How Corporate Social Responsibility of catering industry in Hong Kong affect Consumer Behaviour

1         Literature Review
1.1       Introduction

Corporate Social Responsibility (CSR) is increasingly important for companies, as there is a need to continuously operate and improves the ability of the organization to reach out to their customers. CSR also allows retailers to improve their standing with customers, as the company can make a name for itself. This review of literature first examines the increase in the catering business, and its impact on cities such as Hong Kong. The review then examines the importance of CSR for catering businesses and ways they can improve their appeal to the customer. The next sections examine the advantages and limitations of CSR, which can have a direct impact on the companies and their customers.

1.2       Impact of Changing Work-Life Balance on Catering

In cities such as Hong King, data suggests that columnar behaviour has rapidly changed. Individuals are more likely to buy food from outside, as they do not have the time to cook at home (Levy and Park, 2011, Bian et al., 2021). The catering business has flourished in cities as both partners within the family are required to work, and therefore time to cook at home has been diminished. This has a direct impact on the buying patterns of consumers, as they are lolloping for ease of use for the different functions that they perform. This is increasingly important, as the consumers must have the ability to develop and understand the different functions, and create a system that can allow the consumers to have more confidence in the system. One of the factors which are important to consider is that the catering business increase is also due to the changing work-life balance (Franco et al., 2020, Pomering and Dolnicar, 2009).

Another aspect that is important to consider is that increased competitiveness among food retailers also has a direct impact on the consumer psyche. Consumers are today more concerned about the overall impact that a business may have on the wider environment and individuals (Tsai et al., 2012, Holcomb and Smith, 2017), and this can be directly related to the way that the consumers can be influenced. Research has also shown that in many instances, individuals want to know about the wider factors which are influencing their purchases (Guillet et al., 2019, Khan et al., 1995). This can have a direct impact on the way that the end-users can use the facilities (Levy and Park, 2011, Bian et al., 2021).

1.3       Importance of CSR for Catering Businesses

The importance of CSR activities is significantly important for individuals significantly has suggested that in many cases, consumers are only willing to buy from those companies which have a positive impact on the wider environment. CSR allows companies to improve their output, and ensure that they can connect with the wider community in a sustained manner (Kim et al., 2014, Visser, 2006). The use of the Carrols model for example has shown that CSR can often be a win-win solution for the companies, as they invest in activities that can benefit the poor and less privileged class. However, this can have a positive impact on society, and the extra sales which can be achieved by the company can also allow the company to improve their output (Visser, 2006, Vishwanathan et al., 2020).

The use of CSR is also important for the companies as they need to continuously evolve and ensure that the CSR responsibilities can lead to improvement (Guillet et al., 2019, Khan et al., 1995). The ability to develop and understand the different functions is also important as the shareholder expectations can also be considered over how a positive corporate image can be created. In many cases, companies need to ensure that they have a lenient function (Franco et al., 2020, Pomering and Dolnicar, 2009), which can lead to the development of products and services which can be used in facilitating the consumers. This is also important to consider, as the ability to improve the consumer’s image of a company. This will be enabled overtime to ensure that the various services can be improved over time, and lead to long term improvement in the way a company facialists consumers. Withing the catering business in particular (Lee and Chan, 2017, Law et al., 2013), the ability to use the left-over food to cater to the consumer who may need it can also be a major factor that can help in improving the image of the company.

1.4       Advantages of CSR Activities

Several advocates of CSR activities can be highlighted. Companies such as Starbucks have been in the food retail business and invested heavily in the CSR model (Barnett et al., 2020, Jiao et al., 2021, Ramesh et al., 2019). This has allowed the company to increase their output, and create a positive image in the mind of the consumer. Fair practices as well as ensuring that a share of the profit also reaches the underprivileged can also be important, as it ensures that the organization can achieve a prosocial goal (Ramesh et al., 2019, Halabi and Samy, 2009), which is not just based on profit maximization (Mao et al., 2020, Wilburn and Wilburn, 2015). Moreover, it creates a positive image about the companies, as they work to facilitate the less advantaged people. This is also important to consider, as the ability to deliver products and services according to customer needs can also lead to a positive image of the consumer. In this regard, one of the factors which are important to consider is that top management support is necessary for the success in CSR activities. This can lead to long term improvement in the way products and services are used by the consumers (Tsai et al., 2012, Holcomb and Smith, 2017).

