The impact of corporate social responsibility on customer loyalty at commercial banks in Hue City

Abstract

This study aims to examine the effect of corporate social responsibility (CSR) on customer loyalty (LTT) in commercial banks operating in Hue City. Simultaneously, this study also verifies the mediating role of corporate image (HA) in the relationship between CSR and LTT. Based on a comprehensive review of the literature, the study clarifies the direct effect of CSR on LTT, CSR on HA, and HA on LTT, as well as the mediating role of HA in the CSR and LTT relationship. Data were collected from a survey of 280 customers who are currently using products and services provided by commercial banks in Hue City. Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed to test the research model and hypotheses. The results indicate that CSR has a positive effect on LTT and HA plays a significant mediating role in the relationship between CSR and LTT, with HA exerting a strong influence on LTT. From this results, managerial implications are proposed to assist bank managers in more effectively implementing CSR activities, thereby strengthening corporate image and enhancing customer loyalty.