Introduction
Background
Businesses have relied on communication for different purposes, including marketing, sharing crucial information regarding products and business processes, and keeping in touch with their customers. The sharing of corporate social responsibilities (CSR) information has been vital over the past two decades due to the increased attention the public gives business processes (Ajayi & Mmutle, 2021). CSR communication is aimed at providing stakeholders with information about the sustainability efforts of companies to reduce their negative impacts on the environment (Verk et al., 2019). Organizations have established CSR goals and communicate the same to the public. The goal is to ensure that customers and stakeholders know what the business is doing to contribute towards environmental conservation and improvement (Ijabadeniyi, 2020). The public has always expected firms to meet their CSR goals without concern that these objectives were being met (Morsing & Spence, 2019). However, investigations into large companies have revealed that most companies hardly uphold the goals they have set. KLM Royal Dutch Airlines has been sued for its failure to address its environmental impacts despite presenting itself as an environmentally friendly business through its “Fly Responsibly” advertisement. This paper examines whether companies are responsible for achieving the sustainability goals they communicate to stakeholders, the possible implications when they fail, and the role of factors like legitimacy in ensuring that communication is correct.
Description of the Company
KLM Royal Dutch Airlines is the official airline for the Netherlands. The airline company was established in 1919 and currently has a fleet of approximately 110 (KLM, 2022). The company is part of the Air France–KLM group and has various partnerships to enhance the service provided to its customers (KLM, 2022). KLM has managed to overcome challenges that have led to the collapse of several airlines since its establishment. The communication strategy in most businesses aims to influence customers by providing them with information about their products and lead purchases (Sama, 2019). The company’s marketing strategy has successfully presented the organization as one that resonates with society. However, it has come under criticism from environmental advocacy groups that have faulted the airline for misleading its customers about its efforts to address its carbon footprint.
Statement of the Problem
KLM is being sued for greenwashing its advertisements. The marketing message claimed that KLM’s flights had a lower environmental impact and that customers should choose them to reduce their carbon footprint when they travel (Watson, 2022). According to environmental groups, the airline’s advertisement misleads customers and infringes on the European Union’s Unfair Consumer Practices Directive (Watson, 2022). Therefore, they want “Fly Responsibly” adverts removed and the company to work towards fulfilling the sustainability claims. KLM argues that it is committed to achieving the 2050 industry goal of zero emissions, and its fleet continues to be made sustainable (Watson, 2022). However, environmental groups argue that the company uses sustainability as a marketing strategy and has failed to fulfill its customers’ promises.
The problem is that KLM is advertising that its flight is sustainable, and customers should choose them because of its low carbon imprint on the environment. Advocacy groups maintain that the advertisement misuses customers into believing that the airline is doing enough to mitigate its contribution to climate change (Thomas, 2022). The case raises inquiries into the responsibility that companies have to uphold the claims they make about sustainability. It is a revelation that while businesses have committed to environmental sustainability, not every company is indeed working to achieve the promises and goals that they make. The case significantly impacts other airlines and industries because of its increased focus on meeting the CSRs and promises companies make on sustainability. Ensuring that companies meet these goals has not been a significant concern by the public, but the case reveals the unethical conduct that some organizations engage in to lure and convince customers about their commitment to sustainability.
The issue has significant consequences on companies that have committed to sustainability but are yet to begin achieving these goals. Businesses have shifted their marketing approaches to feature more on their sustainability efforts because of the increased concern from customers (Pérez et al., 2019). The marketing approach makes companies liable for their sustainability claims since they influence consumer decisions (Mitra et al., 2018). The consequences also affect the public that has not been keen on the company’s practices. The case has the potential to reveal organizational patterns that may demonstrate the controversial impacts of businesses on the environment leading to more scrutiny of business practices and a more informed consumer base.
The research is essential since it focuses on communication and the impacts that it can have on companies in the current business environment. Communication is integral to company functions, including sales (Byrum, 2017). The decision-making to purchase a product or service is based on company messages about what they offer (Suomala, 2020). Most decisions are based on the information companies share during marketing. The value of communication is being tested in this research, whereby the study will aim to determine whether companies should ensure that the information they share with stakeholders is accurate. The research also highlights the importance of communication between businesses and stakeholders and the possible impacts that it can have. The study is necessary because it highlights the significance of corporate social responsibility and the responsibilities of companies and stakeholders in ensuring that CSRs are achieved.
