In: Corporate Social Responsibility
Editor: Andrew P. Newell
ISBN: 978-1-63321-106-3
© 2014 Nova Science Publishers, Inc.
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Chapter 14
CORPORATE VOLUNTEERING: DEVELOPING CSR
IMAGE WITH INTERNAL AND EXTERNAL BENEFITS
Claire Johnson, Carolin Plewa, Jodie Conduit and Pascale Quester
The University of Adelaide, Adelaide, Australia
ABSTRACT
With rising pressure on firms to demonstrate social responsibility, and an increasing
need to justify corporate expenditure, many firms engage corporate volunteering (CV)
programs so as to acquire a market advantage with minimal costs. CV programs develop
the human capital of the organisation, whilst also communicating a clear image as a
socially responsible organisation to stakeholders. A conceptual framework is presented
based on extant theoretical development in the literature and supported by qualitative
findings, illustrating these benefits and demonstrating the influence of backstage
corporate social responsibility efforts, such as CV, on consumer perceptions of frontstage performance. A preliminary quantitative analysis further supports the influence of
CV on consumer perceptions, providing further support for future research examining CV
as an internal and external CSR initiative.
Keywords: Corporate Volunteering, Corporate Social Responsibility Image, Employees,
Consumers
INTRODUCTION
Corporate volunteering (CV), a “commitment by a commercial organisation to
encourage staff to volunteer in the not-for-profit sector‖ (Volunteering Australia, 2001), is
reportedly one of the fastest growing corporate social responsibility (CSR) activities in the
UK, Western Europe and North America (Pajo & Lee, 2011). However, it has been argued
that many companies fail to fully exploit the potential strategic value from such activities
(Porter & Kramer, 2002). With research on the topic remaining sparse, it is important for
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academe to demonstrate the contributions these programs can make when implemented and
leveraged with clear objectives and goals in sight.
Extant literature on CV has predominantly focused on describing benefits for employees
and flow-on effects for organisational performance. For example, reported employee-related
benefits of CV include increased productivity, job satisfaction, reduced absenteeism and
turnover, team-building and other job-related skills (e.g., Gilder, Schuyt & Breedijk, 2005;
Peterson, 2004). However, given the obvious societal impact, CV should be considered
alongside other CSR initiatives, such as cause related-marketing and sponsorship, as one tool
in a firm‘s arsenal to develop a reputation for being proactive in the community. This is
because research has shown considerable benefits of the communication of various CSR
initiatives (Riesch, 2006; Sen & Bhattacharya, 2001; Yoon, Gurhan-Canli & Schwarz, 2006)
on consumer responses relating to purchase motivations, including willingness to pay higher
prices for products and services (Creyer & Ross, 1997), switching to brands seen as
supporting the community (Smith & Alcorn, 1991) and higher evaluations of, and attitudes
towards, a firm (Barone, Miyazaki & Taylor, 2000; Sen & Bhattacharya, 2001).
Despite the potential benefits of communicating CV initiatives, most firms consider CV
an employee engagement initiative, and few firms actively promote their CV activities
externally beyond potential employee and recruitment markets. While there has been prolific
academic efforts identifying the internal organisational benefits of CV, little consideration has
been given to CV as an initiative building external CSR image and it remains largely
unexplored in the marketing discipline, with the exception of minimal conceptual and
empirical studies (e.g., Bhattacharya, Sen & Korschun, 2008; Kim, Lee, Lee & Kim, 2010).
Hence, little research has been conducted to understand if CV has an impact on external
stakeholder groupsέ In particular, the impact of a firm‘s CV program on consumer behaviour
and consumer perceptions of CSR image has not yet been examined.
Recent academic interest in consumer perceptions of CSR remains predominantly
conceptual (Bhattacharya, Korschun & Sen, 2009; Hoeffler, Bloom & Keller, 2010), without
a focus on specific activities. Indeed, while Kim et al. (2010) empirically test for both CV and
CSR perceptions, their work focused on internal employee perceptions and did not consider
the external impact of these variables. Chaisuravirat (2009) considered consumer outcomes of
various CSR initiatives, including CV, yet the research focused on attitudes towards the CSR
initiatives rather than firm CSR image and broader consumer outcomes. Thus, the research
did not contribute to our understanding of the impact of such initiatives on consumers‘ CSR
perceptions. Current knowledge offers little to establish whether CV may influence consumer
perceptions of CSR image and behaviour towards the firm.