Another main advantage of the use of CSR by companies is that they can use it for getting favourable concessions from government departments. This can have a positive impact on the way services are used by customers, and this can lead to an improved image of the consumer in the mind of the customers (Lee and Chan, 2017, Law et al., 2013). This is also important to take into account, as the various stakeholders have to ensure that they can develop and understand the different functions, and this can have a varying level of impact on the effectiveness of an organization. CSR can allow the company to get legislation being consolidated in their favour, as they are seen as having a positive impact on the wider society (Tsai et al., 2012, Holcomb and Smith, 2017). This is also important to consider, as there is a need to ensure that the development of the systems is undertaken over time, and lead to a positive impact on the consumers.

1.5       Limitation of CSR Activities

One of the main limitations of CSR activities, in particular, is that companies need have to a long-term impact on the way services are delivered (Mao et al., 2020, Wilburn and Wilburn, 2015). One of the limitations is that a company must invest in a long-term system for how customer needs are addressed (Barnett et al., 2020, Jiao et al., 2021, Ramesh et al., 2019). One of the factors which are important to consider is that investment in CSR does not always create a positive impact. Consumer asceticism can have an impact on the way services are presented (Ramesh et al., 2019, Halabi and Samy, 2009), and therefore shareholders can often be circumstances about the return on investment. Many companies also do not purport to say that limitation of the CSR cannot be balanced with profit maximation (Lee and Chan, 2017, Law et al., 2013). This is also important to consider, as the ability to develop and understand the different functions needs to be addressed by the consumers (Franco et al., 2020, Pomering and Dolnicar, 2009).

Another limitation of CSR is that the return on investment can be difficult to judge. This can be disconcerting for shareholders, as they cannot develop and understand the different functions (Bae et al., 2021, Kim et al., 2018), which needs to be addressed over time. The ability to get the best results is also important to consider, as individuals must continuously robustly evolve their directions (Tamvada, 2020, Sun et al., 2018). This is important to consider, as the ability to co-develop and understand the challenges in CSR can also lead to a long-term change in the way services are presented. In many cases, the companies must have the ability to develop and understand the changes, and thus it can be difficult to influence the shareholders. Without a positive impact on the way, services are being presented can also be highlight challenging for companies, as they cannot get the investment back (Ramesh et al., 2019, Halabi and Samy, 2009).

CSR can also lead to a negative image in the mind of the consumer, if they feel that the companies are not sincere. If profit maximization is the only goal, this can be a major challenge for stakeholders, as they continuously evolve and see a way of attracting customer negativity (Kim et al., 2014, Visser, 2006). While this can be a major problem, one of the factors which can lead to a negative frame of mind for the consumers is based on the ability of the company to convert CSR into a profit-making exercise. If the consumers feel that the company is not sincere with the functions that they undertake, this can be a major condition for the development of the CSR image of the company, and this needs to be protected by the company.

1.6       CSR in Catering Companies in Hong Kong

Several unique challenges have been identified within the literature. In the case of Hong Kong, the consumers are highly sensitive towards CSR activities. In the case of catering (Serra-Cantallops et al., 2018, Shahzad et al., 2020), consumers are often vigilant that they must choose a highly responsible company (Bae et al., 2021, Kim et al., 2018). Many of the CSR actions which are important to consider in the case of catering companies is that they must develop a rapport with their customers, and therefore attract them to the best possible actions. One of the factors which can attract customers is that they must have the ability to develop and understand the challenges, and therefore continuously improve (Tamvada, 2020, Sun et al., 2018). Catering companies can use CSR to create a sustainable competitive advantage, as the current atmosphere is only based on price competition (Wang et al., 2018, Choi and Chu, 2001).

Research from South Asian countries and areas such as Hong Kong shows that the consumers are increasingly sensitive towards the actions which are taken into account (Kim et al., 2014, Visser, 2006). The ability to deliver change is also important as it allows the consumers to have a high degree of change and allows them the flexibility to deliver the changes sustainably (Serra-Cantallops et al., 2018, Shahzad et al., 2020). This can lead to a competitive advantage for companies as customers w2ant to get the best possible services while also facial ting socially resolve function which can lead to a long-term change. One of the factors which are important to consider is that these changes must be addressed and examined to ensure that catering companies can bring a significant change in the way they address the needs of the customers (Tamvada, 2020, Sun et al., 2018).

1.7       Gaps in Literature

Several gaps of literature have been identified in the review of the literature. Firstly, ways in which customers can be influenced through the use of CSR in Hong Kong has a limited amount of literature. Secondly, the main attributes that a CSR strategy that must be followed by a catering company in Hong Ong must also be addressed. These are needed to ensure that a future CSR strategy for catering companies can be developed, which is based on empirical evidence.