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Corporate social responsibility and loyalty: Intervening influence of customer satisfaction and trust

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  • Muzammal Ilyas Sindhu
  • Muhammad Arif

Abstract

This study investigated the relationship between value relevance and ethical standards as determinants of commitment to corporate social responsibility (CSR) activities and customer loyalty with the intervening effect of customer satisfaction, corporate reputation, and trust. Multidimensional questionnaires were designed and the structural equation modeling was applied to investigate relationships. Our results provided a general picture of the theoretical process by which the sequential relationship between value relevance, ethical standards, commitment, trust, satisfaction, reputation, and loyalty. The commitment to CSR is positively influencing customer loyalty and customer satisfaction, trust, and corporate reputation also intervened in their relationships. This study is theoretical contributing as identified customer satisfaction, trust, and corporate reputation as intervening factors, while from the practical point of view, customer trust is important because it is considered as justification based on morality . It is, therefore, important that organizations should properly disseminate practical and moral information. This is a novel study in Pakistani context because it is a theoretical contribution in existing literature as well as in organizational CSR practices leading to customer satisfaction, trust, and loyalty.

Suggested Citation

  • Muzammal Ilyas Sindhu & Muhammad Arif, 2017. "Corporate social responsibility and loyalty: Intervening influence of customer satisfaction and trust," Cogent Business & Management, Taylor & Francis Journals, vol. 4(1), pages 1396655-139, January.
    • Handle: RePEc:taf:oabmxx:v:4:y:2017:i:1:p:1396655
    DOI: 10.1080/23311975.2017.1396655
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    4. Xu, Peng & Xu, Xiaomei & Bai, Guiyu, 2022. "Corporate environmental responsibility, CEO’s tenure and innovation legitimacy: Evidence from Chinese listed companies," Technology in Society, Elsevier, vol. 70(C).
    5. Asiya Chaudhary & Shabir Ahmad Hurrah & Shafat Maqbool, 2020. "The Influence of Corporate Social Responsiblity on Actual Buying Behaviour: A Study of Indian Consumers," Metamorphosis: A Journal of Management Research, , vol. 19(1), pages 21-28, June.
    6. Mehnaz & Jiahua Jin & Azhar Hussain & Muhammad Akib Warraich & Abdul Waheed, 2024. "Impact of perceived CSR practices on customers loyalty. The mediating role of reputation and customer satisfaction," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(5), pages 3724-3734, September.
    7. Hasan Mukhibad & Indah Anisykurlillah & Ahmad Nurkhin & Prabowo Yudo Jayanto, 2019. "Can Social Performance Improve Financial Performance and Increase Customers¡¯ Trust?," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 10(4), pages 37-45, July.

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