INTBM11 - MSCDM06 – Research Methods

RESEARCH PROPOSAL INSTRUCTIONS AND TEMPLATE

PART B

INTBM11 - MSCDM06 RESEARCH PROPOSAL

STUDENT NUMBER:
1. TITLE OF RESEARCH PROPOSAL (no word limit)

The impact of Nestle’s social corporate responsibility, on customer’s satisfaction and

customer loyalty in international market.

2. OVERALL AIM (not to exceed 50 words)

This research paper aims to address how Nestle’s corporate responsibility, impact its

brand image and how it helps in gaining customer loyalty and customer satisfaction. This

research uses various theoretical framework which addresses how the Corporate social

responsibility can impact a company’s brand image, thus increasing its customer’s

satisfaction and customer loyalty, towards the project. This research makes use of all other

secondary journals related to corporate social responsibility and analyse Nestle’s reports to

find how the impact of the corporate socially responsible activities in building company’s

customer satisfaction and loyalty.

3. RELEVANCE OF THE RESEARCH (Not to exceed 300 words)

Nestle has been accused of so many scandals right from infant milk formula Scandal

(Boyd, C, 2012), adulteration of horse meat over their food products (Regan, Á.et. al.,2015),

additional level of salt in their noodles than the permissive levels (Singh, H. and Arora, M.,

2016), plantation labor problems (Sadler Lawrence, L., 2020), child trafficking problems,

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ruling over the plantation markets by fixing low cost for the cocoa, Still many more. So, in

order to come out of these problems and to regain its market share in the chocolate industry

Nestlé, have to undergo rigorous corporate social responsibility activities in order to keep

itself in the good position in the market. With the introduction of globalisation and

liberalisation, the concepts of corporate social responsibility are starting to be appreciated by

the business community. as more businesspeople are aware of the idea of Corporate Social

Responsibility (CSR), a large and small, it's important to get to know about their viewpoints

on it because they are the ones who will be using it in practise. The idea has now evolved that

business is no longer revolves solely around making a profit for the organisation, but also

around profit sharing with the community and society (Agudelo, M.A.L., Jóhannsdóttir, L.

and Davídsdóttir, B., 2019). The work in progress attempts to highlight the importance of

corporate social responsibility to business, to show the various components that cause it to be

carried out, and to illustrate the reasons for doing so. There is a requirement to focus on the

various driving and motivating forces behind companies to incorporate corporate social

responsibility practises so that the company can regain its brand image that it had lost while

involving in various scandals thus regaining customer loyalty and customer satisfaction

(Park, B.I., Chidlow, A. and Choi, J., 2014).

4. LITERATURE REVIEW (Not to exceed 1200 words)

Corporate social responsibility:

Corporate social responsibility is concerned with an organization's many social

initiatives. Historically, businesses conducted themselves in order to maximise their profits.

However, as the corporate climate has altered, the organisations' primary objective has shifted

substantially. Nowadays, businesses are seen as critical components of society

(Karaibrahimoglu, 2010). It is often regarded as one of the most effective strategies for

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getting a competitive edge (Porter and Kramer, 2002). Since a result of this, organisations are

placing a premium on CSR as they recognise its significance. Corporate social responsibility

efforts are not limited to charitable activities; they also aim to translate these ideals or

concepts into profitable commercial strategy. Corporate social responsibility efforts are not

limited to monetary contributions; they also include the implementation of moral principles

into business operations, which can assist customers in developing a brand image. Research

has demonstrated that socially responsible initiatives improve a brand's image.

