THE EFFECT OF CORPORATE SOCIAL RESPONSIBILITY PRACTICES ON BRAND EQUITY, A CASE STUDY OF RAYA BEREWERY S.C

Abstract

The aim of this study is to investigate the effect of corporate social responsibility practices on brand equity in order to increase the understanding of CSR as a marketing tool. The dimensions used in the study are Social, Economic, Environmental, Legal, and Ethical Responsibilities on Brand Equity of Raya Breweries S.C. The study has employed quantitative descriptive explanatory approach. A stratified random sampling method and structured questionnaire is used. Data was analyzed by using SPSS software 20 version. The finding of the correlation analysis indicates that there is direct significant positive relationship between the CSR dimensions and brand equity. A sample of 373 customers (Wholesalers and Retailers) of Raya Breweries S.C in Mekelle. The simple regression analysis shows that all dimensions positively influence the brand equity and it is also statistically significant. The findings of this study also indicated that economical CSR is the most important factor to have a positive and significant effect on brand equity followed by Legal, Ethical, Environmental and Societal CSR. The finding implies that survey participants have a positive perception about CSR practices. Hence, the company should concentrate on its CSR commitments and resources allocation to CSR initiatives in ways that can return optimal benefit to society.