Corporate Social Responsibility, Customer Loyalty and Organizational Commitment in Banks

---

Authors: USMAN, Suleiman, KHADIJA, Salihu Abubakar

Abstract

The relationship between corporate social responsibility and customer was examined under the mediating effects of organizational commitment in selected banks of Nigeria. Corporate social responsibility is subdivided into three issues, namely, customer centric, philanthropic and ethical initiative. Organizational commitment in the study relates to overall commitment in CSR and all organizational objectives. Customer loyalty as the outcome variable entails customer’s acceptance and patronage on the three CSR initiatives (Customer centric, philanthropic and ethical) and level of organizational commitment. Data collection was done using a survey questionnaire based on purposive sampling method involving 402 respondents. Results were analyzed using the PLS-SEM approach showing significant mediating effects of organizational commitment on all the relationships between the three CSR initiatives and customer loyalty. All direct effects showed positive relationships that are statistically significant. This study supports the findings that the level of customer loyalty depends on customer centric and philanthropic CSR initiatives more than ethical initiatives, and mediating effects seem to be stronger when customer centric CSR initiatives and philanthropy are preferred or prioritized.

Keywords: CSR, CSR initiatives, Organizational commitment, Customer loyalty, CSR in Nigeria

2024 - NIJAF - 16 - 201 Ahmadu ET AL. 85-103.pdf

Download PDF • 487KB