The research objective is to examine CSR communication, the role of companies in ensuring that they provide the correct information that is shared with customers, whether businesses are responsible for meeting these, and the possible implications when they fail.
Research Question
What is the role of KLM’s CSR communication in influencing consumer attitudes and purchasing intentions through the company’s advertisement, “Fly Responsibly,” which shows consumers that the company is working towards achieving sustainability goals?
Organization of the Report
The second one explores the existing literature discussing the topic. The chapter examines the theoretical framework, selected articles, and the conceptual framework regarding the topic. Chapter three entails the descriptive analysis of the assessment. Chapter four explores a summary of the findings, discusses the results, and answers the research question.
Theoretical Framework
Introduction
The theoretical framework reviews current concepts that help to create a foundation and guide the formation of arguments in research. Studies use theories to determine relationships, explain phenomena, and make predictions. The theoretical framework assesses the existing theories in an area of study to help determine the existing variables and define the specific framework that will help to evaluate and interpret collected data. The theoretical framework is also essential in comprehending concepts and variables based on established predictions. The theory in this chapter will be based on the Corporate Social Responsibility (Communication) theory. The theory will help assess the communication of CSR and the responsibility it bestows on the organization.
Corporate Social Responsibility (Communication) theory and application to the case
The CSR communication theory aims to legitimize the products of a business through the determination of the most effective communication strategies for use. The concept posits that company communication is structured to guide the thoughts and perceptions of stakeholders to align with those of the business (Morsing & Spence, 2019). The theory is based on the fact that organizations have to legitimize their processes and actions for society to accept and support them. Based on the theory, organizations frame their messages to influence stakeholders’ perceptions and gain support (Morsing & Spence, 2019). Framing determines the reception of messages, which is vital in any form of communication. Applying the CSR communication theory helps explain why businesses take specific paths when communicating with customers regarding their behavior.
The theory applies to KLM and the selected advertisement. The airline industry has prioritized sustainability over several other business factors, making it a competitive edge for KLM and other companies (Watson, 2022). KLM has adopted an advertisement approach that resonates with current business trends whereby companies try to portray themselves as the best in the industry in terms of achieving sustainability. According to the activists, the company’s advertisement misinforms customers that their environmental impact has been minimized significantly and customers should choose them (Watson, 2022). In KLM’s case, the company is accused of misleading customers by advertising responsibility, yet it was not taking any responsibility for its actions. The theory helps to understand KLM’s reason for using the advertisement and elaborates on the need for the company to maintain its communication approach to remain relevant to its stakeholders.
Article Summary 1
Sikorski and Müller (2018) ‘s article “When Corporate Social Responsibility Messages Enter the News: Examining the Effects of CSR-Framed News on Product Purchasing Intentions and the Mediating Role of Company and Product Attitudes” examines the role of communication on customer attitudes towards a company and product purchases. The primary concepts in the article include CSR, which is the organizational strategy that creates social accountability for a company, the public, and stakeholders (von Sikorski & Müller, 2018). News framing effects are defined as the impact that emerges from presenting company news in a specific manner through mainstream media. Public relations are the strategies that organizations use to maintain a positive public image. Purchasing intentions are the attitudes and decisions individuals make regarding the products and services of a company based on what they know about them.
The primary argument from the researchers is that CSR-framed messages embedded in regular news coverage positively affect the perception and attitudes of customers towards a company or product. The authors note that different researchers have widely assessed the effects of CSR communication (von Sikorski & Müller, 2018). However, research gaps are evident in evaluating CSR-framed communication in the media. Various issues are identified, including the presentation of CSR in ordinary news, the emphasis on ethical responsibilities, and the impacts of CSR frames on news consumers regarding companies and products (von Sikorski & Müller, 2018). The position of the authors is that the presentation of CSR messages in ordinary news affects news consumers, leading to the development of a positive attitude towards companies and their products and an increase in sales due to the emphasis that journalists make on the sustainability efforts a company is making.
