Effect of Corporate Social Responsibility on Willingness to Pay Premium of Coffee Service using Triple Bottom Line theory

Triple bottom line theory is a popular theoretical underpinning to account for the corporate social responsibility(CSR). The purpose of this research is to demonstrate the accountability of tripple bottom line theory in the domain of coffee service. Triple bottom line argues that sustainability could be achieved by eco- nomic, social, and environmental CSR activities. As the research domain, this study selects Starbucks because the company executes diverse CSR activities as the coffee service business firm. This research derived three elements using triple bottom line theory, and these include environmental CSR, economic, CSR, and social CSR. As the main dependent variable, this study employs willingness to pay premium. Survey is the main instrument of this study, The data collection was performed using Amazon Mechanical Turk. The number of observation is 368. To analyze the data, this study carried out frequency analysis, correlation matrix, exploratory factor analysis, reliabil- ity test, multiple regression and binary logistic regression analysis. Regarding the results, environmental CSR and economic CSR are influential attributes on coffee service willingness to pay premium. However, social CSR ap- peared as non-significant attribute to explain the willingness to pay premium of coffee service. This study could contribute to the literature by demonstrating the accountability of triple bottom line in the area of coffee service business. Also, this study could offer the practical implications for the coffee service business managers in the decision making of CSR.