IDEAS home Printed from https://ideas.repec.org/a/vrn/journl/y2022i3-4p154-168.html
   My bibliography  Save this article

Does Discretionary Spending and Ethical Responsibility Guarantee Customer Loyalty

Author

Listed:
  • Babalola O. OGINNI

    (Department of Human Resource Development, Osun State University, Okuku Campus, Nigeria)

  • Kolawole S. AJIBOLA

    (Department of Human Resource Development, Osun State University, Okuku Campus, Nigeria)

  • Bayode O. BABATUNDE

    (Department of Business Administration, Osun State University, Okuku Campus, Nigeria)

  • Florence B. FAMOLU

    (Department of Guidance and Counselling, Faculty of Education, Osun State University, Osogbo, Osun State, Nigeria)

Abstract

Customer loyalty is still a major concern to organizations despite the various activities of manufacturing firms in their various host communities. Given this, this paper examines the relationship between discretionary spending, ethical responsibility and customer loyalty. The descriptive survey research design was adopted in the study. The unit of analysis was International Breweries and a purposive sampling technique was used to select sample for the study from the target population. The stakeholder theory was the underpinning theory. The result revealed that there exists a strong significant positive relationship between discretionary spending, ethical responsibility and customer loyalty. Based on the findings, it was recommended that organizations should have a standing committee to oversee the proper implementation, monitoring, control, and evaluation of their discretionary spending and ethical responsibility activities.

Suggested Citation

  • Babalola O. OGINNI & Kolawole S. AJIBOLA & Bayode O. BABATUNDE & Florence B. FAMOLU, 2022. "Does Discretionary Spending and Ethical Responsibility Guarantee Customer Loyalty," Business & Management Compass, University of Economics Varna, issue 3-4, pages 154-168.
    • Handle: RePEc:vrn:journl:y:2022:i:3-4:p:154-168
    as

