Wang (2016), a corporation meets a consumer’s expectations and perceptions and helps the organization build a stronger brand image than its competitors. Trust and satisfaction are two dimensions that determine relationship quality between the consumer and the organization. The research study by King, So, Sparks, and Wang (2016), suggest that an organization earns consumers’ trust and satisfaction through confidence in the organization. Local retailers and consumers form a long-term committed relationship which helps retailers increase a positive brand image for the organization. Studies show that when local retailers were involved in community activities and willing to engage in community concerns, consumers were likelier to conduct business with these retailers. Over time, consumers gained more trust and satisfaction in local retailers engaged within their community. So, King, Sparks, and Wang (2016) stated that
43 local retailers experienced increased brand loyalty when consumers shared the same goals and values of the organization. Increasing brand image is essential for local retailers to grow their business. Word of mouth is the most effective way to grow a business (Karpis, 2018). A research study by Karpis demonstrates that 84% of consumers are likely to refer or provide a recommendation to a friend about a local retailer. Local retailers can increase brand loyalty and awareness within their community by introducing brand ambassadors. According to the theSkimm daily newspaper, 20% of growth comes from a brand ambassador program. According to Karpis (2018), ambassadors from the theSkimm newspaper found that friends within the community who provided referrals about their local retailers gained perks for referral milestones. A company needs to stay engaged with its community to increase brand loyalty. Karpis (2018) stated that two-thirds of consumers are more likely and willing to spend on a company they are loyal to. Glossier has been a successful organization in retaining customers because they are well-known for community involvement. 90% of Glossier’s revenue generates from returning customers. Karpis’ (2018) study found that the more time a consumer spends with an organization, the more they are likely to value the company and its products at a higher value. Community involvement is critical to brand loyalty and overall success. An organization within its community works to improve products and services, lead innovation, and contribute to company growth. An organization is successful when it impacts its community by valuing and supporting its members. Global Pandemic Challenges for Local Retailers Local retailers face many challenges in implementing CSR activities. During this past year, when the world experienced a global pandemic, many local retailers were impacted
44 significantly (Harris and He, 2020). According to Harris and He (2020), companies in the U.K. experienced decreased profits to commit to ethical business and participate in CSR initiatives during the pandemic. Covid-19 has caused many local retailers to experience financial strain due to short-term losses. Many firms did not make a profit and reduced their CSR investment due to the lack of resources. According to Harris and He (2020), many companies in the U.K. resisted unethical business but had limited CSR activities participation. For example, manufacturing companies in the U.K. transformed their factories and produced ventilators, personal equipment, and sanitizer. These manufacturing companies started to donate products and services instead of selling them. Other Telecommunications companies, such as Vodaphone, gave consumers free access to unlimited data as many consumers at the pandemic’s peak could not pay their monthly bills. He & Harris stated that local retailers, such as supermarkets, allocated specific hours for the elderly. P.G., a local tea brand in the U.K., helped people in need experience social isolation. P.G. made a social initiative and trained volunteers to call the elderly in isolation and check on them. During the pandemic, local retailers faced many challenges implementing CSR initiatives due to the lack of profit and resources. According to Harris and He (2020), many local retailers campaigned to promote good causes during the pandemic, and local banks waived the interest on consumers’ overdraft accounts. However, it became a potential opportunity for many retailers as a new era for CSR development. During this global pandemic, it became essential that community members trust and build a relationship based on trust and empathy. It became a moral duty to help neighbors, friends, and family through many philanthropic deeds. Many communities gathered together to help
45 individuals obtain food and donate medical equipment. Each philanthropic act helped communities get through such a horrific experience. (Hasan and Mahmud, 2021). According to the Human Resource Management domain, many employers found that CSR initiatives implemented in local retailers during the pandemic helped many. Companies worked with their employees to increase positive attitudes, organizational pride, and work commitment and satisfaction. (Hasan and Mahmud, 2021). An employee plays a vital role in a company by enhancing the corporation’s image. An organization enhances its brand image, helps increase business growth, and helps build a better community. The positive role allows the company to operate efficiently as consumers remain satisfied. The global pandemic affected many negatively but has also helped many in need. According to Hasan and Mahmud, many local retailers helped their communities by helping those in need. Local retailers donated money and food to local food banks and provided medical equipment to hospitals and clinics. Many organizations could run their operations smoothly by adapting to employee-protecting policies. Many consumers were satisfied with the pandemic safety precautions taken to prioritize health and safety through the team’s philanthropic efforts, which helped many local retailers retrieve their business. Due to the global pandemic, there have been many disruptions in how retailers operate. In March 2020, some retailers had to shut down immediately due to the lockdown restrictions, and others could manage differently (Dennis et al., 2020). The Covid-19 pandemic allowed retail corporation managers to develop new guidelines for operating during an unprecedented time. Many of these are considered essential employees who serve their communities during a crucial time. According to Dennis et al. (2020), local retailers that played a significant role during the pandemic’s peak were grocery stores and pharmacies. Other retailers moved from
46 regular production to help produce critical supplies such as hand sanitizers and medical support equipment. Many community retailers organized funds to help make donations to their local hospitals, the national health care systems, and other global charities. Consumers were satisfied with the behavior of local retailers as it enhanced the retailer’s brand image. By and large, retailers’ focus is to continue to develop their brand image and reputation with consumers after the Covid-19 pandemic. Dennis et al. (2020) stated that some retailers spread the message through their online emergency system, which alerted consumers of when products would be available; the system specified product restrictions and provided surveillance to help prevent the spread of the virus. The online emergency database helped many consumers build trust in these employers to provide real-time customer service. It was essential for local retailers to meet their needs during the pandemic and help their communities. Ethical CSR practices became a moral obligation for corporations to help their communities without severe economic damage (Sanchez and Sanchez, 2020). The philanthropic responsibilities provided communities with equity, justice, and social care without prioritizing the Retailer’s financial situation. According to Sanchez and Sanchez (2020), local retail employees focused on helping communities by collaborating with their managers and suppliers to ensure their communities had full access to essential supplies throughout the pandemic’s peak. They prioritized the well-being of their communities by restoring what the community needed at the owner’s expense. The CSR initiatives of the local retailers are considered an ethical practice to improve the community’s needs, which also helps the corporation promote its brand image and reputation. Sanchez and Sanchez (2020) stated that local retailers played a pivotal role in donating food, research funds, and investing in supporting health needs. During the pandemic, the local
47 retailers’ leadership helped communities recover economically. About 34 local retailers in Spain ethically responded to Covid-19. The pandemic will increase the community’s expectations by fulfilling their economic, environmental, and social objectives. These CSR practices helped the companies gain a positive reputation and brand image. Corporations are willing to work with their communities soon to meet their needs in the long run. The strategic methods will ensure the company’s profitability and fulfill the needs of the stakeholders (Sanchez and Sanchez, 2020). As the global pandemic affected many businesses worldwide, small retailers were affected highly. Many retailers worked with their communities to meet their needs. Many retailers prioritized their communities’ well-being by restoring what the community needed during the pandemic. It became a challenge for small businesses to operate in their communities safely (Shapiro, 2021). According to Shapiro (2021), many retailers were community-driven and helped their communities with donations and mental health support. Small retail corporations supported their local communities to build a better and safer community. However, some giant corporations also donated to their local communities to increase wellness. For example, Nike donated $15 million to support their local communities, providing healthcare and food access. Shapiro (2021) stated that other local retailers developed innovative approaches to help their local communities. Some organizations temporarily stopped their perfume production, which substituted hand sanitizer. Companies donated hand sanitizer to local hospitals, and many also provided a crisis hotline for those who needed mental healthcare access. Shapiro (2021) found that Retailer Made donated a portion of their sales to the food industry so that communities can access fresh food. Etsy donated $5 million to help small businesses sell their products through the marketplace. Other retailers contributed to No Kid
48 Hungry to ensure kids access healthy and fresh food in school. Other retailers, such as Alice and Olivia, donated a portion of their sales to help out shoppers. The strategic CSR methods ensure the company has a positive brand image and fulfills the needs of the consumers. Shapiro’s research found that global brands helped healthcare facilities by donating masks, gloves, and PPE. Donating to organizations like the Red Cross helped many Asian and European nations survive the resource shortage. These CSR practices helped the organizations gain a positive reputation and brand image. These corporations will be working with their communities to help meet their needs in the long run. The pandemic has cost many lives throughout the last year, weakened the healthcare system, and increased global economic risks (Huo et al., 2020). The pandemic has affected many businesses in all sectors across the world. The pandemic impacted firms in China and harmed public policies in Guangdong Province. According to Huo et al. (2020), coping with strategies to help firms evolve and implement government policies to combat the pandemic is crucial in managing the pandemic. Many researchers strategized their policies to help firms financially grow from the Covid-19 impact. However, many firms could not successfully implement CSR initiatives due to business loss due to business loss as company goals for 2020. Huo et al. (2020), studies found that many organizations tried to balance sustainable policies and help firms suffer financial losses. Many organizations promoted consumption and facilitated an environment encouraging online and offline consumption. The research findings found that many firms-maintained stabilities; however, there was a halt to operations. 83% of Guangdong Province’s GDP decreased, with 46% of firms incurring a loss.