Corporate social responsibility and the nature of the multinational corporation

Some scholars argue that multinational corporations pursue corporate social

responsibility (CSR) practises differently in their home and host countries. These projects

have a broader scope and different characteristics when conducted in a country from those

undertaken by a multinational corporation within their home market. To comprehend the

changes in the economy, Krishnan and Balachandran (2004) and (2007) and the importance

of emerging markets for corporate social responsibility, researched the relationship between

businesses, the state, and society the study's findings indicate that people will rather choose to

avoid buying a product or using a service provided by a corporation whenever they believe

the corporation is behaving poorly than fight for a bad practise. The consensus in the industry

is that companies today are finally starting to understand the value of implementing corporate

social responsibility initiatives is generally accepted by all stakeholders. Firms that have

earned the confidence of society will maintain the confidence of the markets in the near

future will be those that have demonstrated a long-term commitment to keeping it will be

there. Due to these principles, it being a necessity to implement Corporate Social

Responsibility (CSR), the corporations have to devote serious resources to its development.

The business or organisation that is seriously planning for CSR is in the market has a large

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share of the pie. For a multinational or a local firm, the market is the most significant in

determining either their philanthropic priorities or their new emphasis on social

responsibility, respectively.

Social Obligation:

Business ethics is regarded as a subset of corporate social responsibility and is critical

to a company's long-term existence and performance. Mr. Bowen (1953). Corporate social

responsibility initiatives help a company's sales growth, employment rates, and investment

decisions (Sen et al., 2006). It is now widely agreed that organisations that participate in a

higher proportion of corporate social responsibility activities as part of their normal business

operations have a higher level of sustained competitive advantage than those that participate

in a lower proportion of such activities as part of their normal business operations (Carmeli,

2005; Hunt et al., 1989; Turban and Greening, 1997). The firm acquires a favourable market

reputation as a result of this dedication to corporate social responsibility as a rationale for

long-term advantage in the business's growth and development activities. Corporate social

responsibility (CSR) refers to an organization's efforts to mitigate undesirable consequences

while also making a beneficial contribution to society. Mohr and colleagues (2001).

Corporate social responsibility, in a nutshell, refers to an organization's or corporation's

reaction to a community's social concerns. Corporate social responsibility necessitates

compliance with the country's laws, regulations, and code of conduct.

A top manager should be driver of corporate social responsibility

Corporate social responsibility as a result of top management believing in the concept

can be established came from the idea that managers are active contributors rather than

passive observers of events. For this literature, it is argued that the primary roots are to be

found in the 1950s when corporate leaders in the United States felt compelled to take on the

role of a trustee of social welfare, and that was coupled with academic leadership of

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pedigrees acting on their behalf. According to Frederick (2006), managers have social

obligations to society, the first was made by Frank Abrams (Abrams, 1951), who served as

the head of the board of Standard Oil of New Jersey's directorate of directors and wrote a

ground breaking article about the responsibility of executives to it. Following this, the

example of the Committee for Economic Development, which was mainly made up of CEOs,

the business community has since urged corporations to recognise that their social role goes

beyond the purely economic one in the 1970s. Wharton School of Business Administration

was established to be a school for social entrepreneurship and there were early precedents for

business responsibility as a long as the first decade of the states existed. Because of this

widespread belief, many are quick to assert that corporate advocates and representatives are

divided on the issue of corporate social responsibility, especially when it's linked to social

goals, as though the company is making decisions based on market demands. They have

responded to the community's needs and wants with a degree of corporate responsibility, and

further, in some cases, they use social practises to serve the general public (Carroll &

Buchholtz, 2006; Frederick, 2006). When they expand, top managers are critical to the whole

process.

Corporate Image and Public Health

It is necessary for companies to have a good reputation to succeed in business, and

these industries have been identified as making things like baby formula, snack food, and

cigarettes are to blame. They make their websites a vehicle for the promotion of a good

public image, which is detrimental to public health efforts. the author examined documents

from the corporations Kraft and Nestlé for the issue of image repair and processed them

through a strategy of image repair strategy mapping that was developed by Philip Morris and

Nestlé. All three agreed to attempt to explain the issues they were facing in relation to their

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strategy, but to do so as to minimise their own and their consequences. Rather than proposing

various ways of resolving the problem, they presented new problems that needed to be dealt

with. In addition, they were associated with various public health organisations. Everyone in

the world, health advocacy should understand that relationships with industry are not to

enhance or fortify their image, but rather strategic attempts to correct or rectify the view on

the current image issues and issues which may exist. In order to realise positive change, do

not consider industries to be affected by disease to be both their goods and the vectors, but

diseases as well.

