Millennial's Involvement in Corporate Social Responsibility

Millennial's Involvement in Corporate Social Responsibility

Eleonora Rapiti (University of Tuscia, Italy) and Cecilia Silvestri (University of Tuscia, Italy)
DOI: 10.4018/978-1-7998-1419-1.ch015

Abstract

Corporate Social Responsibility (CSR) has come to be regarded as a great strategic marketing tool and an important part of the business paradigm (Supanti and Butcher, 2019). Several authors (i.e. Choi and La, 2013) studied CSR as a driver of satisfaction and loyalty. This chapter focused on the behavior of Millennials to which CRS is an integral part of their lives. However, studies in the literature on this topic are limited. The chapter fills the gap of existing literature and increases knowledge on this issue by: (1) identifying, through factor analysis, the dimensions of CSR and (2) analyzing, through cluster analysis, the relationships between CSR and Customer Satisfaction (CS) and Customer Loyalty (CL) of different Millennials groups. The results show how the knowledge of the CSR conditions the behavior of millennials by helping to increase their level of satisfaction and loyalty.
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Introduction

In recent years, CSR has come to be regarded as a great strategic marketing tool and an important part of the business paradigm (Supanti and Butcher, 2019). This is because consumers do not ask companies for only a high-quality product, but they are “characterized as being satisfied with products that are developed by socially responsible firms” (Luo and Bhattacharya, 2006, Mohammed and Rashid, 2018 p. 360). Moreover, several authors (e.g. Choi and La, 2013; Kucukusta et al. 2013; Othman e Hemdi, 2015, Paulìk et al., 2015) studied CSR as a driver of satisfaction and loyalty. Indeed, Sogari et al. (2017) proved that consumers in their purchase choices focusing on the product/process dimension of environmental sustainability. Many authors recently (e.g. Formánková et al., 2019; Cavaliere and Ventura, 2018; Bonadonna et al., 2017) concentrated on analyzing the behavior of a precise target of individuals concerning the CSR policies implemented by firms, i.e. Millennials. This generation is composed of individuals born between 1980 and 2000 and they are called Millennials because of their closeness to the new millennium and being raised in a more digital age (Kaifi et al., 2012; Smith and Nichols, 2015). Formánková et al., (2019) claimed that for Millennials, CRS is an integral part of their life and there are more aware of CSR. In fact, in line with the research conducted by Frey (2018) on the topic of Millennials Generation (MG), “one of the long-term trends that continued with millennials [has been] the increase in education attainment” (p. 12) based on an education-oriented to sustainability (Bonadonna et al., 2017). The millennials, therefore, as students, possess extensive knowledge of basic principles of ecology and sustainability and adopt environmentally responsible consumption practices (Earl et al., 2003; Emanuel and Adams, 2011). According to a study led by PricewaterhouseCoopers in 2011, 88% of Millennials prefer companies that emphasize CSR and 86% would consider leaving if their employer’s CSR no longer met their expectations. These data are also confirmed by research conducted in the literature. Catano and Morrow Hines, (2016) developed an experimental design in which analyzed how Millennial generation applicants evaluated the firm concerning implementing CSR policies. The results showed as good advertising of such policies increases the initial attractiveness of the organization to job seekers. Instead, Supanti and Butcher (2019) proved that CSR participation has a strong influence over work-related outcomes in the Millennials.

Key Terms in this Chapter

Customer Satisfaction: A measure of how products and services supplied by a company meet or surpass customer expectation.

Factor Analysis: A statistical method used to describe variability between the observed, correlated variables in terms of a potentially lower number of unobserved variables called factors.

Customer Loyalty: The set of all those activities aimed at creating a commercial and personal link.

Cluster Analysis: It is a set of multivariate data analysis techniques aimed at the selection and grouping of homogeneous elements in a data set.

Millennials: The people belonging to the new generation.

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