49 Huo et al. (2020) found that since there was a significant financial impact on the economy, firms in Guangdong Province could not promote CSR programs in their companies. The companies faced a substantial risk as lockdowns occurred; minor production occurred. It was tough for many firms to survive and return to regular business. In China’s Guangdong province, local firms suffered a significant loss, preventing these companies from helping their communities and restoring wellness. The global pandemic affected local retailers tremendously. With the uncertainty of when the Covid-19 situation will be under control and when life will “normalize,” many retailers were affected by the lockdowns and the shortage in the supply chain (Howland et al., 2020). Howland et al. (2020) affected local retailers as consumers avoided large gatherings in stores and malls. According to Coresight, U.S. respondents avoided public crowds in stores and malls. 58% of the population stated they would avoid large gatherings if the situation worsened, and 40% said they avoided and limited their visits to stores and malls. 30% of residents stated they were avoiding stores in general. According to Howland et al. (2020), the research study found that shopping centers and malls were less likely to visit U.S. residents. Consumers were visiting essential shops such as grocery stores. Local retailers were affected by online shopping websites such as Amazon. Consumers found it more convenient to shop online and purchase products at a much more affordable price than a local store. Traditional local stores struggled to keep their operations and transactions running smoothly and efficiently during the pandemic. Howland et al. (2020) found that many local retailers faced a significant risk from their study lockdowns. As the supply chain experienced disruptions, many retailers increased their product prices to meet their needs. It has been a tough year for many companies to survive.
50 CEOs monitored each pandemic situation heavily and sought alternatives to remain competitive. CEOs and managers of retail companies made drastic changes to their promotional and presentation plans. Local retailers took the initiative to engage in CSR activities by stockpiling household essentials, disinfectants, and food and beverage items. Many of these local retailers donated these essentials to their local communities. As retailers were more involved with the needs of their community, this helped consumers build trust and loyalty to the organizations. These companies worked to help meet the community’s needs and promote their brand image in the long run. Local Retailers Gain Customer Loyalty Corporate social responsibility in local retailers has a strong effect on consumer behavior. As business competition emerges, local retailers implement CSR initiatives in their companies (Bediako, 2017). According to Bediako (2017), many organizations implement CSR initiatives to gain a competitive advantage by acquiring new and retaining old consumers. After integrating CSR into their company, local retailers experienced an advantageous position as consumers appreciated its commitment to providing goodwill in their communities. Bediako (2017) stated that as local retailers were involved with CSR initiatives, this improved customer loyalty, enhanced brand value, motivated their workforce, and increased corporate profitability. After integrating CSR into their company, local retailers experienced an advantageous position as consumers appreciated its commitment to providing goodwill in their communities. Company executives and managers are willing to maximize profits and implement CSR programs to ensure long-term success. According to Bediako (2017), CSR initiatives are significant as this is the strength to build consumer confidence. Consumers view companies with CSR programs as more responsible and prefer to use their products and services.
51 A study by Bediako (2017) found that CSR efforts in local retailers-built customer loyalty and improved the company’s reputation. Local retailers implemented social responsibility, which helped the companies bring long-term improvement into their communities. Most local retailers worked on environmental, social, and human rights issues to bring positive societal changes and build a strong brand image. Corporate social responsibility is significant to consumers as it affects behavioral loyalty toward corporations. Consumers value the behavioral commitment of local retailers as it changes the consumers’ attitude towards the corporation. Local retailers gain trust and loyalty from their consumers with their friendliness approach, community support, and equal treatment of their employees (Ailawadi et al., 2014). According to Ailawadi et al. (2014), consumers’ attitudes toward local retailers can mostly be optimistic and damaging. Local retailers always work towards helping out their community and ensuring that their consumers are satisfied with their products and services. Consumers’ CSR initiative focuses on environmental friendliness, and local retailers work with their local communities to ensure environmental conservation. Consumers viewed a retailer favorably when involved with ecological protection versus a retailer with no meaningful impact on CSR initiatives. Ailawadi et al. (2014) state that local retailers get involved with CSR initiatives to gain consumer trust and loyalty as it impacts their business activity in the long run. Local retailers sell their products and services to bring a solid appeal to their consumers within their local communities. Consumers who purchase goods and services from local retailers appreciate its commitment to providing goodwill in their communities. According to recent research studies, 50% of local retailers focus on environmental friendliness, and 25% experience successful CSR
52 initiatives on environmental friendliness. As more local retailers focus on CSR efforts, this helps increase consumer satisfaction and brand loyalty. Summary Retail corporations globally encounter societal pressure to implement social responsibility into their corporations. According to the research study by Robinson (2018), organizations implement corporate social responsibility to increase a positive brand image for corporations. As corporations have limitations to the source of their funds, it is harder for corporations to implement CSR initiatives into their corporations. The specific problem to be addressed is the limitations in funding to implement corporate social responsibility at Macy’s in Herald Square and how it affects Macy’s brand image (Trentmann, 2020). This qualitative case study aims to determine how retail corporations encounter societal pressure to implement socially responsible corporate programs. This Study will observe and decide the limitations in funding to implement CSR programs that affect Macy’s brand image in Herald Square, New York. According to Razalan (2014), corporate social responsibility brings a positive brand image. The Study will focus on how limitations in funding to implement CSR programs affect Macy’s brand image in Herald Square, New York, compared to CSR initiatives of small and medium companies, small and medium apparel retailers, and local retailers in the United States. There are gaps in research studies on CSR initiatives, in which a good CSR strategy could evaluate and develop further research in this area. There is a lack of research on how executives at the individual level consider CSR initiatives to build CSR-based leadership. There are also gaps in how a corporation’s behavior influences consumers’ responses. The research
53 study gaps should analyze and understand how Macy’s brand image in Herald Square, NY, is affected.
54 Chapter 3: Research Method Corporate social responsibility (CSR) impacts the brand image of retail corporations in the United States. Scholarly research studies suggest that socially responsible programs affect a corporation’s brand image through its culture and economic environment (Mishra and Modi, 2016). Many retail corporations in the United States have found CSR activity challenging to implement as corporations do not have the funding to implement socially responsible programs. Retail corporations in the United States focus primarily on increasing corporate social responsibility initiatives to improve their brand image (Robinson, 2018). According to Luenendonk’s study (2019), corporate social responsibility is considered one of the best business practices to improve the company’s brand image and advertise the company (Luenendonk, 2019). Luenendonk (2019) stated that a company’s willingness and involvement in CSR initiatives represent its brand name as it embodies the consumers’ perception of the corporation. According to Kumar’s research study (2015), branding in a corporation is an asset and a long-term investment. A corporation’s brand image is perceived by consumer preference’s loyalty, assuming its expectations are met (Kumar, 2015). Retail corporations in the United States focus primarily on increasing corporate social responsibility initiatives to improve their brand image (Robinson, 2018). According to Luenendonk’s study (2019), corporate social responsibility is considered one of the best business practices to improve the company’s brand image and advertise the company (Luenendonk, 2019). Luenendonk stated that a company’s willingness and involvement in CSR initiatives represent its brand name as it embodies the consumers’ perception of the corporation. According to Kumar’s research study (2015), branding in a corporation is an asset and a long-term
55 investment. A corporation’s brand image is perceived by consumer preference’s loyalty, assuming its expectations are met (Kumar, 2015). Robinson (2018) states that corporate social responsibility is vital for retail corporations’ leaders to increase a positive brand image. The corporate social commitment aims to help its brand image through philanthropy and charity (Robinson, 2018). Robinson noted a positive correlation between CSR initiatives and successful brand image, confirming that consumers optimized brand imaging. However, the general problem retailers face societal pressure to implement CSR programs. The specific problem addressed was the shortage of funding to implement CSR initiatives that affect Macy’s brand image at Herald Square in New York (Trentmann, 2020). Macy’s, located in Herald Square, New York, engages and volunteers in ethically-oriented practices to better their community. According to Zoeller (2020), a corporation’s positive brand image is related to societal approval from consumers’ positive feelings about the corporation. An increasing number of retail corporations are associated with CSR initiatives, which help the organization achieve brand loyalty for its products or services (Zoeller, 2020). According to Jesper and Frans, corporations gain a positive brand image from their consumers as companies are more involved with their communities through their philanthropic and ethical initiatives (Jesper and Frans, 2015). The results from Jesper and Frans’ study found that it is essential that businesses implement corporate social responsibility to minimize the risk of losing talented employees to other competitors utilizing CSR strategy. Companies that practice CSR create a workplace where employees enjoy working for their employer, which helps retain their current employees for extended periods (Jesper and Frans, 2015). Organizations that practice CSR strategies have more satisfied employees than companies that do not partake in CSR initiatives. Employees feel that working
