Use of structural equation models in analysing the relationship between corporate social responsibility practices and corporate image: Within EFQM model framework

The world has changed! In 21.century, in which globalized economy and strong competition among companies are perceived as major changes, it is as yet not enough only to produce goods with high quality and competitive prices. Additional to financial indicators, corporate social responsibility performance has also become a key enabler for companies? success and sustainability. Corporate social responsibility approach determines how companies interpret, manage and execute their operations aligned with social responsibility. The effectiveness of this approach is measured via society perception surveys. By using these perception results, companies may review, prioritize and refine their approaches to enhance their corporate image in the long term. Positively developing corporate image plays a vital role in ensuring the sustainability for long term success of the company. In this research study, based on EFQM Excellence Model, a scale to measure society?s perception on corporate social responsibility practices of the company had been developed and via implementation of this scale to the defined social stakeholder group, the relationship between corporate social responsibility practices and corporate image has been analysed. By using structural equation modeling (SEM) in CSR literature, the study will hopefully also add value to latter studies in this area. Keywords: Corporate Social Responsibility (CSR), Measurement of Society?s Perception, Structural Equation Modeling (SEM), EFQM (European Foundation for Quality Management) Excellence Model.