CSR Impact on Brand Image: A Rio Tinto Case Study, BRE810, CDU

This research report investigates the impact of Corporate Social Responsibility (CSR) on the brand image of Rio Tinto, a major mining and processing organization. It begins with an introduction to CSR and the company's background, highlighting the problem statement related to environmental concerns and CSR ratings. The research aims to demonstrate the relationship between CSR and branding, addressing objectives such as understanding the importance of CSR, exploring branding strategies, and recommending solutions for CSR issues. The literature review covers CSR concepts, theoretical frameworks like the Triple Bottom Line and CSR pyramid model, and the importance of CSR in influencing consumer decisions and brand image. The methodology employs a positivism philosophy and deductive approach, using data collected from a sample of employees and analyzed through bar charts. The findings indicate the impact of CSR policies and activities on the company's image and profitability, with a focus on female employees aged 25-30. The report concludes by linking the findings to the research objectives, emphasizing the importance of CSR in enhancing brand image and recommending improvements in CSR practices.

Running head: RESEARCH REPORT
Research report
Impact of Corporate Social Responsibility on Brand Image of the organisation
Study based on Rio Tinto, Australia
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction................................................................................................................................3
1.1: Background.....................................................................................................................3
1.2: Background of the company...........................................................................................3
1.3: Problem statement...........................................................................................................3
1.4: Research aim...................................................................................................................4
1.5: Research objectives.........................................................................................................4
1.6: Research questions..........................................................................................................4
Literature review........................................................................................................................6
Corporate Social Responsibility.............................................................................................6
Theoretical understanding......................................................................................................6
Triple Bottom Line Theory................................................................................................6
CSR pyramid model...........................................................................................................6
Branding concept and theories...............................................................................................7
Importance of CSR in organization........................................................................................7
Impact of CSR on branding....................................................................................................7
Research methodology...............................................................................................................9
Findings and Analysis..............................................................................................................10
Demographic factors............................................................................................................10
Variables..............................................................................................................................11
Conclusion................................................................................................................................18
Linking with objectives........................................................................................................18

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Reference List..........................................................................................................................20
Appendix..................................................................................................................................23

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Introduction
CSR is an important factor that helps in establishing the image and the reputation of
the company in the market. It is a form of continuous commitment that is done by the
organization so that the local community can benefit from it as well as the surrounding
environment. The aim of this research will be to analyse the relation between the brand of the
organization and its CSR policies.
1.1: Background
Corporate Social Responsibility has helped in increasing the level of transparency
among the citizens so that the company can function in a proper manner. The purchasing
behaviour of the consumers also help in analysing the responsibilities that are taken up by the
organization in the surrounding environment (Bhattacharya et al. 2017). The brands have to
set the price of the products in a proper manner so that it can attract the customers. The use of
CSR by the companies allows them in increasing the media coverage so that the consumers
can be aware of the products that are developed by them (Schwartz 2017).
1.2: Background of the company
Rio Tinto is an organization that focuses mainly on mining and processing the mineral
resources that are found on the Earth. The company as established in 1873 and has its
headquarters located in Melbourne and London. It is the leader in extracting bauxite, iron ore,
coal and copper. The company earned a revenue of $40.3 billion and has a equity capital
amounting to $44.711 billion for the year 2017. The company employs more than 50,000
employees and is listed in the Australian and London stock exchanges (Riotinto.com 2018).
1.3: Problem statement
The company has been issuing its CSR report in a transparent manner in the recent
period so that the customers can get to know about the responsibilities that are being taken up

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by the company (Bainton 2017). The survey conducted by Nielsen showed that almost half of
the customers are attracted towards the companies that cares about the social and
environmental well-being. The company deals in the metal industry and is engaged in the
extraction of non-renewable resources. It has been criticized for its activities in the recent
times due to the effects of global warming and degrading the environment (Smh.com.au
2018). The CSR rating of the organization can be seen as 54 on an average. The stopping of
the mining activities in certain locations have caused a stir in the locations sue to the damage
that has been done by the company. The company also did not clean up the activities after
they stopped their activities in Papua New Guinea (Lasslett 2014).
This research will help in finding the issues that are present in CSR in Rio Tinto,
which has caused a problem in their brand value.
1.4: Research aim
The aim of the research is to show the impact of corporate social responsibility on the
branding of the organisations; this research will narrowly focus on Rio Tinto.
1.5: Research objectives
The objectives are:
 To find out the importance of corporate social responsibility of an organisation
 To explain the strategies of the branding of organisations
 To explore the relationship between corporate social responsibilities and branding
 To recommend some possible solutions regarding issues of corporate social
responsibilities and branding
1.6: Research questions
The research questions are:

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 What is the importance of corporate social responsibility of an organisation?
 What are the strategies of the branding of organisations?
 What is the relationship between corporate social responsibilities and branding?
 What are the possible solutions regarding issues of corporate social responsibilities
and branding?

