A Study on the Effect of Trust on Sustainable Management Activities by CSV Consumer Awareness

Purpose: The role of consumers has become important for CSV of companies that pursue economic value together. However, from a consumer point of view, research on the relationship between corporate trust and sustainable management activities of manufacturing companies’ CSV activities is insufficient. The purpose of this study is to investigate the effect of trust in consumer awareness of CSV activities of manufacturing companies on management performance and sustainable management activities.. Research design, data, and methodology: To verify the hypothesis, 266 survey s were c ollected f or g eneral c onsumers l iving in K orea, frequency analysis was conducted with SPSS 25.0, and structural spinning statistical analysis of Smart 4.0 was conducted to verify the mutual relationship between variables and empirical analysis. Results: First, the subconcepts of trust according to CSV consumer recognition, such as expertise, benevolence, and integrity, all had a positive effect. Second, expertise trust had a positive effect only on economic activities, and there was no effect on social and environmental activities. benevolence trust had a positive (+) effect on all three activities of sustainable management, and integrity trust had a positive effect on social and environmental activities, excluding economic activities. Implications: This study confirmed the positive effect of corporate trust according to consumer awareness of CSV activities, and demonstrated that trust has a positive (+) effect on management performance and sustainable management activities. This means that trust affects corporate performance due to trust transfer, and a smooth virtuous cycle of CSV activities, trust, and sustainable management activities is important to secure corporate sustainability. In addition, practical proposals were made on CSV activities and customer trust to improve corporate management performance, and conclusions, implications, and future research directions were presented.