This chapter provides insight into the extant theoretical development relating to CV as an
internal and external tool to develop a company‘s CSR image and respective organisational
benefit. It is complemented by a qualitative study investigating the organisational rationale
and purpose for implementing CV programs and managers‘ perceptions of the potential
impact of a CV program on customer behaviours. A preliminary investigation of this potential
impact on customers is undertaken through an online survey examining the impact of a
hypothetical CV scenario.
This chapter is organised as follows. First, an overview of the employee volunteering
literature is provided, highlighting the potential of such social initiatives as strong internal and
external communication tools. An argument is made for the application of CV as a
mechanism through which firms can achieve a socially responsible image and leverage the
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259
associated benefits, leading to the development of a conceptual framework. Following a
discussion of the qualitative method and related findings, the quantitative research step and
results are outlined. The conclusion outlines limitations and future research directions.
CORPORATE VOLUNTEERING
Over the last decade, the extant literature on CV programs, hailing predominantly from
the human resources management and organisational behaviour disciplines, has demonstrated
the organisational benefits that may be gained from engaging employees in community
initiatives (e.g., Peterson, 2004, Zappala, 2004). However, such studies have been largely
descriptive and offer little by way of understanding the use of CV as a communication tool.
It has been widely reported in the literature that CV offers extensive organisational
benefits regarding the development of the firm‘s human capital. For example, Gilder, Schuyt
and Breedijk (2005) found that CV positively affects employee attitudes and behaviours
towards the firm, specifically with regard to self-reported job performance and attendance as
well as organisational commitment. This echoes findings of Peterson (2004) who suggested
that involvement in CV programs develops valuable job skills, enhances commitment and, for
women, improves job satisfaction. CV thus offers an opportunity to replace some training
programs in organisations, particularly those that address ‗personal interaction‘ activities such
as teamwork and customer service. Several other studies from the human resources
management literature have further supported these benefits (see for example, Tuffrey, 1997;
Geroy, Wright and Jacoby, 2000; Zappala, 2004). However, the focus of these studies has not
been to explain the process through which these benefits result, with most authors relying on
social identification theory to explain the associations. It is unknown whether stakeholders‘
perceptions of CSR mediate the relationship between the aforementioned variables.
A revived academic interest in CV is evident, presumably due to the coverage of CSR in
the media, and the increasing prevalence of such activities in firms around the globe.
However, such initiatives have remained largely unexplored in the marketing discipline, with
the exception of minimal conceptual and empirical studies (e.g., Kim, Lee, Lee and Kim,
2010; Bhattacharya, Sen and Korschun, 2008). These serve to emphasise the potential value
in implementing CV programs as strong internal and external marketing communication tools
to project the firm‘s CSR whilst supporting not-for-profits (NFP). Surprisingly, an
examination of the effectiveness of various company initiatives in communicating CSR has
seldom been undertaken, with few studies examining CSR perceptions as an outcome variable
(Yoon, Gurhan-Canli and Schwarz, 2006). The proposed conceptual framework and
subsequent research significantly advances our understanding of the effect of CV initiatives
targeted at communicating social responsibility on consumers‘ and employees‘ actual
perception of a company‘s CSRέ
TOWARDS A CONCEPTUAL FRAMEWORK
Recent academic interest in the topic of CSR perceptions remains conceptual to a large
extent (e.g., Bhattacharya, Korschun and Sen, 2008; Hoeffler, Bloom and Keller, 2010), and
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without a focus on any particular social marketing initiative. Indeed, only one study has
empirically studied both CV and perceptions of CSR, although the relationship between these
specific variables was not tested (Kim et al., 2010). While Peterson (2004) suggests that CV
is likely to be effective in motivating internal stakeholders, in one study, CSR initiatives that
involve employee participation appear not to influence the reputation of a firm in the external
stakeholders‘ eyes (Brammer & Millington, 2005)έ Despite this finding, we know that
consumers prefer the sponsorship of charitable institutions over more established categories
such as sports and cultural institutions, as it seen as less commercialised, leading to a higher
degree of acceptance (Christensen, 2006). Therefore, it is expected that CV can effectively
communicate the sponsoring firm‘s CSR to both staff and consumers, leading to broader
organisational benefits.
