46

Amity Global Business Review September

To Evaluate the Role of CSR (Corporate Social

Responsibility) Programs on the Buying Behavior of
Consumers of FMCG Sector Companies in Lucknow
Mohammad Aslam Khan

CSR has now spread to almost each activity of the people living in the different part of India. CSR activities
are almost part of every industry of the business to attract the customers towards their products. It is
well known that all these activities generate competitive advantages for the companies incorporating CSR
activities. This paper finds the buying behavior of the customers towards FMCG companies’ products
with special reference to programs of CSR.
For this study, the data are collected through questionnaire from Lucknow region (Uttar Pradesh, India).
The result is bases on the analysis of factors taking into considerations like awareness of CSR program,
attitude of consumers towards CSR programs and preference of different products of FMCG based on
CSR program etc. The outcome of this paper concludes that there is noteworthy impact on the consumers
buying behavior by the CSR programs of FMCG industry. It also provides basis for the growth and
sustainability to the FMCG industry enabling them to cater more CSR programs.
Keywords: CSR (Corporate Social Responsibility), Growth, FMCG, Consumer Buying Behavior

programs of FMCG companies. The sole role of

Introduction business is not to generate wealth only but focus
CSR in today world has increased its reach and responsibly on stakeholders of business.
growth in almost every area of business irrespective
of regulation of legal laws. This is dealt as a practice Corporations lacking in CSR programs will lag far
that every organization must incorporate 100% behind others in the existing era of globalization
and obey for its survival. However still many and competition. Corporations based on sound CSR
organizations remains unknown and unfamiliar. activities will surely grow stronger and stronger
In India, many companies find CSR programs as with the passage of time. Many studies on above
strategic issues and use CSR programs for corporate topics in the developed countries have been done
governance and to become as a symbol of good but little work has been done in the emerging
corporate citizen. By using CSR activities, all economies like India.
corporations will obtain recognition from investors
of both international and national perspective. In year 1999, Authors Barbara, Lafferty and Ronald
had confirmed that there is positive correlation ship
For economic, environmental and social performance between corporate image and purchase intension
the concept of CSR is well connected to business and enables consumers to differentiate different
whose earlier motive was only to get maximum products of the companies. Conclusions of different
profits. For measuring the business performance, authors suggest that if companies are aware of social
Triple Bottom Line (TBL) a CSR concept is taken into and environmental impact then it will increase
considerations to calculate the effects on people, the loyalty and commitment from the consumer side.
planet and profit. Profitability is not a single tool of
the performance rather it is now more on usability Literature Review
of capital either human or natural present in Author(s) Research Conclusions
the environment. N. Craig In year 2003 Smith reviewed in his paper
Smith (2003) titled”Corporate Social Responsibility:
In year 1991, Carroll has divided CSR into four Whether or How? “ that various companies
parts viz. economic, legal, ethical and philanthropic either new or old are implementing CSR
responsibilities. The impacts of CSR activities on programs so that these programs are making
the life of society more comfortable. Ultimate
consumers are more and more due to increase in objectives are to make a welfare state for the
education and media coverage in the society. This persons residing in it.
in turn has increased the level of awareness of CSR
Jamia Millia Islamia University, New Delhi
2017 Mohammad Aslam Khan 47

Hamann He noted in his research that CSR activities Alev et. al. Consumers of this industry are more focused
(2003) must be incorporated into core decision (2010) on CSR programs and activities according to
making and planning for the sustainability the authors in their research conducted. CSR
of environmental, social and economical activities inculcate the consumers to buy that
aspect of the society as a holistic concept. Top products meant to have an improvements
agenda of the top management need to be in society and environment both. Apart
sustainability and development. from CSR programs others factors are also
Porter & Authors in their research showed through important for the consumers like price,
Kramer framework which was practically tested for the ingredients etc.
(2006) organization. Further provide CSR programs Pallavi and In year 2014, Authors state that with the
and activities for the concerned organizations Poja Sharma help of acute support and vision of the
and measurement of effectiveness of the management at every level of the companies,
programs. Strategic CSR is a tool of success, CSR programs could be implemented in a
expertise for the companies which further better way fulfilling the aspirations of the
benefits the society through channels. society at the larger extents. Organizations
Pomering Their study reported that consumers of certainly have competitive advantages,
& Dolnicar society want companies to give information innovations and profitability after integration
(2008) about their CSR activities and in return they of different marketing strategies.
support the product and services of the M. Aslam In year 2016, Results of the paper showed
companies. Khan that activities of CSR concerning environment
Jocz and In year 2009, Authors supported and have positive inclination on Brand equity of
Quelch explained that customers use their knowledge selected FMCG companies in NCR region.
base to find out the different products of the Mohammad Author in his study in Delhi and NCR found
companies who are using CSR programs. It Aslam that there is positive significant correlation
had been implemented by the model and Khan(2017) between CSR programs and Buying Behavior
according to that different types of customers of Consumers.
were identified as per their behaviors.
Kim In year 2010, products of the different
Krauwel companies based on the CSR labeling makes
them in a different category. It accelerates the
trade and production of the products. In their
research, it is found that CSR labeling has
been utilized at the maximum level to attract
the customers and ultimately it changes the
behavior of the consumers as well.