56 for a socially conscious company gives them a purpose to fulfill. Many businesses that do not practice CSR risk losing talented employees to their competitors and losing out on competitive advantage in their industry. This exploratory qualitative case study aimed to understand how retailers face societal pressure to implement CSR programs. The study supported the shortage of funding to implement CSR initiatives that affect Macy’s brand image at Herald Square in New York. The brand image of Macy’s and other giant corporations is affected by their commitment to social responsibility. The study involved how society perceives Macy’s after implementing corporate social responsibility. As Macy implements corporate social responsibility, this will help the company in the long run (Harris and He, 2020). A corporation’s commitment to CSR allows society to perceive the company more sincerely, locally and globally. According to Harris and He (2020), successful implementation of CSR will help Macy’s in the long run, as consumers feel proud to be associated with a brand that supports and cares about their employee’s and society’s wellbeing. CSR helps a corporation build a strong lifetime bond with its consumers, which helps prevent corporations from collapsing even at the brink of a crisis. The CSR initiatives at Macy’s in Herald Square benefited the company enough to evoke trust, influence consumer choices, and help develop consumer loyalty and confidence in the retail industry (Salpini, 2018). In this section, I address that the research study method will administer questionnaires provided to the consumers. The questionnaires delivered to consumers frequently purchase products and services from the Herald Square Macy’s website (Yang and Yan, 2020). According to Yang and Yan (2020), the data collected from every third customer is picked from an online database. Those consumers will fill out the questionnaire—the random and unbiased sampling method administered to 100 participants across multiple age groups. Yang and Yan (2020) noted
57 that every third shopper would participate in this questionnaire and consent to answer each scenario when they believed Macy’s was socially and non-socially responsible for its company policies on CSR initiatives. The questionnaires’ focus will be to analyze the effects corporate social responsibility has on Macy’s brand image and observe and address the shortage of funding to implement CSR initiatives that affect Macy’s brand image at Herald Square in New York. The corporation’s brand image will be observed and predicted through the value of the consumer. Scholarly research studies have shown that one-time consumers value a corporation’s products and services lower than lifetime-valued consumers (Thomas, 2020). According to Thomas’s research study, Macy’s is actively associated with civic organizations and empowers diverse groups. Thomas’ (2020) study noted that Macy’s supports organizations in bringing educational empowerment and mentoring young males and females for a better future. Macy’s is engaged with the National Urban League, Black Enterprise, and The Asian American Business Development Center, to which they donated $15 million to these organizations in 2018. As Macy’s brings a meaningful difference to improving education among the youth, consumer expectations have exceedingly grown over the years. Macy’s CEO stated that after implementation, consumers were satisfied with anything representing their brand (Wilson, 2019). According to Wilson’s study (2019), Macy’s started representing gender, ethnicity, and age in their advertising. The reflection helps Macy’s represent their consumer base more diversely and fairly. Wilson noted that allowing a full spectrum of diverse consumers helps Macy’s gain more respect, trust, and loyalty to address its CSR initiatives and maintain a positive brand image in the retail industry.
58 Research Methodology and Design Macy’s is a well-known retail organization that fosters CSR as an integral approach to describe the relationship between CSR and brand imaging. The research utilizes a qualitative system designed to explore and analyze the development of CSR initiatives and how it affects the corporation’s brand image. The exploratory qualitative case study analysis aims to understand how retailers face societal pressure to implement CSR programs. The study will observe and address the shortage of funding to implement CSR initiatives that affect Macy’s brand image at Herald Square in New York. Their association with corporate social responsibility affects Macy’s and other retail corporations’ brand image. The study will affect how consumers perceive Macy’s in the long run after implementing CSR into their corporate mission (Harris and He, 2020). CSR helps a company create a positive brand image as the company strives for the betterment of society. According to Harris and He (2020), successful implementation of CSR will help Macy’s, as consumers feel proud to be associated with a brand that supports and cares about their employee’s and society’s wellbeing. Macy’s and other retail organizations experienced that CSR initiatives help corporations build a strong lifetime bond with their consumers, allowing them to continue their business operations even during a crisis such as the COVID-19 pandemic. The CSR initiatives at Macy’s in Herald Square will benefit the company enough to evoke trust, influence consumer choices, and help develop consumer loyalty and confidence in the retail industry (Salpini, 2018). The research study method is a comparative analysis administered through consumer questionnaires. The questionnaires delivered to consumers frequently purchase products and services from the Herald Square Macy’s website. The data collection process will be every third
59 customer picked from an online database, and those selected consumers will fill out the questionnaires. The Study will observe and address the shortage of funding to implement CSR initiatives that affect Macy’s brand image at Herald Square in New York. The selection is a random and unbiased sampling method administered to 100 participants across multiple age groups. Every third shopper will participate in this questionnaire and consent to answer each scenario when they believe Macy’s was socially and non-socially responsible for its company policies on CSR initiatives. Population and Sample This study will sample 100 participants across multiple age groups. One hundred participants are selected from a larger population as it will be a cost-effective research method. The subset of the people will be a beneficial parameter for research. A sample size of 100 participants is reasonable for this research study for ethical and economic reasons. A large sample size can be wasteful of not doing the necessary research (Lenth, 2021). The focus group has a questionnaire to answer multiple scenario questions about Macy’s participation in CSR initiatives being socially responsible. The focus group will answer questions on Macy’s involvement in CSR initiatives that helped the brand image of Macy’s. The questions will help the researcher analyze how CSR initiatives correlate with the brand image of Macy’s in Herald Square, New York. The researcher will also understand the correlation between consumers’ purchasing decisions, the influence on the corporation’s brand image, and how corporate sustainability positively influences consumers’ motivation.
60 Instrumentation The case study’s qualitative results will be surveying every third customer picked from an online database. Those consumers selected will fill out the questionnaire—the random and unbiased sampling method administered to 100 participants across multiple age groups. Every third shopper will participate in this questionnaire and consent to answer each scenario when they believe Macy’s was socially and non-socially responsible for its company policies on CSR initiatives. This qualitative study will be a manuscript to obtain the consumers’ database. The best-fit method is to gather the data and complete the research as it demonstrates how corporate sustainability positively influences the brand image of Macy’s (Yang and Yan, 2020). According to Yang and Yan (2020), the results from the intended research study are significant in today’s economy. The guiding factor for the senior management team of Macy’s is to understand how consumers’ purchasing decisions influence the corporation’s brand image through their trust and loyalty. The selection is a random and unbiased sampling method administered to 100 participants across multiple age groups. According to Lenth, a sample size of 100 participants is a reasonable starting point for the appropriate research study. Leth stated that about 90 to 95% of the customer’s needs are satisfied by conducting a research study with a sample size of 100 participants. This sample size is more cost-effective than having a larger sample size as it eliminates the margin of error. This qualitative study will be a manuscript to obtain the consumers’ database. Every third shopper will participate in this questionnaire and consent to answer each scenario when they believe Macy’s was socially and non-socially responsible for its company policies on CSR
61 initiatives. The questions were structured to help each participant understand the sustainability program of Macy’s and how the CSR initiatives would influence the brand image of Macy’s. The best-fit method is to gather the data and conduct the research as it demonstrates how corporate sustainability positively influences the brand image of Macy’s (Yang and Yan, 2020). According to Yang and Yan (2020), the results from the intended research study are significant in today’s economy. The guiding factor for the senior management team of Macy’s is to understand how consumers’ purchasing decisions influence the corporation’s brand image through their trust and loyalty. Study Procedures This research study will conduct a two-part qualitative comparative analysis. In the first part of the study, there 100 participants will be selected to participate in the study. Each participant will voluntarily enroll in this research study as a part of the focus group. The research study will be one month, including two detailed questionnaires and a focus group interview. A qualitative research study consists of interviews with their participants, which is beneficial as it captures the corporation’s attitudes, preferences, and expectations. A qualitative research study is helpful as it highlights issues of interest from the interview process and identifies constraints in further research studies (Woodliffe, 2021). The facilitator will contact the corporate communications manager at Teachers Federal Credit Union to use their employees as the participants in this study. The 100 participants selection is random across multiple age groups, and the customers selected will be every third customer who recently purchased their online database. Those consumers will fill out a questionnaire before understanding what corporate sustainability entails.
