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Master Thesis

Corporate Social Responsibility (CSR) Communication on Social Media in the Health Technology Industry: A Case Study of Philips on CSR Communication Strategies and

Stakeholders’ Engagement

Master’s Programme in Communication Science

University of Amsterdam

Student: Ring Lam Chan

Student ID: 12329568

Thesis Supervisor: Dr. James Slevin

26 June 2020

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Abstract

The aim of this study is to explore how companies in the health technology industry

communicate CSR and engage their stakeholders on social media with the focus on the

CSR dimension and the effectiveness of CSR communication strategies on stakeholders’

engagement. Previous research suggested that adopting engaging strategy in CSR

communication on social media and incorporating multimedia elements in the content of

the CSR post could elicit more stakeholders’ engagement to the post. Accordingly, this

study addressed hypotheses based on the literature and conducted a quantitative content

analysis to examine the social media posts of a health technology company, Philips, on

social media platforms, namely Twitter, Facebook, LinkedIn and Yammer. In line with

previous research and the hypotheses, stakeholders tend to engage with CSR posts that use

engaging strategy, and when multimedia elements such as photos, videos and hashtags are

incorporated, stakeholders are more likely to like, comment and share the CSR post.

Evidence presented in this study supported and contributed new insights to the academic

research of CSR communication on social media.

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Table of Content

Introduction

Theoretical Background

Corporate social responsibility (CSR) communication and stakeholders

CSR communication strategies

CSR communication on social media

Methodology Sample Codebook Research variables Independent variables Dependent variables Inter-coder reliability Results Discussion

Limitations and Future Research

Conclusion References Appendices Appendix 1 - Codebook 4 8 8 10 13 15 15 17 18 18 20 21 21 25 29 31 32 36 36 Page 3 of 40

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Introduction

Corporate social responsibility (CSR) is a significant topic in today’s business world as

consumers become more socially conscious, their concern about the environment and

ethical issues has soared. Stakeholders, both internal and external, more than ever have

higher expectations on organizations’ engagement in CSR activities and disclosure. To

gain support and trust from stakeholders, companies proactively take their interests into

consideration and engage in CSR (Freeman, 2010). Companies have taken part in CSR

initiatives to change the way their business operates, be more transparent and responsible

for the society and sustainable environment. By engaging in CSR activities, companies can

strengthen relationships with stakeholders, engender consumers’ positive attitude and

support behavior (Sen et al., 2006), resulting in better financial performance (Porter &

Kramer, 2006).

In the past decades, companies’ engagement in CSR activities has transformed

from merely meeting regulations for organizational legitimacy to incorporating CSR into

their business strategy and going beyond environmental regulations. Companies

proactively communicate CSR knowledge and information to their stakeholders so as to

gain support from them and achieve better environmental performance (Chang, 2014). As

stakeholders have the ability to influence companies’ CSR actions, CSR communication is

therefore critical in aligning companies’ CSR agenda with stakeholders’ social

expectations and to be perceived as socially responsible organizations (Colleoni, 2013;

Ghosh, 2015). Through effective CSR communication, companies can positively influence

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stakeholders’ attitudes towards the company, enhance stakeholders’ advocacy behaviors,

improve corporate’s image and reputation in the long term (Du, Bhattacharya & Sen,

2010). In terms of internal stakeholders, effective CSR communication could help

companies attract talents and increase employees’ motivation and loyalty towards the

company, leading to better financial performance (Ghosh, 2015).

Prior to the existence of social media, companies disclose their CSR efforts to

stakeholders via company websites and annual reports, which tend to have a limited reach.

With the rise of social media platforms that changed information sharing and relationship

building practices, more companies are present on social media to reach a larger customer

group base and to interact with stakeholders. Companies consider social media as a

powerful tool and environment that assists them initiating dialogue and engaging with

stakeholders in two-way communication. Social media platforms enabled users across the

world to interact, exchange information, share knowledge and build relationships. It has

become the main channel for companies to communicate internally and externally

(Lipinska, 2018). Stakeholders are no longer solely the receiver of information

disseminated by the organizations, they could express their opinions and directly engage in

dialogues with the companies via social media (Cho, Furey & Mohr, 2017). Considerable

amount of companies are manage their CSR initiatives on social media (Jeong, Paek &

Lee, 2013), not only it is a channel for companies to communicate CSR messages, it is also

effective in understanding stakeholders’ needs and obtaining their feedback on current

CSR practices (Kucukusta, Perelygina & Lam, 2019).

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However, despite having the ability to interact and initiate dialogue with

stakeholders, social media platforms are not widely used by companies for interactive CSR

communication in practice. Organizations are not exploiting the full potential of social

media and their functionality for two-way CSR communication and managing their

relationship with stakeholders (“Ways to exploit Facebook’s capabilities”, 2015). CSR

communication could be a double-edged sword (van Rekom et al., 2014) and it may have a

backlash effect if stakeholders become skeptical on companies’ motives in their initiatives

(Du et al., 2010). Given that social media is not owned media, companies are losing

control over conversations related to them among users and they are often struggling with

the dynamics and risks brought by social media (Castelló et al., 2016). Without the

effective use of social media platforms’ functionality and appropriate communication

strategies to engage stakeholders, CSR communication on social media could easily lead to

a corporate crisis. It is a challenge for companies that adopt CSR in their business strategy

and desire to engage in CSR communication actively on social media.

