To examine whether embracing CSR, as a managerial process, would impact the bank and its relationship with customers. The moderating roles of CSR strategy and corporate reputation are explored.
The operational logistics methodology (OLM) and pragmatism guide this research. The qualitative and quantitative approaches complement each other in this research. Primary data is collected through a public survey to reach 416 customers of Lebanese commercial banks. The information feeds a structural equation model tested through PLS method.
The study complements previous research examining CSR and its effect on consumer in the service sector. It casts the light on giving due diligence to CSR strategy and implementation. It shows important differences between those banks with formal and informal CSR, with respect to bank’s reputation, customer satisfaction and loyalty.
The study was limited to larger sized banks, “alpha-banks”, in Lebanon. Nonetheless, this thesis highlights the importance of considering differentiating factors, such as CSR strategy, banks’ reputation and customers’ expectations, in the study of CSR’s effect on customers.
CSR practitioners need to recognize the contextual nature of CSR, by exploring the specific concerns of the firm’s stakeholders. CSR is far from a ‘one size fits all’ approach. The benefits of CSR to firms are documented; however, embossed CSR returns are reached through systematic customization, channeling, and periodic evaluation to ensure the firm is up to expectations.
This study provides insights on developing the CSR research and practice, which deliberately contribute to the well-being of society.
The originality of this thesis is two-fold. First, scholars have scarcely examined the subject in developing countries, specifically Lebanon. Second, the researcher highlights the impacts of CSR strategy and bank’s reputation on customer-related outcomes.
CSR strategy, CSR perceptions, Satisfaction, Loyalty, Expectation, Reputation