62 Then over a week, each participant will be asked to enroll in a short half an hour course that teaches corporate sustainability principles in retail organizations. Each participant will have to complete the course successfully. After two weeks, each participant will fill out the questionnaire and consent to answer each scenario when they believe Macy’s was socially responsible. The questions are structured to help each participant understand the sustainability program of Macy’s and how the CSR initiatives would influence the brand image of Macy’s. Each question is about business strategy and leadership. The research questions in the questionnaire will help the participants understand Macy’s operational excellence from before and after learning about sustainability which influences the company’s brand image. According to Woodliffe (2021), positive relationships between the corporation and its consumers are significant as it decreases potential disadvantages and accessibility between the two entities. In the final week of the study, each participant will join the focus group interview to express and share their feedback on what decisions and behaviors impacted their trust and loyalty in Macy’s to influence the corporation’s brand image. Data Analysis This qualitative study will conduct a comparative analysis for one month. The participants have two questionnaires. The first questionnaire is before their CSR course, and the second is after completion. There will be a follow-up focus group interview at the final stage of the research study. The participants are engaged in learning about CSR in retail organizations and CSR initiatives at Macy’s. It is essential to have a corporate social responsibility in a firm’s routine business process. Corporate sustainability helps the corporation with growth and development and allows the company to earn a good reputation in the market (Essay Company, 2018).
63 The researcher will work with the participants for one month to understand how CSR initiatives contribute to the brand image of Macy’s. Macy’s is a well-known retail corporation that increased its visibility by maximizing the corporate benefits by being socially responsible. Corporate social responsibility helps the organization reduce harmful effects and helps the company positively impact its community. Sustainability in organizations helps the company obey laws and codes of conduct (Essay Company, 2018). However, the shortage of funding to implement CSR initiatives affects Macy’s brand image at Herald Square in New York. Therefore, from this analysis, the researcher will work with the participants to understand the correlation between implementing CSR initiatives and the brand image of Macy’s in Herald Square, New York. From the analysis, the researcher can understand the correlation between consumer purchasing decisions, the influence on the corporation’s brand image, and how corporate sustainability positively influences consumers’ motivation. Assumptions As a researcher, assumptions concluded to understand how social responsibility affects corporations. From academic research studies, several assumptions are made about the current research. A meaningful research study will have beliefs that are addressed to ensure an in-depth analysis. Corporate social responsibility is a factor of competitive advantage for an enterprise. Corporate social responsibility brings economic, managerial, and social benefits (Ceglińskaa and Ceglińskiba, 2015). According to Ceglińskaa and Ceglińskiba (2015), retail corporations assume that incorporating a CSR program builds a positive image of the organization, attracts new customers, and increases competitiveness in the market. The managerial advantages of corporate social responsibility are that it increases communication skills and improves organizational
64 culture. CSR programs also benefit organizations by educating society and enhancing the natural environment by creating charitable attitudes. As CSR programs are implemented into retail corporations, it can be assumed that corporations experience profitability in the long run as they gain confidence from present customers and attracts new customers. Limitations In a research study, there will be limitations, representing weaknesses to the task. As a researcher, it is an obligation to inform the academic community that there are limitations to the current study. A meaningful research study will have restrictions as many researchers have limited access to resources to research and present. The study’s addressed limitations help future scholars mitigate those steps and ensure further in-depth analysis of this topic of study (Ross and Zaidi, 2019). There were several limitations to this study. Although the sample size is acceptable for this analysis, the sample size is still smaller compared to many scenarios on CSR initiatives. The random selection of participants also led to uneven distributions in the sampling and population. According to Ross and Zaidi (2019), the limitations cause an impact on the responses received, as limited data drives a bias to the results. Future research studies can utilize a larger sample size to eliminate the product’s tendency and use selected participants to analyze more even distributions. Delimitations The researcher presents delimitations in a research study to avoid further in-depth survey analysis (Ross and Zaidi, 2019). In this research study, there were some delimitations shown. According to Ross and Zaidi (2019), the delimitations impact the responses to the research questions. According to the stakeholder theory, corporate social responsibility stresses how a
65 company and its community operate with one another. The corporations work with their local communities by focusing on their needs. The objective of this study focuses on a limited community which delimits from analyzing a larger sample. Future research studies can utilize a larger sample size to eliminate selected participants and analyze larger study groups. Ethical Assurances IRB approval as this study involves privacy and fairness. The participants have consent documents to relay the purpose of the study. The consent forms outlined the participant’s voluntary willingness to partake in the survey. During the questionnaires and interviews, the participation time invested was to confirm the accuracy of the research study and presented a minimal risk. All questionnaires and documentation from the discussion will be securely locked by the researcher and destroyed after completing the survey. Participants volunteered to take part in this study. The participants’ privacy is secure, and no harm is caused to them, participants. The communication between the researcher and the participants does not involve a conflict of interest, and the research data gathers honestly and transparently (Resnick, 2020). Voluntary participation in the research is essential as the participants can withdraw at any time during the study. According to Resnick (2020), each participant has disclosed what the task involves and how their participation affects the study. The study materials and methods get evaluated for the accuracy of the results. Resnick’s (2020) research study states that participants consent to participate. Participants were given no unacceptable language to formulate the questionnaires and interviews during the investigation. Standards, discipline, and values are essential to the research study as it promotes ethical values to the task. The researcher aims to strive for consistency in results and avoid product bias. Therefore, Resnick stated that the consumers participating in the research
66 study are voluntary and prevent risk; all documentation should be secured and destroyed after completing the survey. Summary Global research studies found that corporate sustainability found a positive relationship between brand image and customer trust and loyalty. The research study aimed to provide other multinational corporations insight into developing corporate sustainability initiatives. The research methodology and design conclude that corporations face societal pressure and a shortage of funding to implement CSR initiatives. The questions answered in the questionnaires and interviews will guide senior executives to meet future corporate sustainability requirements.
67 Chapter 4: Findings This exploratory qualitative case study aims to understand how retailers face societal pressure to implement CSR programs. The study will support the shortage of funding to implement CSR initiatives that affect Macy’s brand image at Herald Square in New York. The brand image of Macy’s and other giant corporations is affected by their commitment to social responsibility. However, the general problem retailers face societal pressure to implement CSR programs. Macy’s, located in Herald Square, New York, engages and volunteers in ethically-oriented practices to better their community. Robinson (2018) states that corporate social responsibility is vital for retail corporations’ leaders to increase a positive brand image. The specific problem addressed will be the shortage of funding to implement CSR initiatives that affect Macy’s brand image at Herald Square in New York (Trentmann, 2020). The study was developed to understand better how implementing CSR strategies affects brand image from a consumer’s perspective. Retail corporations in the United States focus primarily on increasing corporate social responsibility initiatives to improve their brand image (Robinson, 2018). According to Luenendonk’s study (2019), corporate social responsibility is considered one of the best business practices to improve the company’s brand image and advertise the company (Luenendonk, 2019). Luenendonk stated that a company’s willingness and involvement in CSR initiatives represent its brand name as it embodies the consumers’ perception of the corporation. According to Kumar’s research study (2015), branding in a corporation is an asset and a long-term investment. A corporation’s brand image is perceived by consumer preference’s loyalty, assuming its expectations are met (Kumar, 2015).
68 Robinson (2018) states that corporate social responsibility is vital for retail corporations’ leaders to increase a positive brand image. The corporate social commitment aims to help its brand image through philanthropy and charity (Robinson, 2018). Robinson noted a positive correlation between CSR initiatives and successful brand image, confirming that consumers optimized brand imaging. However, the general problem retailers face societal pressure to implement CSR programs. The specific problem addressed was the shortage of funding to implement CSR initiatives that affect Macy’s brand image at Herald Square in New York (Trentmann, 2020). Macy’s, located in Herald Square, New York, engages and volunteers in ethically-oriented practices to better their community. According to Zoeller (2020), a corporation’s positive brand image is related to societal approval from consumers’ positive feelings about the corporation. An increasing number of retail corporations are associated with CSR initiatives, which help the organization achieve brand loyalty for its products or services (Zoeller, 2020). According to Jesper and Frans, corporations gain a positive brand image from their consumers as companies are more involved with their communities through their philanthropic and ethical initiatives (Jesper and Frans, 2015). The results from Jesper and Frans’ study found that it is essential that businesses implement corporate social responsibility to minimize the risk of losing talented employees to other competitors utilizing CSR strategy. Companies that practice CSR create a workplace where employees enjoy working for their employer, which helps retain their current employees for extended periods (Jesper and Frans, 2015). Organizations that practice CSR strategies have more satisfied employees than companies that do not partake in CSR initiatives. Employees feel that working for a socially conscious company gives them a purpose to fulfill. Many businesses that do not
69 practice CSR risk losing talented employees to their competitors and losing out on competitive advantage in their industry. This exploratory qualitative case study aimed to understand how retailers face societal pressure to implement CSR programs. The study supported the shortage of funding to implement CSR initiatives that affect Macy’s brand image at Herald Square in New York. The brand image of Macy’s and other giant corporations is affected by their commitment to social responsibility. The study involved how society perceives Macy’s after implementing corporate social responsibility. As Macy implements corporate social responsibility, this will help the company in the long run (Harris and He, 2020). A corporation’s commitment to CSR allows society to perceive the company more sincerely, locally and globally. According to Harris and He (2020), successful implementation of CSR will help Macy’s in the long run, as consumers feel proud to be associated with a brand that supports and cares about their employee’s and society’s wellbeing. CSR helps a corporation build a strong lifetime bond with its consumers, which helps prevent corporations from collapsing even at the brink of a crisis. The CSR initiatives at Macy’s in Herald Square benefited the company enough to evoke trust, influence consumer choices, and help develop consumer loyalty and confidence in the retail industry (Salpini, 2018). To examine the factor, three research questions were presented in Chapter 1: RQ1. What is the effect of implementing CSR initiatives on the brand image of Macy’s in Herald Square, New York? RQ2. What is the effect between consumers’ purchasing decisions and the corporation’s brand image?
