Environment vs. sports vs. art: effects of CSR activities on the perceived value of products and advertising in the food industry

Companies engage in philanthropic corporate social responsibility (CSR) activities not only to genuinely support certain organizations and people but also to promote and improve brand recognition and image. CSR activities target the environment, sports, and arts and culture. However, surprisingly, few studies have explored all of these and demonstrate their effectiveness in core businesses. This study investigated the impact of CSR activities on the perceived value of products and advertising in the Japanese and American markets. The target brands were Coca-Cola, McDonald’s, Nestle, and Starbucks. We collected online surveys from 754 people in the two countries and applied structural equation modeling. Environmental and sports activities positively affected core business factors, whereas arts and cultural activities had a negative effect. Increasing environmental awareness and sports interest could lead to the observed positive effects. Companies make art-related investments to receive tax breaks, and art and cultural activities are limited to society’s elite, which could have led to the negative effects observed. This study provides valuable insight for the food industry to formulate strategies for allocating limited internal financial and human resources to CSR activities.