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

2018 ◽  
Vol 13 (6) ◽  
pp. 255 ◽  
Author(s):  
Peter K. Turyakira

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.

2019 ◽  
Author(s):  
Paula Regina Back

This paper aims to show that the strategic incorporation of socially responsible actions, in small and medium enterprises contribute to improving the competitiveness of those organizations. The analysis is from a multi-stakeholder perspective. It investigates the link among firms’ relationship with key stakeholders with the objective to find out if there is a competitive advantage in applying Corporate Social Responsibilities practices. Besides the direct influence of Corporate Social Responsibility practices on competitive performance, the mediating connection of relationship improvements has been analyzed. By using their influence, stakeholders hold the key to the environment in which the organization operates and its subsequent financial performance. The empirical analysis was constructed on survey data through structural equation modeling (SEM). To accomplish this assignment data were collected from a sample of Brazilian SMEs. Participants were firms from the Southern region of Brazil mainly from the State of Rio Grande do Sul, Santa Catarina, and Parana. The outcome shows that there is a strong connection between the development of Social Responsibilities practices and relational improvements. In addition, the significant relationship in developing Social Responsibilities Practices positively translates, with a high accuracy outcome into competitive performances.


PLoS ONE ◽  
2021 ◽  
Vol 16 (2) ◽  
pp. e0246384
Author(s):  
Martha Ríos-Manríquez ◽  
Martha Gabriela Ferrer-Ríos ◽  
María Dolores Sánchez-Fernández

Companies are increasingly aware of their role with regard to social responsibility in its three pillars: economic, social and environmental, with their different stakeholders. Facing the dilemma of choosing the model of social responsibility they should adopt, taking care of their organizational culture and their employees, with a global vision that the business world requires. However, it is not an easy task for small and medium enterprises, mainly because of their economic shortcomings in human resources and knowledge of how to be a socially responsible company. But they are aware that Corporate Social Responsibility (CSR) is an opportunity for development and differentiation in the market. Therefore, the objective of this research is to build, identify and validate a model of Social Responsibility in small and medium enterprises in Guanajuato, Mexico (CSRSMEs), on a sample of 226 SMEs, using as a basis the methodology of the international standard of Ethical and Socially Responsible Management System (SGE21). A quantitative approach was used and, a descriptive analysis, exploratory factor analysis and the structural equation modeling was applied. The results determine that the most relevant variables for being socially responsible are human capital, clients, supply chain, social environment and impact on the community, and organizational governance: Legality and Management System. It is drawn from this work that the flexibility of the so-called Ethical and Socially Responsible Management System has the empirical foundations needed. That is, from the perspective of the company’s management to consider the CSRSMEs model an opportunity to adopt and evaluate the areas of social responsibility management of any business structure in the SMEs in Mexico.


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.


2021 ◽  
Vol 12 (8) ◽  
pp. 2194-2216
Author(s):  
Abdelsalam Adam Hamid ◽  
Maigana Amsami ◽  
Siddiq Balal Ibrahim

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.


2017 ◽  
Vol 21 (2) ◽  
Author(s):  
Rizal E Halim ◽  
Ahmadan Maulana Hermawan

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.


2018 ◽  
Vol 25 (4) ◽  
pp. 569-592 ◽  
Author(s):  
Shiang-Lih Chen McCain ◽  
Jeffrey C Lolli ◽  
Emma Liu ◽  
Eric Jen

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.


2017 ◽  
Vol 13 (3) ◽  
pp. 409-427 ◽  
Author(s):  
Mert Gürlek ◽  
Ertugrul Düzgün ◽  
Selma Meydan Uygur

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.


2018 ◽  
Vol 43 (3) ◽  
pp. 175-191
Author(s):  
Neena Sinha ◽  
Timcy Sachdeva ◽  
Miklesh Prasad Yadav

The objective of present study is to investigate the relationship between corporate social responsibility (CSR) and financial performance (FP) with the help of a stakeholder approach in the context of small and medium enterprises (SME) industry in Delhi NCR. A sample of 382 SMEs was analysed through a structured questionnaire having 22 statements out of which two statements were removed due to low factor loading. The goodness of fit was measured by AMOS–SEM and relationship between variables was examined by path analysis. The overall model was fit and finding indicated a weak positive relationship between CSR and FP. The results were in conformance with previous research works by Jain, Vyas and Durga (2016) and Weber (2008). It was also observed that SMEs are socially responsible towards their stakeholders, but it is more in informal nature rather than adopting it as a strategy. Further, the results revealed that CSR of SMEs is associated with religious spirit.


2021 ◽  
Vol 13 (4) ◽  
pp. 96-114
Author(s):  
Ngoc Khuong Mai ◽  
An Khoa Truong Nguyen ◽  
Thanh Thuy Nguyen

Corporate social responsibility (CSR) is an important strategy for firms to gain a positive reputation. This study aims to identify the mediating role of firm reputation on the relationships of CSR dimensions (economic, legal, ethical, philanthropic and environmental) and competitive advantage, and how a firm directly gains competitive advantage through CSR implementation. Data were collected by surveying 869 managers, as representatives of small and medium enterprises, and large enterprises, in the trade and service, real estate and manufacturing sectors in Vietnam. Then, SmartPLS 3.0 software and the partial least squares structural equation modelling method were used to process the data and test the hypotheses. The empirical results are impactful and enhance the existing literature on strategic management. The results show that implementing environmental, ethical, philanthropic and legal CSR activities contribute positively to increase the firm reputation and thus generating competitive advantage. The findings indicate that the implementation of economic CSR activities does not enable firms to gain a reputation. In contrast, active involvement in environmental CSR activities results in building firm reputation, thereby creating a source of competitive advantage for firms. The study provides guidelines for top-level management to adjust their CSR strategies more effectively to improve reputation and competitive advantage.


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