70 RQ3. How does corporate sustainability positively influence the motivation of consumers? The following chapter will provide the results for these three research questions. The qualitative study conducted a comparative analysis followed by a case study to interpret the data. The chapter will conclude with an evaluation and summary. Trustworthiness of the Data According to Stahl and King (2020), trustworthiness in qualitative research is assessed through the following criteria: credibility, transferability, dependability, and confirmability. Qualitative researchers use trustworthiness as a measurable approach to show confidence in the method used to analyze the data. Credibility Researchers ensure credibility through triangulation (Stahl and King, 2020). Triangulation is used as the multiplicity to test the credibility of one’s research. Triangulation uses various sources to validate an original claim. This type of study is conducted through student questionnaires and focus groups. Combining these study themes eliminated the bias of the study by not utilizing a single resource (Stahl and King, 2020). Another way to ensure creditability is to involve informants, also known as member checking. Member checking allows the “member” to understand and determine what the researcher intends to do through their actions. Member checking is a productive practice where the researcher can receive participant feedback, allowing them to correct errors (Stahl and King, 2020). Transferability A researcher utilizes transferability to help the reader understand the study’s elements. The researcher can understand the participants’ daily activities, which may imply bias and affect
71 their responses (Stahl and King, 2020). Participants from this research study could utilize their social and cultural surroundings and draw contexts to express their thoughts on this study. The background of this study was presented to the participants to provide them with sufficient information to make independent conclusions. Therefore, generalizable research can also be transferable. For example, from this study, it may be generalized that the results from the questionnaire of 100 people in the financial institution are compared to the entire population. The results may be applied and transferred to their situation (Stahl and King, 2020). Dependability The concept of dependability is emphasized when the researcher may observe the same results twice. Therefore, the researcher has to consider changing factors that occurred within the research, and the researcher has to explain how these changes affected the study (Stahl and King, 2020). In this study, the participants were given two questionnaires. The first questionnaire was given before their CSR course, and the second was distributed after completion. Then there was a follow-up focus group discussion at the final stage of the research study. The facilitator contacted the corporate communications manager at Teachers Federal Credit Union to use their employees as the participants in this study. The questionnaires were distributed to 100 participants; however, 35 responses were recorded. The 100 participants’ selection was random across multiple age groups, and the customers selected were third of customers who recently purchased through their online database. 35% of the population was enough to achieve saturation for this study. 35% of the participants illustrated that Macy’s CSR practices were adopted to be valuable corporate citizens, be ethical, obey the law, and be profitable. The participants were engaged and learned about CSR in retail organizations and CSR initiatives at Macy’s. Participants understood that having corporate social responsibility in a
72 firm’s routine business process helps a corporation like Macy’s in the long run with growth and development. And allows the company to earn a good reputation in the market. Confirmability Conformability is used in qualitative research as an inquiry audit which demonstrates the data collection process to be traceable to the research findings (Stahl and King, 2020). According to Stahl and King, the data analysis is checked to ensure that the results would likely be repeatable by other researchers. The participants were sent out the questionnaires at the same company, which reduced the risk of non-conformity in how the questionnaire outline was distributed. The questionnaires were also made in-depth to allow the researcher to illustrate a broad picture of the data results of each participant’s response. To eliminate the bias in the results, each participant had to respond to the questionnaires within the deadlines. For example, before the participants took the course on CSR and moved on to questionnaire two, they had to complete answering questionnaire one, which only entailed a basic understanding of CSR. After completing the course, the participants took questionnaire two, which then helped the participants understand and illustrate a picture of the true meaning of CSR from the mindset of stakeholders and consumers. The participants have two questionnaires. The first questionnaire is before their CSR course, and the second is after completion. There will be a follow-up focus group interview at the final stage of the research study. The participants are engaged in learning about CSR in retail organizations and CSR initiatives at Macy’s. It is essential to have a corporate social responsibility in a firm’s routine business process. Corporate sustainability helps the corporation with growth and development and allows the company to earn a good reputation in the market (Essay Company, 2018).
73 The researcher will work with the participants for one month to understand how CSR initiatives contribute to the brand image of Macy’s. Macy’s is a well-known retail corporation that increased its visibility by maximizing the corporate benefits by being socially responsible. Corporate social responsibility helps the organization reduce harmful effects and helps the company positively impact its community. Sustainability in organizations helps the company obey laws and codes of conduct (Essay Company, 2018). However, the shortage of funding to implement CSR initiatives affects Macy’s brand image at Herald Square in New York. Therefore, from this analysis, the researcher will work with the participants to understand the correlation between implementing CSR initiatives and the brand image of Macy’s in Herald Square, New York. From the analysis, the researcher can understand the correlation between consumer purchasing decisions, the influence on the corporation’s brand image, and how corporate sustainability positively influences consumers’ motivation. Results A qualitative research study consists of in-depth responses from the participants, which is beneficial as it captures the corporation’s attitudes, preferences, and expectations. For the goal of this research, it was essential to engage with employees that work for a company that is highly involved in their local communities. In the first part of the study, the facilitator contacted the corporate communications manager at Teachers Federal Credit Union to use their employees as the participants in this study. The 100 participants’ selection was random across multiple age groups, and the customers selected was every third of customer who recently purchased through the Macy’s online database. Each participant voluntarily enrolled in this research study as a part of the focus group. The study lasted one month, including two detailed questionnaires and a focus group discussion.
74 The questionnaires were distributed to 100 participants; however, 35 responses were recorded. 35% of the population was enough to achieve saturation for this study. 35% of the participants illustrated that Macy’s CSR practices were adopted to be valuable corporate citizens, be ethical, obey the law, and be profitable. A qualitative study was the best method to conduct this research as it highlights issues of interest from the interview process and identifies constraints in further research studies (Woodliffe, 2021). The researcher believes that the identity of the participants is confidential. Therefore, the identity of the participants will not be mentioned. Data has been collected through two questionnaires and a focus group discussion. This qualitative study was conducted for one month. The first questionnaire was distributed before the CSR course was given, and the second was distributed after completion. There was a follow-up focus group discussion at the final stage of the research study. Each question involved business strategy and leadership. The research questions in the questionnaire helped the participants understand Macy’s operational excellence from before and after learning about sustainability which influences the company’s brand image. According to Woodliffe (2021), positive relationships between the corporation and its consumers are significant as it decreases potential disadvantages and accessibility between the two entities. The data was sorted and categorized from the in-depth responses from the questionnaires and focus group discussion. The data were sorted according to word clouds and sentiment analysis. Keeping the explorative nature of this research, the data analysis was interpreted by sentiment analysis converted to word clouds. The word clouds were created and divided into primary and subcategories to analyze the relationship between the CSR concepts. To interpret this qualitative research, the questionnaires and focus group discussion was distributed through
75 the software of Qualtrics. The sentiment analysis and word clouds were used from the software MAXQDA. This chapter describes the findings obtained from the research. The results from the questionnaires will be analyzed. This chapter will focus on the results concerning the research questions. In Chapter 5, the results will be further explained, and the results will be interpreted and compared to the theoretical framework. The findings of this qualitative study have been divided into three themes by focusing on the research questions. The first theme, Figure 1A, summarizes the participant’s understanding of corporate social responsibility according to their expectations and experiences. The second theme, Figure 2B, is interpreted according to the research questions after the participants took the course on CSR. The following research questions were analyzed from the participant’s interpretation of CSR. RQ1: What is the effect of implementing CSR initiatives on the brand image of Macy’s in Herald Square, New York? RQ2: What is the effect between consumers’ purchasing decisions and the corporation’s brand image? RQ3: How does corporate sustainability positively influence the motivation of consumers? The third theme, Figure 3C, interprets that participants primarily understood CSR’s value for organizations such as Macy’s after learning about CSR initiatives. Questionnaires From the three questionnaires and the focus group discussion, 35% of the recorded responses were used to interpret the data. All employees at Teachers Federal Credit Union that participated in the study will be referred to as participants. The first questionnaire was distributed to the employees before participating in the CSR course. The first questionnaire was given to the
76 participants to understand their feedback on what they believe corporate social responsibility is and why corporations implement CSR into their mission statement. The second questionnaire was given to the participants after completing the CSR course. The second questionnaire was given to participants to analyze their understanding of Macy’s used CSR to the best of the company’s ability. The final part of the research study was the focus group discussion. From the discussion, participants provided feedback on why they believe it is essential for corporations to participate in CSR initiatives and how it benefits the organization in the long run. The most crucial concept in this study is to analyze the concept of corporate social responsibility. Participants were asked about their understanding of CSR in both questionnaires and the focus group discussion. The division in results has been made from the answers to the open-ended questionnaires. From the qualitative results, the first part illustrates CSR concerning brand image and tax benefits. The second part of the results analyzes and demonstrates the research questions according to how Macy’s CSR initiatives affect the brand image of Macy’s in Herald Square, New York, and how a consumer’s purchasing power is reflected in Macy’s CSR initiatives. The third part of the results illustrates how Macy’s company policies affect the value of CSR. Each of these concepts will be presented in the figures below, demonstrating that the participants strongly believe in enhancing corporate social responsibility to improve the company’s financial performance, provide improvements to the environment, and enhance social equity.
