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

What is it about?

The current study attempts to uncover the underlying multiple intervening mechanisms between 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. Data were collected from 333 customers of telecommunication companies in Greece. Structural Equation Modeling was utilized to test the postulated relationships. 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 whilst 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. 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 in order to boost positive customer responses and strong long-term relationships.

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