Social responsibility influence on customer trust in hotels: mediating effects of reputation and word-of-mouth

2017 ◽  
Vol 72 (1) ◽  
pp. 1-14 ◽  
Author(s):  
Mohammad Reza Jalilvand ◽  
Leila Nasrolahi Vosta ◽  
Hamze Kazemi Mahyari ◽  
Javad Khazaei Pool

Purpose This paper aims to model and test the relationships between corporate social responsibility (CSR), corporate reputation (CR), word-of-mouth (WOM) behavior and customer trust (CT) within the hotel context. Design/methodology/approach A questionnaire survey was conducted among 300 hotel guests. Following a two-step approach, a measurement model was estimated and then a structural model was analyzed to test six proposed hypotheses. Findings The research results show that CSR has a direct and positive effect on CT, CR and WOM; CSR has an indirect and positive influence on CT via CR and WOM as mediating variables; CR is a significant antecedent of WOM; and CR and WOM are positively associated with CT. Originality/value The research examines the relationship among CSR, CR, WOM and CT, thus contributing to hospitality management literature theoretically. In addition, relevant implications are provided for managers as to how to improve CT in service industries.

2015 ◽  
Vol 11 (2) ◽  
pp. 324-339 ◽  
Author(s):  
Pascal Nguyen ◽  
Anna Nguyen

Purpose – The purpose of this paper is to investigate the link between corporate social responsibility (CSR) and risk for a sample of US firms rated by KLD. Design/methodology/approach – The authors’ approach involves three distinctive features. First, the authors use individual indicators of CSR to highlight which CSR dimension matters most for a firm’s risk. Second, the authors distinguish CSR strengths and concerns to reveal potentially nonlinear relationships. Third, the authors use a measure of risk that takes into account the predictable changes in a firm’s performance and that does not collapse the panel data into a single cross-section. This allows the CSR–risk relationship to be estimated by the variation within each firm and the variation across firms. Findings – Consistent with existing results, the authors find that CSR concerns relating to diversity, employee relations and corporate governance increase the risk to shareholders. More interestingly, the authors show that CSR strengths relating to diversity and employee relations are also associated with higher risk. The positive influence of both CSR strengths and concerns on a firm’s risk is confirmed using aggregate CSR indicators. Research limitations/implications – The results confirm that CSR strengths and concerns represent distinct constructs that should not be aggregated into a single measure. The effect of poor CSR on firm risk is more significant than what would appear to be the case using an aggregate index. Practical implications – Although lack of CSR engagement may not affect (and may even benefit) a firm’s current performance, it may seriously damage its performance in the future. Firms should be aware of this risk. Originality/value – The positive relationship found between CSR and firm risk underscores the inherent conflict between the interests of employees and those of shareholders. By committing to a more favorable treatment of their employees, firms incur a fixed cost that inevitably transfers more risk to their shareholders.


2015 ◽  
Vol 6 (4) ◽  
pp. 364-380 ◽  
Author(s):  
Tim Lu ◽  
Xia Wei ◽  
Kungchi Li

Purpose – The paper aims to establish a causal relationship model that helps to realize how consumer involvement with the cause moderates the effect of company-cause fit on consumers’ corporate associations, and how their corporate associations regarding a company’s social responsibility programs influence their satisfaction with the company and the company’s corporate image, in the backdrop that the use of corporate social responsibility initiatives to affect consumers’ preference has become a common strategy. Design/methodology/approach – In the main study, the authors conducted a between-subjects factorial design to test the research model. A total of 400 questionnaires were distributed, and a valid sample of 389 participants was obtained. Findings – The results show that high-fit programs have a positive influence on the perceived corporate ability (CA) and corporate social responsibility (CSR) associations. CA associations directly influence corporate image and consumer satisfaction, while CSR associations indirectly impact consumer satisfaction through corporate image. Furthermore, consumers’ involvement with the cause increases the relationship between company-cause fit and CA associations. Originality/value – These conclusions have important implications for a better understanding of consumer evaluation of CSR initiatives. Theoretically, this research increases understanding of the interaction effects of perceived company-cause fit and consumer involvement with the cause on consumer evaluation of a company engaged in CSR, and a richer insight into the role of CA and CSR associations in consumer evaluations of companies engaged in CSR campaigns. Managerially, this research shows how managers can choose CSR programs causes that are most likely to promote favorable customer CA and CSR associations, thereby improving the company’s corporate image and customer satisfaction.


