The Impact of Corporate Social Responsibility on Customer Loyalty: Evidence from the Commercial Banks in Viet Nam

Purpose This study aims to look into how customer satisfaction (CS) plays a mediating role in the relationship between corporate social responsibility (CSR) and customer loyalty (CL) among Ethiopian commercial bank clients. Design/methodology/approach This study used a survey research design to collect information from 790 Ethiopian commercial bank customers. Purposive sampling techniques were used in the study to choose respondents, and the AMOS structural equation model in conjunction with SPSS was used to evaluate the hypotheses. Findings The findings show that CSR has a significant effect on both CS and CL. Likewise, CS plays a positive role in fostering CL. Moreover, CS acts as a mediator in the connection between CSR and CL. This suggests that CSR and CS are key factors in determining CL among commercial bank customers in Ethiopia. Research limitations/implications This study examined the overall impact of CSR on loyalty. Future research can explore the impact of specific CSR initiatives, such as environmental sustainability, charitable giving, community involvement and ethics. Another implication could involve studying moderating factors like customer demographics and industry context. This study is a cross-sectional study; therefore, future studies should focus on longitudinal studies that could reveal the long-term effects of CSR on CL. Additionally, examining the effects of CSR on stakeholders beyond customers, like employees and suppliers, could provide a broader understanding of its impact on business performance and social outcomes. Practical implications By investing in CSR activities that resonate with customer values, banks can improve CS and ultimately CL. This highlights importance of aligning CSR strategies with customer preferences and expectations to create strong emotional connection with customers. Moreover, leveraging CSR efforts as unique selling point can differentiate banks from competitors and attract socially conscious consumers. By concentrating on delivering high-quality services and personalised experiences while communicating transparently about their CSR initiatives, banks build trust and loyalty among customers. Continuous monitoring and evaluation of CSR programmes are essential to ensure their effectiveness and alignment with customer needs, leading to CS and CL. Social implications By demonstrating that CSR activities positively impact CS and CL, commercial banks can contribute to the overall well-being of society. Engaging in socially responsible practices not only enhances the reputation of banks but also fosters a sense of trust and goodwill among customers. This leads to a more positive perception of banks as ethical and socially conscious institutions, ultimately benefiting the community at large. Furthermore, by emphasising the mediating role of CS in the relationship between CSR and CL, banks can better understand how to cultivate long-term relationships with their customers based on mutual trust and value. Originality/value Prior research has mainly focused on instantaneous customer responses like buying intentions and brand perception. By contrast, this study delves into the enduring impact of CSR on customer actions, specifically CL. Furthermore, it breaks new ground by exploring CSR as a higher-order construct to elucidate how CS serves as a mediator between CSR initiatives and CL.

Corporate Social Responsibility (CSR) is increasingly practised, with companies not only prioritizing profit growth but also contributing to society. Thus, this study examines the impact of external CSR on customer loyalty in Nepal’s banking sector, considering customer satisfaction, trust, and corporate reputation as mediating variables. This study uses explanatory research design, and data were collected from 403 bank’s customers in the Kathmandu Valley via Kobo Toolbox. Structural equation modelling (SEM) was applied to analyse relationships among the study variables. The results indicate that external CSR significantly enhances corporate reputation and customer satisfaction but has no direct impact on customer loyalty or trust. However, customer satisfaction positively influences trust. A key finding reveals that corporate reputation, customer satisfaction, and trust mediate the relationship between external CSR and customer loyalty. Additionally, awareness of CSR initiatives in the locality remains low. Respondents emphasised that banks shouldsupport local development by collaborating with municipalities to establish public amenities such as chautara (sitting areas), taps, and road maintenance. These insights help enhance customer loyalty and CSR effectiveness in Nepal’s banking sector.

The impact of corporate social responsibility on customer loyalty: The mediating role of corporate reputation, customer satisfaction, and trust

Drawing on stakeholder theory, signaling theory and social identity theory, this research aims to examine the effect of corporate social responsibility (CSR) on trust, satisfaction, co-creation and customer loyalty in a developing country. Structural equation modeling was performed to validate the research model. This study confirms that hotel CSR dimensions had a significant positive effect on customer trust, satisfaction, co-creation and loyalty. More specifically, the strongest impact on customer trust is environmental CSR, followed by stakeholders CSR, social CSR, and finally economic CSR. Four dimensions in the order of impact on customer satisfaction are as follows: stakeholders CSR, environmental CSR, economic CSR, and social CSR. More interestingly, the strongest effects on customer co-creation are stakeholder CSR, environmental CSR, social CSR and economic CSR. Moreover, stakeholder CSR and economic CSR have positive effects on customer loyalty. The findings also confirm that customer trust, satisfaction and co-Creation have a positive impact on customer loyalty. This study provides hotel managers with key points about enhancing customer loyalty from CSR perspective and its relationship with customer trust, satisfaction, and co-creation. Hotel managers should consider CSR as a core value in their business plans and an important tool to demonstrate honest and sustainable responsibility.

