Corporate Social Responsibility and Customer Loyalty: Exploring the Role of Satisfaction and Corporate Image in the Banking Industry

This study aims to determine the impact of corporate social responsibility on customer loyalty and satisfaction with the mediating effect of customer satisfaction and the moderating effect of corporate image in Pakistan’s banking sector. The study collected 302 responses from the target population. We used a self-administered questionnaire for collecting the data of banking customers in Pakistan by employing the convenience sampling technique. The study has used the PLS-SEM technique for statistical analysis. The results reveal that corporate social responsibility positively influences customer satisfaction. The results also suggest that CSR positively affects customer satisfaction. At the same time, CSR has an insignificant association with customer loyalty. We also found that CS stimulates customer loyalty, and corporate image promotes CL. The results suggest that customer satisfaction mediates CSR and CL. We also found that corporate image does not moderate customer loyalty. Given the importance of CSR, we suggest that banks should allocate considerable resources for CSR activities. CSR is necessary for firms’ growth and sustainability. It also, directly and indirectly, affects the brand image, loyalty, and customer satisfaction. Due to strict regulations, banks have difficulty creating product differentiation; therefore, they rely on strategies such as CSR.