CORPORATE SOCIAL RESPONSIBILITY AND BRAND EQUITY IN SOUTH AFRICA’S FMCG SECTOR
Amid increasing consumer consciousness and regulatory scrutiny, South African fast-moving consumer goods (FMCG) firms are under pressure to align profitability with social responsibility. Yet, the direct impact of Corporate Social Responsibility (CSR) investment intensity and Environmental, Social,...
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| Format: | Article |
| Language: | English |
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Federal University Wukari
2025-06-01
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| Series: | International Studies Journal |
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| Online Access: | https://wissjournals.com.ng/index.php/wiss/article/view/677 |
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| Summary: | Amid increasing consumer consciousness and regulatory scrutiny, South African fast-moving consumer goods (FMCG) firms are under pressure to align profitability with social responsibility. Yet, the direct impact of Corporate Social Responsibility (CSR) investment intensity and Environmental, Social, and Governance (ESG) disclosure quality on brand equity remains empirically unclear. This study aimed to investigate how CSR investments and ESG transparency influence brand equity, measured by brand value scores, among FMCG firms in South Africa. The study utilized a correlational quantitative research design and relied entirely on secondary panel data collected from 50 purposively selected firms out of a population of 112 large FMCG companies identified via Brand Finance and Kantar BrandZ rankings. Data were drawn for the period 2020-2024 from sustainability reports, financial statements, and ESG databases such as Refinitiv and Sustainalytics. The variables, CSR investment intensity and ESG disclosure quality, were analyzed using multiple linear regression with STATA version 17. Results showed that CSR investment intensity had a statistically significant and positive effect on brand equity, indicating that sustained CSR engagement enhances brand value. In contrast, ESG disclosure quality, while positively correlated, showed no statistically significant influence. The study concludes that CSR investment serves as a more direct and observable driver of brand value in the current South African market. It recommends that FMCG firms increase the scale of community-aligned CSR projects and refine ESG communication strategies to enhance stakeholder engagement and brand equity outcomes.
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| ISSN: | 2756-4649 |