Investigating the Impact of Corporate Social Responsibility on Relationship Quality Performance and Outcomes

Abstract

Facing drastic changes in business environment, banks are incorporating Corporate Social Responsibility (CSR) as parts of customer relationship management strategies in quest for customer loyalty. Despite the importance of CSR, research on the influences of CSR on relationship quality and customer loyalty is scarce. This study aims to examine the relationships between CSR, relationship quality and customer loyalty in banking context in Hong Kong. Through convenient sampling method, a total of 212 online surveys were collected. The findings discovered CSR (Philanthropic responsibility, Ethical responsibility, Legal responsibility, and Economic responsibility) affected relationship quality and customer loyalty. Among the dimensions, Philanthropic responsibility exhibited significant influence on relationship quality while relationship quality showed a significant impact on customer loyalty. The study provides theoretical implications for service research and service encounter management. It will practically add-value to managers and practitioners in designing and developing CSR strategies to promote long-term loyalty between banks and their clients.