Influence of bank’s corporate social responsibility (CSR) initiatives on consumer attitude and satisfaction in India

Abstract

Purpose Research on corporate social responsibility (CSR) activities and consumer perception of CSR activities is increasing over the recent past. The purpose of this paper is to gain an understanding of the consumer perceptions of CSR activities of banks in India. It provides insights on whether consumers want their banks to take up CSR initiatives and would these perceptions influence their attitude towards the bank. Design/methodology/approach Self-report questionnaires were personally administered by the researchers and their team. Respondents’ responses were based on their awareness of their bank’s involvement in CSR initiatives. The study uses convenience sampling, given the resource limitations. The research was conducted in the city of Nashik, India during June–October 2015. Findings The results of the study show that consumer perception towards the CSR activities of the bank influenced their attitude and satisfaction. Though consumers expressed a need for their bank’s taking up CSR initiatives, this need did not influence their attitude towards the bank, contradicting studies in the past. Consumer perception of the bank’s involvement in the CSR activities was moderate, indicating that banks need to increase their communication about the CSR initiatives undertaken by them. Practical implications Unique contribution of current research is that the CSR reputation and CSR concern of consumers in the Indian context have been investigated for their influence on consumer attitude. Unlike previous studies, CSR concern does not influence consumer attitude or satisfaction. Findings provide important insights for practitioners and academicians focussing on the banking sector in India. Originality/value Little research is reported on consumer perception of CSR in banking sector. Current research tries to fill this gap.

Top management commitment, corporate social responsibility and green human resource management

“…CSR is concerned with a wider range of stakeholders, in that organisations have an increasing need to place emphasis on adhering to sustainability requirements, such as the rising power of consumers, activists, the media and non-governmental bodies (Porter and Kramer, 2006). Paluri and Mehra (2018) cite various studies which suggest that the benefits which firms derive by engaging in CSR activities go beyond a pure bottom-line outcome. A study conducted by Fortune Magazine in the US indicates that in 1990, 90 per cent of Fortune 500 firms incorporated CSR as a basic component of their annual reports, as opposed to less than half of such firms in 1977 (Lee, 2008).…”

“…A study conducted by Fortune Magazine in the US indicates that in 1990, 90 per cent of Fortune 500 firms incorporated CSR as a basic component of their annual reports, as opposed to less than half of such firms in 1977 (Lee, 2008). In India, according to the Companies Act, 2013, all companies with at least INR5 crores net profit, INR1,000 crores turnover or INR500 crores net worth are obliged to spend 2 per cent of their three-year average annual net profit on CSR activities in each financial year from the 1 April 2014 (Paluri and Mehra, 2018).…”

Sustainable Businesses Speak to the Heart of Consumers: Looking at Sustainability with a Marketing Lens to Reap Banking Consumers’ Loyalty

“…Modern consumers with an understanding of social welfare have encouraged organizations to display a sense of responsibility toward society [52]. Arguably, there are disagreements that whether CSR activities of a bank have a significant impact on customer behavior, including satisfaction [53,54] and loyalty [55,56]. In a recent survey, Sun, Rabbani, Ahmad, Sial, Cheng, Zia-Ud-Din, and Fu [43] examined the relationship of CSR activities to consumer loyalty, and found a positive association between CSR activities of a bank and consumer loyalty.…”

How corporate social responsibility initiatives affect the choice of a bank: Empirical evidence of Italian context

“…Therefore, banks see CSR as a suitable avenue to re‐engage with communities and improve their corporate images (Pomering & Dolnicar, 2009). Most of the CSR activities of banks are in the areas of education, balanced growth, health, environmental marketing and customer satisfaction (Narwal & Singh, 2013) and the CSR initiatives of banks can be broadly classified into those related to—customer centricity, philanthropy, environment, and employee support (Paluri & Mehra, 2018). Indeed, some theories advise companies to actively engage in CSR and manage external social issues effectively, such as stakeholder and legitimacy theories.…”