THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON THE CUSTOMERS’ LOYALTY IN THE JORDANIAN BANKING SECTOR: THE MEDITATING ROLE OF CUSTOMER SATISFACTION

Abstract

This study examines the impact of corporate social responsibility on customer loyalty in Jordanian commercial banks. The study aimed to examine the mediating role of customer satisfaction in the relationship between corporate social responsibility (ethical, philanthropic, and environmental) and customer loyalty. The descriptive-analytical method was used. Data were collected from customers of a Jordanian commercial bank in Amman. A total of 380 questionnaires were analyzed using smart PLS version 3.2.8. The relationship and mediation effects were investigated using partial least squares structural equation modeling (PLS-SEM). The research results indicated a significant impact of corporate social responsibility (CSR) on customer loyalty. Also, the result indicated that customer satisfaction mediated the relationship between the corporate social responsibility dimension (ethical responsibility, philanthropic responsibility, and environmental responsibility) and customer loyalty among the bank’s customers. Accordingly, the study recommends employing social initiatives in the bank with ethical and environmental responsibility because of their great resonance with customers to bridge the great competitive gap in the Jordanian banking sector. Furthermore, the current study supports the literary framework by examining the relationship between corporate social responsibility and customer loyalty. The novelty of this study establishes the context of highlighting the key dimensions of CSR that impact customer loyalty and satisfaction, thereby improving the performance of Jordanian banks. Finally, Jordanian banks may be able to increase their revenues and meet the organization’s objectives.