How does corporate social responsibility create customer loyalty? The role of corporate image

2017 ◽  
Vol 13 (3) ◽  
pp. 409-427 ◽  
Author(s):  
Mert Gürlek ◽  
Ertugrul Düzgün ◽  
Selma Meydan Uygur
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Corporate Image ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Content Type ◽  
Independent Hotels ◽  
Corporate Social

Purpose This paper aims to investigate whether corporate image has a mediating effect on the influence of corporate social responsibility (CSR) on customer loyalty in independent hotels. Design/methodology/approach Data were collected from customers of five-star hotels located in Istanbul in Turkey. The theoretical model was tested with 404 usable data. The results were analyzed by using structural equation modeling (SEM). Findings Findings show that CSR creates customer loyalty partially through corporate image in the independent hotels. In addition, it was found that the hotels included in the study carried out moderate level of CSR activities. Research limitations/implications The research model was tested in independent five-star hotels. Further studies could be carried out using different independent hospitality companies. In addition, the research was conducted on a limited sample, as hotel managers were not willing to allow direct contact with customers. Further studies could be carried out on larger samples. Practical implications This study recommends that independent hotels carry out more CSR activities on social and environmental issues. In addition, direct effect of CSR on customer loyalty is lower than its indirect effect via corporate image. Therefore, if companies desire to create customer loyalty through CSR, they should introduce their CSR activities to customers via communication tools (website, media etc.) Originality/value This study examines CSR in terms of sustainable development in the independent hotels. Furthermore, it explains relationships between CSR and corporate image and customer loyalty through the principle of generalized reciprocity specified in the theory of social change.

Corporate social responsibility toward stakeholders and customer loyalty: investigating the roles of trust and customer identification with the company

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Niki Glaveli
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Social Exchange ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Equation Modeling ◽  
Content Type ◽  
Corporate Social ◽  
Customer Trust ◽  
The Impact

Purpose This study aims to uncover the underlying multiple intervening mechanisms between corporate social responsibility (CSR) and customer loyalty. Social identity and social exchange theories offer the ground for prediction that the primary outcomes of CSR initiatives are customer–company (C–C) identification and customer trust, which in turn affect customer loyalty. Also, the differential effect of CSR behaviors toward specific stakeholder groups on customer attitudes and behaviors are examined. Design/methodology/approach Data were collected from 333 customers of telecommunication companies in Greece. Structural equation modeling was used to test the postulated relationships. Findings The findings demonstrate that both C–C identification and customer trust intervene in the relationship between customer perceptions of CSR and customer loyalty; however, the identification mechanism is stronger than the trust mechanism in building customer loyalty while C–C identification seems to drive customer trust. Moreover, out of the three CSR components (customers, employees, and society/environment) that were considered as relevant to customers and were investigated, customer-centric activities were found to be the stronger predictor of both C–C identification and customer trust. Also, CSR toward society/environment was found to positively influence C–C identification. Practical implications The findings of this research can assist practitioners in effectively conceptualizing CSR image from a customers’ point of view and designing their company’s CSR and communication strategies to boost positive customer responses and strong long-term relationships. Originality/value The current study provides further insights into the complex relationship between CSR and customer responses and the impact that different CSR activities may have on customers.

Consumers’ proneness to value corporate social responsibility as predictor of extra-role and intra-role behaviors

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Raquel Silva ◽  
António Azevedo ◽  
Minoo Farhangmehr
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Structural Equation ◽  
Well Being ◽  
Corporate Image ◽  
Equation Modeling ◽  
Online Questionnaire ◽  
Content Type ◽  
Corporate Social ◽  
Role Behaviors