Retaining customers is important for companies because the cost of acquiring new customers is much greater than the cost of maintaining relationships with current customers. This is because loyal customers will certainly provide a positive image for the company and generate word of mouth promotion in acquiring new customers. The purpose of this study is to examine the effect of Corporate Social Responsibility (CSR) on customer loyalty mediated by Customer Satisfaction, Trust, Word of Mouth (WOM), and Corporate Reputation. Type data Which used is data primary, is data Which sourced or managed in a way direct by researcher. Collection data in study This done through questionnaire with using google-form . The population of this study were customers who had been Government Banks for more than 1 (one) year, namely Bank Mandiri, Bank BNI, and Bank BRI and were over 17 years old (seventeen years old). The sample in this study was 100 customers of Government Banks, namely Bank Mandiri, Bank BNI, and Bank BRI who have used and are still using the services of these banks. This study uses the Structural Equation Model (SEM) approach with a measurement model assisted by the Smart PLS program version 3.2.9. Furthermore results study show that corporate social responsibility has a significant positive effect on customer satisfaction, trust, word of mouth, corporate reputation , and customer loyalty. Then the variables customer satisfaction, trust, corporate reputation found has a significant positive effect on customer loyalty, but the word of mouth variable does not affect customer loyalty . Furthermore, it was found that customer satisfaction, trust, and corporate reputation can mediate the relationship between corporate social responsibility and customer loyalty . However, the corporate social responsibility variable does not affect customer loyalty with word of mouth as a mediator.

Corporate social responsibility (CSR) and customer loyalty in the hotel industry: A cross-country study

The purpose of this paper is to contribute to knowledge on the impact of corporate social responsibility (CSR) activities on retailers' performance (hypermarkets). An analysis using a comprehensive conceptualization of CSR reveals that CSR has positive implications for hypermarkets' performance and illustrates which CSR dimensions are the most important to focus on. For this purpose, this study enhances its empirical validity by collecting data from 667 respondents in Spain and testing the hypothesis applying partial least squares structural equation modeling. The study finds that CSR is positively influencing customer loyalty, and customer satisfaction, image, and quality also intervened in their relationships. In particular, a new finding of the study highlights the importance of the mediating role played by image and quality in enhancing the effect of CSR on satisfaction. The research findings provide useful insights into how hypermarkets should develop a CSR strategy that would enhance customer loyalty.

This study investigates the impact of Corporate Social Responsibility (CSR) on customer loyalty in commercial banks in Vietnam, with a specific focus on the mediating role of customer satisfaction. A total of 386 bank customers were surveyed, and the data were analyzed using Structural Equation Modeling (SEM). The results show that CSR positively affects both customer satisfaction and customer loyalty, with customer satisfaction acting as a significant mediator in the CSR-loyalty relationship. This study provides valuable insights for banking institutions in Vietnam, highlighting the strategic importance of CSR in fostering customer loyalty through improved customer satisfaction. The results also offer practical implications for banks to refine their CSR strategies to align with customer values and expectations.

Purpose – This study aims to investigate how perceptions associated with corporate social responsibility (CSR) initiatives influence customers’ preference and loyalty in a controversial consumer market. The mediating effect of brand preference between perceived CSR initiatives and customer loyalty is also examined. Design/methodology/approach – The methodology in the current study involves the use of questionnaire surveys delivered to a convenience sample in the city of Macau in 2012. A total of 616 valid samples were collected among casino players in a high bet limit area in six major casinos. Regression analysis was used to test the hypotheses formulated for carrying the study forward. Findings – The findings indicated that customers’ brand preference can be enhanced by their perceptions on CSR. Two CSR initiatives (stakeholders and society) significantly increase loyalty intention, although to varying degrees. The impact of CSR on stakeholders has a stronger influence on customers’ brand preference. Another important finding of the current study is the fact that brand preference is a partial mediator of perceived CSR initiatives and customer loyalty. Research limitations/implications – This study verified the relationship among CSR initiatives perception, brand preference and loyalty intention in the context of the Macau gaming industry. Perceived CSR initiatives enhance customer loyalty. Additionally, this study found a partial mediating effect of brand preference between CSR perception and customer loyalty. Practical implications – Customer loyalty can be enhanced with companies’ appropriate investments in social responsibilities. Although a socially responsible brand image of a company is not guaranteed to be a competitive advantage that attracts more premium customers, there is a general consensus that it may result in the latter with appropriate CSR strategies involving the greatest attention directed toward improving stakeholders’ interests. From the marketing perspective, retaining premium customers with a higher brand preference level is a key to both long-term competitiveness and profitability. Originality/value – This study investigates how premium customers’ perceived CSR initiatives of a casino influence their loyalty intention, and also examines how brand preference, as a mediator, influences the relationship between perceived CSR and loyalty intention. Extending the realm of CSR study to understand the linkage between CSR and customer behaviors is also important because multiple theories predict different benefits, and assessing the value of CSR, therefore, requires multiple approaches. Finally, evidence from the research is significant for researchers and practitioners, especially when working on conflicting issues.