Aiming to enhance organizational performance through environmentally friendly

technologies, many well-known and successful companies are engaged in CSR (Chang,

2014), and utilize it as a strategy for innovation (Gallego-Álvarez et al., 2011). Companies

in the healthcare industry, specifically, in the medical technology or in other words health

technology sector, are said to have strong financial performance and sustained growth.

They often share a similar mission statement as to help saving lives, improve quality of life

and make the world more sustainable through innovation and that align with the purposes

of CSR giving back to the community and business operating in a more sustainable way.

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While investors are interested in their stock market performance, consumers and

employees are interested in their CSR efforts as environmental and social considerations

are incorporated in most of their business strategy (e.g. MedTech Europe). Whereas

companies in the healthcare industry tend to disclose more CSR information to the public

(Giannarakis, 2014), heath technology companies that embrace and value CSR in their

corporate culture and business strategy, are also anticipated to actively disseminate CSR

information to their stakeholders as well. Hence, leading to the main research question of

this study: How do health technology companies communicate corporate social

responsibility (CSR) and engage their stakeholders on social media?

This study aimed to explore how health technology companies utilize social media

platforms to convey CSR and engage their stakeholders. Through conducting a content

analysis on their CSR-related posts on social media platforms, the study examined which

type of communication strategies are commonly used in CSR communication of health

technology companies and their effectiveness by looking at the stakeholders’ engagement

rate, i.e. endorsement rate and diffusion rate, of the posts.

As literature in the CSR communication field often studies companies across

industries and little has been done to relate with the health technology industry, this study

aimed to contribute knowledge on CSR communication in the health technology industry

and improve companies’ implementation of communication strategies used to engage with

stakeholders in CSR-related conversation on social media.

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Theoretical Background

Corporate social responsibility (CSR) communication and stakeholders

Corporate social responsibility (CSR) as defined by European Commission (2003) refers to

responsible business practices supporting three principles of sustainable development:

economic growth and prosperity, social cohesion and equity, and environmental integrity

and protection (European Commission, 2003). Companies are encouraged to go beyond

governmental regulations, proactively and voluntarily engage in CSR initiatives to manage

social responsibility issues and meet stakeholders’ expectations, i.e. proactive CSR

approach. As presented in the study of Torugsa, O’Donohue and Hecker (2013) and the

definition addressed by European Commission (2003), the three dimensions of CSR are

described as follows. The economic dimension of proactive CSR refers to initiatives

supporting economic growth and prosperity, with relation to issues such as product quality

and safety, profitability and supply chain management. Social dimension of CSR refers to

initiatives supporting social cohesion and equity, relating to issues such as employees’

well-being, work environment and policies. The environmental dimension of CSR refers to

initiatives supporting management and minimization of the company's ecological and

environmental impact, and focusing on “green” innovation and pollution prevention.

As key stakeholders such as consumers, employees and investors are likely to

reward organizations who are socially responsible, effective CSR communication comes

into play in stakeholders’ acknowledgement of organization’s CSR efforts, it generates

stakeholders’ awareness and minimizes their skepticism towards their CSR initiatives (Du

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et al., 2010). Stakeholders are likely to react positively towards messages disclosing

organizations’ ethical and socially responsible initiatives (Morsing & Schultz, 2006), as a

consequence, they are likely to change their attitudes towards the company and their

behavior such as purchasing, employment seeking and investment. As mentioned earlier

there are different types of stakeholder relevant to an organization, i.e. internal

stakeholders (including employees and managers) and external stakeholders (including

consumers and investors). Providing that stakeholders’ expectations and information needs

varies, such as consumers are interested in products’ quality while employees are

interested in employment policies and equal opportunities, they respond differently to

various topics of CSR messages (Du et al., 2010). The requirement for CSR information

disclosed therefore varies and CSR-related messages should be tailored to different

stakeholder groups (Dawkins, 2004).

With regard to stakeholders’ engagement with CSR messages of different topics,

audiences are likely to accept and respond to the CSR message if it is relevant to their

personal life experiences or interests (Kim & Ferguson, 2018). Previous research

discovered topics in the social dimension of CSR significantly elicit audience’s

engagement to CSR messages on social media, such as workplace and well-being of

employees (Abitol & Lee, 2017). As employees are also followers of their company’s

external social media page and topics in the social dimension of CSR are congruent with

their beliefs and interests, it is assumed that stakeholders in general are more likely to

engage with economic-related CSR messages. In light of congruent topics of CSR are

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likely to bring out stakeholders’ engagement to CSR posts on social media, this study

address the following hypothesis:

H1: Social-related CSR posts have a higher level of stakeholders’ engagement, in

terms of (a) endorsement and (b) diffusion, than economic and environment-related CSR

posts on social media.

CSR communication strategies

The importance of stakeholders’ involvement in companies’ CSR initiatives is on the rise,

to ensure the company is aware of and their actions are in line with stakeholders’

expectations, it is needed to engage stakeholders in CSR communication. To strengthen the

relationship with stakeholders and maintain their ongoing awareness towards the

company’s CSR efforts, more sophisticated CSR communication strategies covering the

development from monologue to two-way symmetrical dialogue are needed (Morsing &

Schultz, 2006).

