Abstract:
Purpose – This study aims to investigate the complex relationship between corporate social responsibility
(CSR) dimensions and customer loyalty. In particular, this study suggested an intervening process through
customer perceived value, which makes banking customers more loyal.
Design/methodology/approach – Using a randomised sample of 261 respondents from the Northern
Province of Sri Lanka, this study empirically investigates the role of CSR in enhancing customer value and
loyalty. The collected data, the study model and hypotheses were assessed by partial least squares structural
equation modelling.
Findings – According to the results, CSR practices that are both strategic and stakeholder-driven have a
positive effect on customer loyalty in the banking industry. Further, customer perceived-value positively
impacts customer loyalty. Besides, customer perceived-value mediates the association between CSR practices
and customer loyalty.
Research limitations/implications – This study is limited to the banking industry. Thus, future
studies can replicate the same research in different sectors like retail, tourism and hospitality, insurance and
microcredit institutions, garments, textiles, etc.
Practical implications – This study suggests specific dimensions of CSR that need to be emphasised
while the banking industry designs its loyalty programs.
Originality/value – The notion of customer value has been suggested as a mediating mechanism between
diversified CSR perspectives and customer loyalty. Thus, this study proposes a comprehensive framework for
enhancing customer loyalty to banks via CSR practices and customer value creation.