Figure 1 provides a conceptual framework of the relationship between CV, CSR
perceptions and internal and external organisational benefits. The framework shows staff and
consumers‘ engagement with the firm‘s CV program will be positively related to their
perceptions of the firm‘s CSRέ Investigating engagement would entail measures of staff and
consumer responses to the CV program, including awareness and inferences of the initiative,
perceived importance of the initiative and perceived efficacy of the initiative (Hoeffler et al.,
2010).
Motivation, job
satisfaction, commitment
Internal
Staff engagement
with CV program
Perceived CSR
Retention, job performance
External
Consumer
engagement with
CV program
Perceived CSR
Consumer
perceptions of
service quality
Consumer purchase
intentions
Figure 1. Conceptual Framework.
Staff engagement with the CV program would further involve a continuous measure of
employee participation in the CVP. The framework also shows a relationship between
stakeholder perceptions of a firms‘ CSR and various attitudinal and behavioural responses. In
the case of employees, the framework suggests that CSR perceptions are related to outcomes
of motivation, job satisfaction and organisational commitment, and further outcomes of
retention and job performance (Peterson, 2004; Zappala, 2004). Moreover, consumer CSR
perceptions are related to their purchase intentions (Riesch, 2006; Sen and Bhattacharya,
2001), mediated by consumer perceptions of service quality.
The framework also draws on the service-profit chain (SPC) to show the likely impact of
internal CSR perceptions on customer-related benefits by means of job performance and
service quality perceptions (Paulin, Ferguson and Bergeron, 2006; Ning-jun, Yong-zhong,
and Qin, 2007). The SPC emphasises the link between front-line service staff and the
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261
consumer, and the flow-on effects of strong human capital and organisational success.
Specifically, the SPC demonstrates a chain between (1) employee satisfaction, retention &
productivity; (2) happy employees deliver quality service to customers; (3) resulting in
customer satisfaction and loyalty; and (4) revenue growth and profitability (Heskett, Jones,
Loveman, Sasser and Schlesinger, 1994). This emphasises the influence of backstage CSR
efforts by businesses on consumer perceptions of front-stage performance.
QUALITATIVE STAGE 1
Method
Given the scarcity of research investigating the use of CV programs for external
communication of a socially responsible corporate image, it was deemed crucial to gain a
better understanding of current industry use of CV initiatives and the communication of these
initiatives. An exploratory qualitative study taking the form of a series of semi-structured indepth interviews was conducted with managers and/or champions of CV initiatives from
Australian service organisations until a consensus was reached, leading to a sample of nine
interviews. Several industries were represented within the interview sample, including
banking, finance, insurance, accounting, law, marketing and property. The sample had a range
of firm sizes, ranging from small, one-office firms to large, national corporations, and also
varying lengths of involvement with CV, from less than a year, to over a decade.
Results
The interviews confirmed the sentiments of the existing literature that companies
predominantly adopt CV as an employee engagement tool or as an act of philanthropy.
Several of the companies perceived this as the only strategic use of CV, and had never
considered communicating CV to their customers with one interviewee stating ―I‟m just not
sure what value customers would see in knowing that our people volunteer in the
community.” Other companies held a strong altruistic position, with interviewees stating that
their firm ―stress[es] the fact that it‟s not to be a marketing exercise‖ and
―We don‘t actually, we‘re quite humble about it… We‘re not doing it so that all our other
clients can say ‗Gee aren‘t we wonderfulέ‘ In fact most, if any, would not even know that we
were doing it… They would think that we were trying to impress and they‘d probably be a bit
cynical about it because it‘s not our personalityέ‖
However, at the other end of the spectrum, one company revealed that they focus their
overall branding and promotion efforts around their CSR activities, particularly their CV
involvement, with the CV manager revealing that ―You‟ll see some new advertising coming
out, particularly in cinemasέ‖ Beyond these disparate stances on the external leveraging of
CV, the interviews reflected a shift in thinking about the promotion of CSR activities. Take
for example, the following interview excerpt:
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Claire Johnson, Carolin Plewa, Jodie Conduit et al.