Developed from Grunig and Hunt (1984) public relations theory, Morsing and

Schultz (2006) introduced three types of communication strategies which companies could

strategically engage their stakeholders in their CSR communication: stakeholder

information strategy, stakeholder response strategy and stakeholder involvement strategy.

Given the focus on social media, this study investigated the usage and effectiveness of

communication strategies proposed by Etter (2014) which were built on the work of

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Morsing and Schultz (2006): Broadcasting strategy, reacting strategy and engaging

strategy. Broadcasting strategy is described as a one-way communication approach in

which companies disseminate specific information to the public on social media and do not

respond to any responses under the post, improvements in mutual understanding and

relationship between the company and its stakeholders are not achieved. Reacting strategy

and Engaging strategy are described as two-way communication asymmetric and

symmetric approach respectively, which company is responsive and interaction with

audience is involved. The difference between reacting and engaging strategies lies in

company respond to questions and remarks from audience with a reactive approach and a

purpose to persuade audience in reacting strategy, and company proactively communicate

with audience, engage them in dialogues and mention specific users in their post, in such

way, companies are able to receive feedbacks from stakeholders and reflect their decisions

and activities.

Corporate public relations practitioners are advised to develop different CSR

communication strategies to demonstrate various CSR topics and encourage stakeholders

in engaging with the company by including both internal and external stakeholders (Cho et

al., 2017). Although little literature explored the association between the type of

communication strategy used in CSR communication and the dimension of CSR disclosed,

given stakeholders have different information needs and react differently to various CSR

topics, companies may utilize different communication strategies tailored to the topic of

CSR messages in stakeholders’ interests. Hence, the following hypothesis is proposed:

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H2: The type of communication strategy (broadcasting, reacting, and engaging)

used is associated with the dimension of CSR disclosed (economic, social, and

environmental) in CSR-related posts on social media.

Despite interactive functions and environment offered, due to fear of stakeholders’

skepticism, companies often used social media as non-interactive traditional mass media

when it comes to self-presentation (Insch, 2008). Studies also showed that most companies

use broadcasting strategy for communication on social media and fewer use engaging

strategy (Etter, 2014; Cho et al., 2017), they tend to broadcast positive CSR messages in a

similar approach as traditional advertisement (Colleoni, 2013). In terms of effectiveness of

communication strategies on social media, scholars on the other hand suggested a

dialogue-oriented communication strategy is the most effective, CSR-related posts

adopting an engaging strategy would yield a higher level of stakeholders' engagement

(Cho, Schweickart & Haase, 2014; Etter, 2014). It is suggested that if stakeholders are

engaged in the CSR communication process, awareness of mutual expectations may

enhance, stakeholders may support and contribute more to organizations’ CSR efforts

(Morsing & Schultz, 2006). Social media users are more likely to like or comment on a

post if the message posted by the company is interactive (Saxton & Waters, 2014). Hence,

to examine the effectiveness of communication strategies on stakeholders’ engagement,

this study proposed the following hypothesis regarding the usage of communication

strategies on social media and stakeholders’ engagement on CSR-related posts:

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H3: CSR-related posts using engaging strategy have a higher level of stakeholders’

engagement, in terms of (a) endorsement and (b) diffusion, on social media than CSR posts

using broadcasting and reacting strategy.

CSR communication on social media

Scholars addressed the key challenges in CSR communication are raising stakeholders’

awareness towards organizations’ CSR efforts and diminishing their skepticism. Literature

suggested using social media for CSR communication could help minimizing stakeholders’

skepticism towards the message (Du & Vieira, 2012), and enhancing the reach of

information disseminated from organizations and audience engagement. The development

of social media platforms offered features and environment facilitating interactive

communication, collaboration, co-creation and content sharing between users (Furness,

2008).

Social media is now an essential part of people’s lives (McCann & Barlow, 2015).

Apart from external social media, social media for internal usage is also on the rise and it is

a useful means for internal communication (Dreher, 2014), it helps cultivating subcultures

in the organization and strengthen employee relationships (Lipiainen, Karjaluoto &

Nevalainen, 2014). As social media increased consumers’ access to information about

organizations’ social behaviors (Groza, Pronschinske & Walker, 2011), stakeholders could

engage with companies in a timely manner and on a larger scale which posed both new

opportunities and challenges for corporate public relations practitioners (Kollat & Farache,

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2017). Organizations could initiate dialogues related to CSR and invite stakeholders to

respond and participate through liking, commenting and sharing the post within their

network on social media platforms, which in turn strengthening the relationship between

the company and stakeholders (Sreejesh, Sarkar & Sarkar, 2019).

Furthermore, social media enables users to include multimedia elements such as

photos, videos, external links and hashtags on their posts other than pure text. Literatures

suggested a combination of multimedia elements could enhance the richness of content

which audiences find more appealing, leading to more effective communication and user

engagement (Daft & Lengel, 1986; Brubaker & Wilson, 2018; Kucukust et al., 2019).