Brand management and corporate social responsibility:

Corporate social responsibility (CSR) efforts, as well as social, ethical, and moral

efforts, are all held accountable by the brand (Kitchin, 2003). The brand assures stakeholders

that they will alter their business practises to be more socially responsible and CSR compliant

(Kitchin, 2003). This form of promising interaction strengthens the bond between a business's

brand and all stakeholders. In the present era, CSR is considered as a marketing tool, and this

component has an impact on customer loyalty as well (De Los Salmones et al., 2005).

Corporate responsibility management, according to Nan and Heo (2007), helps to a

company's favourable image.

5. SPECIFIC RESEARCH OBJECTIVES OR QUESTIONS (Not to exceed four to five

objectives/questions and not to exceed 100 words)

1. To study the effect of Nestle’s CSR and its effect on customer loyalty, brand image and

customer satisfaction

2. To identify the various CSR activities by Nestle carried out across the globe

3. To find out the importance of CSR in increasing the market share of Nestle after

accusation of scandals

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 4. To compare the results of CSR activities of nestle and its impact on Nestle’s market

position.

5. To identify which type of CSR action are being implemented by NESTLE in their

operations

6. Asses the possible causes for the company to implement the activity:

7. To identify the reasons why Nestle implements CSR in their operations

8. Examine the relationships between applying CSR and company benefits

9. To assess the benefits to Nestle of applying CSR activities in the operations

6) PROPOSED METHODOLOGY (Not to exceed 1500 words)

6.1. Research strategy:

A research paradigm was deemed critical for the design and selection of the research

methodology. The two most frequently utilised and referenced to theories in study design are

positivism and interpretivism. Positivism supports a deductive process and obtains

conclusions through comprehending and clarifying general concepts. On the other hand,

interpretivism, which facilitates the inductive process, makes use of already existing ideas in

order to comprehend a situation or set of circumstances (Collis & Hussey 2014). The

interpretivist technique, which is supportive of the inductive process, was utilised in this

study to conduct a deeper review and comprehension of the business's habitual ways of

carrying out job duties, resulting in a comprehensive picture of business practises and their

relationship to the theoretical framework provided in the research article. Dubois and Godde

(2002) noted that inductive reasoning integrates empirical facts with the topic's theoretical

underpinnings.

The research design is regarded as a road map for the entire research process (Avramidis

and Smith, 1999). There are two sorts of research methods available. These are the

quantitative and qualitative techniques, respectively. The current study utilised a qualitative

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research strategy to ascertain benefits. The qualitative method is utilised in this study because

it enables the discovery of descriptions for the research topic and the exploration of the topic

through detailed analysis (Welch et al, 2011; Bryman and Bell, 2003). This research strategy

placed a premium on delving into the underlying reasons, issues, and descriptions in order to

provide detailed reports (Bryman, 2004). However, qualitative research does not allow for the

creation of statistically based relationships that show connections between two or more social

processes, as quantitative research does. The purpose of this study is consistent with the

aforementioned definitions of qualitative research. As such, the research aims to examine the

effectiveness of corporate social responsibility actions in promoting a favourable brand

image. Additionally, the purpose of this study is to establish a knowledge of how, rather than

simply to provide a detailed explanation of why, changes in firms' brand image occurred as a

result of CSR. Thus, as Lincoln and Guba indicate, it is more preferable to employ a

qualitative research methodology rather than a quantitative research technique in this

circumstance (1985). Study strategies are critical in all types of research. In the current study,

the researcher employed a case study technique to delve deeply into the situation (Bryman

and Bell, 2003). This type of research technique complements qualitative research. This

technique is being used more frequently in organisational research as a result of greater

confidence in its precision (Hartley, 2004). This method was chosen for the current study

because case studies are particularly well-suited for addressing topics that require extensive

information to clarify why and how (Yin, 1994). They are deemed appropriate when real-

world situations are incorporated into the process being studied. This technique is more

aligned with exploratory research, which is typically undertaken to elucidate research issues

and when the scope of the process is unknown. The current study uses Nestle as a case study

to examine how big corporations are utilising CSR to improve their brand image. According

to Hartley (2004), the case study method is more valuable and appropriate for examining

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emerging and recent realities in organisations that cannot be explored by a survey. For

instance, the current study examined the effect of CSR on brand image. It was challenging to

determine the value of CSR and brand image to customers and businesses using a survey

approach.

