Effects of corporate social responsibility on customer satisfaction and organizational attractiveness: A signaling perspective

Abstract

In recent years, many researchers have attempted to determine the mechanisms of how corporate social responsibility (CSR) brings financial benefits to a firm. However, many chief financial officers (CFOs) throughout the world are uncertain about the strategic value of CSR, and no consensus has been reached on defining how CSR creates value. Drawing on signaling theory, we explore the effects of the multidimensional construct of CSR on organizational performance by examining the relationships among CSR, corporate reputation, customer satisfaction, and organizational attractiveness from the perspectives of both customers as well as job seekers. Consistent with the European Commission's view, CSR is defined as having three components: CSR for employees, CSR for customers, and CSR for social public welfare. Data are collected through an online survey of a convenient sample of 500 individuals from different organizations in China. Results indicate that corporate reputation plays a mediating role in the relationship between CSR and customer satisfaction and that between CSR and organizational attractiveness. Further, the impact mechanisms of the three components of CSR are different. For CSR for employees, both cognitive and affective reputation work as mediators, with the former playing a bigger mediating role than the latter. For CSR for customers, only cognitive reputation works as a mediator, whereas for CSR for social public welfare, only affective reputation works as a mediator. This study's findings show that the abovementioned relationships are more complex than previous studies have revealed. These insights provide guidelines for firms to better adjust their CSR strategies to improve customer satisfaction and organizational attractiveness.

The Relationship between Social Responsibility and Business Performance: An Analysis of the Agri-Food Sector of Southeast Spain

“…The results also confirm, in line with numerous previous works [18,[78][79][80][81][82][83][84], the existence of a positive impact of the CSR of the companies in the sector on their IR. Finally, in line with other previous work [37,[86][87][88][89][90][91][92][93][94][95][96], the existence of a positive impact of CSR on SS is also confirmed.…”

“…All these elements increase the level of satisfaction of stakeholders beyond economic benefits. Numerous studies suggest the existence of a positive impact of CSR on customer satisfaction and loyalty [37,[87][88][89], on job satisfaction and employee commitment to the objectives and values of the company [90][91][92][93][94][95] and on the satisfaction of its suppliers, facilitating the generation of stable and strategic relationships for the future based on trust [96,97]. In line with these results, we propose the following hypothesis in this investigation: Hypothesis 4 (H4): Firms' CSR orientation is positively related to the satisfaction of their customers, employees, and suppliers.…”

Organizational failure to ethically manage sexual harassment: Limits to #metoo

“…Both this perspective and my argument that organizations have failed to fulfill their ethical obligations are consistent with Renouard and Ezvan’s (2018) conceptualization of a firm's corporate social responsibility as comprising liability for its impact on its stakeholders’ capabilities as well as an obligation to safeguard humanity. Employees are included among these stakeholders (e.g., Zhang, Cao, Zhang, Liu, & Li, 2020).…”

Consumers’ perception of CSR motives in a post‐socialist society: The case of Serbia

“…However, when it comes to purchase decisions, consumers’ attitudes are influenced by a number of factors, among which, as confirmed by some authors (Maignan, ; Pérez, del Mar García de los Salmones, & Liu, ; Zhang, Cao, Zhang, Liu, & Li, ), CSR may be more or less considered as both a motivating and a distracting factor. Recent results confirm and offer guidelines for utilization of CSR as a tool to gain legitimacy (Ozdora‐Aksak & Atakan‐Duman, ), or to increase corporate reputation among the public (Rothenhoefer, ), even in case of controversial industries (Aqueveque, Rodrigo, & Duran, ).…”