CORPORATE SOCIAL RESPONSIBILITY PRACTICES AND PERCIEVED BRAND REPUTATION OF SOFT DRINK COMPANIES IN UGANDA

Abstract

This research explores the effect of Corporate Social Responsibility (CSR) practices on the perceived brand reputation of soft drink companies in Uganda, focusing on Pepsi wholesalers in Mbarara. The study examines three key CSR practices: environmental sustainability programs, community development projects, and ethical marketing efforts, aiming to understand how these initiatives influence Pepsi Uganda's brand reputation among its wholesalers. The research was conducted using a quantitative data from 66 respondents to provide a comprehensive analysis of the relationship between CSR and brand perception. The findings revealed a significant positive correlation between environmental sustainability programs and brand reputation. With a Pearson Correlation coefficient of 0.3117 and a regression coefficient of 0.287, environmental initiatives such as plastic waste reduction and water conservation were shown to have a moderate but significant influence on brand reputation. Similarly, community development projects, such as local educational and healthcare support, were found to have the strongest impact on brand perception, with a correlation coefficient of 0.9613 and a highly significant regression coefficient of 0.812, accounting for the majority of the variance in brand reputation. These findings underscore the importance of Pepsi Uganda’s engagement in meaningful community initiatives, which contribute to both societal welfare and the company’s long-term brand equity. Community involvement strengthens the connection between the company and its stakeholders, promoting loyalty and trust. Lastly, ethical marketing practices, while theoretically vital, showed limited impact on brand reputation, with a weak correlation coefficient of 0.0613 and a non-significant regression coefficient of 0.055. Although 51.5% of respondents strongly agreed that Pepsi Uganda's advertisements are honest and transparent, the weak correlation between ethical marketing and environmental sustainability suggests a disconnect in how ethical practices are perceived in relation to the company’s broader CSR efforts. To bridge this gap, Pepsi Uganda must integrate its ethical marketing narratives more closely with its environmental and community initiatives.