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  • Subject Name : Literature Review

Literature Review-Impact of corporate social responsibility in the food industry


In the present scenario, corporate social responsibility plays a significant role in every industry. Corporate social responsibility is the key principle of any company through which the organization incorporates environmental and social factors into their process. The corporate social responsibility includes environmental management and responsibility, shareholder engagement, gender equality, humans right, governance and standards community relations. The strong corporate social responsibility helps the company to gain an advantage in a new market, boost sales and enhance productivity and efficiency. With the support of CSR activities organization gain positive reputations and develop consumer loyalty (Crowther ampSeifi, 2018).

In the current situation the corporate social responsibility becoming common practice in the food industry. However, CSR having high applicability in the food and beverage industry because it supports and provide basic human needs and has a solid influence on public health. The corporate social responsibility activities have converted into a basic part of organizational activities in the food industry. This literature review will analyze the impact of corporate social responsibility in the food industry at a broad level (Grayso amp Hodges, 2017). The literature review will focus on the influence of CSR in the food industry as well as determine the issue and advantages of using corporate social responsibility in the food industry.

Literature Review

According to Costopoulou, Ntaliani, amp Ntalianis (2018), the corporate social responsibility is the principle key of an organization which provides sustainable economic growth by working with the staffs and the community. It raises the living standard of the people which is profitable for business development. This research provides the influence of corporate social responsibility in the food and beverage industry. In order to determine the corporate social responsibility in the food and beverage sector, the top companies have been selected according to their yearly revenue. The business has been differentiating according to their products. The business is categorized according to the size of the company like dairy products, general food commerce, canned food, and beverages etc. Moreover, the research studies the influence of corporate social responsibility according to its three major areas of application of CSR activities. The three major areas are human resources, society, and the environment. The outcome shows that majorly large organizations are using CSR compare to small medium enterprises. In the current scenario, there is tough competition in the business and most of the food-related organization target to sustain in the business. The major factor which is responsible for the sustainability of the business is corporate social responsibility along with the price, quality, and consumer criteria.

The analysis shows that number of CSR organizations vary from large and small-medium enterprise. In the adaptation of CSR activities, the economic calamity also plays a key role because even large companies do no spend on CSR activities (Crane, Matten amp Spence, 2019). The result shows that less than one-third of the food and beverage companies involve CSR activities. Their activities focus on human resources and the environment. Majorly food companies promote CSR activities on their website.
According to Kim ampZapata (2018), obesity-related disease has been increased over the past few years. Various dieticians and health care providers have identified that the fast food industry is the reason behind obesity. The fast industry endorses the malnutrition foods which are rich in sugar, fat, and sodium and they encourage the customer to over consume the food. Due to this situation the fast food industry has confronted the criticism of public as well as from the public health professional and nutrition group. So, the fast food industry introduced corporate social responsibility to enhance the overall business environment. With the help of CSR activities in the fast food industry is improving the organizations image, gain consumer trust. CSR initiatives are planned and applied through regular communication with the shareholder due to which they form excellent community relation activities that develop public trust towards the fast food business. The corporate social responsibility positively impacts on the fast food industry like McDonalds has initiated the sustainability program which widely concentrates on the children fitness, nutrition, general wellbeing, and environmental issues. The organization also communicates the sustainability achievement to its shareholder through launching a sustainability report, CSR-concentrated corporate websites, and news releases. The analysis shows the significance of the strategic approach in choosing the CSR programs (Lins, Servaes amp Tamayo, 2017). The CSR initiatives in the fast food industry help to decrease the risk of stimulating shareholders doubts about CSR purposes and produce great support among shareholder. The fast-food company has adopted the health concentrated CSR programs which help the organization to develop a healthier image and shareholder show positive reaction towards the organization. Through CSR fast food industry is also generating a better return and establishing the business with great profit.

