Corporate Social Responsibility and Customer Loyalty: Exploring the Roles of Customer Satisfaction and Brand Image of Company

Abstract

Corporate Social Responsibility (CSR) has become an important part of organisations from various industries. Besides producing quality goods and services, and carrying out just the usual roles, companies are also now expected to be more sociably responsible. Recently, the electricity provider in Malaysia has come under spotlight due to looming regulatory changes. Contestable market or liberalisation in the local utility sector is vital as it provides customers alternate solutions with additional choices and flexibility when buying electricity. However, with the news of possible liberalisation that will occur, it is necessary for the company to know if customers will stay loyal when new competitors arrive. The aim paper is to study how CSR impact customer loyalty in electricity company. This cross-sectional study is conducted through a self-administered questionnaire. The partial least squares–structural equation model is also used to examine how the company brand image and satisfaction mediates customer responses to CSR dimensions. The research has proven that CSR has significant impact on customer loyalty. In this regard, the findings will encourage electricity industry players to consider CSR as part of their business strategy to improve their customer satisfaction and brand image respectively towards sustainable business development.