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A Study on the Relationship of Corporate Social Responsibility (CSR) and Consumer Buying Behavior of The Body Shop International PLC Customers Table of Contents Title Page i Abstract vii Chapter I: Introduction 1. 1 Background of the Study 1 1. 2 Significance of the Study 2 1. 3 Objectives of the Study 3 1. 4 Conclusion 3 Chapter II: Review of Related Literature 2. 1 Introduction 4 2. 2 The Cosmetic Industry 4 2. 3. Corporate Social Responsibility (CSR).

6 2. 4 Consumer Buying Behaviors 12 2. 5 CSR and Purchasing Decisions 14 2.A Study on the Relationship of Corporate Social Responsibility (CSR) and Consumer Buying Behavior of The Body Shop International PLC Customers Table of Contents Title Page i Abstract vii Chapter I: Introduction 1. 1 Background of the Study 1 1. 2 Significance of the Study 2 1. 3 Objectives of the Study 3 1. 4 Conclusion 3 Chapter II: Review of Related Literature 2. 1 Introduction 4 2. 2 The Cosmetic Industry 4 2. 3. Corporate Social Responsibility (CSR) 6 2. 4 Consumer Buying Behaviors 12 2. 5 CSR and Purchasing Decisions 14 2.

6 Customer Satisfaction and Customer Loyalty 15 2. 7 The Body Shop International, PLC Values 17 2. 8 Conclusion 20 Chapter III: Methodology 3. 1 Introduction 21 3. 2 Research Objectives 21 3. 3 Research Hypothesis 22 3. 4 Data Collection 23 3. 5 Sampling 28 3. 6 Questionnaire Design 28 3. 7 Pilot Study 29 3. 8 Reliability and Validity 31 3. 9 Analysis of Data 32 3. 10 Chapter Summary 32 Chapter IV: Results and Discussions 4. 1 Introduction 35 4. 1 Gender 35 4. 2. 2 Civil Status 36 4.

2. 3 Age 36 4. 2. 4 Educational Attainment 38 4. 2. 5 Nationality 39 4. 2. 6 Number of Years Stayed with The Body Shop 40 4. 2. 7 Type of Customer 41 4. 2. 8 Customer Attitude towards The Body Shop Business 43 4. 2. 9 Customer Expectation from The Body Shop 44 4. 2. 10 Customer Attitude on the Corporate Values and Campaigns of The Body Shop 46 4. 2. 11 Do Values and Campaigns of the Body Shop affect Consumer Behavior? 48 4. 2. 12 Motives of The Body Shop as seen by Consumers 49 4. 2. 13 Does The Body Shop’s Motives affect Consumer Buying Behavior?

51Chapter V: Conclusion and Recommendations 5. 1 Introduction 53 5. 2 Discussion of Findings 53 5. 3 Managerial Implications 56 5. 4 Limitations of the Study 56 5. 5 Recommendations for Future Research 57 List of Tables: Table 1: Stakeholder View of Corporate Responsibility 7 Table 2: Gender 35 Table 3: Civil Status 36 Table 4: Age 37 Table 5: Educational Attainment 38 Table 6: Nationality 39 Table 7: Number of Years Stayed with The Body Shop 40 Table 8: Type of Customer 42 Table 9: Customer Attitude towards The Body Shop Business 44.

Table 11: Customer Expectation from The Body Shop 45 Table 12: Customer Attitude on the Corporate Values and Campaigns of The Body Shop 47 Table 13: Do Values and Campaigns of the Body Shop affect Consumer Behavior? 48 Table 14: Motives of The Body Shop as seen by Consumers 50 Table 15: Does The Body Shop’s Motives affect Consumer Buying Behavior? 51 List of Figures Figure 1: Market Share by Product Categories 5 Figure 2: The Body Shop International PLC Stakeholders  10 Figure 3:  A hierarchical model of consumer goals 13 Figure 4: Gender 35.

Figure 5: Civil Status 36 Figure 6: Age 37 Figure 7: Educational Attainment  38 Figure 8: Nationality 38 Figure 9: Number of Years Stayed with The Body Shop 41 Figure 10 : Type of Customer 42 Figure 11: Customer Attitude towards The Body Shop Business 44 Figure 12: Customer Expectation from The Body Shop 46 Figure 13: Customer Attitude on the Corporate Values and Campaigns of The Body Shop 47 Figure 14: Do Values and Campaigns of the Body Shop affect Consumer Behavior? 49 Figure 15: Motives of The Body Shop as seen by Consumers 51.