(Add critics on the fucking media richness theory from other studies) In the context of

CSR communication, research has demonstrated audience are more likely to engage with

CSR-related social media posts that incorporated multimedia elements such as links and

photos (Abitol & Lee, 2017). However, researchers have yet to further explore the role of

multimedia elements in the relationship between communication strategies and

stakeholders’ engagement on social media posts. Under the assumption that there is an

association between the type of communication strategy used and stakeholders’

engagement on CSR-related social media posts, this study hypothesized the presence of

multimedia elements other than text affects the strength of the association (e.g.

stakeholders are more likely to engage with the CSR-related social media posts utilizing

broadcasting strategy if photos are present along with text). The hypothesis is outlined as

follow:

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H4: Presence of multimedia elements moderates the relationship between the level

of stakeholders’ engagement, in terms of (a) endorsement and (b) diffusion, and the usage

of communication strategy (broadcasting, reacting, and engaging) of CSR-related posts on

social media.

Figure. 1 Hypothesized framework.

Methodology

Sample

To answer the research question, a quantitative content analysis was conducted to analyze

the content of social media posts published by companies in the health technology

industry, and examine the dimensions of CSR-related activities disclosed, the usage of

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communication strategies and multimedia elements, and the level of stakeholders’

engagement to the post.

A multinational corporation operating in the health technology industry, Philips,

was selected for the study. Philips is known as one of the biggest electronics companies

and global leaders in health technology in the world. Sustainability is integrated into the

company’s strategy and it is the core of its vision. The company is ambitious into

achieving an objective “improve 3 billion lives per year by 2030”, and has launched

different global programs collaborating with NGOs and initiatives to achieve their goal,

such as their sustainability program “Healthy people, sustainable planet”. Philips ranked #1

on Fortune’s Sustainability All Stars list and #2 on the global Dow Jones Sustainability

Indices list in the Health Care Equipment and Services industry group in 2019 (Philips,

2019). In light of its success, active engagement and recognitions gained for sustainability

performance, Philips was selected in this study to analyze its CSR communication

strategies on social media.

Unlike previous research which analyzed posts on external social media platforms

such as Facebook and Twitter, posts on internal social media platform Yammer, which is

similar to Twitter but with a user group of employees within the organization, was also

included in this study to analyze the company’s overall CSR communication strategies on

social media. Moreover, social media platform LinkedIn, which has a growing popularity

among companies for corporate communication, was also included in the study with an

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aim to record the company’s CSR communication strategies targeting professionals on the

site, such as investors, employees and talents, and their engagement to the posts.

The social media posts analyzed in the study were retrieved from Philips’s account

page on the above four platforms. All posts published from 1 August 2019 to 30 April

2020 were retrieved for the data analysis, resulting in a final sample of 572 posts. For the

feasibility of coding, only posts written in English were selected.

Codebook

To analyze the content of Philips’s social media posts systematically and objectively, a

codebook (see Appendix 1) was developed with reference to the study of Morsing and

Schultz (2006), Waters, Burnett, Lamm and Lucas (2009), Torugsa, O’Donohue and

Hecker (2012), Etter (2014), Cho et al. (2014), Abitol and Lee (2017), and Araujo and

Kollat (2018) for the analysis. The codebook consists of 17 variables and questions were

constructed for identifying the presence of CSR content (economic, social and

environmental dimension), communication strategies (broadcasting, reacting and engaging

strategy), multimedia elements (text, photo, video, graphic, link and hashtag),

stakeholders’ engagement to the post (number of likes, comments and shares of post), and

general information of the social media post. The whole text and multimedia elements

enclosed in the post were taken into account for the coding process with the focus of solely

analyzing the content of the post.

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Research variables

The questions in the codebook were constructed with regard to the four categories of

research variables (CSR dimension, communication strategy, multimedia element and

stakeholders’ engagement) mentioned in the above theoretical section, they were measured

as follows.

Independent variables

CSR dimension. The presence of CSR content in the social media post was identified and

categorized into three dimensions of CSR according to the CSR definition by European

Commission (2003) and the elements of each dimension discussed in the study of Torugsa

et al. (2012), multimedia such as photos and videos were also taken into account for the

identification. All posts that contained information about economic issues, such as

long-term economic performance, supply chain management, product efficiency, product

quality and safety, and customer satisfaction, were classified as economic-related CSR

posts. All posts that contained information about social issues, such as the society, human

rights, employee well-being, product responsibility and governance, were classified as

social-related CSR posts. All posts that contained information about environmental issues,

such as recycling, eco-efficiency, pollution and waste management, climate change,

ecosystems and energy efficiency, were classified as environment-related CSR posts. All

other posts that did not contain information related to the elements described in the three

dimensions were classified as non CSR-related posts. In total, sixty two percent of the

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posts were CSR-related (​M = 0.62, ​SD = 0.49), most of the posts were economic-related (forty-two percent), while twenty-four percent of the CSR-related posts were classified as

environment-related and thirty-three percent were social-related.

CSR communication strategy. The communication strategy used in the post was

identified according to the three strategies suggested in the study of Etter (2014), the

details for identification were adapted from Morsing and Schultz (2006), Etter (2014), and

Araujo and Kollat (2018). All posts in which other users were not approached directly and

were solely replies to other users’ posts, comments or questions, were regarded as using a

reacting strategy. All posts that mentioned other users using tag function, consisted

questions, or used pronouns such as ‘you’ or ‘your’ in the content, were considered as

using engaging strategy. All posts that were solely information dissemination and did not

fall into the other two strategies, were considered as using broadcasting strategy. Since the

sampling unit is at post level, the company’s replies under other users’ posts were not

shown on the account page as a single post published from the company, hence, no posts in

the sample were identified as using reacting strategy. Sixty percent of the posts were

identified as using broadcasting strategy while forty percent of the posts were identified as

using engaging strategy.

