Perceptions of CSR initiatives as a strategic driver in strengthening relationships among banks and Italian consumers: an empirical approach in the Italian banking context

Abstract

PurposeCorporate social responsibility (CSR) activities are increasingly prominent in the current agendas of firms, regulatory agencies and consumers worldwide. It is vital for banks to understand how consumers perceive CSR activities, as such activities strengthen their brand equity building. This study examines the relationship between financial consumers’ perceptions of banks’ CSR initiatives and brand equity, identifying a mediating influence of consumer trust and satisfaction.Design/methodology/approachThe survey was conducted by distributing questionnaires to Italian banking consumers (941 valid responses). The research hypotheses were tested using structural equation modeling and confirmatory factor analysis.FindingsOur analysis reveals that consumers’ perceptions of banks’ CSR initiatives directly affect brand equity. Moreover, trust and satisfaction positively mediate the relationship between consumers’ perceptions of CSR initiatives and brand equity in the Italian banking industry.Originality/valueThese findings advance understanding by making a novel contribution to the literature; they also have managerial implications. In terms of literature advancement, we provide new evidence related to a context with specific features, namely Italy. From a managerial perspective, this study highlights the importance of informing Italian customers about and promoting awareness of sustainable activities. In turn, client perceptions affect the banks’ value.