Corporate social responsibility and bank customer satisfaction: a research agenda

Abstract

Purpose – While the positive effects of CSR are well documented, there has been little research seeking to understand the effects of CSR initiatives on customer satisfaction. A research agenda is proposed which evaluates the likely impact on customer satisfaction of CSR initiatives versus other more customer-centric initiatives. Further, a hierarchy of customer-preferred CSR initiatives is proposed for evaluation. Approach – This paper reviews the literature on CSR effects and satisfaction, noting gaps in the literature. A series of propositions is put forward to guide future research endeavours. Research implications – By understanding the likely impact on customer satisfaction of CSR initiatives vis-à-vis customer-centric initiatives, the academic research community can assist managers to understand how to best allocate company resources in situations of low customer satisfaction. Such endeavours are managerially relevant and topical. Researchers seeking to test the propositions put forward in this paper would be able to gain links with, and possibly attract funding from, banks to conduct their research. Such endeavours may assist researchers to redefine the stakeholder view by placing customers at the centre of a network of stakeholders. Practical implications – An understanding of how to best allocate company resources to increase the proportion of satisfied customers will allow bank marketers to reduce customer churn and hence increase market share and profits. Originality/value – Researchers have not previously conducted a comparative analysis of the effects of different CSR initiatives on customer satisfaction, nor considered whether more customer-centric initiatives are likely to be more effective in increasing the proportion of satisfied customers.