Purpose The purpose of this paper is to discuss how the perceived importance of economic, ethical/legal and philanthropic dimensions of corporate social responsibility (CSR) can influence the consumer–brand identification (CBI) and the brand identity attractiveness (BI). Moreover, the paper examines how these constructs affect the in-role behaviors (purchasing intention), the extra-role behaviors (feedback, recommendation and word-of-mouth (WOM) and behavioral loyalty. Design/methodology/approach An online questionnaire collects data using a snow ball/convenience sampling method, obtained in 356 valid responses. The paper adopts both path analysis and structural equation modeling approaches. Findings The importance of CSR is positively correlated with perceived BI and is a significant predictor of loyalty. However, the results do not support the hypothesis that the CSR influences CBI. Research limitations/implications This study proposes a new model describing the antecedents and consequences of buying decision-making. Practical implications Consumers may want to reward those brands that direct part of their budgets to social causes or are truly concerned with the general well-being of society. Social implications The findings confirmed that social responsibility initiatives will improve the corporate image and reputation thus fostering the development of a sense of identification moderated by brand familiarity. Originality/value The major contribution of this paper relies on the proposed conceptual model that provides a holistic approach to the buying decision process, thus facilitating a deeper comprehension of the role of brand’s CSR practices, in particular in self-expression and emotional categories such as perfumes.

scholarly journals Corporate Social Responsibility Activities that Influence Customer Loyalty of SMEs

2018 ◽  
Vol 13 (6) ◽  
pp. 255 ◽  
Author(s):  
Peter K. Turyakira
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Equation Modeling ◽  
Key Stakeholders ◽  
Medium Enterprises ◽  
Corporate Social

Businesses are increasingly required to address the demands of key stakeholders, in addition to those of shareholders. There is an increasing role of corporate social responsibility (CSR) to large businesses and small and medium enterprises (SMEs) alike. However, research to support the degree of the application of CSR activities to SMEs with respect to customer loyalty is limited. The purpose of this study was to examine the selected CSR activities that impact the customer loyalty of SMEs. A self-administered questionnaire was distributed to selected SMEs in Kampala District, while Structural Equation Modeling was utilised to determine the influence of independent variables on the dependent variable. The study findings revealed that the selected CSR activities (Society-oriented CSR activities, Market-oriented CSR activities and Environmental-oriented CSR activities) positively influence the Customer loyalty of SMEs.

Corporate social responsibility and business ethics: conceptualization, scale development and validation

2019 ◽  
Vol 29 (4) ◽  
pp. 431-439
Author(s):  
Dana E. Harrison ◽  
O.C. Ferrell ◽  
Linda Ferrell ◽  
Joe F. Hair, Jr
Keyword(s):  
Corporate Social Responsibility ◽  
Business Ethics ◽  
Social Responsibility ◽  
Convergent Validity ◽  
Structural Equation ◽  
Discriminant Validity ◽  
Equation Modeling ◽  
Content Type ◽  
Initial Item ◽  
Corporate Social

Purpose The purpose of this paper is to theoretically develop and empirically validate separate scales that represent a consumer’s expectations of business ethics (BE) and corporate social responsibility (CSR). Design/methodology/approach A literature review and qualitative research were conducted to generate items for the scales. Initial item reduction was performed qualitatively based on a panel of experts. A follow-up quantitative assessment using an exploratory factor analysis further reduced the items. The scales were then validated using confirmatory composite analysis with partial least squares-structural equation modeling. Findings Separate scales representing consumers’ expectations of BE and CSR behaviors were developed. The scales exhibited reliability, convergent validity, discriminant validity and external validity. Practical implications The separation of these scales into two components will facilitate more precise examination of consumer perceptions of these two components of product and brand images, and how they may impact brand attitudes and brand trust. Originality/value This is the first effort to develop separate scales for consumer expectations of ethics and CSR, and assess their impact on brand outcomes.

scholarly journals Relationship between ethical corporate social responsibility and customer loyalty: the mediating role of customers’ gratitude

2021 ◽  
Vol 12 (8) ◽  
pp. 2194-2216
Author(s):  
Abdelsalam Adam Hamid ◽  
Maigana Amsami ◽  
Siddiq Balal Ibrahim
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
North East ◽  
Corporate Social ◽  
Retail Banks

The purpose of this study was to examine whether customer gratitude mediates the association between ethical corporate social responsibility and customer loyalty. A cross-sectional survey was adopted. A total of 430 individual customers of retail banks located in some selected towns in north-east region of Nigeria were selected using convenience sampling. Structured questionnaires were used to collect. Descriptive statistics and partial least square structural equation modeling were used in data analysis. Finding showed that ethical corporate social responsibility positively and significantly affected customer loyalty. Also, a positive and significant effect of ethical corporate social responsibility on customer gratitude was observed. Furthermore, it was observed that customer gratitude and customer loyalty are positively associated. Also, customer gratitude mediated between ethical corporate social responsibility and customer loyalty. This study concluded that customer gratitude mediated the influence of ethical corporate social responsibility on customer loyalty. The finding of this study will help managers of Nigerian retail banks to develop ethical corporate social practices which strongly create feelings of gratitude among their banks’ customers in order to take advantage of customers’ gratitude, and eventually cultivate customers’ loyalty.

