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Open Access
Article
Publication date: 12 April 2024

Huong Ha, Man Chung Wong and Hui Shan Loh

This study examines whether corporate social responsibility (CSR) initiatives positively impact customers’ selection of retail banks in Hong Kong (HK) and identifies which CSR

Abstract

Purpose

This study examines whether corporate social responsibility (CSR) initiatives positively impact customers’ selection of retail banks in Hong Kong (HK) and identifies which CSR domains affect customers’ selection of banks.

Design/methodology/approach

This study adopted a quantitative approach. Primary data were collected from 416 customers of 22 retail banks in HK. The theoretical framework of this study was developed from a literature review, prior studies by Oberseder et al. (2013 and 2014), and CSR initiatives implemented by leading retail banks in HK. Descriptive statistics and statistical tests were used to analyze the data.

Findings

The study found that CSR initiatives positively affect customers’ bank selection. CSR initiatives related to the customer and environment domains are likely to have a greater impact on customers than those related to the society domain and are not likely to significantly impact customers’ bank selection.

Originality/value

This study contributes to the CSR literature by offering enhanced insight into the dynamics of CSR and its effects on customer bank selection. Furthermore, this study tests consumers’ perceptions of CSR initiatives in each CSR domain in the banking sector in Hong Kong – a novel approach that has not been previously explored in existing studies. These findings can help banks review the effectiveness of their CSR initiatives and make informed decisions on which initiatives should pursue improved CSR performance and efficient resource allocation.

Details

Journal of Asian Business and Economic Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2515-964X

Keywords

Article
Publication date: 1 August 2023

Jookyung Kwon, Amjad Shamim and Jiseon Ahn

Despite the fact that fit positively influences customers’ attitudes toward companies, previous research reveals differing roles of fit in the domain of corporate social…

Abstract

Purpose

Despite the fact that fit positively influences customers’ attitudes toward companies, previous research reveals differing roles of fit in the domain of corporate social responsibility (CSR) based on criteria and degree. Because the impact of fit between customers and service companies in the domain of CSR remains unclear in the hospitality context, this study aims to examine the effects of different CSR types on customerCSR fit, attitude and behavioral intentions in hospitality settings.

Design/methodology/approach

A total of 219 usable hotel customer responses were collected and analyzed using SmartPLS software.

Findings

Results show that companies’ demonstration of CSR toward social/nonsocial stakeholders is most effective for increasing perceived fit by customers, followed by CSR toward employees and toward customers. Also, this study identifies perceived fit as an indicator of customers’ positive attitudes and revisit intentions. This study enhances our understanding of relationships among three dimensions of CSR activities and customers’ responses.

Originality/value

This study provides guidelines with which hospitality companies can create sustainable growth by engaging the welfare of communities, employees and customers.

Details

Journal of Global Responsibility, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2041-2568

Keywords

Article
Publication date: 18 January 2023

Nicholas A. Smith, Larry R. Martinez, Shi (Tracy) Xu, Anna Mattila and Lisa Yixing Gao

Many hospitality organizations see the benefits of engaging in corporate social responsibility (CSR), which can take many forms. This study aims to examine one relatively unique…

Abstract

Purpose

Many hospitality organizations see the benefits of engaging in corporate social responsibility (CSR), which can take many forms. This study aims to examine one relatively unique form of CSR: hiring individuals experiencing houselessness. This research aimed to investigate the impact of hiring individuals experiencing houselessness on customers’ behavioral intentions, attitudes toward an organization and perceptions of CSR actions.

Design/methodology/approach

Across two experiments, this study investigated the impact of employing individuals experiencing houselessness on customers’ perceptions of the employee and organization using organizational legitimacy theory.

Findings

Results demonstrate that employees known to be houseless elicited more positive employee and organizational perceptions from the customers, mediated by CSR perceptions. In addition, the gender of the employees or the quality of the organization did not impact these findings.

Practical implications

Hospitality and tourism organizations should consider using available resources or tax benefits to make a deliberate effort to employ those experiencing houselessness.

Originality/value

Using organizational legitimacy theory, this study examines CSR perceptions as a potential explanatory mechanism between houselessness and customers’ reactions.

