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Authenticity as a corporate social responsibility platform for building customer loyalty

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  • Sri Gunawan
  • Sri Yunan Budiarsi
  • Sri Hartini

Abstract

Consumers’ views of corporate social responsibility (CSR) are still filled with mistrust and doubt. Especially in developing countries like Indonesia, consumers are wondering about the motivation behind CSR activities. It is argued that CSR activities that are authentic or sincere will lead to customer loyalty. This research aims to expand the line of studies based on CSR-loyalty, through the concept of sincerity motivating Corporate Social Responsibility activities. Therefore, field research was conducted to investigate whether CSR Authenticity affects Corporate Image, Corporate Credibility and Customer Loyalty among Indonesian consumers. The proposed model was examined using questionnaire with a data set of 257 valid responses. Statistical analysis was based on PLS-SEM approach with the use of Smart PLS 3.0. Findings showed that the hypothesis associated with the relationship between Corporate Image and Customer Loyalty was supported. The relationship between Corporate Credibility and Customer Loyalty was also supported; however, the relationship between CSR Authenticity and Customer Loyalty was not supported. Result further showed a mediating effect of Corporate Image and Corporate Credibility on the relationship between CSR Authenticity and Customer Loyalty. Finally, the findings of this study are used to advance managerial implications of CSR Authenticity as a strategic activities of companies in creating its customer loyalty.

Suggested Citation

  • Sri Gunawan & Sri Yunan Budiarsi & Sri Hartini, 2020. "Authenticity as a corporate social responsibility platform for building customer loyalty," Cogent Business & Management, Taylor & Francis Journals, vol. 7(1), pages 1775023-177, January.
  • Handle: RePEc:taf:oabmxx:v:7:y:2020:i:1:p:1775023
    DOI: 10.1080/23311975.2020.1775023
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    Cited by:

    1. Duygu Turker & Ozge Can & Gizem Aras‐Beger, 2023. "How authenticity of corporate social responsibility affects organizational attractiveness: Stakeholder perceptions of organizational ideology," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(4), pages 1680-1697, July.
    2. Luigi Leclercq-Machado & Aldo Alvarez-Risco & Sharon Esquerre-Botton & Camila Almanza-Cruz & Maria de las Mercedes Anderson-Seminario & Shyla Del-Aguila-Arcentales & Jaime A. Yáñez, 2022. "Effect of Corporate Social Responsibility on Consumer Satisfaction and Consumer Loyalty of Private Banking Companies in Peru," Sustainability, MDPI, vol. 14(15), pages 1-17, July.
    3. Muhammad Usman Shah & Muhammad Farooq Jan, 2021. "Connecting Corporate Social Responsibility (CSR) to Customer Loyalty: A Mediation Analysis in Hoteling Industry of Pakistan," SAGE Open, , vol. 11(4), pages 21582440211, December.
    4. Abdelmohsen A. Nassani & Zahid Yousaf & Magdalena Radulescu & Mohamed Haffar, 2022. "Environmental Performance through Environmental Resources Conservation Efforts: Does Corporate Social Responsibility Authenticity Act as Mediator?," Sustainability, MDPI, vol. 14(4), pages 1-16, February.

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