scholarly journals The effect of corporate social responsibility towards customer loyalty: the role of trust, c-c identification, and customer satisfaction

2017 ◽  
Vol 21 (2) ◽  
Author(s):  
Rizal E Halim ◽  
Ahmadan Maulana Hermawan
Keyword(s):  
Corporate Social Responsibility ◽  
Customer Satisfaction ◽  
Social Responsibility ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Equation Modeling ◽  
The Government ◽  
Company Identification ◽  
Corporate Social ◽  
Customer Trust

In addition to running the rules set by the government, the activity of Corporate Social Responsibility (CSR) is also carried out by the company in increasing customer loyalty. This study aims to analyze the influence of CSR activities at the local aircraft company and local banking company to customer loyalty mediated by customer trust,C-C(Consumer-Company) identification, and customer satisfaction. Selection of these two industries because ofgrowththat hasoccurredeveryyear. The sample was consumers who have used the services of local aircraft in the last six months and consumers were registered as clients of local banks in the six months before the study began. This study uses Structural Equation Modeling (SEM) and found that for consumers from local aircraft, the company's CSR activities significantly affect customer loyalty through mediation of customer trust, while consumers from  local bank, CSR activities significantly affect the customer loyalty through mediation of c-cidentification.

scholarly journals Corporate Social Responsibility and Customer Loyalty: Exploring the Role of Satisfaction and Corporate Image in the Banking Industry

Market Forces ◽  
2021 ◽  
Vol 16 (1) ◽  
pp. 18
Author(s):  
Munawar Javed Ahmad ◽  
Ali Jawaid ◽  
Muhammad Zulqalnain Arshad ◽  
Sumaira Habib Paracha
Keyword(s):  
Corporate Social Responsibility ◽  
Customer Satisfaction ◽  
Social Responsibility ◽  
Customer Loyalty ◽  
Banking Sector ◽  
Target Population ◽  
Corporate Image ◽  
Mediating Effect ◽  
Corporate Social ◽  
The Impact

This study aims to determine the impact of corporate social responsibility on customerloyalty and satisfaction with the mediating effect of customer satisfaction and the moderatingeffect of corporate image in Pakistan’s banking sector. The study collected 302 responsesfrom the target population. We used a self-administered questionnaire for collecting thedata of banking customers in Pakistan by employing the convenience sampling technique.The study has used the PLS-SEM technique for statistical analysis. The results reveal thatcorporate social responsibility positively influences customer satisfaction. The results alsosuggest that CSR positively affects customer satisfaction. At the same time, CSR has aninsignificant association with customer loyalty. We also found that CS stimulates customerloyalty, and corporate image promotes CL. The results suggest that customer satisfactionmediates CSR and CL. We also found that corporate image does not moderate customerloyalty. Given the importance of CSR, we suggest that banks should allocate considerableresources for CSR activities. CSR is necessary for firms’ growth and sustainability. It also,directly and indirectly, affects the brand image, loyalty, and customer satisfaction. Due to strict regulations, banks have difficulty creating product differentiation; therefore, they relyon strategies such as CSR.

Corporate social responsibility, reputation and visitors’ commitment as resources for public policies’ design for protected areas for tourism sustainable exploitation

2019 ◽  
Vol 16 (4) ◽  
pp. 537-553
Author(s):  
Alejandro Alvarado-Herrera ◽  
Leonel Jesús Rodríguez-Soberanis ◽  
Heyden Rubén Herrera-Medina
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Protected Areas ◽  
Structural Equation ◽  
Public Policies ◽  
Equation Modeling ◽  
Cross Sectional ◽  
Content Type ◽  
Brand Reputation ◽  
Corporate Social