6.2. Access issues:

Access has an effect on the research process and outcomes and is influenced by power

relations. Understanding the complexities of access enables qualitative researchers to make

more intentional and conscientious choices, such as which vantage points to include or

exclude, or how to protect participants and themselves.

6.3. Ethical issues:

To prepare participants and ensure their comfort level with the researcher, they are given

an information sheet and a form of consent that has been pre-approved by the institution. The

researcher emphasised the necessity of recording interviews to participants and obtained their

written consent in order to comply with ethical constraints. Additionally, respondents were

informed about the need of maintaining their anonymity, and proper reporting of codes is

included in the dissertation. After obtaining the participants' consent and assent, the

researcher began conducting interviews with them.

6.4. Data collection tools and methods:

Prior to doing the interview, respondents were informed about the research's purpose,

objectives, scope, and focus. Additionally, interviewees were requested to sign a consent

form prior to participating in the research. Additionally, they were assured of the secrecy of

the information acquired from them. Customer interviews were performed via online

questionnaires as meeting them is restricted due to Covid protocol. Interviews were

scheduled in advance with the approval of both participants and managers. Additionally,

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diversity was ensured during the data collection process. Interviews with managers took place

in a variety of locations, with some taking place at managers' workstations. The regular users

of Nestle products was mailed to gain access to individuals for the purpose of conducting

interviews. The study's ultimate objective was to examine a Nestle company's corporate

social responsibility (CSR) policy in connection to brand promotion and customer

perceptions of the brand image. Additionally, the study details the specific objectives of the

company's CSR policy with regards to promoting consumers' perceptions of the company's

brand and image, as well as the influence of the company's CSR policy on consumers'

perceptions of purchasing the product based on its brand and image. Thus, in order to address

these questions, interviews with customers were conducted individually, as the nature of the

research necessitated contacting an expert to further examine the topic, which cannot be

accomplished by a questionnaire, but rather to further deepen comprehension of the research

issue.

6.5. Sampling:

The goal of this study was to ascertain the effect of corporate social responsibility on the

brand image and reputation of a business. The second purpose is to ascertain the effect of

corporate social responsibility on customer perceptions of the brand. To conduct successful

and relevant research, it is vital to define a targeted demographic and choose a sample from

that group during the design phase. Qualitative research entails the collection of data via

interviews. In the case of interviews, researchers have established that no one figure is

sufficient. According to Hartley (2004), relying exclusively on sample size dependence is

not a credible source. Additionally, it is vital to focus on the sample selection procedure in

order to achieve high reliability and complete representation of the population. The criterion

for picking and non-selecting population elements must be quite clear (Oliver, 1992).

However, while selecting a sample from the total population, a researcher must overcome

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 various barriers. The current study selected a sample from the population using simple

sampling. Due to money and time constraints, the researcher sought out managers who are

personable and educated about corporate social responsibility. Similarly, individuals from

the general population who are actual Shell Company customers are selected by a simple

sampling technique. When time and resources are scarce, it is preferable to do research

using convenient sampling.

6.6. Data analysis:

Following the completion of interviews, the researcher must analyse the data

gathered. Due to the study's purpose of determining how corporate social responsibility might

improve brand image, the researcher focused on content rather than on other qualities.

