Effect of CSR activities on customers’ purchase intention: The mediating role of trust

Abstract

Corporate social responsibility (CSR) is the belief that businesses must consider ethical, social, and environmental issues when making decisions. Several studies have found that CSR improves corporate performance. Moreover, CSR is thought to increase consumer trust and purchase intention. This study investigates the effect of CSR activities on customers’ purchase intentions and the mediating role of trust. It draws linkages and establishes that businesses can improve their bottom lines while positively affecting society by acting responsibly.The present study selected two independent variables (ethical corporate social responsibility and legal corporate social responsibility) alongside one dependent variable (purchase intention) and one intervening variable (trust). The sample comprises two hundred and thirty respondents from India’s National Capital Region (NCR), Delhi, and nearby regions. The data were examined using structural equation modeling (SEM). The results showed that CSR activities significantly positively affected customers’ purchase intention. Furthermore, trust mediated the linkages between CSR activities and customers’ purchase intention. The findings suggest that CSR activities can increase customers’ purchase intention by fostering trust. In other words, when customers trust a firm, they are more likely to intend to purchase its products or services. CSR managers should therefore focus on creating and maintaining trust with their customers. In addition, findings suggest that firms should be conscious of their social image. This study offers significant insights because they show that any business can be successful and socially responsible. Acknowledgment This study is supported via funding from Prince Sattam bin Abdulaziz University project number (PSAU/2023/R/1444).