77 Figure 1A.1 CSR vs. Brand Image ***To promote a positive brand image by earning a solid reputation and loyalty with their consumer base. CSRCSR approach for a corporation like Macy’s is implemented for ethical responsibility that a corporation is responsible to promote stronger bond between companies and employees. With CSR a company holds higher credibility in the eyes of the public since they actively try to hold themselves accountable and have a greater sense of social awareness. Solid reputation, image, respect and customer loyalty.
78 Figure 1A.2 CSR vs. Tax/Capitalism Benefits ***CSR is promoted as a free advertisement, ensuring a better investment for the corporation in the long run by giving the corporation an enormous tax break. CSRCorporations participate in CSR for tax/capitalism benefits. Carbon footprint, more employment (more people would work for fair wages), customer/consumer perception of the company (positive company image), and likely to establish supportive/loyal customers.Free advertising.It’s a better investment for their future.
79 Figure 1A.3 Sentiment Analysis *** From Sentiment analysis, it can be validated that there is a positive impact on a company’s brand and reputation through the effective use of CSR activities; this report gives companies compelling evidence for doing better in their communities. •Confidence level is 97.9%. •Confidence level is 95.6% •Confidence level is 71.4% •Confidence level is 92.9%CSR is an ethical responsibility of a corporation. Corporations with CSR are valued highly in most instances. Trustworthiness increases in a corporation with their involvement in CSR. Maintaining Moral Standards provides economic growth and profit.
80 Research Questions Figure 2B.1 The Importance of Big Corporations Spending on CSR Initiatives RQ1: What is the effect of implementing CSR initiatives on the brand image of Macy’s in Herald Square, New York? ***After taking the course on CSR, participants clearly understood corporate social responsibility and, most importantly, why a corporation like Macy’s is associated with CSR initiatives. Historically, corporations have a tarnished reputation as most consumers view corporate America as greedy. Most consumers have lost their trust in more prominent corporations since the financial crisis in 2008. The reckless behavior of many corporations in 2008 caused companies such as Macy’s to adopt a holistic strategy that upholds solid values and principles to bring social changes within their local communities and globally. Studying the U.S. The Importance of Big Corporations Spending on CSR Initiatives Integrates economic growth into communities by increasing human capital in developing nations. CSR adds value to a company like Macy’s as it promotes a sustainable business model. Promotes Competitivenss and Innovation in the industry.
81 Fortune 500 global corporations shows evidence that its CSR strategies are significant. It illustrates that most consumers prefer products and services from companies practicing CSR. Figure 2B.2 Macy’s CSR Strategy RQ2: What is the effect between consumers’ purchasing decisions and the corporation’s brand image?
82 ***Their initiatives bring positive change in communities. CSR influences consumers to continue buying at their stores, contributing to their image and brand. ***Macy’s has been around for over 80 years, and consumers will buy from a store that has been around for years before they try a new one because it shows the corporation’s ability to adapt. ***For example, when their brand advertises its sustainability approach, which includes decreasing energy and water use, increasing in-store recycling to 80%, and achieving ethnic diversity at senior level positions in-house and with vendors for better representation of consumers. ***Macy’s holds a competitive position; therefore, the brand image is everything to Macy’s. Figure 2B.3 Sentiment Analysis RQ3: How does corporate sustainability positively influence the motivation of consumers? Sentiment Analysis
83 *** From Sentiment analysis, it can be validated that there is a positive impact on Macy’s brand and reputation through their effective use of CSR activities. This report gives Macy’s compelling evidence for doing better in their communities. ***The new platform at Macy’s focuses on three areas of impact- People, Communities, and the Planet. In March of 2022, Macy’s announced a commitment to spend 5 billion dollars by 2025 on efforts to create a more equitable and sustainable future. The company is now emphasizing more diverse leadership. They have donated millions to a not-for-profit organization that shares the same ethics in society and supported scholarships for underrepresented youth in fashion, design, sustainability programs, and other measures. ***Macy’s does have a great and well-known philanthropic campaign. For example, Macy’s works closely with the Hispanic Federation to assist Hispanic students in their educational quest. They also have the Josiah Macy Jr. Foundation, which currently supports the professional education of health professionals. ***Since the pandemic, it has been natural for department stores to experience financial struggles. Despite the financial hardship that Macy’s experienced, they tried to keep up with their involvement in CSR. ***Macy’s has had involvement with CSR initiatives over the years by raising money for different organizations. I feel that this brings good morale to the company and shows initiative to strive to make a better community.
84 Figure 3C Macy’s Policies vs. The Value of CSR ***Corporate social responsibility is influenced by societal views, a company’s values, and environmental policies. Organizations implement CSR as a corporate goal to increase customer retention, save money on energy and operating costs, and differentiate themselves from their competitors. They also enhance their influence in the industry, win new businesses, enhance relationships with stakeholders, attract a happier workforce, and increase positive media interest. Society: CSR is an ethical responsibility for Macy’s as it participates in supporting educational empowerment and engages in the advancement of women’s rights, women’s equality, and family well-being. For example, Macy’s, Inc. is partnering with Business for Social Responsibility’s (BSR) HERProject to empower women to improve the health, well-being, confidence, and economic potential of women working in our factories globally.
85 Workplace: Through a well-established program overseeing the production of Macy’s private brand products ensures labor and environmental standards are met and that suppliers follow those standards. This inspirational vision has led the workforce of Macy’s to provide a higher quality service to their consumers. Employees are pleased to be associated with an organization that ensures fair labor and environmental practices. Environment: Macy’s, Inc. is committed to offering customers products that are produced ethically and with environmentally responsible materials and processes. Focused on circularity innovations to help reduce, reuse, and repurpose materials to eliminate waste. Macy’s introduced a partnership with the Give Back Box. From now through June of 2023, Macy’s allows customers to repurpose Macy’s shipping boxes to donate and recycle unwanted clothing free of charge. To enable customers to find and choose more sustainable products, Macy’s is making the sustainable style more accessible by making it easier to find and shop at Macy’s for independently certified and responsibly made products. From the focus group discussion, it can be interpreted from the results that before taking the course on CSR, most participants believed that CSR is an approach a company takes as a moral responsibility to bring change into their local communities. The participants felt corporations used CSR to promote a stronger bond between the company and its employees. Participants believed that CSR is an approach by most companies to promote a positive brand image by earning a solid reputation and loyalty with their consumer base. Before taking the course on CSR, some participants believed that CSR is a company’s approach to promoting free advertisement. It ensures a better investment for the corporation in the long run by giving the corporation an enormous tax break.