―So we do all this stuff, millions of dollars of time and cost, and his view [the former
manager] was ―I don‘t want to advertise itέ I don‘t want to talk about itέ We‘re just doing it
because that‘s the right thing to doέ‖ And that‘s fineέ And I think the current leadership is
more of a view of ―Well we‘re doing all this stuff, tell people about itέ‖ So that‘s the way it‘s
headingέ‖
In line with this comment, many of the interviewees contended that communicating CV
activities would create broad goodwill with the community but they did not believe it would
directly impact consumer behaviour. In addition, some interviewees expressed concerns
regarding the leveraging of CV; they believed that it might lead to consumers viewing the CV
program with scepticism. Hence, several interviewees commented that they only talked to
their customers about their CV initiatives on an informal ―incidental‖ basisέ
The results thus provided a broad range of views on the relevance of CV for consumers
and the level of communication undertaken by organisations, indicating value in improving
our understanding of consumer-related outcomes of CV. In particular, given the concern that
utilising and communicating CV externally to the organisation may be met with a sceptical
and negative view by consumers warrants further investigation. In line with attribution theory,
some organisations perceive active leveraging of CV as indicating self-serving motives, thus
leading to negative consumer attitudes and behaviours.
QUANTITATIVE STAGE 2
Method
Following the qualitative phase, an online survey was undertaken to gain quantified data
to investigate consumer perceptions of a company communicating their CV activities.
Following a pre-test of the questionnaire, an experiment was conducted using a sample of 357
useable responses from an online panel managed by Qualtrics™έ Respondents were
representative of the Australian general population, with an even gender split (180 male, 177
female responses), and ages ranging between 17 and 87 years.
A scenario was provided to respondents, using the CV activities of the
telecommunications provider Vodafone to examine the impact of communicating CV to
consumers. Vodafone was selected as it had a high level of awareness among the general
public, and its company image was deemed neither too negative nor too positive. For
example, while many banks offer (and leverage) CV programs, the current economic climate
combined with the banks‘ recent actions had created a general sentiment towards these banks
that might have skewed findings. The telecommunication industry within Australia was not
met with the same negative sentiment. The sample entails a cross-section of individuals, with
46.5% of respondents having never been a customer of Vodafone, while 26.1% had
previously been a customer, and 27.5% were current customers.
All variables were adopted from the existing literature and measured using a seven-point
Likert scale. At the beginning of the survey, respondents were asked to indicate their
perceptions regarding Vodafone, specifically its CSR image (Dean, 2003) and firm image
(Pope, Voges & Brown, 2004). Single items were also added to measure word of mouth and
purchase intentions, using a scale developed by Zeithmal, Berry & Parasuraman (1996). Next,
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respondents had to indicate their level of familiarity with Vodafone‘s CV program with a
single item (―How familiar are you with Vodafone‘s corporate volunteeringς‖) before they
were presented with the following statement.
―Vodafone employees have the opportunity to be involved in a range of corporate
volunteering activities. Vodafone employees are each given a "Passion Day", which allows
them to take a day off work each year to volunteer for a charity of their choice. Often teams or
departments will take their Passion Day as a group. Vodafone also has a "Hands Up" program,
which gives employees the opportunity to go and work for a charity of their choice for 3
months to deliver a particular project as needed by the charityέ‖
Following questions to occupy the respondents, measures relating to Vodafone were
repeated.
Results
The quantitative step aimed to examine whether CV impacts consumer perceptions of
firm image, CSR image and consumer behaviour intentions. This was achieved by comparing
outcome measures before and after respondents were provided with the excerpt of Vodafone‘s
involvement in CV. Only the 82% of respondents who indicated at the beginning of the
survey that they were unfamiliar with Vodafone‘s CV (score of 4 or below) were included in
the final sampleέ Familiarity with Vodafone‘s CV program was measured again following the
excerpt, showing a spread of responses, ranging from 1 (15.4%) to 7 (7%), with 4 (22.7%)
and 5 (21.6%) commonly used. Hence, an analysis of the impact of familiarity was
considered feasible.
