Previous studies have demonstrated the impact of corporate brand equity on firm performance but have not yet investigated moderating effects on this relationship from other dimensions of firm strategy. This study puts forward a contingency model of the relationship between corporate brand equity and firm performance and investigates the moderating effect of one important contingency variable which is the firm’s corporate social responsibility (CSR) strategy. It is tested on a panel dataset of 62 US firms/corporate brands. The results of this study corroborate previous evidence that corporate brand equity has a significant positive impact on market-based performance, measured by market share, as well as on financial performance, measured by Tobin’s q. In addition, the findings indicate that CSR plays a complementary role, positively moderating the relationship between corporate brand equity and firm performance. That is, there is a synergistic connection between brand equity and CSR which increases long-term value over and above the direct impact of corporate brand equity.
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Appendix: KLD CSR ratings criteria
Appendix: KLD CSR ratings criteria
|Charitable giving||Investment controversies|
|Innovative giving||Negative economic impact|
|Non-US charitable giving||Tax disputes|
|Support for education||Other concerns|
|Support for housing|
|Political accountability||Political accountability|
|Board of directors||Controversies|
|Employment of the disabled||Other concerns|
|Women and minority contracting|
|Gay and lesbian policies|
|Health and safety||Union relations|
|Retirement benefits||Health and safety|
|Union relations||Retirement benefits|
|Cash profit sharing||Workforce reductions|
|Employee involvement||Other concerns|
|Beneficial products and services||Agricultural chemicals|
|Clean energy||Climate change|
|Pollution prevention||Ozone depleting chemicals|
|Other strengths||Regulatory problems|
|Labour rights||Labour rights|
|Relations with indigenous peoples||Relations with indigenous peoples|
|Other strengths||Other concerns|
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Rahman, M., Rodríguez-Serrano, M.Á. & Lambkin, M. Brand equity and firm performance: the complementary role of corporate social responsibility. J Brand Manag 26, 691–704 (2019). https://doi.org/10.1057/s41262-019-00155-9
- Brand equity
- Firm performance
- Corporate social responsibility