Corporate social responsibility lies in its ability to strengthen brand value, leading to increased customer trust, competitive advantage, and sustainable financial performance over time. Corporate social responsibility strengthens brand value by demonstrating a company's commitment to ethical practices, social welfare, and environmental sustainability, which enhances its reputation and customer loyalty. This study aims to investigate how brand value impacts the relationship between corporate social responsibility and sustainable financial performance in Nepalese commercial banks. To accomplish this objective, data were collected from 252 respondents using a structured questionnaire, which was distributed via a convenience sampling method. The participants consisted of employees at managerial and officer level employees from various commercial banks. Data analysis was conducted using Process Macro 4, applying a 95% confidence interval and 5,000 bootstrapping samples. The findings reveal that brand value serves as a complete mediator in the relationship between corporate social responsibility and sustainable financial performance. This study demonstrates that organizations that are investing in corporate social responsibility play a pivotal role in enhancing brand value by demonstrating the organizational commitment to social and environmental well-being. Implementing corporate social responsibility initiatives can enhance sustainable financial performance by strengthening brand value, which fosters customer trust and loyalty, ultimately supporting long-term profitability and resilience.

Customers' loyalty is considered as an important factor ensuring overall organizational success in the long run. The purpose of this investigation is to determine how customer loyalty in Pakistan's banking sector affected by perceived corporate social responsibility (CSR) practice. To end this, the present study collected data from 378 respondents using convenience sampling technique. To test proposed hypothesis, the study used correlation analysis, regression analysis, and Baron and Kenny method used to test mediation effect of variables together with the Sobel test. The result of the study shows a significant positive association among perceived CSR, bank reputation and customers loyalty and customer satisfaction. This study further shows that bank reputation has a mediating effect between perceived CSR and customer loyalty, but the relationship between CSR practices and customer loyalty has a negative effect on customer satisfaction. It was found that there was no mediating effect of degree. The findings highlight the importance of allocating resources to CSR initiatives and reputation management as a means of increasing customer loyalty. The results provide an important academic addition to the current body of research on the impact of CSR on the development of customer loyalty, with a particular focus on the Pakistani banking industry.

The study used the banking sector in Tanzania as a case study to examine the impact of corporate social responsibility on organizational performance. In this case, 425 employees were employed as the study’s sample and population. The participants’ response rate was 100%, as every one of the 425 employees that were sampled completed the surveys completely. The study’s technique was both descriptive and exploratory. To investigate the extent to which corporate social responsibility has an impact on organizational performance, a quantitative method and regression analysis were utilized. To make statistical inferences, all relevant tests were performed to establish the quality and reliability of the data employed. To confirm convergent and discriminant validity of the data, a normality test was done, as well as a test of sufficiency of the data, composite reliability, Cronbach alpha, and average variance explained. To meet the aims, the current study used quantitative data analysis approaches. The data was analyzed using the Statistical Package for Social Sciences (SPSS v.21.0). Following that, the researchers used the ordinary least square (OLS) approach to determine the coefficients of the correlations between the variables or constructs used to proxy corporate social responsibility and organizational performance. Organizational performance was examined in three dimensions: employee commitment, corporate reputation, and financial performance. Corporate social responsibility was measured in two dimensions: social CSR and environmental CSR. Both the quantitative and regression analysis revealed that corporate social responsibility has a favorable and significant impact on an organization’s performance. According to the regression analysis, there is a positive association between corporate social responsibility (CSR) and organizational performance (PFR), as indicated by the regression coefficient value of = 0.17 (p-value 0.05). This is due to the direct effect of corporate social responsibility on organizational performance; as a result, an increase of 0.17 percent in corporate social responsibility activities among Tanzanian banks could boost their performance (corporate reputation, employee commitment, and financial performance). To account for the indirect influence of social and environmental CSR, the regression coefficient value for social CSR to performance was = 0.56 (p-value = 0.01) and for environmental CSR to performance was = 0.81 (p-value = 0.01). According to the findings, a 1% increase in the banks’ social CSR may boost their performance by 0.56 percent, while a 1% rise in their environmental CSR might boost their performance by 0.81% This finding could literally mean that by demonstrating social responsibility, an organization’s image is projected, thereby strengthening its corporate brand and reputation. It also increases market share because existing and potential customers perceive the organization as charitable and giving back to society. This research also backs up the stakeholder theory, which focuses on the concept of a social contract, meaning that a company’s survival is contingent on how well it functions within society’s rules and standards. According to the study’s findings, some employees, or respondents, were unaware of the organization’s specific CSR initiatives, as well as the quarters that make choices about CSR projects. In this regard, the study would like to advise and suggest to organizations how to increase employee participation in CSR projects and how to effectively convey CSR initiatives to all stakeholders.

