Corporatesocial responsibility (CSR) originated with the traditional compliance toeconomic and legal responsibility, has transcended to non-mandatory ethical andphilanthropic responsibility, and continues to show evolutionary trend (Lee,2008). In a more specific context, CSR also stretches its implementation tomining companies, where they implement policies which mitigates the adverseeffects of such and extractive and exploitative industry. Moreover, CSR catersto the broad array of stakeholders that corporations need to attend to – notonly to the shareholders and managers, but also to the workers, participants inthe supply chain management, and the community. This has elucidated the factthat corporations should not only focus on their short-term economic and legalgoals, but also the practice of a sustainable and responsible corporate behavior(Mahajan, 2011). When the public viewsthe company in a lens that is altruistic and socially responsible, it affectsits corporate image (Ailawadi et al.
, 2011). Accordingto Pomering in 2009, a corporation’s incentive in implementing CSR is in orderto shape positive public perception towards the company’s image. Company imageis built from the total stakeholders’ impression of the firm’s reputation (Hayward,2005). The disposition of these stakeholders to either offer or deny support isgenerally influenced by the company’s image.
Company’s actions affect thestakeholders in the same way stakeholders’ actions affect the company (Ind, 1992).In 2010,Finavante found out that corporations are shifting towards the consideration ofCSR as a viable option in the development of marketing strategies. This ismanifested in the integration and implementation of philanthropic activities inthe creation of corporate branding. The positive effect of marketing strategiescomplemented with CSR concepts includes creation of customer trust and loyalty,increase in sales, and the attraction of new investors (Pina et al., 2006).
Furthermore, Swaen in 2010 argued that the visibility of a socially responsiblecompany encourages positive attitude towards the corporation and thusencouraging consumer’s intention to repetitively buy. Varadarajanand Menon (1988) defines CSR fit or congruency as perceived link between the firm’sproduct line, brand image, brand positioning, or target market and the cause’sneeds. When both the brand and social cause share the same value, fit is consideredhigh (Nan & Heo, 2007). It is explained by Hoeffler & Keller (2002) thathigh-fit CSR initiatives will result to a more favorable image for the companysince stakeholders distinguish the organization as more capable. Environment restorationis a high-fit CSR initiative to be associated with mining industry to alleviatethe effects of environment exploitation caused by mining.
