The integration of Stakeholders’ interactions in Corporate Social Responsibility disclosure practice: customers’ perspective

Previous literature concerning stakeholder engagement is split into two groups. The first group has focused on stakeholders’ engagement from companies’ perspective, looking at how the strategic management of companies can be influenced by stakeholders’ involvement (Ditlev-Simonsen and Midttun, 2011; Gallego-Alvarez et.al., 2009; Roberts 1992; Ullman, 1985; Freeman, 1984). The second group has focused on stakeholders’ engagement from stakeholders’ perspective (Bhattacharya, et al., 2009). However, there is very little research into the effectiveness of stakeholder engagement from both stakeholders’ and companies’ perspective. This study will cover this gap by investigating stakeholders’ engagement from both companies and stakeholders’ point of view, with the focus on customers as one of the main stakeholders. Therefore, the broad aim of this study is to assess the extent to which companies are utilising the benefits of customer engagement. To achieve the main aim, key sub-aims are to establish if companies that disclose on customer engagement are (1) more likely to be pro-active in their approach to corporate social responsibility (CSR), (2) Can successfully influence their customers’ attitude to CSR, (3) Can successfully influence their customers’ behaviour and effectively involve their customers in their CSR. To achieve the aims, the study adopted two-stage methodology. In the first stage, the researchers examined only 60 (out of the UK FTSE top 100) UK companies’ reports that classified as Business to customer (B2C), in order to conclude if companies that disclose on customer engagement are more likely to be ‘pro-active companies’ . In the second stage and in order to analyse the effects of customer engagement, from the customers’ perspective, a survey is conducted with 160 customers from the well known brands from different sectors to find out if customers’ engagement results in pro-active customers .

The initial results from the 60 UK companies revealed that companies that engage with their customers are more likely to be pro-active; compared with companies that do not disclose on customer engagement. Analysis of the survey results show that customer engagement does not play a role in influencing customers’ CSR behaviour. Further analysis was conducted to investigate customers’ level of pro-activity, and the main influencing factor was found to be age; mature respondents are more likely to participate in pro-active CSR behaviours. It was concluded that there is a communication problem when companies engage with their customers in relation to CSR. Companies are not communicating effectively and thus customers are unaware of their motives or they are sceptical. Therefore, companies are not fully utilising the benefits of customer engagement. In conclusion, this study proposes that effective customer engagement can provide benefits for companies, customers and society at large. Effective customer engagement has the potential to maximise the efficiency of companies’ CSR activities through increased customer participation; thus encouraging customers to become ‘pro-active.’