Effect of Corporate Social Responsibility Practices on Brand Equity: Case Study of Eden Bottling Water Share Companies, in Gurage zon

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 onBrand Equity of Eden bottling water S.C. The study has employed quantitative descriptive explanatory approach. A sample of 376 customers ( Agents Wholesalers and Retailers) of Eden bottling water S.C. in Gurage zone. A stratified random sampling method and structured questionnaire is used. Data was analyzed by using SPSS software 22version. According to correlation result all independent variables (Social Responsibility, Economic Responsibility, Environment Responsibility, Legal Responsibility, and Ethical Responsibility) are a significant relation with dependent variable (Brand equity). The finding of the correlation analysis indicates that there is direct significant positive relationship between the CSR dimensions and brand equity. 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 social, legal, Environmental and ethical CSR. Hence, the researcher recommended that the company should concentrate on its CSR commitments and resources allocation to CSR initiatives in ways that can return optimal benefit to society..