Multimedia element. Multimedia element was defined as the format in which the

company used to present information besides text. With reference to the study of Waters et

al. (2009) and Abitol and Lee (2017), the following five types of format were used to

identify the presence of multimedia element: photo ( ​M = 0.63, ​SD = 0.48), video (​M =

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0.12,​SD = 0.33), graphic (​M = 0.10, ​SD = 0.30), link (​M = 0.82, ​SD = 0.62), and hashtag (​M = 0.60, ​SD = 0.66). More than sixty percent of the posts were found using photo and hashtag to present information along with text and eighty percent of the posts used link,

while only around ten percent of the posts were found using video and graphic.

Dependent variable

Following Cho et al. (2014), the dependent variable in this study was stakeholders’

engagement to the social media post, defined in terms of endorsement, the behavior of

liking and commenting on the post, and diffusion, the behavior of sharing the post. The

level of endorsement was measured as the total number of likes and comments of the post

(​M = 510.57, ​SD = 4029.35), and the level of diffusion was measured as the number of shares of the post ( ​M = 22.33, ​SD = 349.02). Given the variation in the number of followers of the company’s account on each social media platform was large and skewed

numbers of likes, comments and shares of the posts across platforms were found, the level

of endorsement was operationalized as the total number of likes and comments over the

number of followers of the account in the form of percentage ( ​M = 0.0007, ​SD = 0.0016), and the level of diffusion was operationalized as the number of shares over the number of

followers of the account in the form of percentage ( ​M = 0.0001, ​SD = 0.0003) so as to address the issue and facilitate the data analysis of the hypotheses.

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Inter-coder reliability

The sampling unit of 572 social media posts were analyzed and coded by one coder. To

assess the inter-coder reliability of the analysis, 115 social media posts (twenty percent of

the sample) were extracted and coded for the dependent and independent variables in the

codebook in May and June 2020 by the same coder. The average Krippendorff’s alpha

score of 0.91 indicated a sufficient level of inter-coder reliability for the study.

Results

To test the hypotheses addressed in the theoretical section, a number of analyses were

performed to examine the associations among the research variables and the results are

discussed as follows.

With regard to the dimension of CSR discussed in the social media post, hypothesis

1 suggested social-related CSR posts will have a higher level of stakeholder engagement

rate than economic and environment-related CSR posts on social media. A series of

one-way analysis of variance were carried out to assess the influence of CSR dimension to

the level of stakeholder’s engagement to the social media post. Results revealed that there

was a significant difference between the three CSR dimensions on the level of

stakeholder’s engagement, in terms of stakeholder’s endorsement rate, ​F (2,352) = 17.81, ​p < .001, and stakeholder’s diffusion rate, ​F (2,352) = 6.59, ​p = .002. A Turkey HSD post hoc test indicated the stakeholder’s endorsement rate is significantly higher in

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environment-related CSR posts as compared to that of economic-related CSR posts

(​M​difference = 0.15, ​p <.001) and social-related CSR posts (​M​difference = 0.11, ​p <.001). No significant difference in the stakeholder’s endorsement rate was found between the

economic-related and social-related CSR posts. On the contrary, the Turkey HSD post hoc

test indicated the stakeholder’s diffusion rate is significantly higher in social-related CSR

posts as compare to that of economic-related CSR posts ( ​M​difference = 0.01, ​p = 0.002) and environment-related CSR posts (​M​difference = 0.01, ​p = 0.018). No significant difference in the stakeholder’s diffusion rate was established between the economic-related and

environment-related CSR posts. Hence, hypothesis 1 was partially supported (H1b),

social-related CSR posts have a higher level of stakeholder engagement rate, in terms of

diffusion, than economic and environment-related CSR posts on social media. The

Levene’s test results also showed that the assumption of equal variances in the

endorsement rate, ​F (2, 352) = 11.22, ​p < .001, and diffusion rate, ​F (2, 352) = 16.16, ​p <.001, were rejected.

To examine whether there was an association between the type of communication

strategy used and the dimension of CSR disclosed in the CSR-related social media posts as

proposed in hypothesis 2, crosstabs and chi-square tests were performed. The results

indicated there is a statistically significant but weak association between the two variables,

X2 (2, N = 355) = 16.81, ​p <.001, ​V = 0.218. When the CSR-related post was concerning economic or social topics, broadcasting strategy was significantly used more often than

engaging strategy. When the CSR-related post was concerning a topic related to the

environment, engaging strategy was used more often than broadcasting strategy. Therefore,

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hypothesis 2 was supported, the type of communication strategy used is associated with the

dimension of CSR disclosed on social media.