According to Omidiamp Shafiee (2018), corporate social responsibility is the key factor that affects the financial and social activity in the food industry and plays a major role in consumer reactions. The research shows the influence of CSR on financial, social activities and consumer response associated with the organization. In the era of globalization, the food industry companies are attaining a high market segment and competitive gains in paying devotion to CSR in their business. The food business company are considering implementing the CSR in the business to enhance its growth. CSR has a significant platform to develop the business in a strong position. The organization directly affects corporate social responsibility and customers are indirectly involved in their reactions.

Spotting the CSR effort for the company like sharing word of mouth and engaging customer is helping to maintain the organization business directly or indirectly. Investing in CSR activities influence the achievement of the food industry. Hence, it is suggested that strategies and initiatives should be made under the guideline of CSR of the organization. The CSR activity involves the food business influence the business revenue and generates a loyal customer (Saeidi, Sofian, Saeidi, Saeidi amp Saaeidi, 2015). The organization should communicate the CSR plan to the public so it will boost public awareness instead of employees only. The better communication of CSR activity plan will generate the business of food industry.
According to Rhou Singal amp Koh (2016), Activities of corporate social responsibility provide a source of competitive benefit to the business. Though, lack of awareness among the shareholder regarding CSR makes the complex situation to realize the importance of organization CSR efforts. This research taking the background of the food industry and determining the CSR awareness and the outcome will show the impact of CSR awareness in a way so that CSR activities can produce financial gain. The most frequent customers to the restaurant and their selection of restaurant does not base on the food quality but actually, it is based on the socially- responsible involvement. Due to which several restaurants companies are involved in the CSR activities which provide profits to the customer and environment.

According to the study, it is to identify that CSR improves the performance of an organization. As the organization accomplishes better performance as their shareholder become aware of helpful CSR activities. The study also identifies that the shareholder provides limited support to the CSR activities but the social enactment of the organization can be awarded or penalized merely when the shareholder awareness of CSR bring into consideration (Manchiraju amp Rajgopal, 2017). The food companies CSR activities directly create an impact on shareholder awareness as well as on the financial and social performance of the companies.
According to Zuo, Schwartz, amp Wu (2017), Food safety problem like deadly spoiled milk in the food industry has attracted the attention of corporate social responsibility. This research analyzed force that probably determines the CSR performance in the food industry. Because of globalization, the movement of goods, including the flow of food products has become borderless. So, food security has become a global issue. The study suggests that by implementing the CSR in the food industry will work on food safety and also work on its measure to protect the food.
According to the Wei, Kim, Miao, Behnke amp Almanza (2018), food packaged has arisen as essential for corporate social responsibility communication tool. The study shows the on-package CSR claims on customers health perceptions, attitude, and taste perception. In the food industry, the customer-oriented CSR activities are strongly related to attitude and taste perception of the consumer. All the CSR rights positively impact on the customers purpose to buy and willing to pay price. The CSR titles are shown on the food package influence the customer perception for healthy profits and a positive attitude towards the company. The CSR activities affect food manufacturing on a wide range of health-related inferences in the background of grocery shopping. Also, the result of employee-oriented employees welfare corporate social responsibility relates to the customers taste awareness of packaged food. The existence of on package CSR rights from all area importantly encouraged customers buying purposes and willingness to pay for it. The analysis shows that eco-friendly packaging CSR claims have the lowest willingness to pay for it. The outcome shows that it totally differs from the environmental CSR claim contain slightly higher willingness to pay than social CSR rights. The study also shows that consumer reacts differently to the different domain of the CSR claims.
From the analysis of corporate social responsibility impact on the food industry, it can be determined that nowadays companies related to food business are working under the strategies of Corporate social responsibility. The food industry taking care of social and environmental development like the companies is concerning about consumer health and nutrition they are in taking. It also supports the financial and social performance of the company. The CSR activities of the company are concentrating to increase shareholder awareness so that the company can gain financial benefits. The CSR activities are influencing the food industry for the betterment of the business. It positively enhances the financial and social growth of the business and also increases customer loyalty. With the support of CSR activities organization stands in strong position in the industry.

