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Date:​ S​ ubmission date for final version: 11th of June 2019Level: ​Master’s thesis in Business Administration, 15 cr

Institution: ​School of Business, Society and Engineering, Mälardalen UniversityAuthors: ​Maimuna Nyabally

(93/11/11)

Title: ​The impact of Corporate Social Responsibility on Brand Equity in the cosmetic industry.

Tutor: ​Ulf R Andersson

Keywords: ​corporate social responsibility, brand equity, brand awareness, perceived quality, brand association, brand loyalty

Research questions: ​(1) What is the connection between Corporate Social Responsibility and Brand Equity in the cosmetic industry? (2) To what extent does Corporate Social Responsibility affect Brand Equity?

Purpose: ​The purpose of the study is to explore the relationship between Corporate Social Responsibility (CSR) and Brand Equity in the cosmetic sector by using the mediating variables of brand awareness, brand association, perceived quality, and brand loyalty. The thesis provides a conceptual framework that emphasises the relationship between Corporate Social Responsibility (CSR) and Brand Equity. The study aim is to deepen the understanding of the effect Corporate Social Responsibility has on Brand Equity in the cosmetic sector from the consumer perspective.

Method: ​A qualitative survey research method in the form of an online survey was utilised to solicit data. In addition, secondary data sources available from academic articles were used in the study. The results of the survey were analysed and interpreted with SurveyMonkey and SPSS. In order to analyse the constructs Cronbach Alpha was utilized, Pearson correlation was utilised to analyse the relationship between variables, and the Linear regression was utilised to analyse the Hypothesis.

Conclusion: ​The structural equation model of the data gathered confirms consumer perspective of a brand is influenced by brand identity, which in turn adds brand equity. In the case of the Body Shop and Lush, CSR has a positive indirect effect on brand equity through brand awareness, brand association, and perceived quality. However, the results signpost CSR does not have an effect on brand equity through brand loyalty. Nevertheless, in regards to the positive results of the other variables one can state consumers are loyal towards brand due to perceived quality and brand association. Thus, further research is recommended to elaborate CSR indirect effect on brand equity through brand loyalty.