Figure 16: Does The Body Shop’s Motives affect Consumer Buying Behavior? 52 Literature Cited 58 Appendices 64 Abstract The concept of Corporate Social Responsibility (CSR) is deeply rooted on the commitment of organizations to continue their business in an ethical manner. In addition with this, it is relevant that organizations will be contributing to economic development of one’s country while at the same time improving the quality of life of not only of its employees and the aforementioned’s families but also the society where they belong (Watts and Holme, 1999).

The Body Shop International’s Corporate Social Responsibility (CSR) is geared primarily towards protecting animal rights and helping out marginalized countries. In relation with this, the organization has also been advocating against contemporary issues that affect women and the youth such as Domestic Violence, HIV and AIDS. The study revealed that consumers are supporting the values and campaigns of the company and has been very optimistic about the motives of the aforementioned. Eighty five percent of the respondents answered on the affirmative when asked if the values and campaigns of The Body Shop affect their behavior towards purchasing.

In relation with this, 85% of the consumers, answered on the affirmative when asked if the motives of the company affect their buying behaviors. Chapter I Introduction 1. 1 Background of the Study One of the major problems in business is the notion of whether companies should be concerned with other issues than profitability. Adam Smith in 1863 claimed that the process of achieving the overall good for the society is something that will happen inevitably happen because of his idea of the invisible hand of the market.

However, more contemporary ideas assert otherwise as they believed that there are a number of conditions that would hinder the invisible hand to work effectively (Mohr and Webb, 2002). The Body Shop International, PLC is one of the leaders in terms of cosmetic stores focusing in skin and hair care products that are made from natural ingredients.

The company is a subsidiary of L’Oreal and has branches to over 50 countries worldwide. On the fiscal year of 2006, Body Shop has total revenue of ? 485. 8 million which marks a total of 15. 9% increase compared to 2005 (Datamonitor, 2007, p. 4).
Body Shop’s niche market sector has been famous due to the advent on the use of naturally inspired skin and hair care products. Body Shop’s product lines range from the use of Vitamin E Moisture Cream, Tea Tree Oil, Banana Shampoo and the likes.

The company also advocates the use of aloe vera, jojoba oil, rhassoul mud, cocoa butter etc. Hence it could be said that the company has fully revolutionized the ethical disposition of the cosmetic industry with regard to the use of natural ingredients, and most importantly, the advent against using animals in terms of testing their products (p.5). It could also be significantly noted that the Body Shop has been highly commended through the use of its own fair trade program which primarily includes transacting with disadvantaged communities all over the world. For instance, the company is known through its purchases of ingredients such as the blue corn from the Pueblo Indians in New Mexico; it has also been purchasing Brazil nut oil from the Kapayo Indians of the Amazon River Basin (p. 6).

1. 2 Significance of the Study The study is significant in order to know if customers now a days are informed in terms of the Corporate Social Responsibility (CSR) of multinational companies. In the cosmetics industry, wherein information about how products are produced and are tested is made unknown to the public, it is imperative to know whether consumers at present perceive these factors as relevant at all. More importantly, the implications of emerging ethical issues in the market could be focused upon to significantly contribute on the amount of literature and researches establishing the link between CSR and consumer buying behaviors.

As such, this study is relevant in order to know whether The Body Shop consumers in London did take into consideration the CSR of The Body Shop in terms of their purchasing attitude. 1. 3 Objectives of the Study The objectives of the research are the following: 1. To know from a consumer’s perspective if The Body Shop International PLC have a responsibility to the society. 2. To know how much support does consumers have about the Corporate Social Responsibility (CSR) of The Body Shop International PLC. 3. To know how much do consumers care about The Body Shop International PLC’s level of CSR. 3.

1 To know if customer purchases are affected by the said factor. 4. To know what motives do consumers attribute to the CSR of The Body Shop International PLC. 4. 1 To know if the said motives make a difference to the consumers. 1. 4 Conclusion The implications of the workings of corporations overtime to the society, environment and other living things is something that is of utmost importance at present. In the age where science is triumphed over life and ethics, it is imperative to know whether cosmetic and skin and hair care international companies such as The Body Shop International are doing in terms of their CSR.

 

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