Continuing on the communication strategies, hypothesis 3 addressed when the

CSR-related post employed engaging strategy, the stakeholder engagement rate of the post

will be higher than CSR-related post that employed broadcasting and reacting strategy. A

series of independent sample t-test was conducted to examine the effect of the type of

communication strategy used on the level of stakeholder engagement rate of the

CSR-related social media post. As there w The results showed that there was a significant

difference on the level of stakeholder’s endorsement rate between CSR-related posts using

broadcasting and engaging strategies, ​t (170.57) = -4.68, ​p < .001, 95% CI [-0.15, -0.06]. The stakeholder’s endorsement rate of CSR-related posts which used engaging strategy ( ​M = 0.16, ​SD = 0.27) was significantly higher than that of CSR-related posts which used broadcasting strategy (​M = 0.05, ​SD = 0.08). A significant difference on the level of stakeholder’s diffusion rate between the two types of communication strategies employed

was also found, ​t ​(165.60) = -3.64, ​p <.001, 95% CI [-0.02, -0.01]. The stakeholder’s diffusion rate of CSR-related posts which employed engaging strategy ( ​M = 0.02, ​SD = 0.05) was significantly higher than that of CSR-related posts which employed broadcasting

strategy (​M = 0.01, ​SD = 0.01). Therefore, hypothesis 3 was supported, indicating the usage of engaging strategy on CSR-related posts leads to a higher level of stakeholder

engagement rate than broadcasting strategy.

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Following the relationship between the type of communication strategy used and

the level of stakeholder engagement rate on CSR-related posts addressed in hypothesis 3,

hypothesis 4 proposed that the relationship is moderated by the presence of multimedia

elements apart from text, i.e. photo, video, graphic, link and hashtag. A series of two-way

analysis of variance was carried out to examine the interaction effect between the type of

communication strategy and presence of multimedia element on stakeholder engagement

rate. In terms of stakeholder’s endorsement rate, there was a statistically significant

interaction effect between the type of communication strategy and presence of multimedia

element such as video, ​F (1,351) = 11.26, ​p = 0.001, and hashtag, ​F (1,351) = 7.86, ​p = 0.005, on stakeholder engagement rate of the CSR-related post, no significant interaction

effect was found concerning the presence of photo, F (1,351) = 1.50, ​p = 0.22, graphic, ​F (1,351) = 0.16, ​p = 0.69, and link, ​F (1,351) = 1.56, ​p = 0.21. The results indicated the presence of video and hashtag positively moderates the association between the type of

communication strategy and the level of stakeholder’s endorsement rate. In terms of

stakeholder’s diffusion rate, there was a statistically significant interaction effect between

the type of communication strategy and presence of photo, ​F (1,351) = 4.56, ​p = 0.03, and video, ​F (1,351) = 35.41, ​p < .001, no significant interaction effect was found concerning the presence of graphic, ​F (1,351) = 0.19, ​p = 0.67, link, ​F (1,351) = 2.30, ​p = 0.13, and hashtag, ​F (1,351) = 3.69, ​p = 0.06. The analysis results revealed the positive moderating role of photo and video presence in the association between the type of communication

strategy and the level of stakeholder’s diffusion rate. Therefore, hypothesis 4 was partially

supported.

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Discussion and Conclusion

As CSR has taken a huge part in the global corporate agenda, effective CSR

communication to stakeholders has become crucial. Without stakeholders’ awareness and

acknowledgement of their CSR efforts, companies may not fully benefit from engaging in

CSR activities. To increase their visibility and interact with stakeholders, numerous

companies are present on social media for corporate communication (Ros-Diego &

Castelló-Martínez, 2011). Social media is the new message channel and is considered as an

essential part in CSR communication. Scholars have suggested several CSR

communication strategies to engage with stakeholders on CSR topics on social media, and

although past research provided evidence to validate the claims concerning the

effectiveness of the communication strategies, little is known about the CSR

communication on social media in the health technology industry.

This study aimed to explore how health technology companies communicate their

CSR and engage their stakeholders in the conversation on social media, with the focus on

the CSR dimension and the effectiveness of CSR communication strategies on

stakeholders’ engagement, a quantitative content analysis was conducted to analyze social

media posts of Philips, a leading multinational corporation in the health technology

industry, on four external and internal social media platforms, namely Twitter, Facebook,

LinkedIn and Yammer. This study contributes additional evidence and insights to

academic research on CSR communication.

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With regard to the CSR topics discussed in the social media posts, similar to

previous research about the frequency of CSR topic discussed online (Džupin &

Džupinová, 2019), company in the health technology industry was found communicating

economic dimension of CSR more often than social and environment dimension of CSR on

social media. In line with literature that suggest companies should post CSR messages that

are relevant to the mission or values of the company (Du et al. 2010), the majority of CSR

content posted by the company in this study are congruent with their core business, i.e.

medical device innovation, quality of product, production process and supply chain.

However, when it comes to stakeholders’ engagement to CSR-related posts, in

terms of endorsement (liking and commenting on the post) and diffusion (sharing the post),

contrasting with previous research, the company did not achieve more stakeholder’s

engagement with CSR content in the economic dimension that are congruent with the

industry. Findings in this study revealed that the environment dimension of CSR posts

elicited a higher level of stakeholders’ endorsement than economic dimension and social

dimension of CSR posts, while social dimension of CSR posts elicited a higher level of

stakeholders’ diffusion than the economic and environment dimension of CSR posts.

