The Impact of Corporate Social Responsibility Engagement on Customer Satisfaction and Reputation: A study on Managers' Perception

Author(s):  
A.M.A. Senevirathne
2014 ◽  
Vol 5 (1) ◽  
pp. 125-143 ◽  
Author(s):  
Kambiz Heidarzadeh Hanzaee ◽  
Mona Sadeghian

Purpose – This study aims to evaluate the impact of the most important dimensions of corporate social responsibility (CSR) as a part of social marketing (SM) according to the current economic crisis and conditions on customer satisfaction (CS) and corporate reputation in the automotive industry and also to create a new approach in the field of CSR with considering the minimum and major stakeholders by a localized model of the most basic and important responsibilities to open up a new perspective to managers to increase the efficiency of production in automotive and other industries. Design/methodology/approach – In this study, the authors used descriptive statistics and a questionnaire survey of 245 executive managers of the market leader (Iran Khodro Co.) in automotive industry in Iran. The structural equation modelling (SEM) technique used to examine the hypothesized relationships. Findings – The findings of this study conclude that legal and economic responsibilities can be considered as prerequisites for companies. There is no proportional correlation between execution of economic responsibility and CS and corporate reputation; instead, this is regarded as the basic responsibility of companies. Practical implications – This research can present CSR as a useful tool that can aid companies' long-term performance and its benefits can become visible in future with preserving their sustainability. Originality/value – Although the importance of CSR is more obvious to managers, this study opens up a new aspect of CSR by considering it as an informal structure of corporations.


Market Forces ◽  
2021 ◽  
Vol 16 (1) ◽  
pp. 18
Author(s):  
Munawar Javed Ahmad ◽  
Ali Jawaid ◽  
Muhammad Zulqalnain Arshad ◽  
Sumaira Habib Paracha

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.


2016 ◽  
Vol 50 (7/8) ◽  
pp. 1209-1238 ◽  
Author(s):  
Wenbin Sun ◽  
Joseph M. Price

Purpose This paper aims to examine the relationship between corporate social responsibility and customer satisfaction and evaluate the impact of this relationship on firm performance, specifically the moderating impact of environmental uncertainty on the corporate social responsibility to customer satisfaction relationship. Design/methodology/approach The authors constructed a panel data set by collecting data from Fortune Magazine’s World’s Most Admired Companies and Compustat. The authors used two methods, Newey–West and White–Cluster robust regressions, to estimate the empirical models. Findings The results from this moderating analysis of environmental uncertainty are largely consistent with this study's hypotheses. In particular, the authors find that corporate social responsibility contributes to increased customer satisfaction for large firms, in highly competitive environments and in highly dynamic industries. This paper also finds that in high growth environments, corporate social responsibility can result in decreased customer satisfaction. Research limitations/implications The study is limited to environmental factors in the examination boundary conditions. Researchers should broaden the moderators to include criteria such as market orientation, marketing and/or operations capability. Practical implications The empirical results provide practitioners with insight to better translate corporate social responsibility into higher levels of customer satisfaction. Social implications The empirical results support corporate social responsibility as a viable and productive means of increasing customer satisfaction. Originality/value This study is the first that builds upon the work of Luo and Bhattacharya (2006) and Saeidi et al. (2015) by examining environmental factors that influence the relationship between corporate social responsibility and customer satisfaction. This research provides useful implications for marketing theories as well as business practice.


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