86 After learning about CSR initiatives, participants primarily understand CSR’s value for organizations like Macy’s. It adds value to a company like Macy’s by promoting a sustainable business model, competitiveness, and innovation in the industry. It also integrates economic growth into communities by increasing human capital in developing nations. Sentiment Analysis: After learning about CSR, do you believe Macy’s was utilizing the best technology and other tactful resources to implement CSR into its corporate mission? (Please provide a detailed response). Positive83.0% Evaluation of the Findings The results from the study are consistent with the previous findings regarding CSR relations with brand image. According to stakeholder theory, the concept signifies incorporating societal interests into business operations. Stakeholder theory is an essential part of corporate social responsibility as it stresses how a company and its community operate with one another. The companies work with their local communities by focusing on their needs (Dmytriyev and Freeman, 2017). According to Dmytriyev and Freeman, a company will help fight disease or alleviate poverty in certain nations, even if the company has no expertise in that area. Thus, each company is purpose-driven. Stakeholders of a corporation drive to meet the corporate vision, mission, and strategy. The stakeholders achieve these key points when corporate social responsibility initiatives are met. From the research findings, CSR initiatives and brand reputation are shaped through corporate environmental and social impact. The effect of implementing CSR initiatives at Macy’s in Herald Square, New York, was imperative for their brand image as it defined the company’s core values. The brand image of Macy’s improved significantly over the years as it increased its participation in CSR initiatives. Positive communication helped the organization
87 build a strong reputation among its stakeholders based on their trustworthiness and credibility. Macy’s has had involvement with CSR initiatives over the years by raising money for different organizations. Most consumers felt that it brought good morale to the company and showed initiative to strive to make a better community. However, it did not change a consumer’s purchasing decision affecting the organization’s brand image. The research findings show that corporate sustainability positively influences consumers’ motivation as CSR initiatives help the organization and consumers build brand loyalty and equity. When CSR strategies align with a consumer’s values, these initiate a strong bond and increase trust between the consumer and the corporation. From a stakeholder’s perspective, it can be concluded that an increase in consumer spending increases the company’s book value and influences its supply chain and reputation. A company’s conscious decision to participate in CSR reduces market volatility and increases its competitive advantage in its industry. Positive publicity at Macy’s helped the company gain public trust as investors were willing to invest in Macy’s in their time of financial hardship, as they hold a long-term respectable reputation. Summary By and large, the qualitative study illustrated the relationship between implementing CSR strategies and brand image. The anonymous questionnaires distributed to one hundred participants with thirty- five recorded responses signified a strong relation between CSR strategies and consumer satisfaction. The implementation of CSR and brand image powerfully illustrated the credibility of Macy’s according to its ethical, social, and environmental initiatives. However, implementing CSR strategies and consumer purchasing had no direct significance.
88 Chapter 5: Implications, Recommendations, and Conclusions This exploratory qualitative case study aims to understand how retailers face societal pressure to implement CSR programs. The study will support the shortage of funding to implement CSR initiatives that affect Macy’s brand image at Herald Square in New York. The brand image of Macy’s and other giant corporations is affected by their commitment to social responsibility. The specific problem addressed will be the shortage of funding to implement CSR initiatives that affect Macy’s brand image at Herald Square in New York (Trentmann, 2020). The study was developed to understand better how implementing CSR strategies affects brand image from a consumer’s perspective. In the first part of the study, the facilitator contacted the corporate communications manager at Teachers Federal Credit Union to use their employees as the participants in this study. The study lasted one month, including two detailed questionnaires and a focus group discussion. The 100 participants’ selection was random across multiple age groups, and the customers selected was every third of customer who recently purchased through the Macy’s online database. Each participant voluntarily enrolled in this research study as a part of the focus group. A qualitative study was the best method to conduct this research as it highlights issues of interest from the interview process and identifies constraints in further research studies (Woodliffe, 2021). The data was sorted and categorized from the in-depth responses from the questionnaires and focus group discussion. The data were sorted according to word clouds and sentiment analysis. Keeping the explorative nature of this research, the data analysis was interpreted by sentiment analysis converted to word clouds. The word clouds were created and divided into primary and subcategories to analyze the relationship between the CSR concepts. To interpret this qualitative research, the questionnaires and focus group discussion was distributed
89 through the software of Qualtrics. The sentiment analysis and word clouds were used from the software MAXQDA. The limitations of the study include the sample size. One hundred participants volunteered to participate in the study; however, 35 responses were recorded. 35% of the participants illustrated that Macy’s CSR practices were adopted to be valuable corporate citizens, be ethical, obey the law, and be profitable. This chapter will include the implications of the research results, practice recommendations, recommendations for future research, and conclusions of the study aligning with prior research. Implications The study’s findings confirm that implementing CSR initiatives positively affects a company’s brand image (Dmytriyev and Freeman, 2017). This study also confirmed prior findings from Dmytriyev and Freeman, 2017, that CSR had no direct impact on a consumer’s purchasing power. From the research findings, CSR initiatives and brand reputation are shaped through corporate environmental and social impact. The effect of implementing CSR initiatives at Macy’s in Herald Square, New York, was imperative for their brand image as it defined the company’s core values. Positive communication helped the organization build a strong reputation among its stakeholders based on their trustworthiness and credibility. Positive publicity at Macy’s helped the company gain public trust as investors were willing to invest in Macy’s in their time of financial hardship, as they hold a long-term respectable reputation. This section will examine each research question and analyze the implications of the results. Research Question 1: How does implementing CSR initiatives affect the brand image of Macy’s in Herald Square, New York? This study implies a clear relationship between implementing CSR initiatives and brand image. Macy’s in Herald Square, NY, found that CSR initiatives are pivotal to the company’s
90 brand name. Macy’s participates in supporting educational empowerment and the advancement of women’s rights, equality, and family well-being. For example, Macy’s, Inc. is partnering with Business for Social Responsibility’s (BSR) HERProject to empower women to improve their health, well-being, confidence, and economic potential in factories globally. As Macy’s increased its CSR initiatives, this helped the corporation’s customer retention, save money on energy and operating costs, and differentiate itself from its competitors. They also enhanced their influence in the industry, improved relationships with stakeholders, attracted a happier workforce, and increased positive media interest. Previous research findings significantly impact the brand image from implementing CSR initiatives. According to Dmytriyev and Freeman,2017, a company such as Macy’s will help fight disease or alleviate poverty in certain nations, even if the company has no expertise in that area. Thus, Macy’s worked with stakeholders to meet the corporate vision, mission, and strategy. The stakeholders achieved these key points when corporate social responsibility initiatives were met. Research Question 2: What is the effect between consumers’ purchasing decisions and the corporation’s brand image? Based on the corporation’s CSR initiatives, this study implies that consumers are not more or less likely to shop at Macy’s. Most consumers believe they are inclined to shop at Macy’s, as the company has been around for eighty years with a reputable name, so they are keen to shop at Macy’s. However, consumers believe that shopping in a retail organization that participates in CSR initiatives, such as Macy’s, motivates them to be associated with a brand name practicing good morale. Macy’s advertises its sustainability approach, which includes decreasing energy and water use, increasing in-store recycling to 80%, and achieving ethnic diversity at senior-level positions in-house and with vendors for better representation of
91 consumers. A better model helped the company gain a competitive situation but did not affect a consumer’s purchasing power. In alignment with previous research, CSR initiatives did not broadly impact purchasing behavior. According to Harris and He (2020), successful implementation of CSR will help Macy’s in the long run, as consumers feel proud to be associated with a brand that supports and cares about their employee’s and society’s wellbeing. CSR helps a corporation build a strong lifetime bond with its consumers, which helps prevent corporations from collapsing even at the brink of a crisis. The CSR initiatives at Macy’s in Herald Square will benefit the company enough to evoke trust, influence consumer choices, and help develop consumer loyalty and confidence in the retail industry (Salpini, 2018). While CSR is imperative from a stakeholder’s point of view, there was no direct impact on a consumer’s purchasing power. While the answers from the questionnaire involve the consumer’s behavior patterns, which the consumer’s history may impact with the company, it does not affect the consumers’ specific ability to purchase from the company. Research Question 3: How does corporate sustainability positively influence consumers’ motivation? This study implies that Macy’s does have a great and well-known philanthropic campaign. For example, Macy’s works closely with the Hispanic Federation to assist Hispanic students in their educational quest. They also have the Josiah Macy Jr. Foundation, which currently supports the professional education of health professionals. Macy’s has had involvement with CSR initiatives over the years by raising money for different organizations. Many consumers believe that CSR brings good morale to the company and shows initiative to strive to make a better community. From the consumers’ sentiment analysis, it can be validated that there is a positive impact on Macy’s brand and reputation through their effective use of CSR