2014 ◽  
Vol 8 (4) ◽  
pp. 556-576 ◽  
Author(s):  
Yu-Chen Wei ◽  
Carolyn P. Egri ◽  
Carol Yeh-Yun Lin

Purpose – The purpose of this paper is to investigate the extent to which societal culture has a moderating effect on the business benefits of corporate social responsibility (CSR). Design/methodology/approach – A cross-national research design was conducted using survey data collected from 164 firms in Taiwan and 196 firms in Canada. Findings – We found societal differences in the positive influence of CSR on corporate image and employee commitment. Specifically, we found that the relationships between CSR (customer-oriented and employee-oriented) and corporate image were stronger for Taiwanese firms than for Canadian firms. In addition, employee CSR was found to be more strongly associated with higher employee commitment in Taiwan than in Canada. While customer CSR was associated with enhanced customer loyalty, this relationship was similar for firms in both countries. Research limitations/implications – Multi-informants for data collection and longitudinal research design in future research would be required for further understanding of the relationships among the variables in this study. Practical implications – This paper suggests that the business benefits of customer and employee CSR practices may yield relatively greater competitive advantages in East Asian countries where CSR is not as established or taken for granted as in Western countries. Originality/value – This study draws on the strategic perspective to investigate the value of CSR practices yielding different business benefits in contrasting cultural contexts.


2015 ◽  
Vol 27 (8) ◽  
pp. 1750-1771 ◽  
Author(s):  
Lujun Su ◽  
Scott R. Swanson ◽  
Xiaohong Chen

Purpose – This study aims to model and test the relationships between corporate social responsibility (CSR), corporate reputation, customer satisfaction and behavioral intentions. Design/methodology/approach – A total of 451 complete questionnaires were obtained from randomly approached ethnic Chinese leisure tourists. Following a two-step approach, a measurement model was estimated and then a structural model analyzed to test proposed hypotheses. Findings – CSR and reputation significantly impacted customer satisfaction, which, in turn, affected repurchase and word-of-mouth intentions. Customer satisfaction fully mediated the relationship between CSR and behavioral intentions in addition to corporate reputation. Research limitations/implications – The study considered only a limited number of lodging customers in a specific geographic area in China. Additional investigation across hospitality business types and cultures is needed. Practical implications – Investments in CSR activities in a Chinese hospitality consumption context can contribute to customer satisfaction and ultimately contribute positively to customer future behaviors. Originality/value – This study provides insights into the role that CSR may play for domestic Chinese hospitality customers. Little attention has been paid to the importance of corporate reputation in a tourism/hospitality context. This study contributes in helping to close this gap. Finally, this study embeds customer satisfaction within a framework of antecedents and consequences in an integrated causal model.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Niki Glaveli

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.


2019 ◽  
Vol 8 (3) ◽  
pp. 246-265 ◽  
Author(s):  
Zahid Hameed ◽  
Ikram Ullah Khan ◽  
Tahir Islam ◽  
Zaryab Sheikh ◽  
Safeer Ullah Khan

Purpose The purpose of this paper is to extend the corporate social responsibility (CSR) literature by examining the influence of a firm’s external CSR activities (efforts directed toward external stakeholders of the firm) and internal CSR activities (efforts directed toward employees) on employees’ organizational citizenship behaviors toward the environment (OCBE) via organizational pride. The authors also examine the moderating role of perceived organizational support (POS) between CSR and organizational pride. Design/methodology/approach A total of 324 questionnaires were collected from the hospitality industry of Pakistan. Findings The results of this research revealed that dimensions of CSR (external and internal) have a positive influence on organizational pride. Also, organizational pride is found as an underlying mediating mechanism between the relationship of CSR and OCBE. The results also indicated that a higher level of POS strengthens the relationship between CSR and organizational pride. Practical implications The findings are limited to only hospitality industry. Organizations can enhance employees’ sense of pride through CSR activities, which subsequently enhance employees OCBE. The findings also suggested that organizational pride contains intrinsic motivation that can help employees to enhance their OCBE. Originality/value This research suggests that organizational pride and POS are important factors which influence the relationship between CSR and OCBE. Further, it also empirically tests this model in a developing country context.


