Section 1.

Writers Name:

Your Name

Section 2. Article Title:

Ethical business practices enhances brand reputation

Section 3. Analysis Of:

Blair, S. & Chernev, A. (2015). Doing Well by Doing Good: The Benevolent Halo of
Corporate Social Responsibility. Journal of Consumer Research. 41: 1412 1425.
Section 4. Key Points:

The authors of the article illustrated that pro-social activities of any organization

significantly influence consumers good will and this enhances brand reputation.
The pro-social activities of the business also influence the customers beliefs about

the products of the business.

To provide evidence about these facts the authors of the article conducted a study of
four empirical studies.

Section 5. Overview:
The article depicts that since many years the research scholars are working on idea that
companies can perform well by doing well ethically and morally. Not only research
scholars but also the managers are interested in this idea. This research article analyze
that organizations ethical practices are pro-social activities influence the customers
beliefs and therefore help the business to promote its brand image.
Section 6. What the Research Shows:
This is an empirical study which has used four different experiments for analyzing the
importance of corporate social responsibility for the organizations.

The first experiments results depict that the customers perceive that the product is
better when it is manufactured by a socially responsible organization. For example the
participants who were informed that winery factory donates a part of its revenue for
charity rated the product of wines higher as compared to the participants who were not
informed that firm is socially responsible.

During the second experiment it was shown that positive impact is determined by the
function of consumers thinking. The respondents in an abstract mindset believed that a
product would be more comfortable if the firm is an involved in social activities like
donating money etc. On the other hand the respondents with concrete mindset are not
influenced by the information about businesss social goodwill etc.

In the third experiment it is shown that the positive impact of social goodwill is highest
when it is not associated with the product. This experiment also demonstrated that
when the consumers expect superior performance from a product they are will to pay
high prices for that product.

Finally in the last experiment it was shown that benevolent halo effect is considered as
the determinant of consumers perception that consumers are not sure that social
goodwill of the organization is for self-interest of the business or for society.
Section 7.Why This Matters:
The results of different experiments show that when the organizations perform
activities related to corporate social responsibility this not only create goodwill of the
company but also positive influence the customers expectations about the product. This
means that when the business is socially responsible then it is not only benefiting the

society in which the business is operating but also results in financial results as the sales
increases. The common business practices depict that business ethics and corporate
social responsibility should be considered as a competitive advantage of the business
for increasing its sales and revenue (Ghosh, Ghosh and Zaher 2011).

Moreover, the results in the research article depict that for avoiding the compensatory
implications, the managers assume the business should not associate the social goodwill
of the business with the product rather it should be associated with organization itself.
For example despite of encouraging the consumers to perceive that product is
environment friendly rather it should be encouraged that consumers should focus that
this firm is environmental friendly. And it is reflected that it is firms decision to make
environmental friendly product.

Organizations like Nike and Coca Cola Company revealed that the business is fulfilling
its corporate social responsibility in terms of its business objectives. They have their
own priorities of making the business sustainable and profitable. The ethical behaviors
of the businesses are also based on these principles.
Section 8.In Conclusion:
The article findings concluded that organizations should be socially responsible
towards the customers and the society in which it is operating. This not only benefits
the society but also enhances positive business reputation and financial returns of the
business.
Section 9. Related Links:
A video link featuring Jeffrey Swartz former CEO of Timberland, he is support the content of
the article. http://www.kantola.com/Jeffrey-Swartz-PDPD-103-S.aspx

The article favors the point of the article that corporate social responsibility supports the
business

efficiency

and

financial

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performance.

http://www.jstor.org/stable/255956?

References:
Ghosh, D, Ghosh, D. K., and Zaher, A. A. (2011). Business, ethics, and profit: Are they
compatible under corporate governance in our global economy? Global Finance
Journal, 22: 72-79.