92 activities. The results show that Macy’s doing better in their communities influences consumers’ motivation. CSR strategies help a corporation build a strong lifetime bond with its consumers, which helps prevent corporations from collapsing even during a crisis. Since the pandemic, it has been natural for department stores to experience financial struggles. Despite the financial hardship that Macy’s experienced, they tried to keep up with their involvement in CSR. In alignment with previous research, according to Harris and He (2020), successful implementation of CSR will help Macy’s in the long run, as consumers feel proud to be associated with a brand that supports and cares about society’s wellbeing. Recommendations for Practice Based on the research results, the first recommendation for practice would be for the company to implement one specific CSR strategy for the organization. For example, the company may want to focus mainly on environmental initiatives which impact a community. A company could improve the community’s disaster relief programs through ecological sustainability efforts. After reviewing their CSR initiatives, most consumers found that Macy’s was a trustworthy and credible organization. Previous research findings frame consumers’ high expectations for corporations to be involved with social causes to create a positive brand image (Williams, 2020). Williams (2020) stated that cultivating social relationships increases brand loyalty and interpersonal networking. Interpersonal networking in these enterprises helps generate trust within their community to conduct business. Corporate sustainability also helps these organizations achieve ethical behavior by maintaining and increasing competitiveness. Associating a corporation with CSR initiatives helps a corporation in the long run, as corporate
93 credibility cultivates social relationships and grows brand loyalty from a consumer’s perspective (Williams, 2020). Based on the research results, the second recommendation for practice would be for corporations to document their CSR strategies. For example, the strategy should be implemented in the company’s mission statement and addressed on its website. This recommendation aligns with previous research studies that CSR initiatives and external communication are essential for consumers. After the company documented its CSR initiatives, the study’s findings stated a clear relationship between CSR and brand image. Communication helps consumers to relate better to the company, which creates a favorable corporate reputation (Dennis, Pantano, Pizzi, and Scarpi (2020). Dennis, Pantano, Pizzi, and Scarpi (2020) stated that some retailers spread the message through their online emergency system, which alerted consumers of when products would be available; the system specified product restrictions and provided surveillance to help prevent the spread of the virus during the pandemic. The online emergency database helped many consumers build trust in these employers to provide real-time customer service. When addressed properly, the positive effects of consumer CSR informativeness are pivotal to improving the corporate brand name (Dennis, Pantano, Pizzi, and Scarpi (2020). Recommendations for Future Research Based on the framework of Stakeholder Theory, the findings and implications of this study may have future researchers find alternate results to CSR initiatives and brand image. Researchers may further analyze the questionnaire questions to differentiate consumers’ purchasing power by focusing on other retail locations rather than just one specific location. Positive communication helped the organization build a strong reputation among its stakeholders based on their trustworthiness and credibility. Positive publicity at Macy’s helped the company
94 gain public trust as investors were willing to invest in Macy’s in their time of financial hardship, as they hold a long-term respectable reputation (Dmytriyev and Freeman,2017). According to Dmytriyev and Freeman, a company such as Macy’s will help fight disease or alleviate poverty in certain nations, even if the company has no expertise in that area. Thus, Macy’s worked with stakeholders to meet the corporate vision, mission, and strategy. Further research can improve the study by using a larger sample and a more defined demographic. Another logical step would be to differentiate the demographic profiles into groups based on gender, income, and educational background. The demographic factors may be further explored in the context of Macy’s, as specific consumer preferences affect their dynamic with the company and its brand name. Conclusions This exploratory qualitative case study aimed to understand how retailers face societal pressure to implement CSR programs. By and large, this quantitative study provided 100 anonymous participants with two questionnaires and a focus group discussion. The first questionnaire was sent to the participants before taking the corporate social responsibility course. After the participants took the class on CSR, they completed the second questionnaire. Lastly, the participants completed a focus group discussion—the questions related to the consumers’ perceptions of purchasing behavior and brand image. The study addressed the problem of a shortage in funding to implement CSR initiatives that affect Macy’s brand image at Herald Square in New York. The results from the study illustrated the importance of CSR implementation to increase a positive brand image for competitive advantage concerning stakeholder theory. The significance of stakeholder theory addressed that the positive publicity at Macy’s helped the company gain public trust as investors were willing to invest in Macy’s in
95 their time of financial hardship, as they hold a long-term respectable reputation (Dmytriyev and Freeman,2017). The effective use of organizational resources helped the company improve its brand reputation as Macy’s worked with stakeholders to meet the corporate vision, mission, and strategy (Dmytriyev and Freeman,2017).
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105 Appendix A Interview Questionnaire The questions provided to the focus group will be as follows: My Dissertation Questionnaire 1 Q1. How would you define corporate social responsibility? ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ Q2. How do you value companies that work with CSR? ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ Q3. Why do you think companies choose to give back to society in terms of CSR? ________________________________________________________________ ________________________________________________________________ ________________________________________________________________
106 ________________________________________________________________ ________________________________________________________________ Q4. Why do corporations participate in charity or conduct similar charitable projects themselves? ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ Q5. Before taking the course on CSR, what is your perception of the company, depending on how they choose to work with CSR? ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________
107 My Dissertation Questionnaire 2 Q1. What function do you think a retail corporation such as Macy’s plays in society? ________________________________________________________________ Q2. Do you think Macy’s strives to comply by maximizing profits and returning them to their shareholders, or do you think Macy’s participates in CSR initiatives to give back to their community? Explain your reasoning and provide examples. ________________________________________________________________ Q3. What is your perception of Macy’s regarding their involvement with CSR initiatives over the years? ________________________________________________________________ Q4. After learning about the sustainability programs at Macy’s, has it changed your views and purchasing decisions with the company? If yes, how? If not, why? (Please elaborate on your answers). ________________________________________________________________ Q5. Has the pandemic influenced your belief and purchasing power on Macy’s being socially responsible? ________________________________________________________________ Q6. How do Macy’s corporate sustainability initiatives affect your relationship with the corporation? ________________________________________________________________
108 Q7. Do you believe Macy’s holds a strong and positive brand image because of its CSR initiatives compared to its competitors, and why? ________________________________________________________________
109 Focus Group Discussion Q1. What percentage of U.S. corporations do you believe are socially responsible? • 0 percent‐25 percent of companies are socially responsible • 26 percent‐74 percent of companies are socially responsible • 75 percent‐100 percent of companies are socially responsible Q2. What percentage of U.S. Retail Corporations do you believe are socially responsible? • 0 percent‐25 percent of companies are socially responsible • 26 percent‐74 percent of companies are socially responsible • 75 percent‐100 percent of companies are socially responsible Q3. When a retail corporation reports all of the results of its social responsibility initiatives, regardless of whether they succeeded or failed, I am more likely to trust them? • Dislike a great deal • Dislike somewhat • Neither like nor dislike • Like somewhat • Like a great deal Q4. When Macy’s reported all of their results of its social responsibility initiatives, regardless of whether they succeeded or failed, were you likely to trust them? • Dislike a great deal • Dislike somewhat • Neither like nor dislike • Like somewhat • Like a great deal Q5. Retail Corporations that do not try to be socially responsible are at greater financial risk than corporations that do? • Strongly Agree • Somewhat agree
110 • Neither agree nor disagree • Somewhat disagree • Strongly disagree Q6. Do you believe dedicated social responsibility initiatives help corporations weather market volatility better? • Strongly Agree • Somewhat agree • Neither agree nor disagree • Somewhat disagree • Strongly disagree Q7. All else equal, socially irresponsible companies are less stable than their competitors? • Strongly Agree • Somewhat Agree • Neither agree nor disagree • Somewhat disagree • Strongly disagree Q8. Do you have any examples of how a retail corporation does good things for the community, and what is it doing? (Please provide a detailed response). Q9. By and large, after learning about CSR, do you believe that Macy’s was utilizing the best technology and other tactful resources to implement CSR into their corporate mission? (Please provide a detailed response). Q10. Essentially, after learning about CSR initiatives within retail corporations, how has your consumer perspective changed regarding purchasing power? Would your relationship dynamic change with the company in the future due to its CSR initiatives? (Please provide a detailed response).
111
112 Appendix B Qualitative Data Figure 1A.1 CSR vs. Brand Image CSRCSR approach for a corporation like Macy’s is implemented for ethical responsibility that a corporation is responsible to promote stronger bond between companies and employees. With CSR a company holds higher credibility in the eyes of the public since they actively try to hold themselves accountable and have a greater sense of social awareness. Solid reputation, image, respect and customer loyalty.
113 Figure 1A.2 CSR vs. Tax/Capitalism Benefits CSRCorporations participate in CSR for tax/capitalism benefits. Carbon footprint, more employment (more people would work for fair wages), customer/consumer perception of the company (positive company image), and likely to establish supportive/loyal customers.Free advertising.It’s a better investment for their future.
114 Figure 1A.3 Sentiment Analysis •Confidence level is 97.9%. •Confidence level is 95.6% •Confidence level is 71.4% •Confidence level is 92.9%CSR is an ethical responsibility of a corporation. Corporations with CSR are valued highly in most instances. Trustworthiness increases in a corporation with their involvement in CSR. Maintaining Moral Standards provides economic growth and profit.
115 Figure 2B.1 The Importance of Big Corporations Spending on CSR Initiatives RQ1: What is the effect of implementing CSR initiatives on the brand image of Macy’s in Herald Square, New York? The Importance of Big Corporations Spending on CSR Initiatives Integrates economic growth into communities by increasing human capital in developing nations. CSR adds value to a company like Macy’s as it promotes a sustainable business model. Promotes Competitivenss and Innovation in the industry.
116 Figure 2B.2 Macy’s CSR Strategy RQ2: What is the effect between consumers’ purchasing decisions and the corporation’s brand image?
117 Figure 2B.3 Sentiment Analysis RQ3: How does corporate sustainability positively influence the motivation of consumers? Sentiment Analysis
118 Figure 3C Macy’s Policies vs. The Value of CSR
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