Details

International Journal of Contemporary Hospitality Management, vol. 35 no. 8
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 17 April 2023

Faheem Gul Gilal, Naeem Gul Gilal, Rukhsana Gul Gilal and Zhiyong Yang

The goal of this paper is twofold: (1) to investigate how relatedness-supportive corporate social responsibility (CSR) initiatives influence brand happiness among retail bank…

Abstract

Purpose

The goal of this paper is twofold: (1) to investigate how relatedness-supportive corporate social responsibility (CSR) initiatives influence brand happiness among retail bank customers through a mediating mechanism of customer participation in brand CSR movements; and (2) to analyze how relatedness-supportive CSR initiatives’ effect may be moderated by cause choice and customer-brand goal congruence.

Design/methodology/approach

Data were collected from 379 retail bank customers via a paper-and-pencil survey. The hypothesized moderated-mediation effects were tested using Hayes’ (2013) PROCESS (Model 3, Model 4 and Model 7).

Findings

Results show that relatedness-supportive CSR initiatives increase brand happiness among retail bank customers through increasing their participation in brand CSR movements. Furthermore, the use of customer determination in the choice of cause enhances the positive effect of relatedness-supportive CSR initiatives on customer participation in brand CSR movements. Similarly, when customers choose the cause and the customer-brand goal is congruent, the effect of relatedness-supportive CSR initiatives on brand happiness is stronger than when the customer-brand goal is incongruent and cause choice is not aligned.

Originality/value

This research is grounded on the relationship motivation theory (RMT), basic psychological needs theory and self-congruity theory to unpack the relationship between relatedness-supportive CSR programs on brand happiness. Integrating three research streams (i.e. CSR, brand management and retail banking), this study proposes customer participation in brand CSR movements as a novel mechanism and sheds light on how relatedness-supportive CSR interplays with cause choice/customer-brand goal congruence to affect brand happiness among retail bank customers in emerging markets.

Details

International Journal of Bank Marketing, vol. 42 no. 2
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 10 August 2021

Abir Hichri and Moez Ltifi

The study is based on a hybrid model composed of accounting and business data and is amongst the first to test the impact of corporate social responsibility (CSR) performance on…

1782

Abstract

Purpose

The study is based on a hybrid model composed of accounting and business data and is amongst the first to test the impact of corporate social responsibility (CSR) performance on the financial performance of the company, as well as the impact of financial performance on CSR performance. The bidirectional logic chosen by the study is rarely adopted in the global context and has never been tested in the Swedish context. Moreover, the purpose of this paper is to test the mediating effect of customer loyalty on the company’s CSR performance-financial performance relationship to assess this effect over the long term. This design has been neglected in previous studies.

Design/methodology/approach

Data was collected from a sample of 110 Swedish companies during the period 2009–2019. This study collects the data from the Thomson Reuters Eikon database. A multiple regression analysis was performed to test the hypotheses.

Findings

The results confirmed the bidirectional relationship between CSR performance and company financial performance. This means that CSR performance positively influences the company’s financial performance. Similarly, financial performance positively influences the company’s CSR performance. Moreover, customer loyalty has a positive and significant mediating effect on the company’s CSR performance-financial performance relationship.

Originality/value

This study adds several inputs. The first contribution of the research is to test a hybrid model composed of accounting and commercial data. This model is amongst the first to test the impact of CSR performance on the financial performance of the company and the impact of financial performance on CSR performance. The second contribution is the bidirectional logic chosen by the study which is rarely adopted in the global context and has never been tested in the Swedish context. The third contribution is to test the mediating effect of customer loyalty on the company’s CSR performance-financial performance relationship to assess this effect over the long term. This design has been neglected in previous studies. The fourth contribution is the choice of the field of investigation for the reliability of the data used and the generalisation of the results obtained.

Details

Corporate Governance: The International Journal of Business in Society, vol. 21 no. 7
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 10 July 2017

Wade Jarvis, Robyn Ouschan, Henry J. Burton, Geoffrey Soutar and Ingrid M. O’Brien

Both customer engagement (CE) and corporate social responsibility (CSR) have been linked to customer loyalty. Past studies use service dominant logic and customer value…

3978

Abstract

Purpose

Both customer engagement (CE) and corporate social responsibility (CSR) have been linked to customer loyalty. Past studies use service dominant logic and customer value co-creation to explain this relationship. The purpose of this paper is to apply utility theory to develop and test a new theoretical model based on CSR initiative preference to understand the relationship between CE and customer loyalty to the organisation in a CSR platform.