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Literature review
Corporate Social Responsibility
It is the concept where the companies have to integrate the social and environmental
concerns for the business by interacting with the stakeholders (Ruggie 2017). It helps the
organization in maintaining a balance between the economic, social and environmental
authoritative, which needs to meet the expectation of the shareholders. The organization in
the recent times have to increase their capabilities so that it can understand the viability of the
business (Grayson and Hodges 2017).
Theoretical understanding
Triple Bottom Line Theory
This method helps the organization in making the business driven by the purpose of
profit but by providing beneficial causes to the environment as well as the society. The main
motive of the business is that it will not cause any harm to the environment and the human
resources that are being deployed for the purpose of achieving profits. The responsibility of
the company is that it has to make the work place in a desirable manner so that it can provide
a better environment for the employees to work in. The sustainability of the environment will
help in taking help of few resources so that the measures can be cost-effective in nature (Lins,
Servaes and Tamayo 2014).
CSR pyramid model
This pyramid helps in finding the four responsibilities that are present in the business
organization. The economic purpose allows the business in making profits so that they can
ensure its survival in the market. The legal responsibilities allow the business in abiding by
the laws that are set in the region (matten and Moon 2008). The ethical responsibilities that
are present in the business allows the organization in acting in an ethical and moral manner so

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that they can follow the laws properly. The suppliers and the employees need to be treated
ethically by the company. The philanthropic responsibilities help the business to be
responsible for giving back some of the profits to the society so that it can develop the
surrounding environment (Cheng, Ioannou and Serafeim 2014).
Branding concept and theories
The concept of branding is that it helps the company in gaining popularity in the
market with the help of symbols so that it can be differentiated from its competitors. The use
of brands help the products to be identifiable as well as differentiable in the market (Leekha,
Chhabra and Sharma 2014). It is the mixture of the properties that allows the products to be
given a particular identity so that it can be separated from the other products that are
available. Additionally the use of logos, colours and ambassadors help the service to improve
within the company (Herstein et al. 2017).
Importance of CSR in organization
CSR helps in taking a positive outlook in the surrounding environment. It is the
activities that needs to be done so that there is a positive impact on the community. This leads
the customers to be encouraged in taking up decisions to purchase the products from the
organization (Carroll 2016). The use of CSR helps the organization in supporting the
professional and personal development of the organization so that it can help the company to
be responsible towards the society (Pai et al. 2015).
Impact of CSR on branding
It helps the customers in influencing their decision to purchase the products. The
brand image of the company also gets restored in the market so that it can attract more
number of customers (Edinger-Schons et al. 2018). It will also help in controlling the flow of
the resources towards the right direction so that it can be utilized to the full extent. It will also

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help the company in being more transparent with respect to the products that they are
supplying in the market. The use of CSR activities will also result in turning the losses of the
company in to a profitable venture (Rezvanpour and Bayat 2017).

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Research methodology
The research has been done through the positivism philosophy so that it can help in
gathering the data in a scientific manner along with the facts of the data as well. This
philosophy has allowed in gathering qualitative and quantitative data and the data will be
highly structured (Taylor, Bogdan and DeVault 2015).
The deductive approach has been used by the researcher, as the data that has been
gathered has been based on the theories, which has helped in analysing the data in a proper
manner. It has allowed the researcher in developing the concept as well (Lewis 2015).
The researcher has also used the descriptive design so that the data can be collected in
a proper manner. It allowed in understanding the necessary features that are present within
the population (Flick 2015).
The research has been conducted on a sample population of 360 employees and the
size of the sample has been limited to 80 so that the research can be done in an efficient way.
The simple random technique has been used by the researcher so that it can provide an equal
opportunity to the respondents to be a part of the research process. The data has been
analysed with the help of bar charts created in MS-Excel so that it can represent the data in s
visual manner (Silverman 2016).

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Findings and Analysis
Demographic factors
Female Male
0
5
10
15
20
25
30
35
40
45
50 47
33
Gender
18-24 years 25-30 years 31-36 years 37 and above
0
5
10
15
20
25
30
35
40
45
50
15
47
17
1
Age
1.1-3 years 3.1-5 years 5.1 and above Less than 1 year
0
5
10
15
20
25
30
35
30
19
14
17
Experience

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It can be seen from the collection of the data that majority of the responses that were
collected were form the female employees who are within the age group of 25-30 years and
has an experience of 1.1-3 years within the organization. This has helped the researcher in
narrowing down the observation to these factors so that the research can be conducted in a
proper manner.
Variables
Maybe No Yes
0
5
10
15
20
25
30
35
24 24
32
CSR policies
The respondents have stated that the company maintains CSR policies in an effective
manner, which has helped them in gaining a strong foothold in the areas where they are
operating. It has also resulted in increasing the corporate image of the company in the local
environment as well. Maintaining the policies in a better manner will help the company in
gaining an advantage in the market, as the customers will be attracted towards the company.
The policies of the company needs to be set in accordance to the activities that they are
carrying out in the market so that it can help them in gaining an overall advantage in the
market. The policies will also restrict the operations of the company so that they do not do
any activity that may harm the external environment and increase the level of liability among
the customers. This may also lead to a downfall of the brand image in the market, as the