Purpose This paper aims to examine the influences of perceived corporate social responsibility (pCSR) over the brand reputation (BR) and the visitor commitment of protected areas (PAs) of Quintana Roo visitors, to create useful resources for the design of public policies in accordance to the expectations of the stakeholders from a sustainable development (SD) approach. Design/methodology/approach A cross-sectional causal multistage research was conducted. First, a literature review was performed to develop the hypotheses and the theoretical model on the basis of the paradigm of “sustaincentrism.” Afterwards, the model was empirically contrasted with data gathered from a representative sample of 440 real visitors of three Mexican PAs. The data covariance structures were examined through confirmatory factor analysis and structural equation modeling. Findings The results of the study undercover the direct and indirect effects that pCSR has over the BR and the commitment of PA’s visitors, evidencing their relevance as valuable resources for the design of public policies. Originality/value This research manifests the capacity to benefit from the studied variables as resources for the design and implementation of public policies that incorporate the development and execution of SD-attuned CSR programs able to create competitive advantages required by PA to their sustainable tourism exploitation.

Corporate social responsibility initiatives and its impact on social license: some empirical perspectives

2019 ◽  
Vol 16 (3) ◽  
pp. 431-447 ◽  
Author(s):  
Samuel Famiyeh ◽  
Disraeli Asante-Darko ◽  
Amoako Kwarteng ◽  
Daniel Komla Gameti ◽  
Stephen Awuku Asah
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Structural Equation ◽  
Driving Forces ◽  
Business Environment ◽  
Equation Modeling ◽  
Content Type ◽  
Social License ◽  
Social Initiatives ◽  
Corporate Social

Purpose The purpose of this study is to understand the driving forces of corporate social responsibility (CSR) initiatives in organizations and how these social initiatives influence organizations’ “license to operate” using data from the Ghanaian business environment. Design/methodology/approach This study used purposive sampling with a well-structured questionnaire as a data collection tool. Partial least squares-structural equation modeling was used to study the driving forces of CSR initiatives in organizations and how these social initiatives influence their social license. Findings The findings indicate that CSR initiatives are driven by the normative, mimetic, investors and community pressures. The regulative pressure has no significant effect on CSR initiatives. The authors found no difference between the services and the manufacturing sectors as far as the results are concerned using multi-grouping analysis. Research limitations/implications From the results, the importance of normative, mimetic, investors and community pressures as the driving forces of CSR are established. The finding indicates that CSR demands by suppliers, customers the extent to which organizations perceive their competitors have benefited from initiating CSR are benefiting, the willingness of investors to invest in companies whose CSR activities are best and the opinion on the extent to which the District Assembly and the Chief Executive in the district, the Chiefs, the Churches, the Opinion leaders have significant impact on CSR initiatives. Practical implications The results indicate the need for suppliers and customers to continually demand from corporations to initiate CSR activities as organizations seem to respond to these pressures, and these initiatives are also likely to be mimicked by other organizations in the same industry to enable this drive the social responsibility agenda. Investors and community members are also encouraged to invest and accept, respectively, organizations with very good CSR records to send a signal to companies who see CSR as a cost instead of performance enhancement. Originality/value The work illustrates and provides some insights and builds on the literature in the area of CSR from a developing country’s environment. This is also one of the few works that investigate the driving forces of CSR and social license using the institutional theory based on data from the African business environment.

The relationship between casino corporate social responsibility and casino customer loyalty

2018 ◽  
Vol 25 (4) ◽  
pp. 569-592 ◽  
Author(s):  
Shiang-Lih Chen McCain ◽  
Jeffrey C Lolli ◽  
Emma Liu ◽  
Eric Jen
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Customer Loyalty ◽  
Structural Equation ◽  
The United States ◽  
Equation Modeling ◽  
Casino Industry ◽  
Modeling Analysis ◽  
Negative Images ◽  
Corporate Social

Corporate social responsibility (CSR) has become a popular, and even expected, strategy for promoting an organization’s public persona. CSR is particularly important in the casino industry since many customers associate the casino industry with negative images such as crime and drugs; therefore, casinos try to enhance their social image through CSR activities. This study investigated how casinos’ CSR activities (economic, legal, ethical, and philanthropic) influenced customer loyalty (CL). Partial Least Squares (PLS)-structural equation modeling analysis was used to examine the hypotheses on a sample of 251 casino’s customer in the United States. Results of this study showed that the dimensions of philanthropic and legal responsibilities had varying effects on CL. In contrast, economic and ethical responsibilities didn’t significantly affect CL.

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