The Role of Corporate Social Responsibility and Corporate Image in Times of Crisis: The Mediating Role of Customer Trust.

Chih-Cheng Chen,Tanaporn Hongsuchon,Athapol Ruangkanjanases,Shih-Chih Chen,Asif Khan,Yen-Tzu Chen,Ornlatcha Sivarak

doi:10.3390/ijerph18168275

Abstract

The purpose of this research is to empirically examine relationships between a multi-dimensional set of corporate social responsibility (CSR) initiatives, numerous dimensions of customer trust, and corporate image in an emerging economy. It also analyzes the mediating effect of customer trust on the relationship between CSR and corporate image. This study focuses on two of the most well-known hotel chains situated in Pakistan. Close-ended, self-administered questionnaires were circulated amongst a total of 300 hotel customers. The research data was analyzed using a partial least square-structural equation modeling (PLS-SEM) model. The results revealed that economic, legal, and ethical CSR significantly impacted corporate image, while philanthropic CSR did not affect the corporate image. However, economic, legal, and philanthropic CSRs were found to be in a significant relationship with customer trust, while ethical CSR was not in a significant relationship with customer trust. Finally, customer trust fully mediated the relationship between economic and legal CSR with corporate image, whereas it partially mediated the relationship between ethical and philanthropic CSR. This study is unique from earlier CSR research based on an assessment of the connection between CSR dimensions and corporate image to examine customers’ trust in an emerging economy, especially in times of crisis.

Highlights

Corporate Social Responsibility (CSR) describes how a company manages its industry and takes responsibility for its social impact
The findings of the study were divided into two models; model A of the study analyzed the relationship between corporate social responsibility (CSR) and corporate image without the mediating effect of customer trust, while model B integrated customer trust as a mediating variable
Future researchers can target the impact of customers communication on the periods of pre and post-crisis situations related to CSR. The purpose of this is to analyze the connection between CSR dimensions and corporate image to examine customers’ trust in an emerging economy, especially in times of crisis

Summary

Introduction

Corporate Social Responsibility (CSR) describes how a company manages its industry and takes responsibility for its social impact. Corporate social responsibility encompasses various characteristics like economic dependence, legal conformity, ethical requirement, and societal influences [1]. Customers are key participants of a corporation, exploring corporate social responsibility from the perception of customers has progressively drawn the attention of investigators and experts, especially in the service industry [3]. Times of crisis are described as the complex challenges faced by the companies. These challenges are mostly related to the strategic focus of the companies in times of economic downturns. Financial challenges and profit-making ability are deemed as the core aspects of a company in times of crisis. Other social challenges and responsibilities of the business are

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