Partly in line with previous research (Abitol & Lee, 2017), internal and external

stakeholders are more interested in the social dimension of CSR, especially in topics about

human rights and well-being of employees, and they are more likely to share social-related

CSR posts. Moreover, findings showed that stakeholders are also more likely to respond to

CSR posts in the environment dimension, meaning CSR topics concerning the

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environment, such as climate change, are relevant to their interests (Kim & Ferguson,

2018).

In regards to the usage of CSR communication strategies on social media, despite

no posts were found using reacting strategy, the findings in this study are in line with

previous research and literature (Etter, 2014; “Ways to exploit Facebook’s capabilities”,

2015; Cho et al., 2014; Saxton & Waters, 2014; Cho et al., 2017) that when it comes to

CSR information dissemination on social media, broadcasting strategy was used more

often, and when it comes to stakeholders’ engagement to the CSR post, engaging strategy

yielded higher level of stakeholders’ endorsement and diffusion than broadcasting strategy.

Stakeholders are more likely to like, comment and share the CSR post when the content is

more interactive (e.g. questions and poll post) or when other organizations are mentioned

in the post. The number of likes and comments of a post are significantly higher when the

post is a collaboration with other companies.

Furthermore, as social media platforms provided users the ability to post

multimedia information along with text, this study examined the moderating role of the

presence of multimedia elements, namely photo, video, graphic, link and hashtag, in the

relationship between the CSR communication and stakeholders’ engagement. Findings

supported the hypothesis that the presence of multimedia moderates the effect of CSR

communication strategy on the level of stakeholders’ engagement, the effect is stronger

when multimedia elements such as photo, video and hashtag are present in the CSR post.

In line with previous research (Abitol & Lee, 2017; Kucukusta et al., 2019), stakeholders

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are more likely to like and comment on CSR posts that contained videos and/or hashtags,

while the presence of photos and/or videos led to higher number of shares of the posts.

Information presented in multimedia format are more appealing than pure text, and are

more likely to draw the attention of the audience to the post, social media users tend to

share posts with information aligned with their interest and especially in the format of

photo and video, hence, leading to a higher level of engagement. Furthermore, the function

of hashtag in social media allows users to search for topics of their interest, incorporating

this element in the post (e.g. #climatechange) could help generating more views and

eventually leading to a higher level of engagement.

In light of the findings, communication managers in the health technology industry

should consider posting more CSR information relevant to their business, social and

environment dimension of CSR, which would elicit more stakeholders’ engagement in

discussion on social media. Considering there is an association between the dimension of

CSR discussed and the type of communication strategy used, managers should employ

broadcasting strategy when the information is about economic and social dimension of

CSR, whilst for environment dimension of CSR, managers should employ engaging

strategy in the post, such as asking questions to stakeholders for their opinion on climate

change actions, or collaborating and mentioning other organizations in their CSR

initiatives. Tailoring and using the most suitable communication strategy for the specific

CSR topics would engage stakeholders to the conversion on social media more effectively.

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Moreover, managers should utilize functions provided on social media platforms to

a greater extent. Instead of providing only one to two sentences concerning the topic of

CSR and a link leading to the company’s website for the whole article, managers could add

more photos and hashtags to the post, or summarize the article and present it in the format

of a video. The audience may lose interest in reading the post and the full article if the

content is not appealing to them and they have to be directed to another website. In order to

capture the attention of stakeholders and engage them in conversation when

communicating their CSR efforts on social media, companies should incorporate

multimedia elements as support to the CSR content.

Limitations and future research

This study has several limitations that need to be addressed. The first limitation results

from sampling. Given it was a case study with social media posts published by the same

health technology company across different platforms, a sample of 572 posts may not have

fully represented the company’s CSR communication strategies as the selected period of

time was only eight months. Although the selected company is one of the leaders in the

health technology industry, the results generalized could apply to other multinational

corporations in the industry, the generalization may not apply to companies in the industry

with a smaller scale. Future research should consider selecting a longer time frame for

sampling, and including multiple companies in the industry with different company sizes,

for a better generalization of results. Researchers could also examine whether there is a

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difference between multinational corporations and small and medium enterprises in the

industry in CSR communication on social media.

The second limitation results from the CSR communication strategies examined

and the sampling unit. One of the communication strategies (reacting strategy) was not

found in the sample, this was explained due to the sampling unit was defined on account’s

post level, company’s reply under other users’ posts were not included since they were not

shown on the platforms as a stand-alone post. Future research should consider redefining

the sampling unit to fully capture all posts, reposts and comments of the companies in

sample for examining their communication strategies, otherwise, future research should

examine different or redefine the communication strategies in the study. Furthermore,

future research should also consider examining the interactivity between the company and

the audience, i.e. analyzing the comment section of posts, to see whether the company

adopted one-way or two-way communication strategies when it comes to interacting with

stakeholders that left a comment under the post.

The final limitation and suggestion for future research concern the variations

between social media platforms. Although this study included posts on four external and

internal social media platforms with the aim to present a general overview of the

company’s CSR communication strategies on social media for all stakeholders, variations

in posts’ content and stakeholders’ engagement of the platforms were not taken into

account, therefore, the effectiveness of CSR communication strategies on stakeholders’

engagement level per social media platform was not examined. Given the characteristics

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and user profiles of the social media platforms are different, future research should

consider examining the interaction effect between the social media platform and the CSR

communication strategies on stakeholders’ engagement to the posts, so as to understand

which communication strategy works best on the audience of the social media platforms.

