Corporate social responsibility in Brand equity : A study on how CSR can increase local franchised fast food restaurants brand equity.

Abstract: Introduction: Research claims that it is hard to divide the responsibility for the local community between the franchisee and the franchisor because of the franchisee does not have clear understanding to what degree they should be committed to local CSR. This research will study the importance of philanthropic CSR activities on local level and see if these activities can be used to strengthen fast food companies’ brand equity. Purpose: To further investigate the importance of philanthropic CSR activities on local level and see if these activities can be used to strengthen fast food companies brand equity. Research questions: Research have shown that fast food companies are involved in different kinds of philanthropic CSR activities, what part of brand equity has to be dealt with first? What are the important factors in building brand equity with philanthropic CSR activities? How important is the focus on local activities for franchised fast food companies when it comes to the philanthropic CSR activities? Methodology: This study is targeting the population of Kronobergs region between 18 and 64 years old. The literature review showed that the field of CSR effects on brand equity needed further studies. A construction of four variables within philanthropic CSR was matched towards brand equity with a sample size of 192. Conclusion: There is a weak positive significant relationship between CSR and brand equity in this study around fast food companies. As authors, we believe that the customers’ awareness is too low, for CSR to affect brand equity the level of awareness needs increase to motivate internal stakeholders for further investments in philanthropic CSR and to get more response from local citizen.