CSR Initiatives of FMCG Sector Companies in India

FMCG Medical Social School Programs SHG Training Social
Help Awareness Awareness Awareness
Hindustan
Unilever LTD.
ITC
DABUR India
AMUL
EMAMI
NESTLE
COLGATE
48 Amity Global Business Review September

Objectives Data Analysis

To find the relation between CSR (Corporate Demographics Percentage of
Social Responsibility and consumer buying Respondents
behavior in the Lucknow (U.P.) Region. Gender

To study and analyze awareness of CSR of FMCG Male respondents 72.1%

industry. Female respondents 27.9%
Age of Respondents
To find out different CSR programs of FMCG
industry in India. 15-25 27.9%
26-36 42.6%
Hypothesis
37-45 24.3%
Null Hypothesis (Ho):- There is no noteworthy
46 & above 5.1%
impact of CSR programs of FMCG companies
on the buying behavior of consumers. Education Qualification
School Sector 25.7%
Alternate Hypothesis (H1):- There is noteworthy
Graduate 51.7%
impact of CSR programs of FMCG companies on
the buying behavior of consumers. Post Graduate 17.6%
Professional 5.1%
Research Methodology Income of Respondents (Per Month in Rupees)
The main objective is to have better understanding 5000-10000 19.1%
between CSR and buying behavior and how this CSR 11000-15000 11.8%
provides standard development and sustainability
16000-20000 8.1%
of different companies including society in a holistic
manner. 21000-30000 15.4%
31000-40000 22.1%
Sample Design 41000-50000 12.5%
Sample for this study is 125 across different 51000 & above 11%
demographic category from Lucknow city region in Profession
Uttar Pradesh state in India. Convenience sampling
Student 32.4%
is used to collect the sample of population.
Salaried(Office workers) 41.9%
Data Collection Entrepreneurs(Businessman) 13.2%
Primary data is collected through Standard Senior Citizen 1.5%
questionnaire created for this study and Secondary Others 11%
data is collected through Newspaper, Books, Annual Awareness of CSR program runs by FMCG companies
Reports and web sites etc.
Yes 93.4%
Analysis Techniques No 6.6%
Questionnaire has provided data for the analysis Awareness of CSR Initiatives taken by FMCG
and in order to find the significant impact of CSR companies for
on buying behavior Chi Square Analysis is done. Health 42.6%
Stakeholders 0.7%
Limitations
Environment 8.1%
This study is limited to particular region and opens Society 43.4%
window for future research avenues. The results
Others 5.1%
are based exclusively on perceptions of respondents
which may be prejudiced. In future more diversified Preference for CSR Initiative
sample may be taken to study the relationship. Educational Sector 44.9%
2017 Mohammad Aslam Khan 49

Chi-Square test or X2 test = ∑ (O-E)2

Health Sector 32.4% _____________

Environmental Sector 3.7% E

Society 16.2%
Value Calculated D.O.F Actual
Others 2.9%
using formula (n-1) Value in
Preference of Respondents CSR responsibility Table
Economic 39% X2- 104.63 4 9.48
Legal 32.4% square(test)
Ethical 25.7% The tabular values show that the calculated value
Philanthropic 2.9% is greater than the tabulated value of the test at
Do you purchase product on the bases of Companies 5% significant level. Therefore we reject the null
CSR program hypothesis and select the alternate hypothesis
Yes 91.2% which implies that CSR programs of FMCG
sector companies put more impact on the buying
No 8.8%
behavior of the consumers of the area taken into the
Which CSR activity sector product do Respondents considerations.
prefer to purchase
Educational Sector 45.6% Conclusion & Implications
Health Sector 36% For the help of academicians, this study will make
Environmental Sector 2.9% good contributions to understand the topic of
Society 12.5% CSR and its role in consumer buying behavior.
Various outcomes of this research have found
Others 2.9%
that there is +tive correlation between Corporate
Why do respondents purchase product those who are Social Responsibility (CSR) and buying behavior
running CSR Program of consumers. The major limitations are of sample
Want be a part of program 40.4% taken for this study which may be enhanced to
Want to contribute in good cause 37.5% improve the findings and validity.
Want to acknowledge the efforts
Mangers have to note that this study probably
taken by company 18.4%
supports and validates the previous reports and
others 3.7% findings as per literature review and secondary data.
Sources of CSR program information They have to identify the consumer groups who are
Newspapers & Magazines 52.9% aware of CSR and are loyal to the organizations.
Retailers and Manufactures have positive
News channels 27.2%
opportunities to concentrate on that consumer
Friends & Family 5.9% groups in parallel to their business concerns.
Internet 8.1%
Others 5.9% Consumers have clearly indicated the ranking of
CSR program probability in any sector =1/5 CSR activities in which organizations have to involve
Expected number of participants (E) = 136/5=27.2
mostly so that impacts are maximum on the society
as a whole. In certain situations, organizations may
be prepared for facing the criticisms as today world
Expected and Observed Respondents is era of information technology. These kinds of
O(Observed) E(Expected) efforts may surely generate goals either short or
62 27.2 long term for the organizations.
49 27.2 References
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building. International Journal of Marketing Studies, 6(3), 126-
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