ENHANCING CUSTOMER LOYALTY THROUGH GOOD CORPORATE SOCIAL RESPONSIBILITY PRACTICES

Abstract

Customer loyalty is an asset that gives a competitive advantage towards a business organization. In the current business world where pressure from competition is very high, customer loyalty is attained through passive acceptance of brands. The competition worsens with the presence of online platforms, lowering the substation obstacles. CSR can be a business organizations’ unique selling point to gain customer loyalty.

This research studies on how CSR could influence customer loyalty. According to the literature reviews made, CSR is operationalised into four independent variables which are philanthropic activities, good business practices, environmental concerns, and educational contributions, linking towards the dependent variable which is customer loyalty. With the formulation of the conceptual framework, four hypotheses were developed, to study the influence between the four independent variables towards the dependent variable.

A survey is done, collecting data from 150 professionals. The necessary tests were done to ensure that the data are valid and reliable. Upon analysis, the result shows that educational contributions and philanthropic activities, in a specific order, show influence towards customer loyalty but, not good business practices and environmental concerns. Recommendations were made looking at the perspective of the government and educational institutions according to the results obtained.