The Effect of CSR on Brand Loyalty: Mediating Role of Corporate Branding Dimensions

Abstract

The study addresses the significance of Corporate Social Responsibility (CSR) as the obligatory attribute of companies in the corporate branding process to enhance brand loyalty. In this context, the study examines the intervening role of different corporate branding dimensions to test CSR's direct and indirect effect on brand loyalty from the customer perspective. The study is empirical, and cross-sectional data is used to examine the relationships in the banking context. The findings reveal that brand loyalty can be enhanced when CSR becomes integral to corporate branding strategy. However, the variations in the magnitudes of the direct and indirect effect between CSR and brand loyalty differ with different dimensions of corporate branding such as corporate association, corporate value, corporate personality, corporate activity, and customer perceived value. Theoretically, the study contributes six different models that describe how the company’s social performance, and its organisational effectiveness are two important gestures to strengthen the corporate image. Based on the value foundation of corporate branding, practitioners are suggested to develop their corporate identities by integrating their CSR philosophy with their corporate branding agenda to make their customers loyal. Notably, the study summarises that CSR helps the customers to be identified with the company, because the company can elicit favourable reactions by depicting its socially responsible behaviour. Such behaviour due to CSR has gained significance as an obligatory attribute of the company to associate with its stakeholders at the corporate level; thus, it is considered an integral part of corporate branding dimensions. Practically, bankers are suggested to bring innovative ways of strengthening corporate ability and CSR-related associations with the customers from the banking context. Managers should undertake CSR as the guiding principle to design and deliver different values to the customers at both product and corporate levels.

Keywords: Corporate Branding, CSR, Identity, Image, Brand Loyalty, Banking