The main finding of the article was that CSR-framed news increased the purchasing intentions of news consumers by influencing their attitude toward a company. The outcomes also showed that organizational involvement in CSR activities was essential to new and existing customers, but the type of activities did not matter (von Sikorski & Müller, 2018). The authors concluded that companies could influence the purchasing intentions of customers through CSR-framed news. Presenting the CSR efforts of a business in the news has a positive impact on consumers, which improves their consideration of the company as appropriate for purchases (von Sikorski & Müller, 2018). The article contributes to the impact of CSR-framed messages through mainstream media. Most studies have focused on the overall effects of CSR on consumer behaviors but failed to address the communication media. The article indicates that the use of mainstream media has a more significant influence, inferring the trust and confidence news consumers have in mainstream media. It also contributes to the literature on the role of communication in influencing consumer choices.
Article Summary 2
Ellerup-Nielsen and Thompson’s 2018 article “Reviewing corporate social responsibility communication: a legitimacy perspective” aimed to substantiate the results of CSR communication, explaining strategies and practices involved in the processes. The article also explores legitimacy in CSR communication. The keywords include CSR, which refers to the sustainability efforts of organizations (Ellerup-Nielsen & Thompson, 2018). Legitimacy refers to aligning corporate actions with stakeholder expectations. Content analysis, which entails the assessment of information from organizations. Corporate communication entails all communication strategies an organization adopts to communicate with its customers.
The main argument is that companies are increasingly feeling the need to attain legitimacy in their actions, leading to increased CSR communication. The authors note that the world has increased its concern over the impacts of organizational processes on the environment (Ellerup-Nielsen & Thompson, 2018). As a result, stakeholders require businesses to disclose their efforts to reduce their effects on the environment. It has led to the emergence of CSR communication, whose primary goal is to achieve legitimacy from stakeholders. The article is trying to fill the gap in research that addresses the issue of legitimacy in CSR communication (Ellerup-Nielsen & Thompson, 2018). The primary findings are that companies look for legitimacy for their activities through communication with stakeholders regarding their actions. CSR communication is instrumental, whereby achieving legitimacy is more important than the truth of the efforts made toward sustainability. They conclude that CSR communication is more focused on achieving legitimacy than providing information about the real efforts companies make toward sustainability (Ellerup-Nielsen & Thompson, 2018). The article contributes to the growing literature on CSR communication and its increased importance in the modern business environment.
The independent variable is corporate social responsibility communication, which encompasses the communication strategies that organizations adopt to provide stakeholders with information on sustainability. The variable assesses the organizational efforts used to communicate the sustainability efforts of a company. The dependent variables are consumer perception and purchasing intentions, which are the outcomes of the influence of independent communication. The moderating variable is the legitimacy of CSR communication. These factors determine the strategies companies use to communicate sustainability, and they influence the dependent variable. The independent variable affects and determines the dependent variable, while the moderating variables influence the impacts of the dependent variable.
Conclusion
The CSR communication theory aims to explain organizational communication strategies used to share sustainability goals with various stakeholders. The theory provides a framework to assess CSR communication by companies and understand the different approaches used. It recognizes the role of communication in stakeholder perceptions and aims to ensure that factors like legitimization and framing are comprehended. The selected articles address the legitimization and structure of information by companies and help to create the conceptual framework used in this paper.
Analyses
Introduction
This chapter aims to assess the collected information on the topic and answer the research question. The chapter conducts a descriptive analysis of available literature on CSR communication and the two primary areas of concern, legitimization, and framing, intending to establish the impacts of CSR communication on consumer attitudes and purchase intentions.
Descriptive Analysis of CSR Communication
Corporate social responsibility communication refers to the strategies businesses use to inform their stakeholders about sustainability measures in their processes. Businesses have a social responsibility to society through the social contract theory (Carson, 2019). Companies manage this relationship through corporate social responsibility, whereby they identify their impacts on society and work to reduce adversities and improve positive aspects (Lock & Schulz-Knappe, 2019). Communication of these efforts is the basis of CSR communication, which primarily entails identifying relevant information to be shared with the public and framed effectively to ensure a good relationship is maintained. CSR communication theory is founded on the need to understand corporate information-sharing strategies and their approaches and implications (Kucukusta et al., 2019). The assessment has revealed that CSR communication is a vital component of corporate communication and has several impacts. However, the current presentation of CSR information is founded on the need for companies to attract and maintain their customer bases rather than addressing their sustainability commitments.
