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Corporate social responsibility associated with customer satisfaction and financial performance a case study with Housing banks in Jordan| Abstract

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Journal of Research in International Business and Management

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Corporate social responsibility associated with customer satisfaction and financial performance a case study with Housing banks in Jordan

Abstract

Abdel baset Hasoneh, Khaled Alafi

This study has three objectives. First is to investigate the set of relationships among the corporate social responsibility (CSR) services and customer satisfaction. The second objective investigates the relationships between [CSR services] and financial performance. The third objective of this study is to examine the mediating effect of customer satisfaction on [CSR services] and financial performance. To achieve the three objectives, the study utilises a single approach design involving the use of a quantitative instrument for customers from Jordanian Housing banks. A representative sample of banks' customers (n=203) were recruited from the selected Housing banks to voluntarily participate in the study. The questionnaire sought information on CSR commonly associated with customer satisfaction in the banking industry, and financial performance, plus demographic details. The results of this study suggested provision of CSR services are associated with customer satisfaction. This is consistent with results of prior studies reporting a significant positive association between the (CSR services) and customer satisfaction. Similarly, this study found a positive relationship between customer satisfaction and financial performance consistent with results of past studies. Furthermore, this study found customer satisfaction mediated the relationship between the (CSR services) and financial performance. Some findings are consistent with past study results which reported financial performance depended on customer satisfaction with CSR services. The present study also offers important implications for i) practice: utility of good CSR services in the maintenance of sustainable business practices and customer satisfaction (as an important stakeholder group) ii) government institutions: encouraging them to improve the integrate CSR services into their business and iii) society: banks being more socially responsible financial institutions.

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