IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON CUSTOMER LOYALTY IN PAKISTAN BANKING SECTOR

Abstract

Purpose: This research is about the effect of Corporate Social Responsibility on Customer Satisfaction in Pakistani Banking Sector - two banks under study were, Allied Bank Limited & United Bank Limited. The study was aimed at finding out Corporate Social Responsibility initiatives of the banks; to accesses consumer- company identity, company identity attraction and brand equity on the basis of Corporate Social Responsibility. Methodology/sample: For this Study cross sectional survey design is used which involved 50 respondents of managerial level. The technique used to collect data was convenience sampling. Sources of data are primary & secondary. The primary data was questionnaire. This was followed by editing for accuracy & consistence of the information. The responses were tabulated and then presented using frequencies & percentages. Findings: Findings on CSR initiatives have indicated that ABL & UBL participated mostly in promoting environmental development, talent development, and organized charity & worked for victims of degenerative diseases such as cancer. Whereas, findings of the relationship between CSR & Customer Loyalty indicated that Corporate Social Responsibility influences Customer Loyalty through three independent variables that are Consumer-company identity, company identity attraction & brand equity. Practical Implications: As far as recommendations are concerned, the concept of CSR is emerging and is becoming prominent element of customer consciousness. Hence, it is a strong indication for banks to continue their involvement in CSR activities so that it may help them in near future to achieve a competitive advantage.