Abstract
The purpose of the current study was to comparatively estimate, for generation X and generation Y, the impact of corporate environmental and social responsibility on customer loyalty, via customer–company identification and customer satisfaction as mediators. For this, a survey was conducted among a sample of telecom customers, comprising 445 members of generation X, and 601 of generation Y. Data were analyzed using partial least squares structural equation modeling and multigroup analysis. Results revealed that the impact of corporate environmental responsibility on customer loyalty is significantly higher within generation Y, while the social facet of corporate responsibility is more relevant for customers from generation X. The current study contributes to the literature by developing and testing, within multiple generational groups, a theoretical model which outlines the links between environmental and social responsibility and customer outcomes. As these relationships have been scarcely analyzed in the context of age cohort membership as a moderator, our study fills an important literature gap, emphasizing significant differences between generations X and Y. The findings have relevant implications for the effective communication of corporate environmental and social responsibility activities, providing important insights on how messages and communication channels should be adapted to generations X and Y as target audiences.
Highlights
During recent decades, corporate environmental and social responsibility have attracted the attention of scholars from various scientific fields [1], being often referred to under the umbrella of wider concepts such as corporate social responsibility (CSR) or corporate sustainability.From an organization’s perspective, environmental and social responsibility can have several positive outcomes concerning organizational attractiveness to employees, customers, investors and other stakeholders
The telecom sector, which can be described as an oligopoly with few large corporate competitors, regardless of the country or region taken into consideration, is generally involved in CSR actions, having robust CSR policies and procedures implemented, and paying particular attention to regularly and fully disclosing and communicating their CSR activities in structured reports, which are made publicly available via their own media and disseminated via paid media or publicity
With regard to hypotheses Hypothesis 8 (H8) and Hypothesis 9 (H9), it can be stated that the direct impacts of customer-company identification and customer satisfaction on customer loyalty was confirmed as being positive and significant for both generations, with no significant difference between generation X and generation
Summary
Corporate environmental and social responsibility have attracted the attention of scholars from various scientific fields [1], being often referred to under the umbrella of wider concepts such as corporate social responsibility (CSR) or corporate sustainability.From an organization’s perspective, environmental and social responsibility can have several positive outcomes concerning organizational attractiveness to employees, customers, investors and other stakeholders. Organizational engagement in environmental and social responsibility is linked to a number of valuable attitudinal and behavioral employee outcomes, evidence suggesting that organizational CSR performance enhances companies’ attractiveness for both prospective and current employees [2], leading to higher employee satisfaction and outcomes [3]. Being perceived as an environmentally and socially responsible company leads to reduced financing costs [4], better financial performance [5] and, to higher organizational appeal for actual and potential investors. It can increase customers’ identification with the company, their satisfaction with its products/services, as well as their loyalty to the company, these positive effects of customers’. It is extremely important for companies to be socially and environmentally responsible and to be perceived as such [8]
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