Corporate social responsibility and customer loyalty: mediating role of corporate reputation among Generation Z customers of Nepali commercial banks

Abstract

Purpose

Drawing on social identity, signalling and stakeholder theories, this paper aims to examine corporate reputation’s (CR) mediating role concerning corporate social responsibility (CSR) and customer loyalty (CL) among Generation Z customers of Nepali commercial banks.

Design/methodology/approach

The research applied a cross-sectional survey research design to collect data from 281 customers of Nepali commercial banks. The study used a purposive sampling method to reach the respondents and partial least squares structural equation model was used to test the hypotheses.

Findings

The results reveal that CSR significantly influences CR and CL. Likewise, CR positively influences CL. Moreover, CR partially mediates the relationship between CSR and CL. It implies that CSR and CR are critical variables for CL among Generation Z customers of Nepali commercial banks.

Practical implications

This study focuses on understanding the importance of CSR to Nepalese commercial bank managers to create a better customer base by focusing on the CSR dimensions, i.e. economic, environmental and social. It adds to the literature on the theoretical aspect of the study of CSR, particularly in the banking industry.

Originality/value

It has initially investigated CSR as a higher-order construct to explain the meditational mechanism of CR concerning CSR and CL. Moreover, the study examined the issue of endogeneity.

Citation

Subedi, G., Pokhrel, L. and Basnet, D. (2024), "Corporate social responsibility and customer loyalty: mediating role of corporate reputation among Generation Z customers of Nepali commercial banks", International Journal of Organizational Analysis, Vol. 32 No. 8, pp. 1501-1521. https://doi.org/10.1108/IJOA-03-2023-3701