Design/methodology/approach

This empirical study uses choice theory in the form of best-worst scaling, and structural equation modelling, to measure the impact of sports club members’ choice preferences for a range of CSR initiatives on their intention to engage with the initiative and subsequent loyalty to the club.

Findings

This study highlights the importance of engaging members in the CSR strategy they prefer as it enhances not only the extra value to the organisation via customer loyalty to the organisation, but also CE with the organisation. Furthermore, the study reveals age and gender impact on the relationship between CE in CSR initiatives and customer loyalty.

Originality/value

This study extends CE to CSR behaviours and provides empirical evidence for a unique theoretical framework of CE based on utility theory. It also highlights the need to take into account moderating variables such as customer demographics.

Details

Journal of Service Theory and Practice, vol. 27 no. 4
Type: Research Article
ISSN: 2055-6225

Keywords

Article
Publication date: 9 February 2015

Andrea Pérez and Ignacio Rodríguez del Bosque

The aim of the authors of this paper is to propose a cognitive – affective – conative sequential model to study how three dimensions of corporate social responsibility (CSR) image…

9919

Abstract

Purpose

The aim of the authors of this paper is to propose a cognitive – affective – conative sequential model to study how three dimensions of corporate social responsibility (CSR) image (society, customers and employees) impact customer affective (identification and satisfaction) and behavioural (recommendation and repurchase) responses in the banking industry. The authors also test how the type of company (savings banks vs commercial banks) moderates customer responses to these three dimensions of CSR image.

Design/methodology/approach

A multi-group structural equation model is tested using information collected from 648 savings banks’ customers and 476 commercial banks’ customers in Spain.

Findings

The findings demonstrate that the perceptions of customer-centric CSR initiatives positively and consistently impact customer identification with the banking institution, satisfaction, recommendation and repurchase behaviours in the savings and commercial banks’ samples. The dimensions of CSR image that concern the activities oriented to society and employees only positively impact customer responses in the savings banks’ sample.

Practical implications

The findings of this study can assist scholars in creating more informative CSR-based loyalty models that take into consideration new variables (satisfaction and type of company) and better approaches to the conceptualization of CSR image (e.g. the formative approach). The findings can also assist savings and commercial banks in better designing their CSR and communication initiatives to benefit from customer affective and conative responses.

Originality/value

The contributions of the paper are threefold: the authors include satisfaction as a new variable in the study of the CSR-based loyalty model; the CSR image is conceptualized as a formative construct, and this provides new justifications for the mixed results reported by previous scholars who have analysed the effects of CSR image on customer loyalty; and the authors explore the moderating role of the type of company on the CSR-based loyalty model proposed in the paper.

Details

Journal of Services Marketing, vol. 29 no. 1
Type: Research Article
ISSN: 0887-6045

Keywords

Open Access
Article
Publication date: 5 August 2019

Miguel Angel Moliner, Diego Monferrer Tirado and Marta Estrada-Guillén

The purpose of this paper is to analyze the role of bank branch managers’ perceptions of corporate social responsibility (CSR) in CSR marketing outcomes.

7046

Abstract

Purpose

The purpose of this paper is to analyze the role of bank branch managers’ perceptions of corporate social responsibility (CSR) in CSR marketing outcomes.

Design/methodology/approach

The paper proposes a causal model establishing that managers’ perceptions of CSR influence the perception of CSR held by the branch’s customers, which in turn directly affects customer satisfaction, customer trust, customer engagement and customer loyalty. The unit of analysis in this quantitative study is the bank branch. Two questionnaires were administered: one to branch managers and another to five customers in each branch.

Findings

Branch managers’ perceptions of CSR have a marked influence on customers’ perceptions of CSR, which again have a notable impact on the relationship variables studied: customer satisfaction, customer trust, customer engagement and customer loyalty.

Research limitations/implications

The sample was taken from two banks in the same country (Spain) and only five customers were interviewed in each branch. The type of customers analyzed should be taken into account since a growing number of customers now carry out all of their banking online and are less likely to visit their branch.

Practical implications

The results highlight the importance of adopting socially responsible actions not only in the bank as a whole, but also in individual branches. It would, therefore, seem crucial for high level bank executives not only to involve branch managers in the bank’s CSR strategy, but also to empower them to undertake CSR actions that involve the customers and local community with which they interact.