Descriptive Analysis of Consumer Perceptions and Purchasing Intentions
Consumer perceptions are the beliefs customers have about a company and its products. The perceptions are based on the experiences and information customers have about a company (Hongcharu, 2018). The purchasing intentions of customers are the feelings they have about a product and its manufacturer (Bault &Rusconi, 2020). Customers intend to buy products when they believe a company is reliable and meets their preferences. Consumer perceptions and purchasing intentions are the dependent variables in the assessment. These are the outcomes of CSR communication that rely on the strategies companies use (May, 2022). The review shows that consumer perceptions and purchasing intentions depend on organizational communication (Baek & Kim, 2018). Organizations have incorporated CSR into their marketing campaigns to influence consumer perceptions and intentions. The shift has been facilitated by the increased concern about the impacts of businesses on the environment. Currently, the CSR goals of a company are more important than the genuine efforts they are making because consumers believe companies work towards achieving these goals. CSR communication theory determines the impacts of CSR information on stakeholders through its framework that helps to define the strategies organizations use to share sustainability information.
Legitimacy
Legitimacy refers to efforts a company makes to make its products align with stakeholder expectations. Legitimacy is confounded in CSR communication due to the established need for organizations to ensure that the information they share with stakeholders meets and addresses their concerns (Lock & Schulz-Knappe, 2019). The current sustainability concerns emerging from businesses are due to the consumer preferences to choose companies that are making positive steps to reduce their environmental impacts and contribute towards its conservation. Legitimacy also aligns with legal expectations between businesses and customers (Lock & Schulz-Knappe, 2019). The various guidelines that inform business communication have implications, including legal action against companies. Literature shows that CSR communication development aims to create positive perceptions among customers. Legitimacy is a moderating variable because it determines the approaches companies should take in communicating and their implications on stakeholders.
Summary of Main Findings
The analysis reveals that CSR communication is crucial in determining consumer perceptions and purchase intentions. Companies have become increasingly dependent on CSR to present themselves as legitimate to customers. Their efforts are moderated by legitimacy, ensuring that communication aligns with stakeholder expectations and established guidelines. The theory provided a framework that helped to understand CSR communication and the efforts taken to ensure effective information sharing. Consumer perceptions and purchase intentions will continue to be informed by corporate communication, including the CSR efforts companies are making.
Conclusion
Communication is an integral organizational process that determines stakeholder reactions. Companies use communication strategies to share relevant information with customers and maintain positive relationships. CSR communication has become a crucial element of corporate communication as more attention is placed on organizational efforts to achieve sustainability. The increased awareness of CSR has made several companies make sustainability components of their marketing efforts. The review shows that CSR significantly impacts purchasing intentions and customer consumer attitudes. The existence of mitigating factors like legitimacy is doing little to ensure that organizations provide the correct information about their sustainability efforts (Overton et al., 2019). Companies are using CSR communication to influence customers to believe they are sustainable.
KLM’s case is an excellent example of how organizations exploit CSR communication. The company’s brand is based on its ability to address consumer concerns and expectations. KLM is accused of using CSR communication to misinform its customers about its sustainability efforts (Watson, 2022). The advocacy groups aim to stop the company’s efforts to misinform the public (Watson, 2022). They claim that the company should be able to achieve sustainability before informing customers of its achievement and using it for profitability. The case has several implications for CSR communication because it sheds insight into corporate processes and the need for consumers to be more vigilant. CSR communication is crucial to both businesses and stakeholders. However, its use should be informed on truth and accuracy to ensure that customers are not misinformed about their sustainability efforts. Therefore, companies are responsible for ensuring that their CSR communication contains the correct information regarding their sustainability efforts. The provision of wrong information should be subject to scrutiny, and implications should be imposed to ensure consistency in communication and avoid consumer misinformation.
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