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Corporate social responsibility toward stakeholders and customer loyalty: investigating the roles of trust and customer identification with the company

Niki Glaveli (Department of Business Administration, University of the Aegean, Chios, Greece)

Social Responsibility Journal

ISSN: 1747-1117

Article publication date: 11 April 2020

Issue publication date: 30 April 2021

2015

Abstract

Purpose

This study aims to uncover the underlying multiple intervening mechanisms between corporate social responsibility (CSR) and customer loyalty. Social identity and social exchange theories offer the ground for prediction that the primary outcomes of CSR initiatives are customer–company (C–C) identification and customer trust, which in turn affect customer loyalty. Also, the differential effect of CSR behaviors toward specific stakeholder groups on customer attitudes and behaviors are examined.

Design/methodology/approach

Data were collected from 333 customers of telecommunication companies in Greece. Structural equation modeling was used to test the postulated relationships.

Findings

The findings demonstrate that both C–C identification and customer trust intervene in the relationship between customer perceptions of CSR and customer loyalty; however, the identification mechanism is stronger than the trust mechanism in building customer loyalty while C–C identification seems to drive customer trust. Moreover, out of the three CSR components (customers, employees, and society/environment) that were considered as relevant to customers and were investigated, customer-centric activities were found to be the stronger predictor of both C–C identification and customer trust. Also, CSR toward society/environment was found to positively influence C–C identification.

Practical implications

The findings of this research can assist practitioners in effectively conceptualizing CSR image from a customers’ point of view and designing their company’s CSR and communication strategies to boost positive customer responses and strong long-term relationships.

Originality/value

The current study provides further insights into the complex relationship between CSR and customer responses and the impact that different CSR activities may have on customers.

Keywords

Citation

Glaveli, N. (2021), "Corporate social responsibility toward stakeholders and customer loyalty: investigating the roles of trust and customer identification with the company", Social Responsibility Journal, Vol. 17 No. 3, pp. 367-383. https://doi.org/10.1108/SRJ-07-2019-0257

Publisher

:

Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

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