Originality/value

First, the paper reveals the differences within the same organization in the way its CSR strategy is implemented. Second, intermediary figures or supervisors are shown to have a key role in ensuring the organization’s CSR strategy is effective. Third, the study emphasizes the importance of customers’ perception of CSR in achieving the main outcomes of relationship marketing (satisfaction, trust, engagement and loyalty). Fourth, the methodology applied in the study is innovative in its construction of dyads in which the branch is the unit of analysis, enabling a comparison between the manager’s perceptions of CSR with that of five customers from the same branch. Fifth, the findings add to the knowledge of a particularly relevant sector in the recent economic crisis, namely, the retail banking industry.

Details

International Journal of Bank Marketing, vol. 38 no. 1
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 5 August 2019

Syed Shujaat Ali Shah and Zia Khan

The purpose of this paper is to investigate the impact of customers’ perceptions of corporate social responsibility (CSR) on affective and continuance commitment. It analyses the…

2403

Abstract

Purpose

The purpose of this paper is to investigate the impact of customers’ perceptions of corporate social responsibility (CSR) on affective and continuance commitment. It analyses the moderation effect of relationship age on the CSR-commitment relationships in the banking industry of an emerging economy.

Design/methodology/approach

Partial least squares based structural equation modeling was used to test the proposed hypotheses in a sample of 360 respondents collected from the retail banking sector of Pakistan.

Findings

CustomersCSR perceptions directly and positively influence affective and continuance commitment. The findings also confirm that relationship age is a positive moderator of the CSR-continuance commitment relationship, but does not influence the CSR-affective commitment relationship.

Practical implications

Marketers should use CSR activities to enhance customers’ commitment. Given the moderating role of relationship age, marketers should devise different strategies for new and long-term customers. The results clearly show that relationship age affects the CSR-continuance commitment relationship. Long-term banking customers will more likely be in a binding relationship when their banks do CSR activities and disseminate those activities to long-term customers. The study explicitly indicates that maintaining long-term customers’ base through CSR activities helps the marketers in achieving sustainable competitive advantage.

Originality/value

First, it is the pioneering study to empirically investigate the understudied relationship between CSR and continuance commitment. Second, it examines the moderation effect of relationship age on CSR-commitment relationships in the banking industry of an emerging economy.

Details

International Journal of Bank Marketing, vol. 38 no. 1
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 30 April 2020

Ali Raza, Raouf Ahmad Rather, Muhammad Khalid Iqbal and Umair Saeed Bhutta

This paper aims to address the need for a more in-depth empirical investigation of exploring the link between the adoption of corporate social responsibility (CSR) practices and…

3488

Abstract

Purpose

This paper aims to address the need for a more in-depth empirical investigation of exploring the link between the adoption of corporate social responsibility (CSR) practices and different aspects of customer behavior in a developing country. This paper develops a research framework and assesses the mediating role of trust, customer-company identification (CCI) and electronic-service quality (E-SQ) between customer perceptions of CSR and customer loyalty.

Design/methodology/approach

Working with a sample of 280 banking customers in Pakistan, partial least square based structural equation modeling is used to test the conceptual model.

Findings

Surprisingly, results suggest that CSR is not directly related to customer loyalty, which is contradictory to previously established findings conducted in developed countries. Thus, confirming a full mediation of CCI, E-SQ and trust in enhancing the effect of CSR on customer loyalty. The study also confirms that CSR is positively related to E-SQ, and E-SQ also directly affects CCI.

Practical implications

Banks should adhere to honest CSR practices and effectively communicate and advertise these practices to increase awareness and knowledge among the customers. Similarly, banks should advance in technological expertise to generate customer identification, which then leads to their loyalty.

Originality/value

Previous studies conferred short-term customer’s reactions, such as purchase intention and brand image. Still, this research discusses the long-term effect of CSR on customer behavior, such as the loyalty of the customers. Moreover, this is the pioneer study that investigates how CSR actions influence customer perceptions about E-SQ and how electronic services affect customer identification with a bank.

Details

Management Research Review, vol. 43 no. 11
Type: Research Article
ISSN: 2040-8269

Keywords

1 – 10 of over 11000