The Impact of Corporate Social Responsibility (CSR) Initiatives on the Brand Image of Multinational Enterprises (MNEs)

Abstract

Multi-national Enterprises (MNEs), play a prominent role in the International Business environment through their Corporate Social Responsibility (CSR) initiatives. Based on the stakeholder theory, this study aims to investigate the impact of CSR initiatives on the enhancement of the brand image of MNEs in Sri Lanka. A positivist research paradigm has been adopted in this study. Accordingly, an online self-administered survey questionnaire was shared among 123 young consumers in Sri Lanka in order to investigate answers to the research questions of the study. It was found that there is a positive impact of fulfilling legal responsibilities on the brand image of MNEs while there seems to be no significant relationship between the ethical and philanthropical responsibilities of MNEs on their brand image. From a theoretical perspective, this study seems to shed light upon the existing body of research on corporate responsibility and brand image of MNEs, especially in the context of Sri Lanka through the extension of related studies. Moreover, the findings are similar to the pre-existing arguments that were developed by prior researchers on the relationship between the legal responsibility of an organisation and its brand image. From a practical perspective, the current study seems to encourage managers of MNEs to fulfill their legal responsibilities towards the host country in which they operate.