What are some ways a company can attract more customers? One study found that consumers are more likely to have a higher opinion of that company’s products when they are involved with doing good. The study, titled “Doing Well by Doing Good: The Benevolent Halo of Corporate Social Responsibility,” noted that corporate social responsibility often leads to something known as the “benevolent halo effect.” The effect can lead to “positive attitudes toward a company” which can then “translate into positive beliefs about the company’s products,” notes authors Sean Blair and Alexander Chernev with the Kellog School of Management, Northwestern University.
The researchers conducted four different studies about how corporate social responsibility impacts consumer opinion to the quality of a company’s products. For one study, consumers were given the opportunity to taste and rate red wines. Consumers noted one wine as tasting better when informed that the winery that made the wine actively donated to the American Heart Association. In the other studies, consumers noted that products—ranging from tooth whiteners to running shoes—were of a better quality when the products’ manufacturers participated in corporate social responsibility.
“Doing good can indeed translate into doing well,” note the authors. Why? Because corporate social responsibility can ultimately have an impact on a company’s bottom line.
As the study shows, corporate social responsibility can be a wise business move. If you work with a company that’s interested in developing or expanding their corporate social responsibility angle, then consider contacting GEAR The World.
We specialize in partnering top firms with charities and nonprofits. Companies often have an excess of products or stock that they would dispose of, so we partner those companies with nonprofits that can use that inventory. If you’d like to learn more, click here.
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