Results of a paired T-test (refer to Table 1) show significantly higher CSR image, wordof-mouth intentions and purchase intentions following the communication of Vodafone‘s CV
involvement. Firm image did not differ significantly.
Table 1. Paired Samples Test
Mean
before
Mean
after
t
df
Sig. (2-tailed)
CSR image
4.10
4.58
.898
356
.000
Firm image
4.23
4.22
-.119
356
.797
Word of Mouth 3.50
3.67
.266
356
.000
Purchase Intent
3.64
.265
356
.001
3.47
Std. Dev.
Before 1.15
After 1.23
Before 1.50
After 1.53
Before 1.67
After 1.68
Before 1.70
After 1.71
These results partially support the premise that consumer awareness of the CV program
impacts how consumers perceive the organisationέ When aware of a firm‘s CV activities,
consumers have a greater perception of the corporate social performance of the firm, and
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Claire Johnson, Carolin Plewa, Jodie Conduit et al.
report an increased intention to purchase and recommend. This is consistent with research on
other CSR initiatives (Chaisuravirat, 2009). However, these findings also acknowledge that
the overall image of the firm is greater than just its CSR activities. It should be noted that no
negative impact on the overall firm image was identified. Hence, interviewees‘ fears that the
communication of CV would create scepticism and negative attitudes towards the company
were not substantiated here.
CONCLUSION
CV programs are becoming increasingly prevalent in the business landscape, and should
be strategically implemented as marketing tools with an internal and external target. By doing
so, firms can emphasise their concern for society and harness the significant benefits that can
be found through this positive image. There is much to be said for the establishment and
maintenance of a firms‘ reputation as concerned, proactive and engaged members of society
to protect companies, particularly in times of crisis.
CV is an initiative that has seen extensive industry uptake ahead of empirical evidence
supporting its potential benefits. The findings of our study advance knowledge of CV as
acting beyond an employee engagement tool, and building on foundational research that has
identified the relevance of CV in a consumer context (Chaisuravirat, 2009). We provide
evidence for the positive impact a CV program can have on customer perceptions of CSR
image and behavioural intentions, demonstrating that a firm‘s CV can influence their
perceived CSR image of the firm, intentions to recommend and purchase intent.
As corporations tighten their belts, and increasingly need to justify expenditure on social
marketing, CV programs offer a valuable, cost-effective tool to communicate a CSR image
which resonates with stakeholders and provides more bang for the corporation‘s buckέ
Implications of this study, however, arise on a broader level than for those firms
implementing CV programs. Managers of NFP organisations are finding themselves needing
to create value propositions to entice corporations to select their institution over other worthy
causes, with CV programs offering an attractive, and younger, volunteer force for NFPs.
Being able to demonstrate the effectiveness of CV over other forms of social marketing
initiatives will aid in establishing sustainable relationships between corporations and NFPs. In
particular, future research should investigate consumer perceptions resulting from different
forms of CV programs and identify their benefit within a broader portfolio of CSR initiatives.
This study aimed at establishing an integrated framework of internal and external benefits
of CV, with exploratory qualitative and quantitative research contributing to our
understanding of consumer perceptions of CV and its impact on the firm‘s CSR image.
Further research is now required to empirically test the conceptual framework in a
comprehensive study of internal and external benefits. Preferably, dyadic data should be
sought to examine the service-profit chain in this context, and thus to confirm the proposed
impact of employee responses to CV on service quality. Furthermore, a better understanding
should be developed of the effectiveness of various modes and channels of communication
that may be adopted to share information relating to CV programs to employees, customers
and other stakeholders.
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ACKNOWLEDGMENTS
The authors express their sincere gratitude for the support of this research by the
Commonwealth Government as part of the ARC Linkage Grant Scheme as well as our
industry partner.
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