Author(s)

Jiayi Luo ¹

Affiliation(s)

¹ Business Administration, Shanghai University of Electric Power, Shanghai, China

Corresponding Author

Jiayi Luo

ABSTRACT

In the summer of 2021, a catastrophic flooding hit Zhengzhou, Henan. On July 21 that year, ERKE, despite its worsening business conditions, donated 50-million-yuan relief supplies, which sparked heated discussions among the public and a trend of supporting such patriotic enterprises with emotional spending. By studying the donation of ERKE to Henan in 2021, this paper explores the impacts of corporate social responsibility (herein after referred to as "CSR") activities on the business performance of companies. The author, using comparative analysis, finds that although ERKE was stuck in a tough financial situation, the generous donation it made greatly improved its brand awareness and sales revenue. However, such effects wore off as time passed and other companies adopted similar actions. This research highlights the effectiveness of CSR in building brand images and promoting sales revenue. Meanwhile, it unveils the mixed public opinions on the motivations behind CSR activities and the uncertainty of the correlation between it and long-term business performance.

KEYWORDS

Corporate social responsibility; business performance; ERKE; brand image; consumer response

CITE THIS PAPER

Jiayi Luo, Impacts of Corporate Social Responsibility Activities on Business Performance—A Case Study of ERKE. Accounting and Corporate Management (2024) Vol. 6: 44-50. DOI: http://dx.doi.org/10.23977/acccm.2024.060206.

REFERENCES

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