According to Halcomb and Davidson (2006), there are numerous transcribing methods

available, but the method used must be compatible with the research aims. The researcher

then coded the data using the open-coding process established by Strauss and Corbin (1998),

which entails a line-by-line inspection. This helps the researcher in organising the data

labelling process. Following that, data were prioritised. No software was used to analyse data

collected through qualitative research, as the research was interpretative in nature and data

loss due to forced categorization was avoided. The researcher is seen as a research process in

interpretivist philosophy. Furthermore, while qualitative software systems are advantageous

for organising and coding data, they cannot be utilised to understand data (Suddaby, 2006).

7. PROBLEMS AND LIMITATIONS OF THE RESEARCH PROPOSAL (Not to

exceed 250 words)

Limitations are critical to comprehend in order to contextualise research findings,

interpret the scientific work's validity, and provide a level of trust to the conclusions of

published study. This includes nothing the degree and direction of random and systematic

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errors, as well as validity issues. it is limited to the problems and scandals recorded as per

other authors and it restricted only to the previous researches and other records as per

journals and internet sources. it is not personally observed work.

8. PHASING/TIMESCALE OF RESEARCH (Not to exceed 150 words)

1st to 4th to 7th to 10th to 13th to 16th to 19th to

Project Activities 3rd 6th 9th 12th 15th 18th 21st
Week Week Week Week Week Week Week
Identifying Research
Topic              
Creating Research
Proposal              
Reviewing the
Literature              
Collection of Data              
Analysing the data &
finding insights              
Documenting the
Research              
Conclusion and
Submission              

9. REFERENCE LIST (This section does not count towards the word limit)

1. Agudelo, M.A.L., Jóhannsdóttir, L. and Davídsdóttir, B., 2019. A literature review of

the history and evolution of corporate social responsibility. International Journal of

Corporate Social Responsibility, 4(1), pp.1-23.

2. Ahearne, M., C. B. Bhattacharya and T. Gruen. 2010. Antecedents and consequences

of customer – company identification: Expanding the role of relationship marketing.

Journal of Applied Psychology 90(3), pp. 574–585.

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3. Alexander, A., Francis, A., Kyire, L. A., and Mohammed, H. 2014. The effect of

corporate social responsibility on brand building. International Journal of Marketing

Studies, 6(3), pp. 126-113.

4. Ali I. 2011. Influence of corporate social responsibility and corporate reputation on

development of consumer purchase intentions. Romanian Review of Social Sciences,1,

pp. 19-27.

5. Ali, I. 2011. Influence of corporate social responsibility and corporate reputation on

development of consumer purchase intentions. Romanian Review of Social Sciences,

1,pp. 19-27

6. Asaad, A. 2010. The role of brand equity in the effects of corporate social

responsibility on consumer loyalty. Unpublished master's diss., Universiti Sains

Malaysia, Malaysia

7. Barnett M.2008. Stakeholder Influence Capacity and the Variability of Financial

Returns to Corporate Social Responsibility. Academy of Management Review, 32(3),

pp. 794–816.

8. Beurden PV, Gossling T. 2008. The Worth of Values – A Literature Review on the

Relation between Corporate Social and Financial Performance. Journal of Business

Ethics, 82(2), pp. 69–82.

9. Bhattacharya, C.B., Sen, Sankar, Korschun and Daniel. 2008. Using Corporate Social

Responsibility to Win the War for Talent. 49 (2). MIT Sloan Management Review. pp.

37–44.

10. Boyd, C., 2012. The Nestlé infant formula controversy and a strange web of

subsequent business scandals. Journal of business ethics, 106(3), pp.283-293.

11. Carroll, A. B. 1991. The pyramid of corporate social responsibility: Toward the

moralmanagement of organizational stakeholders. Business horizons. 34(4), pp. 39-48

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12. Carroll, A.B. and Shabana, K.M., 2010. The business case for corporate social

responsibility: A review of concepts, research and practice. International journal of

management reviews, 12(1), pp.85-105.

13. Carroll, A.B., 2015. Corporate social responsibility. Organizational Dynamics, 44,

pp.87-96.

