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EMAC 2023 Regional Conference

Investigating the Relationship between Perceived CSR Adoption, Cost and Price Markup

Published: November 22, 2023


Margarita Komninou, University of Patras; Christos Livas, University of Patras; Efthimios Dragotis, University of Patras


Growing public demand for sustainable and ethical business practices has imposed significant pressure for companies to embrace Corporate Social Responsibility (CSR). Prior literature illustrates that strategic incorporation of CSR practices can deliver benefits for companies. Nonetheless, endeavours to develop meaningful CSR activities and policies may result in additional costs for a company, leading to price markups which consumers may view as unfair. Utilising survey data (n=222), this study proposes a novel conceptual model on the connection between CSR and perceived price fairness, by examining the relationships between perceived CSR Adoption, Costs, and Markup. Results indicate that consumers perceive socially responsible brands to be burdened with CSR related costs and charging a related markup. However, CSR costs alone are not a significant predictor of CSR markups.