Social sustainability activities of business and the factors influencing customer loyalty

Abstract

Over the last several years, the consumers have started to realize and have cared about issues like climate change, wealth inequality, lack of equitable access to health care, poor labor rights and discrimination against gender. Therefore, in relevance to the present study, they have shown particular interest in social sustainability practices under corporate social responsibility activities being directed towards the community. Under that framework, companies welcomed their social sustainability practices, expanding their horizons to stay in touch with trends and stay competitive. The model research was built grounded in the SOR framework to attempt to investigate the correlation between social sustainability practices and customer loyalty through dependent variables of customer trust, company identification and customer satisfaction. Furthermore, the boundary role of corporate image may influence the interaction between social sustainability practices and these dependent variables. To accomplish the objective, some hypotheses were set. Since then, the authors use PLS-SEM techniques to test the model and research hypotheses based on data gathered through survey questionnaires. And the hypothesis was compared with the research conclusion drawn. Based on the comparison, the result was reached and a conclusion formulated. The results of the analysis of intermediary factors show that trust, customer-company identification, and customer satisfaction partially influence the impact of social sustainability on brand loyalty. The enhancement of the corporate image was found to increase the impact of social sustainability on customer satisfaction and identification of the company. This research gives insights and values related to CSR activities that assist practitioners in formulating strategic policies. In the end, limitations, and managerial implications of the findings are discussed.