14. Clarkson, M.B.E. 1998. The corporation and its stakeholders: Classic and

contemporary readings. Toronto: University of Toronto Press.

15. Cooper, D.R. & Schindler, P.S., 2007. Business Research Methods. 9th ed. New York:

McGraw Hill.

16. CROWTHER, D., and LANCASTER, G., 2008. Research Methods. 2nd ed. Oxford:

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17. Dean, D. H. 2003. Consumer perception of corporate donations effects of

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Advertisiting. 32(4), pp. 91-102

18. Karaibrahimoglu, Y. Z. 2010.Corporate social responsibility in times of financial

crisis. African Journal of Business Management. 4(4), pp. 382-389

19. Keller K. L. 1993. Conceptualizing, Measuring, and Managing Customer-Based Brand

Equity. Journal of Marketing, 57,pp. 1-22.

20. Keller, K. L. 1993. Conceptualizing, Measuring, and Managing Customer-Based

Brand Equity. Journal of Marketing, 57, pp. 1-22.

21. Khan, A., Muttakin, M.B. and Siddiqui, J., 2013. Corporate governance and corporate

social responsibility disclosures: Evidence from an emerging economy. Journal of

business ethics, 114(2), pp.207-223.

22. Kitchin T. 2003. Corporate social responsibility: A brand explanation. Brand

Management, 10, pp. 312-26.

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23. Kotler, P. and Lee, N., 2008. Corporate social responsibility: Doing the most good for

your company and your cause. John Wiley & Sons.

24. Kotler, P. and Lee, N.2005. Corporate Social Responsibility: Doing the Most Good for

Your Company and Your Cause, New Jersey: John Wiley & Sons.

25. Lai, F., Griffin, M., & Babin, B. J. 2009. How quality, value, image, and satisfaction

create loyalty at a Chinese telecom. Journal of Business Research, 62(10), pp. 980-986

26. Levy, S. J. 1959. Symbols for Sale. Harvard Business Review, 37(4), 117–124

27. Li, X. G., Wang, X., & Cai, J. Y. 2011. Corporate-, Product-, and User-Image

Dimensions and Purchase Intentions: The Mediating Role of Cognitive and Affective

Attitudes. Journal of Computers, 6(9), pp. 1875-1879.

28. Lim, G. E. 2011. Reward firms with CSR initiatives. The Star, 23 January.

29. Matten, D. and Moon, J., 2008. “Implicit” and “explicit” CSR: A conceptual

framework for a comparative understanding of corporate social

responsibility. Academy of management Review, 33(2), pp.404-424.

30. Mohr, L.A., Webb, D.J. and Harris, K.E., 2001. Do consumers expect companies to be

socially responsible? The impact of corporate social responsibility on buying

behavior. Journal of Consumer affairs, 35(1), pp.45-72.

31. Park, B.I., Chidlow, A. and Choi, J., 2014. Corporate social responsibility:

Stakeholders influence on MNEs’ activities. International Business Review, 23(5),

pp.966-980.

32. Regan, Á., Marcu, A., Shan, L.C., Wall, P., Barnett, J. and McConnon, Á., 2015.

Conceptualising responsibility in the aftermath of the horsemeat adulteration incident:

an online study with Irish and UK consumers. Health, Risk & Society, 17(2), pp.149-

167.

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33. Sadler Lawrence, L., 2020. The Spoiled Supply Chain of Child Labor. The Palgrave

International Handbook of Human Trafficking, pp.371-382.

34. Sen, S. and Bhattacharya, C.B., 2001. Does doing good always lead to doing better?

Consumer reactions to corporate social responsibility. Journal of marketing

Research, 38(2), pp.225-243.

35. Shabana, K.M., Buchholtz, A.K. and Carroll, A.B., 2017. The institutionalization of

corporate social responsibility reporting. Business & Society, 56(8), pp.1107-1135.

36. Singh, H. and Arora, M., 2016. Crisis Management: A Study of Nestle India Limited

with Reference to Maggi Noodles. Catalyst, 1(2).

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