Research Limitations

The food companies only consider the website to communicate about the CSR activities it does not consider other modes like launching the non-financial report, annual report and other possible media like social media.
The research was limited to the fast food industry so it is possible that the influence of CSR activities may differ from the industry to industry. But this can apply to similar industries like alcohol and tobacco industry which shows similar circumstances.
In the food industry, the research does not determine the relationship between the CSR activities and other points like productivity, quality and brand image of food companies. This relationship can also help to find other influencing attribute of CSR activity in the food company.
It also found that few branded food companies and restaurants are involving corporate social responsibility.
It is found that in the food industry the corporate social responsibilities majorly focusing on the food quality and its social consequences rather than environmental and financial performance.


The study of the topic impact of corporate social responsibility on food industry determines the various essential aspect of CSR in the industry. Corporate social responsibility influences business revenue and customer loyalty. In the present situation, all business connected to the food industry is implementing CSR activities. The impact of CSR activity on business is positive. Due to the implementation of corporate social responsibility in the food industry the organization is taking initiatives towards the environment and social development.

The food companies also started concerning about public health and food safety. The study found that the corporate social responsibility in food business majorly influence and work on human resources, social and environment. The CSR claims also focus on food packaging so that the company can influence the buy intention of the customer. The CSR awareness is needed to increase among the shareholder because it enhances the performance of the organization. Due to the lack of awareness of CSR activities will reduce the effort of the organization.


Costopoulou, C., Ntaliani, M., amp Ntalianis, F. (2018, July). CSR in Food and Beverage Industry The Greek Case. In2018 9th International Conference on Information, Intelligence, Systems and Applications (IISA)(1-4). IEEE.
Crane, A., Matten, D., amp Spence, L. (Eds.). (2019).Corporate social responsibility Readings and cases in a global context. London Routledge.
Crowther, D., amp Seifi, S. (Eds.). (2018).Redefining Corporate Social Responsibility. Bingley Emerald Group Publishing.
Grayson, D., amp Hodges, A. (2017).Corporate social opportunity Seven steps to make corporate social responsibility work for your business. London Routledge.
Kim, Y., amp Zapata Ramos, M. L. (2018). Stakeholder responses toward fast food chains CSR Public health-related vs generic social issue-related CSR initiatives.Corporate Communications An International Journal,23(1), 117-138.
Lins, K. V., Servaes, H., amp Tamayo, A. (2017). Social capital, trust, and firm performance The value of corporate social responsibility during the financial crisis.The Journal of Finance,72(4), 1785-1824.
Manchiraju, H., amp Rajgopal, S. (2017). Does corporate social responsibility (CSR) create shareholder value Evidence from the Indian Companies Act 2013.Journal of Accounting Research,55(5), 1257-1300.
Omidi, F., amp Shafiee, M. M. (2018). The impact of corporate social responsibility on social performance, financial performance and customer reactions in the food industry.International Journal of Business Innovation and Research,17(2), 249-265.
Rhou, Y., Singal, M., amp Koh, Y. (2016). CSR and financial performance The role of CSR awareness in the restaurant industry.International Journal of Hospitality Management,57, 30-39.
Saeidi, S. P., Sofian, S., Saeidi, P., Saeidi, S. P., amp Saaeidi, S. A. (2015). How does corporate social responsibility contribute to firm financial performance The mediating role of competitive advantage, reputation, and customer satisfaction.Journal of business research,68(2), 341-350.
Wei, W., Kim, G., Miao, L., Behnke, C., amp Almanza, B. (2018). Consumer inferences of corporate social responsibility (CSR) claim on packaged foods. Journal of Business Research,83, 186-201.
Zuo, W., Schwartz, M. S., amp Wu, Y. (2017). Institutional forces affecting corporate social responsibility behavior of the Chinese food industry.Business amp Society,56(5), 705-737.

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