In addition to that, future research should also consider examining the difference in

effectiveness of CSR communication strategies and the topics of CSR discussed between

internal and external social media in general, i.e. the difference in CSR communication to

internal and external stakeholders. As internal and external stakeholders’ interests in CSR

topics vary, companies may have tailored their communication strategies and CSR

information to different types of stakeholders, for instance, social dimension of CSR

concerning workplace are discussed more often on internal social media platform for the

company’s employee while environment dimension of CSR concerning climate change are

discussed more often on external social media platform for customers and investors.

Conclusion

To conclude, the evidence presented in this study contributes to the academic research of

CSR communication in the health technology industry. Companies in this industry are

actively engaging in communicating their CSR efforts to their stakeholders on social

media, and similar to companies in other industries, they communicate the economic

dimension of CSR and use broadcasting strategy more often with the purpose of solely

disseminating information and not engaging stakeholders in conversation about CSR.

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Through analyzing the content of social media posts, this findings supported the claim that

engaging strategy elicits higher levels of stakeholders’ engagement to the CSR post, and

with the incorporation of multimedia elements, the effect of communication strategies on

stakeholders’ engagement is stronger. Companies in the health technology industry are

therefore encouraged to adopt engaging strategy and include photos, videos and hashtags

to their social media posts, especially when it is related to social and environment

dimensions of CSR content that are congruent to their core business, so as to communicate

with their stakeholders more effectively.

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Appendix

Appendix 1 – Codebook

Codebook

Corporate Social Responsibility (CSR) Communication on Social Media

Introduction

This study analyzes the posts of health technology companies, i.e. Philips, on social media platforms. The goal of the study is to identify the most common communication strategy used by the company to convey corporate social responsibility (CSR) related messages on social media.

Sample

The sample consists of 572 posts from the account page of Philips on Facebook, Twitter, LinkedIn and Yammer, which were posted from August 2019 to April 2020.

Coding units

The post on the social media account page served as the coding unit.

General coding rules

- The whole text of the post has to be taken into account for the coding process. - Multimedia elements such as photos and videos that are shared along with the post

have to be taken into account for the coding process. - The focus is only on the content of the social media post.

- Only code what is written or shared on the post. Do not code your own interpretations.

Variables

Category I. General Information

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V1 Account name

Document the account name of the social media post provided on top of the post.

V2 Social media platform

Document the social media platform the company used for the post.

1 = Twitter 2 = Facebook 3 = LinkedIn 4 = Yammer

V3 Date of post

Document the date the social media post was published by the company in the form

day-month-year (dd-mm-yy).

V4 Month of post

Document the month the social media post was published by the company in the form of

number (e.g. November as “11”).

V5 Link of post

Document the link to the social media post.

Category II. CSR Content

V6 Does the social media post discuss any of the following dimensions of CSR?

Identify the presence of CSR message in the content of the social media post, including the multimedia enclosed in the post.

0 = No

(Code 0 when the post does not contain information mentioning any elements of the

economic, environmental or social dimension.)

1 = Yes, economic dimension

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(Code 1 when the post contains information mentioning economic issues, e.g. long-term economic performance, customer satisfaction, supply chain management, production efficiency, product quality and safety.)

2 = Yes, social dimension

(Code 2 when the post contains information mentioning social issues, e.g. society, human

rights, employee well-being, labor practices, product responsibility and governance.)

3 = Yes, environmental dimension

(Code 3 when the post contains information mentioning environmental issues, e.g. climate

change, recycling, eco-efficiency, ecosystems, pollution, energy efficiency, water management and waste management.)

V7 Is the social media post related to CSR?

Assess the relevance of the social media post to CSR.

0 = No (Code 0 when the post is coded 0 in the previous variable CSR Topic.)

1 = Yes (Code 1 when the post is coded 1, 2 or 3 in the previous variable CSR Topic.)

Category III. Communication Strategy

V8 What is the communication strategy adopted in the content of the social media post?

Identify the communication strategy adopted in the content of the Twitter/Facebook post.

1 = Broadcasting strategy

(Code 1 when the post is solely information dissemination and does not fall into the other two strategies.)

2 = Reactive strategy

(Code 2 when the post is a reply to users’ comment or questions, and users are not approached directly.)

3 = Engagement strategy

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(Code 3 when the post has mentioned other users, contained questions or used pronouns such as ‘you’ and ‘your’ in discourse.)

Category IV. Multimedia Element

V9 Does the social media post contain any text? 0 = No

1 = Yes

V10 Does the social media post contain any photo(s)? 0 = No

1 = Yes

V11 Does the social media post contain any video(s)? 0 = No

1 = Yes

V12 Does the social media post contain any graphic(s)? 0 = No

1 = Yes

V13 Does the social media post contain any link(s) to other site(s), such as other social media page, event or company website?

0 = No 1 = Yes

V14 Does the social media post contain any hashtag(s)? 0 = No

1 = Yes

Category V. Stakeholder Engagement

V15 Number of likes

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Document the number of likes of the social media post.

V16 Number of comments

Document the number of comments of the social media post.

V17 Number of shares

Document the number of shares of the social media post.

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