    Download full text from publisher

    File URL: https://journal.ue-varna.bg/uploads/20230117024612_214477280963c6b4b476b42.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Julie Pirsch & Shruti Gupta & Stacy Grau, 2007. "A Framework for Understanding Corporate Social Responsibility Programs as a Continuum: An Exploratory Study," Journal of Business Ethics, Springer, vol. 70(2), pages 125-140, January.
    2. Gary Fooks & Anna Gilmore & Jeff Collin & Chris Holden & Kelley Lee, 2013. "Erratum to: The Limits of Corporate Social Responsibility: Techniques of Neutralization, Stakeholder Management and Political CSR," Journal of Business Ethics, Springer, vol. 112(2), pages 367-367, January.
    3. Habib Hussain Khan & Rubi Binit Ahmad & Chan Sok Gee, 2016. "Market Structure, Financial Dependence and Industrial Growth: Evidence from the Banking Industry in Emerging Asian Economies," PLOS ONE, Public Library of Science, vol. 11(8), pages 1-24, August.
    4. Babor, T.F. & Robaina, K., 2013. "Public health, academic medicine, and the alcohol industry's corporate social responsibility activities," American Journal of Public Health, American Public Health Association, vol. 103(2), pages 206-214.
    5. Gardiner, Rita A., 2018. "Ethical Responsibility - An Arendtian Turn," Business Ethics Quarterly, Cambridge University Press, vol. 28(1), pages 31-50, January.
    6. Gary Fooks & Anna Gilmore & Jeff Collin & Chris Holden & Kelley Lee, 2013. "The Limits of Corporate Social Responsibility: Techniques of Neutralization, Stakeholder Management and Political CSR," Journal of Business Ethics, Springer, vol. 112(2), pages 283-299, January.
    7. Baskentli, Sara & Sen, Sankar & Du, Shuili & Bhattacharya, C.B., 2019. "Consumer reactions to corporate social responsibility: The role of CSR domains," Journal of Business Research, Elsevier, vol. 95(C), pages 502-513.
    8. Lin, Chin-Huang & Yang, Ho-Li & Liou, Dian-Yan, 2009. "The impact of corporate social responsibility on financial performance: Evidence from business in Taiwan," Technology in Society, Elsevier, vol. 31(1), pages 56-63.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fabien Martinez, 2014. "Corporate strategy and the environment: towards a four-dimensional compatibility model for fostering green management decisions," Post-Print hal-02887618, HAL.
    2. Fabio La Rosa & Sergio Paternostro & Francesca Bernini, 2023. "Corporate and regional governance antecedents of the Legality Rating of private Italian companies," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 27(1), pages 297-329, March.
    3. Ross MacKenzie, 2018. "“An example for corporate social responsibility†: British American Tobacco's response to criticism of its Myanmar subsidiary, 1999–2003," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 5(2), pages 298-312, May.
    4. Gheorghe Epura & Bianca Tesca?iu & Raluca Dania Todor & Karin-Andreea Sasu, 2017. "Responsible Consumption – Source of Competitive Advantages and Solution for Tourist Protection," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 19(45), pages 447-447, May.
    5. Jay Mitra & Mariusz Sokolowicz & Ursula Weisenfeld & Agnieszka Kurczewska & Silke Tegtmeier, 2020. "Citizen Entrepreneurship: A Conceptual Picture of the Inclusion, Integration and Engagement of Citizens in the Entrepreneurial Process," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 6(2), pages 242-260, July.
    6. Gary J Fooks & Anna B Gilmore, 2013. "Corporate Philanthropy, Political Influence, and Health Policy," PLOS ONE, Public Library of Science, vol. 8(11), pages 1-11, November.
    7. Claire E. Brolan, 2023. "Looking Back—Australia’s Sustainable Development and Climate Change Policy Agendas," Sustainability, MDPI, vol. 15(7), pages 1-14, March.
    8. David Talbot & Guillaume Barbat, 2020. "Water disclosure in the mining sector: An assessment of the credibility of sustainability reports," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(3), pages 1241-1251, May.
    9. Vikrant Shirodkar & Eshani Beddewela & Ulf Henning Richter, 2018. "Firm-Level Determinants of Political CSR in Emerging Economies: Evidence from India," Journal of Business Ethics, Springer, vol. 148(3), pages 673-688, March.
    10. Haseeb Ahmed Shabbir & Hala Maalouf & Michele Griessmair & Nazan Colmekcioglu & Pervaiz Akhtar, 2019. "Exploring Perceptions of Advertising Ethics: An Informant-Derived Approach," Journal of Business Ethics, Springer, vol. 159(3), pages 727-744, October.
    11. Ulf Schaefer & Onno Bouwmeester, 2021. "Reconceptualizing Moral Disengagement as a Process: Transcending Overly Liberal and Overly Conservative Practice in the Field," Journal of Business Ethics, Springer, vol. 172(3), pages 525-543, September.
    12. Maria Ehrnström-Fuentes & Steffen Böhm, 2023. "The Political Ontology of Corporate Social Responsibility: Obscuring the Pluriverse in Place," Journal of Business Ethics, Springer, vol. 185(2), pages 245-261, June.
    13. Richter, Ulf Henning & Shirodkar, Vikrant & Shete, Namita, 2021. "Firm-level indicators of instrumental and political CSR processes – A multiple case study," European Management Journal, Elsevier, vol. 39(2), pages 279-290.
    14. Katarzyna Bachnik & Robert Nowacki, 2018. "How to Build Consumer Trust: Socially Responsible or Controversial Advertising," Sustainability, MDPI, vol. 10(7), pages 1-21, June.
    15. David Shichor, 2018. "Thinking About Punishment (or the Lack of it): The Case of the Economic Meltdown," Journal of Business Ethics, Springer, vol. 147(1), pages 185-195, January.
    16. Amidu P. Mansaray & Liu Yuanyuan & Sesay Brima, 2017. "The Impact of Corporate Social Responsibility Disclosure on Financial Performance of Firms in Africa," International Journal of Economics and Financial Issues, Econjournals, vol. 7(5), pages 137-146.
    17. Derek Moscato & Toby Hopp, 2019. "Natural born cynics? The role of personality characteristics in consumer skepticism of corporate social responsibility behaviors," Corporate Reputation Review, Palgrave Macmillan, vol. 22(1), pages 26-37, February.
    18. Boris Bartikowski & Fernando Fastoso & Heribert Gierl, 2021. "How Nationalistic Appeals Affect Foreign Luxury Brand Reputation: A Study of Ambivalent Effects," Journal of Business Ethics, Springer, vol. 169(2), pages 261-277, March.
    19. Frederick Ahen & Joseph Amankwah-Amoah, 2018. "Institutional Voids and the Philanthropization of CSR Practices: Insights from Developing Economies," Sustainability, MDPI, vol. 10(7), pages 1-27, July.
    20. Peter Norberg, 2018. "Bankers Bashing Back: Amoral CSR Justifications," Journal of Business Ethics, Springer, vol. 147(2), pages 401-418, January.

    More about this item

    Keywords

    customer loyalty; discretionary spending; ethical responsibility; ethical business;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrn:journl:y:2022:i:3-4:p:154-168. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Yana Doneva (email available below). General contact details of provider: https://edirc.repec.org/data/uevarbg.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.