The Effect of CSR on Brand Equity in the IT Solutions Industry; the Case of Alsale Service Limited

Abstract

During the last decades, brand equity has been a priority topic for both practitioners and academics. In accordance with the structural changes in the economic settings caused by the so-called "new economy”, corporations being confronted with a shift on perceived business value structure from tangible assets to intangibles. On the other hand firms increasingly are adopting more responsible behaviour towards their societies. In this context, one critical question is to understand how corporate conduct may affect brand equity. The purpose of this study was to find the effect of corporate social responsibility on brand equity. The empirical part is conducted as a quantitative case study. The case company is Alsale Services limited. The empirical data has been gathered using semi-structured questionnaire. A 5-point likert scale was used. The study used a sample of 60 respondents that were randomly chosen from the entire population of staff and customers of the company. The results reveal that consumers' CSR awareness is essential if companies desire to become perceived as responsible. Consumers' CSR awareness, which is their knowledge of companies' CSR targets, can be increased through companies CSR information and responsibility filled marketing messages. The study revealed that all the indicators explaining corporate social responsibility from the perspective of the customers apparently indicated that Alsale Services Limited as a IT Solutions company satisfies its numerous corporate social responsibilities despite the few respondents who indicated the contrary and neutral respectively. The study therefore makes some recommendations to Alsale and to the IT Solutions industry practitioners in general.

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