Environment and Social Psychology

Corporate social responsibility and customer satisfaction towards corporate reputation of the banking industry

Solomon Oluyinka

CBMA, De La Salle Araneta University

Adolf Josef Yao

CBMA, De La Salle Araneta University

Nicanor Lazaro Jr

CBMA, De La Salle Araneta University

Maria Cusipag

COED, De La Salle Araneta University

DOI: https://doi.org/10.59429/esp.v10i6.3489

Keywords: corporate social responsibility; customer satisfaction; corporate reputation; banking industry; financial institutions; sustainability

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Abstract

Corporate social responsibility is vital for organizations to achieve sustainability and success, particularly in the banking industry. Banks, as major financial intermediaries, have faced impulsive actions due to the global financial crisis. Engaging in CSR initiatives can have a significant impact on society and the bank's reputation, fostering strong relationships with customers and understanding their needs. However, banks still face reputational risks and customer criticism, as their existence is crucial for society. Researchers conducted a study on leading universal banks to measure the effects of CSR and customer satisfaction on corporate reputation among adults aged 20-64 in the National Capital Region. The correlation coefficient results show that corporate social responsibility and customer satisfaction have a moderate to strong relationship with corporate reputation. The study found that both factors have significant direct or indirect effects on the corporate reputation of the banking industry. Regression analysis revealed an adjusted R squared value of 0.449 and beta values of 0.294 for CSR and 0.472 for customer satisfaction. Engaging in CSR initiatives can lead to customer satisfaction, which in turn boosts the bank's reputation and loyalty. Corporate social responsibility is crucial for banks to enhance their image and retain customers in the industry.

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