Abstract
PurposeThe purpose of this paper is to analyze the role of bank branch managers’ perceptions of corporate social responsibility (CSR) in CSR marketing outcomes.Design/methodology/approachThe paper proposes a causal model establishing that managers’ perceptions of CSR influence the perception of CSR held by the branch’s customers, which in turn directly affects customer satisfaction, customer trust, customer engagement and customer loyalty. The unit of analysis in this quantitative study is the bank branch. Two questionnaires were administered: one to branch managers and another to five customers in each branch.FindingsBranch managers’ perceptions of CSR have a marked influence on customers’ perceptions of CSR, which again have a notable impact on the relationship variables studied: customer satisfaction, customer trust, customer engagement and customer loyalty.Research limitations/implicationsThe sample was taken from two banks in the same country (Spain) and only five customers were interviewed in each branch. The type of customers analyzed should be taken into account since a growing number of customers now carry out all of their banking online and are less likely to visit their branch.Practical implicationsThe results highlight the importance of adopting socially responsible actions not only in the bank as a whole, but also in individual branches. It would, therefore, seem crucial for high level bank executives not only to involve branch managers in the bank’s CSR strategy, but also to empower them to undertake CSR actions that involve the customers and local community with which they interact.Originality/valueFirst, the paper reveals the differences within the same organization in the way its CSR strategy is implemented. Second, intermediary figures or supervisors are shown to have a key role in ensuring the organization’s CSR strategy is effective. Third, the study emphasizes the importance of customers’ perception of CSR in achieving the main outcomes of relationship marketing (satisfaction, trust, engagement and loyalty). Fourth, the methodology applied in the study is innovative in its construction of dyads in which the branch is the unit of analysis, enabling a comparison between the manager’s perceptions of CSR with that of five customers from the same branch. Fifth, the findings add to the knowledge of a particularly relevant sector in the recent economic crisis, namely, the retail banking industry.
Highlights
In the last decade, interest in corporate social responsibility (CSR) has spread widely in banking industry and among academics
The research team entered into a collaboration agreement with a major Spanish bank, which enabled us to interview both branch managers and their customers for this study
In order to obtain high levels of this key factor, customer perception of CSR, the operational implementation of socially responsible actions and activities at the branch level is essential, and are reflected in the bank managers’ perceptions of them. It is the branch supervisors, not the managers further up in the organizational hierarchy, who are directly integrated in the context in which the customer relationship is managed, and they are responsible for effectively implementing and conveying the CSR practices in place in their branches
Summary
Interest in corporate social responsibility (CSR) has spread widely in banking industry and among academics Based on agency theory, Oh et al (2018) consider that executives pursue their own interests, unless they are properly monitored or an appropriate incentive system is put in place Because these two governance systems are usually designed to meet financial targets, much remains unclear about branch managers’ motivations to promote the bank’s CSR actions. Structural equation models (SEM) were used to obtain the results
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