Abstract

Problem: CSR appears frequently in various kinds of reports of different corporations. However, managers are confused about how to practice CSR strategically. Little is known about consumers’ awareness of CSR and how consumers react toward socially responsible corporations and their products. The cosmetic industry has been criticized a lot on CSR because of unethical and unsustainable business activities. Renowned companies in the cosmetic industry are working on different CSR initiatives, but no single study has been done on CSR and its impact on consumer behavior in the cosmetic industry. It is of critical importance to investigate consumers’ awareness of CSR, and to explore consumers’ attitudes and tendency of purchase behavior toward CSR in the cosmetic industry.

Purpose: The purpose of the thesis is to investigate consumers’ awareness of CSR in the cosmetic industry and channels consumers get CSR information from. Furthermore, the aim is to investigate consumers’ attitudes on different CSR activities and how consumers’ purchasing behaviors are affected by these CSR activities.

Theoretical perspective: The study combines stakeholder theory with theory on CSR’s impact on consumers’ attitudes and behavior. It refers to consumers as one important stakeholder group for a corporation.

Method: A quantitative method is used in the study. Primary data of consumers’ awareness of CSR, consumers’ attitudes and tendency of purchasing behavior were collected through an online questionnaire. The results of the questionnaire were analyzed and interpreted.

Conclusions: Consumers get CSR information of the cosmetic industry from different channels. Consumers’ CSR information about the cosmetic industry is between “poor” and “average”. They expect cosmetic companies to communicate more about CSR with the public. CSR is not an important factor that influences consumers’ purchase decision. However, consumers are willing to pay more for cosmetic products made in socially responsible ways. Consumers believe it is important that cosmetic companies fulfill their legal and ethical responsibilities, but they do not ask cosmetic companies to be philanthropically responsible.