Airline environmental sustainability actions and CSR impact on customer behavior

PurposeThe purpose of the paper is to evaluate the essential role of corporate social responsibility (CSR) on SMEs' performance by exploring the mediating role of corporate image (CI), corporate reputation (CR) and customer loyalty (CL) between CSR and firm performance (FP) in the context of an emerging country.Design/methodology/approachBased on an extended literature review on CSR, CI, CR and CL studies, the authors evaluate the impact of these four constructs on SMEs' performance in an emerging market. The paper follows a quantitative approach. The study sample was composed of 482 responses covering top executives, managers and experts. The Smart PLS SEM version 3.3.2 was used to analyse the data of the small- and medium-sized enterprises (SMEs) of Vietnam in the year 2020–2021.FindingsThe authors' findings reveal significant and positive relationships amongst CSR, FP, CSR and CI, CSR and CR, CSR and CL, and most importantly, the findings add value to the current knowledge by exploring the mediating effect of CI, CR and CL between CSR and FP.Research limitations/implicationsThe study was conducted in Vietnam. As a result, the findings of the study might not be applicable for other countries, if the economic and environmental settings are different from that of Vietnam. Therefore, future research should consider for other countries, other regions. Second, due to the purpose and priority of the study, CI, CR, and CL was employed as mediators amongst the relationship between CSR and FP. Thus, future research should consider other mediators or moderators in such a relationship to see how CSR generates outcomes in the new associations.Practical implicationsThe study regarding the role of CSR in enhancing the performance of SMEs can motivate firm's chief executive officers (CEOs) to be proactive in getting involved and practising CSR in a consistent manner. Second, the above discussion draws a very important implication for the executive level, the management level of the enterprise, which enterprises should balance the interests of business, customers, other stakeholders, the environment and society in order to optimise CSR outcomes for improving competitiveness and developing sustainably. This implication is particularly important to the survival and development of SMEs in a challenging emerging economy.Social implicationsThe study widens the literature regarding relationship between CSR and SMEs' performance. Besides, the study supports stakeholder theory that explains why CSR positively affects firm's performance. The significant mediating roles of CI, CR and CL were positively confirmed in the study. Although previous studies determined that such roles are strategic source of competitive advantages of enterprises, however, how CSR involved in enhancing the roles has not been deeply explored and integrated. Third, the findings of the study support the resource-based view (RBV) and resource-based perspective that explains why firm should engage in CSR activities, and CI, CR and CL can enhance firm's performance by providing strategic source of competitive advantages that facilitate business to improve its performance in sustainable direction.Originality/valueTo the best of the authors' knowledge, the current literature on CSR and FP shows that, to date, there has been little empirical research on the mediating mechanism of CI, CR and CL in the link between CSR and FP for SMEs. The findings of the study may have great implications for entrepreneurs and top management with respect to the strategic perspectives to drive the businesses and to improve firm's performance in a sustainable direction in the context of emerging markets. In addition, the finding might be of great interest to – and motivate – SMEs' managers to engage with CSR actions where such businesses were or are situated during and after the coronavirus disease-2019 (COVID-19) pandemic. By that understanding, the Government might allow for innovative and groundbreaking policies or the reformation of old policies to leverage businesses to promote their strengths towards sustainable development in the new economic settings. The findings of the study may be a significant contribution to SMEs in Vietnam and in other emerging economies.

The aspiration of this paper is to examine the impact of corporate social responsibility (CSR) and service quality on customer loyalty and their relationship in the Indian telecommunication industry. A model was proposed and a total of 377 responses were collected using a structured questionnaire. Data were assessed and analyzed using PLS SEM. Multi-group analysis (MGA) was carried out to comprehend the moderating effect of gender, age, education, and income within the model. The results suggest that CSR does not have a direct impact on customer loyalty (CL), but there is an indirect effect when it is mediated through customer satisfaction (CS) and trust (Tr). Service quality (SQ) was found to have a direct impact on CL and while it is also mediated through CS. The results of the MGA revealed that customer satisfaction increases commitment towards customer loyalty and trust among male users. This study highlights that the modern customers are knowledgeable, more aware, and value companies which are focused on CSR activities.