No doubt, it may or may not impact the customers choice.But a company engaged in CSR activities in true spirit, is always able to build more reputation and good image in the mind of customers.In India, now spending on CSR activities (2% *of profits) is mandatory, but when it was not mandatory, even then, a few good companies like TATA and companies owned by Mr.G.D.Birla used to spend much more on CSR activities for the upliftment of masses in India.That is why, even today, these companies are very much respected by Indian cusomers.
By the way is the question rather: Do consumers care about the the CSR initiatives COMPANIES (not customers) engage in? Does it influence their choices?
In my opinion it does, to a great extent.
There is strong evidence that firms emphasising CSR practices significantly outperform similar firms that do not, as measured by both financial and stock market returns. So a deep commitment to CSR translates into better numbers in the stock market and on the bottom line.
Having said that, it is pertinent to note that from customers’ perspective, a key manifestation of a firm’s fairness in the exchange relationship is price fairness. Indeed, prior research has led us to believe that there a positive association of CSR engagement and perceived price fairness. In the context of price fairness, customers assess a product’s price as fair if their perceived benefit from the product meets or exceeds their perceived purchase costs (Xia, Monroe, and Cox 2004).
And that is where choices can be made!
I would like say that we see an increase in how customers respond to CSR initiatives engaged in by companies. We also see the opposite, i.e. that customers respond to companies non-engagements in CSR initiatives. Relevant to the discussion is also to add that management teams today are acknowledging the effect their engagement in CSR activities has on their relations to their stakeholders and to sales.
I think the question "Do CSR initiatives influence consumers' choices? can only be answered with certainty based on empirical evidence on the relationship between investment in CSR and market performance, that is, sales.
Most research suggests that consumers do care about CSR and many (approximately 80-90%) would choose an equivalent product that is from a socially responsible company over a company that is not responsible. Most research also suggests that the ability to create high quality products (i.e. an "ability" reputation) supersedes a reputation for CSR when consumers make product choices. However, my co-authors and I find that the relative importance of CSR (vs ability) increases in certain contexts, of which an experience-based context is one.
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Relatedly, in our recent article, my colleagues and I noted that "nearly all Fortune 500 companies have implemented CSR programs" and that CSR positively affects a company's reputation and profits.
Article Self-Reporting CSR Activities: When Your Company Harms, Do Y...
To provide another response to this topic, my colleagues and I will soon have a paper published in the Journal of Consumer Psychology that establishes that a reputation for social responsibility (vs. ability) leads to more favorable responses toward low fit brand extensions by inducing a desire to support and help the company that has acted to benefit consumers. In other words, we show through six empirical studies that CSR does indeed influence consumers' choices.
Article Good Guys Can Finish First: How Brand Reputation Affects Ext...
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