Customers’ response to mandatory corporate social responsibility in India: an empirical evidence

Abstract

PurposeThis paper aims to investigate the customers’ response to mandatory activities as per the corporate social responsibility (CSR) laws of India in the Indian hotel industry. Further, it analyzes the influence of mandatory CSR activities of the companies on the purchase intention (PI) of customers with the mediating role of customer satisfaction (CS). It also examines the link between mandatory CSR activities and the customers’ evaluation of corporate.Design/methodology/approachThe customers of five-star hotels in Kerala, India, were surveyed, and the proposed model is analyzed with factor analysis and structural equation modelling with mediation analysis.FindingsThe study proves three propositions, namely, the mandatory CSR activities influence the PIs of customers, the CS partially mediates the relationship of CSR activities on the PI of the customers and the mandatory CSR activities demonstrate a positive impact on customers’ evaluation of corporate in the Indian hotel industry.Originality/valueThe comprehensive CSR assessment based on hotel customers’ response by considering CSR law in India is a novel outlook. The study will aid in determining the association between mandatory CSR and PI and evaluate the role of mandatory CSR on favorable corporate evaluation.