THE IMPACT OF CORPORATE SOCIAL RESPONSIBIITY ON

CUSTOMER SATISFACTION

Author – Selvi.J.Vimithra

Assistant Professor,

Department of Business Administration,

Sri Sarada College for Women,

Tirunelveli.

Email – bbasarada@gmail.com

Co-AUTHOR: M.Indira - III BBA

T.Ahila- BBA

ABSTRACT:

Corporate social responsibility is a type of international private business self

regulation.CSR has become a common practice among various organization of world wide. The
positive impact and effectiveness of CSR is used in all areas of modern business. According to
the research of corporations can build potential, compellable images which present fulfil
consumer satisfaction and loyalty. The corporate and customers satisfaction is a key to the
customer loyalty and repurchases behaviour. Features of corporate image provides dual aspects
benificts. One corporate potentials and performance, while second is socio cultural mind set of
the customers toward the organisation.

KEYWORDS: CSR, Corporate image, Customer Satisfaction, Customer Loyalty

INTRODUCTION:

The social role of businesses in the society is the area from mid of last century and there
is lot of articles on it and the CSR is social responsibility of easy topic in the businesses and
among the researches CSR was found limited discourse in 1950. Fredrick was notable
contributor of the CSR in the literature. The study concluded that improving customers
perception of CSR practices such as legal responsibilities, ethical responsibilities, economical
responsibilities and philanthropy responsibilities. The components of CSR might be consider as a
pyramid. Each dimension deserves same considerations

The topics that we are going to explain are the following:

 CORPORATE SOCIAL RESPONSIBILITES

 ECONOMIC RESPONSIBILITES
 ETHICAL RESPONSIBILITES
 PHILANTHROPIC RESPONSIBILITES
 CUSTOMERS SATISFACTION AND EFFECT OF CSR
 CUSTOMER LOYALITY AND EFFECT OF CSR

CORPORATE SOCIAL RESPONSIBILITIES:

There are lots of researches that show the support as well as detract the concept of social
corporate responsibilities. Where articles argued for CSR, some were against the CSR. CSR is a
commitment of reducing all harmful effects and maximizing wealth and its long run beneficial
impact on the society or the community. Companies have become increasingly interested in
CSR, as it seems to have a positive impact on consumers’ affective and behavioural responses.
Planning and initiatives to the social problems is better than to react against them.Widely
accepted definition about CSR stating ‘’the social responsibilities of business encompasses the
economic,legal,ethical, philanthropic expectations that society has of organization.
ECONOMIC RESPONSIBILITIES:

The basic responsibilities of any business are the economic responsibilities that mean
increasing of wealth and profit and development of the economic growth in the business. That is
from the start business organisation was the basic economical unit in communities. Main role of
the businesses was to produce goods and services that the consumers needed and delivered to
gain an acceptable profit. Other responsibilities of business are followed by the economic
responsibility of the firm because without this the others become meaningless.

LEGAL RESPONSIBILITES:

In CSR the motive of profit maximization society allows business to be operates under
the law and regulation promulgated by federal and local governments. Those laws allows
achieving economic mission within the famework of the law.

ETHICAL RESPONSIBILITIES:

Although economic and legal responsibilities followed by the ethical norms and the value
of the society and community. Ethical responsibilities embody those strands, norms,or
expectations that reflect a concern for what consumers, employees, shareholders and the
community regard as fair, just, or in keeping with the respect or protection of stakeholders moral
rights. Ethical responsibilities are the strategic values of managers about right and wrong
business behaviour.

PHILANTHROPIC RESPONSIBILITIES:

Philanthropy responsibilities are actions or policies toward humanity and charity, in the
response to social and community expectations that businesses are good corporate citizens.
Philanthropic responsibilities are voluntarily share of business for the development of society
and contribution to education or community. Ethical responsibilities are components are the
expected in an ethical or moral sense and philanthropy is voluntary part of a business to the
society. The Philanthropic components is willingness to contribute in the charitable expectations
of the society and projects that enhance a community quality of life
CUSTOMER LOYALTY AND EFFECT OF CSR:

Customer loyalty is desire of customer to continue to conduct business with a company

over the time. Loyalty mean to stay with the company for the time being or repurchase behaviour
of the customers is customer loyalty toward firm. It can be described consumer loyalty to
recognition and preference towards a particular company. The customer loyalty is considered a
major objective of a firm to survive in the market and growth and also important for the
competitive advantages. The customers who are loyal will be commented higher contribution of
their category spending for the firm and are more likely to pursue and positively speak to the
surrounding peoples about the firm to become part of the firm. It widely agreed that customer
satisfaction leads to customer retention, purchase intention. Thus it is expected that CSR and
customer satisfaction are positively related to customer loyalty.

CUSTOMERS SATISFACTION AND EFFECT OF CSR:

Customer satisfaction is the feeling of the person in term of pleasure that shows
expectations of the product to their expectations. Customers’ satisfaction is the base for business
success and also for the long run growth of the business. When the level of customer satisfaction
increased it leads to the higher level of customers repurchase they also found that satisfacted
customer and will also recommend and patronize to other customers for the choosing of that
firms product. CSR make a good reputation in the mind of consumers that is used as a positive
sign and customer satisfaction positively influence by the social corporate responsibility.
 THEORETICAL FAMEWORK:

CORPORATE

CSR IMAGE CUSTOMER

 Ethical responsibility SATISFACTION

 Legal responsibility
 Economic responsibility CUSTOMER
 Philanthropic LOYALTY
responsibility

CONCLUSION:

Corporate social responsibility help for the poverty reduction and sustainable
development will not be achieved only through the government action alone. Policy makers are
paying increasing attention to the potential contribution of the private sector to such policy
objectives. Thus it encourages the businesses accountability to a wide range of stakeholders,
shareholder, and the investor. CSR has a variety of policies such as giving organisation,
providing product and services to consumers, reducing harmful waste, and treating their
employees with moral ethic. Hence CSR is something from which everyone can benefit from,
when businesses adopt its policy.
REFERENCES:

 Abrams, F.W. 1951. ‘’management’s responsibilities in a complex world.’’

Harvard Business review 29, no. 3, pp. 29-30.
 Aguinis, H., and G. Ante. 2012. ‘’what we know and don’t know about corporate
social responsibility: A Review and Research Agenda.’’ Journal of management
38, no. 4, p. 933.
 Al Gore and D. Blood. March 28, 2006. ‘’For People and Planet.’’ The wall street
journal, p. A20.
 Anderson, R. February, 2009, ‘’The Business Logic of Sustainability.’’ TED2009.