2017 ◽  
Vol 13 (4) ◽  
pp. 698-713 ◽  
Author(s):  
Claudel Mombeuil ◽  
Anestis K. Fotiadis

Purpose Many research findings depicted corporate social responsibility (CSR) as a strategic tool for influencing customer behavior, especially customer trust. Nevertheless, rare is research that considered a business ecosystem infested by a low level of cultural trust, political and economic problems, perceived corruption and low level of CSR awareness and engagement as obstacles that may prevent companies from influencing their customers’ behavior. Therefore, this study aims to evaluate whether CSR activities positively influence consumer/user trust toward companies operating within a low-cultural-trust context and also the consistency of empirical finds on CSR regardless of the cultural context. Design/methodology/approach The model of this study consisted of four variables: perceptions of CSR, customer trust, service quality and customer satisfaction. The target sample constituted respondents belonging to six different occupational categories namely health-care services, media services, law and public security, agriculture and earth sciences, training and education services and administrative sciences. This study used a quantitative approach based on a paper–pencil questionnaire to collect the data. Findings The results of this study indicated that perceptions of CSR correlated positively with service quality, customer satisfaction and customer trust. The results also indicated that perceptions of CSR, service quality and customer satisfaction are good predictors of customer trust. Originality/value This study is significant because it was conducted in a developing country (Haiti) that has long been struggling with political instability, systemic corruption, serious environmental damages and continuous economic crises and inequality along with a low level of CSR engagement and awareness.


2022 ◽  
Vol 14 (2) ◽  
pp. 615
Author(s):  
Yi Hsu ◽  
Thi Hong Gam Bui

This study measured consumers’ perspectives and behaviors with respect to corporate social responsibility (CSR). Specifically, we explored the components of CSR, including CSR aimed towards the environment, society, customers, employees, suppliers, and shareholders. We also examined the impact of CSR practices on brand attitude and purchase intention. The study surveyed 616 consumers across three locations, with detailed questionnaires in four languages. A total of 564 samples (186 from Vietnam, 189 from Indonesia, and 189 from Taiwan) qualified for data analysis. Additionally, statistics software including LISREL 8.8, STATISTICA 10, and MINITAB 19 were utilized to evaluate our hypotheses and construct a structural model. The results indicated that the consumers across the three areas were not concerned about CSR aimed towards shareholders, while all consumers considered CSR aimed towards themselves. Vietnamese customers prioritized a company’s care for its employees, while both Indonesian and Taiwanese consumers concentrated on the environment and society. In addition, suppliers’ benefits and rights attracted Indonesians’ attention. Furthermore, CSR had a positive significant impact on brand reputation in all three cultures. However, while CSR had a positive influence on customer purchase intention in Indonesia and Taiwan, it did not in Vietnam.


Author(s):  
Thomas Farrington ◽  
Ross Curran ◽  
Keith Gori ◽  
Kevin D. O’Gorman ◽  
C. Jane Queenan

Purpose This paper is a critical literature review of corporate social responsibility (CSR) research in both general management and hospitality management literature. This paper aims to discuss trends, commonalities and inconsistencies to better understand the state of contemporary scholarship, and it calls for a context-specific conceptual engagement with the phenomenon. Design/methodology/approach Systematic literature review, noting and critiquing a general tendency towards measurement of financial and other internal benefit impacts. Findings Hospitality management is well-positioned to evaluate the opportunities and challenges of CSR; yet, research has uncritically adopted the instrumental emphasis on assessing processes, perceptions and private profitability from the general management literature, without engaging on a contextually specific and/or theoretical level. Research limitations/implications CSR research is abundant and therefore difficult to summarise in one paper. The primarily Anglo-American and Asian contextual bias is reflected in this review. Practical implications Consistently inconsistent results challenge the portability of financial impact studies. Studies are needed to re-evaluate the concept of CSR, as it pertains to hospitality and measure the effectiveness of CSR activities relative to context and resource availability. Social implications Further research into the scope of CSR in hospitality management, with an emphasis on recuperating social value, would lead to widespread positive social implications. Originality/value This critical review offers a new perspective on CSR in the hospitality literature and industry, calling for a reconsideration of the concept in context, and formulates a working definition.


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