Adding environmental dimension in corporate social responsibility to restaurants’ customer retention
(A2023-114559)

AUTHORS

Moreno Frau, Corvinus University of Budapest, Institute of Marketing, Department of Marketing Management; Mohammadsadegh Omidvar, Department of Business Administration, Faculty of Management, Kharazmi University; Vahid Ghasemi, Universidade Europeia

ABSTRACT

This study aims to integrate the four-dimensional Corporate Social Responsibility (Economic, Legal, Ethical, and Philanthropic Responsibility) with Environmental Responsibility. It also aims to measure how Service Quality and Corporate Image mediate the effect of the five CSR dimensions on Customer Retention. This research employs structural equation modeling to test the proposed conceptual model. A total of 217 valid questionnaires were collected online from customers of restaurants in Tehran. The results show that legal, ethical, philanthropic, and environmental dimensions positively and significantly impact corporate image and service quality. Moreover, corporate image and service quality mediate the effects of the five CSR dimensions on customer retention. This study contributes by extending Carroll’s dimensions with environmental responsibility and showing that also the latter can increase service quality and corporate image. Managers may learn that by improving their environmental responsibility, they are also working on increasing service quality and corporate image, and in turn, on customer retention.