The Contribution of Perceived Labor Transparency and Perceived Corporate Giving to Brand Equity in the Footwear Industry

Abstract

While interest in the footwear industry in strengthening brand relationships with customers using corporate social responsibility (CSR) has increased, the effects of CSR on brand equity are undetermined. This research examines how consumers’ subjective evaluations of CSR efforts affect customer-based brand equity. A total of 909 responses were used to empirically test the role of consumers’ perception on a brand’s effort to be transparent and honest about labor condition (perceived brand transparency) as well as consumers’ perception about the brand’s charitable activities (perceived corporate giving) in building its brand equity. Results showed that both brand perceived transparency and perceived corporative giving directly affect brand equity and also indirectly contribute to increasing brand equity mediated by brand attitude and brand trust. However, perceived brand transparency has a significantly stronger direct impact on brand attitude and brand trust than perceived corporate giving does. Theoretical and practical implications are discussed.